Study on the Factors affecting Job Satisfaction of Employees at BIDV (Bank for Investment and Development of Vietnam)

Transcription

1 Study on the Factors affecting Job Satisfaction of Employees at BIDV (Bank for Investment and Development of Vietnam) Toan Le Duc, Duy Tan University, Danang City, Vietnam. Nhan Ho Van, Duy Tan University, Danang City, Vietnam. Phu Nguyen Huu, Duy Tan University, Danang City, Vietnam. Ha Nguyen Tang Duy Tan University, Danang City, Vietnam. Abstract In developed countries, there are many studies on the factors affecting job satisfaction of employees in enterprises, commercial banks such as the studies of Weiss et al (1967), Hackman, J. R. & Oldham, G. R. (1974). However, in Vietnam there are very few studies on this issue, this paper focuses on the factors that affect the job satisfaction of employees at a particular bank and gives necessary recommendations for the management and administration. Keywords: The factors affecting, job satisfaction 1

2 1. Research Rationale According to Weiss (1967), job satisfaction is the attitude towards work expressed by feelings, beliefs and behaviors of employees. Many studies show that there are two groups of factors that affect the satisfaction of employees, including personal characteristics and aspects of the job. - The elements of personal characteristics: gender; age; capacity; job position; sensitivity; the progressive. - The aspects of job: Nature of work; Salary; Leadership; Co-worker Relations; Working conditions; Training, promotion opportunities and Benefit policies. 2. Literature Review and Hypothesis Development 2.1 Literature Review There are many theoretical models of job satisfaction as: The Minnesota Satisfaction Questionnaire (MSQ) The MSQ (Weiss et al., 1967) is another satisfaction scale that has been very popular among researchers. The MSQ comes in two forms, a 100-item long version and a 20-item short form. It covers 20 facets, many of which are more specific than most other satisfaction scales. The long form contains five items per facet, whereas the short form contains only one. Most researchers who use the short form to combine all the items into a single total score, or compute extrinsic and intrinsic satisfaction subscales from subsets of items. Extrinsic satisfaction concerns aspects of work that have little to do with the job tasks or work itself, such as pay. Intrinsic satisfaction refers to the nature of the job and how people feel about the work they do. Subscales, which have better reliabilities than individual items, are generally preferred. (Paul E. Spector, 1997) The Job Descriptive Index (JDI) The Job Descriptive Index by Smith et al. (1969) includes 72 items to measure job satisfaction levels of employee in five facets. The JDI s value and reliability are appreciated in both practice and theory for over 50% of the published research papers using JDI. Smith, Kendall and Hulin (1969) from Cornell University developed the JDI of the job description to assess the level of employee job satisfaction through the five facets: The nature of the job; Training & promotion opportunities; Salary; Leadership; Colleagues. Later, Crossman and Bassem (2003) added two more facets: benefits and work environment The Job Diagnostic Survey (JDS) The IDS model of Hackman & Oldham (1974) has five core characteristics: skill variety, task identity, task significance, autonomy and feedback, these characteristics impact on the 3 psychological states: understanding task significances, responsibility for work results and perception of work results, from these states will produce the work results. 2

3 2.1.4 The Job Satisfaction Survey (JSS) The Job Satisfaction Survey of Spector (1997), developed to apply to enterprises in the service sector, is the nine facet scale to assess employee attitudes about the job and aspects of the job. The nine facets are: Salary; Promotion; Work conditions; Supervision; Co-workers; Nature of the job, Communication; Contingent Rewards (performance based rewards) and Fringe Benefits. In Vietnam, some authors use the JSS model as a basis for researching the job satisfaction of employees and in the process of study; they have modified, added some other components related to the job in order to suit conditions and job characteristics of each business, each region in the different stages. 2.2 Hypothesis Development Proposed Research Model For the Bank for Investment and Development of Vietnam (BIDV), Quang Nam Branch - A Joint Stock Commercial Bank - Office at 112 Phan Boi Chau, Tam Ky City, Quang Nam Province, with the total officer and employee number of 120 people. Based on the studies mentioned in Section 2.1, the author proposes a research model with seven factor groups which impact on the job satisfaction of employees at the BIDV, Quang Nam Province Branch as follows - Job characteristics - Salary - Leadership - Co-workers - Training and promotion - Working conditions - Social welfare policy The Hypotheses of the Research Model as Follows The nature, characteristics of the job: The satisfaction of employees is affected by the job characteristics such as pressure, the work assignment matching capabilities. The job will be judged well if the satisfaction of employees is greater. H1: Job characteristics are to correlate the same way with the satisfaction of employees. Salary policy: Income is considered as a factor showing the most clearly contributing result of the employees received from organizations and businesses. H2: Salary policy is to correlate the same way with the satisfaction of employees. Co-workers: The satisfaction of employees is also affected by the relationship of co-workers. Open-heartedness, interest and helping each other among co-workers have very positive impacts on employees. 3

4 H3: Leadership factor is to correlate the same way with the employee satisfaction. Training, promotion: The plan of recruitment, appointment done in organizations affects feelings of employees about the fairness and transparency. H4: Co-worker factor is to correlate the same way with the employee satisfaction. Leadership: The people who manage directly the work of employees. The style, attitude of leaders impact significantly to the satisfaction of employees. H5: Training, promotion policies are to correlate the same way with the employee satisfaction. Environment and working conditions are the conditions of the facilities, the safety and hygiene of the workplace. H6: Environment and working conditions are to correlate the same way with the satisfaction of employees. Social welfare policies are fringe benefits that employees receive from businesses such as social insurance, vacation, corporate activities, showing the interest in workers. H7: Social welfare policy is to correlate the same way with the satisfaction of employees. The personal characteristics such as gender, age, qualifications, position, seniority,... also affect the employee sense of job satisfaction. H8: There are differences in the satisfaction of employees by age H9: There are differences in the satisfaction of employees by gender. H10: There are differences in the satisfaction of employees by qualifications. H11: There are differences in the satisfaction of employees by seniority. H12: There are differences in the satisfaction of employees by departments. H13: There are differences in the satisfaction of employees by position. 3. Research Method On the basis of reasoning, the theoretical basis of model selection, process building, study sampling, hypothesis suggestion, using 5-level Likert scale, using SPSS 20.0 software for handling Building a Questionnaire and the Scales of Employee Satisfaction Including 24 variables of 7 factors as the following Table 1 Job1 Job2 Job3 Job4 Table 1: The scale of employee satisfaction in the study model Job characteristics The job showing the social position The job fitting with personal capacity The work enhancing knowledge, understanding The job is stable and does not require overtime, unplanned work Salary policies 4

5 Salary1 Salary2 Salary3 Salary4 Leadership1 Leadership2 Leadership3 Leadership4 Co-workers Co-worker1 Co-worker2 Co-worker3 Training, promotion1 Training, promotion2 Training, promotion3 Work conditions1 Work conditions2 Work conditions3 Benefit1 Benefit2 Benefit3 Income is worthy of the capacity, performance of employees Income is sufficient to cover the needs of life Salary, bonus are competitive with other banks Implementation of reward and discipline is fairness and transparency Leadership Manager s style, attitude, qualifications Manager is friendly, fair Manager s guide is enthusiastic, specific and their timely support Manager provides opportunities for employees to learn & develop Co-workes are friendly, open-hearted Co-workers support and cooperate with each other Co-workers are interested in each other, help each other in life Training, promotion Recruitment, position, appointment are made transparent, fair Employees may participate in training courses Employees have the opportunity to promote Work conditions Workplace is comfortable, safe, and sanitary Work equipment is modern and scientific Information of the working conditions is transparent Benefit policy Benefit policy is fully implemented, showing the interest in employees Satisfied with the social insurance, health insurance Satisfied with the mode of vacation, holiday Similarly, the variables measuring employee satisfaction are also applied 5-level Likert scale to 3 following variables: Satisfaction1 Love the current job Satisfaction2 Pleased to be working in the BIDV, Quang Nam Satisfaction3 Employees will work in the long term with the BIDV Sample Selection The questionnaire will be printed on paper, distributed to all employees currently working at the Bank at the time of the survey. Respondents are all employees currently working at the BIDV, Quang Nam Branch. The size of overall study is N=120. 5

6 3.3 Analysis and Processing of Data The data collected were processed and analyzed with the aid of Statistical Package for the SPSS software version 20.0 using analytical techniques of multivariate statistics such as Cronbach s Alpha, EFA, Multi-Regression Analysis to find out the answers to the purpose research. 4. Data Analysis and Empirical Results 4.1 Data Analysis The total number of questionnaires distributed is 120/120 employees currently working at the BIDV Quang Nam. The total number of questionnaires collected is 120, the questionnaires are valid after being checked out. Thus the total number included in the analysis and processing is 120 questionnaires. The characteristics related to the 120 subjects of investigation are as follows: Gender: males account for 50.8% and females account for 49.2% of the total number of employees at the BIDV, Quang Nam Branch. Percentage difference between men and women is not large and fairly even, this shows that BIDV Quang Nam used and distributed evenly labors. Age: The age of is large proportion, about 49% of the total number of employees and those who are with much experience in the industry. Number of employees under 30 accounts for 36.7%; from 46-55: 12.5%; over 55: 1.7% Seniority: over 10 years: 34.2%; 6-10 years: 30.8%; 2-5 years: 26.7%; under 2 years: 8.3%. More than 60% of employees work less than 10 years, through which shows that the seniority of the Bank staff is also quite young. Positions: employees 70.8%; leaders of departments and branches: 29.2% Qualifications: college level: 71.7%; postgraduate: 3.3%; levels of intermediate and senior high school: 25% 4.2 Empirical Results Rating Scales by Cronbach's Alpha Reliability Coefficient Results of the analysis show: - Cronbach's Alpha coefficient of the variable groups is > 0.6 and Corrected Item-Total Correlation of variables is > 0.3 so the variables in the model are satisfactory for inspection, can be used for subsequent analysis. - The satisfaction scale with Cronbach's Alpha coefficient = > (0.6) and Corrected Item- Total Correlation is > 0.3 so the scale is satisfactory. These variables will be included in the next factor analysis Explantory Factor Analyse (EFA) (i) Scale of factors affecting the employee satisfaction 6

7 Table 2 shows the observed variables in the overall have no correlation with each other (sig = 0.000). The KMO coefficient is fairly high = (> 0.5), this proves the (EFA) factor analysis is suitable for use. Table 2: KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy..917 Approx. Chi-Square Bartlett's Test of Sphericity Df 276 Sig..000 (Source: Research results of the thesis) Salary2.794 Salary4.783 Benefit1.735 Table 3: Rotated Component Matrix a Component Salary Benefit Benefit2.652 Salary Leadership Co-worker1.748 Co-worker Leadership Leadership4.689 Co-worker Leadership Job1.784 Job3.762 Job Job4.690 Training, promotion Training, promotion1.820 Training, promotion Work conditions1.796 Work conditions Work conditions Eigenvalue

8 Cumulative (%) Cronbach's Alpha coefficient Proceedings of the Second Asia-Pacific Conference on Global Business, Economics, Finance (Source: Research results of the thesis) Extraction Method: Principal Component Analysis, Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 7 iterations The results show that there are some changes in the observed variables among SHL assessment factors for initial work: - The No.1 factor includes seven variables: Salary1, Salary2, Salary3, Salary4, Benefit1, Benefit2, and Benefit3. In general, most of the variables are Salary and Benefit factors. Therefore, this factor is named the income and benefit. - The No.2 factor includes 7 variables: Leadership1, Leadership2, Leadership3, Leadership4, Co-worker1, Co-worker2, and Co-worker3. These seven variables are in the factors of leaders and co-workers, who worked at the same agency. Thus, this factor is named the leaders and coworkers. - The No.3 factor includes four variables: Job1, Job2, Job3, and Job4. These four variables are in the component of job characteristics. - The No.4 factor includes 3 variables: Training, promotion1, Training, promotion2, Training, promotion3. These 3 variables are in the factor of training, promotion. - The No.5 factor includes 3 variables: Work condition1, Work condition2, Work condition3. These 3 variables are in the factor of work conditions. (ii) The Scale of Employee Satisfaction Performing KMO and Bartlett`s testing with fairly good KMO coefficient = (> 0.5), this proves the factor analysis is suitable for use. With (Principal Component) Extraction Method and Varimax Rotation extract a single factor in Eigenvalue value of and Cumulative is % (> 50%). Moreover, the factor loading coefficient of variables is fairly high (> 0.7). Thus, the observed variables of this scale are satisfactory for subsequent analysis. Variables Table 4: EFA Factor Satisfaction3.878 Satisfaction2.868 Satisfaction1.848 Eigenvalue

9 (Source: Research results of the thesis) 4.3. Adjusted Model Cumulative (%) According to the EFA analysis above, the theoretical model to study the factors affecting the satisfaction of employees at the Bank is adjusted as the figure 1 below: Figure 1: Adjusted Research Model Income, benefits Leaders, co-workers Job characteristics The satisfaction of employees Training, promotion Work conditions The personal factors: - Age - Seniority - Gender - Departments - Qualifications - Position The hypotheses of the adjusted model are as follows: H1: Income and benefits are to correlate the same way with the employee satisfaction. H2: Leadership and co-worker factors are to correlate the same way with the employee satisfaction. H3: Job characteristics are to correlate the same way with the employee satisfaction. H4: Training, promotion policies are to correlate the same way with the employee satisfaction. H5: Environment and working conditions are to correlate the same way with the employee satisfaction. H6: There are differences in the satisfaction of employees by age. H7: There are differences in the satisfaction of employees by gender. 9

10 H8: There are differences in the satisfaction of employees by qualifications. H9: There are differences in the satisfaction of employees by seniority. H10: There are differences in the satisfaction of employees by departments. H11: There are differences in the satisfaction of employees by positions. 5. Testing the Research Hypotheses 5.1 Assessing the Fitness of the Multiple Regression Model After performing EFA, there are 5 factors included in the model testing. The value of each factor is the average value of the component observed variables of that factor. Correlation Analysis (Pearson) is used to examine the fitness when including the components in the regression model. The results of the regression analysis will be used to test hypotheses from H1 to H5 described above: - Dependent variable: Satisfaction - Independent variables: Income-benefits, Leaders-co-workers, Job characteristics, Trainingpromotion, Work condition Testing the Correlation Coefficient Performing the correlation analysis with the results at Correlation Matrix, the variables of Income benefits, Leaders co-workers, Job characteristics, Training promotion, Work condition are to correlate closely with the variable of employee satisfaction with the significance level of 1% Regression Analysis Analysis is performed by the Enter method. Results of regression analysis are as follows: Mode l R R 2 Adjusted Table 5: Model Summary -b a. Predictor: (Constant), Income,benefits; Leaders,Co-workers; Job characteristics; Training,promotion and Work condition. b. Dependent Variable: Satisfaction (Source: Research results of the thesis) Adjusted R Square = means the constructed multiple regression model in accordance with the data set by 88.0%. Durbin - Watson = (d = 1.571), based on an index to test the Durbin - Watson with 5 independent variables and 120 observations, we see the value d in the accepted domain, the hypothesis has no correlation to most chains. Thus, the regression model just built does not violate assumptions. R Square Std. Error of the Estimate R Square Change Change Statistics F Change df1 df2 Sig. F Change Durbin - Watson a a

11 To check the fitness of the regression model just built with the overall study, we consider testing F. Table 6: ANOVA a Model Sum of Squares Df Mean Square F Sig. 1 Regression b Residual Total a Dependent Variable: Satisfaction b. Predictor: (Constant), Income,benefits; Leaders,Co-workers; Job characteristics; Training,promotion and Work condition. Model Unstandardized Coefficients Table 7: Coefficients a Standardized Coefficients t Sig. Collinearity Statistics B Std. Error Beta Tolerance VIF 1 (Constant) Income/benefits Leaders, Co-workers Job characteristics Training, promotion Work condition (Source: Research results of the thesis) Sig. = <0:01 (α = 0:01) shows that a multiple regression model just built is consistent with the overall study and can be used. In addition, when considering the assumption of normal distribution of the residuals shows this distribution with Mean 0, Std. Dev. = nearly equal to 1, so we can conclude the normal distribution assumption is not violated. Variance Inflation Factor (VIF) is very small (<5), there is no multi-collinearity phenomenon; therefore, the relationship among the independent variables does not significantly affect the outcome explained by the regression model. The regression equation shows the relationship between satisfaction with the factors as follows: Satisfaction = Income-benefits Leaders/Co-workers Job Training-promotion Work condition. The regression model results show the five factors affecting satisfaction are: "Income, benefits", "Leaders, Coworkers", "Job", "Training, promotion", and Work condition". Of these, 11

12 "Income, benefits" is the most important significance for the employee satisfaction (the largest coefficient), followed by "Training, promotion", "Leaders, Coworkers", "Work condition" and "Job" respectively. 5.2 Testing the Hypotheses of the Model Based on the results of the regression analysis, the hypotheses formulated will be explained, tested as follows: - "Income, benefits" is the most influential factor in the employee satisfaction at the BIDV Quang Nam (regression coefficient = 0.438), the relationship between "Income, benefits" and satisfaction is the same way relationship. So the H1 hypothesis is accepted. - "Leaders, Co-workers", with B=0.183, sig=0.000; - "Training, promotion" with B=0.195, sig=0.000; - "Work condition" with B=0.112; sig= 0.018; - Job characteristics with B=0.094, sig= Thus, according to the data and analysis results, the H1, H2, H3, H4, H5 hypotheses of the research model proposed will be accepted. 5.3 Testing the Differences in Satisfaction, according to the Personal Characteristics Using Independent t-test and ANOVA to test the differences in satisfaction, according to individual characteristics, we have the following results: Testing the difference of gender to the employee satisfaction: The results showed significant levels of Levene test = (<0.05) proved to be the difference in variance to the job satisfaction of the employees at the BIDV Quang Nam between men and women. Based on the average value, we conclude that women have higher levels of satisfaction than men. Testing the difference of age to the employee satisfaction: The results showed there is no difference among the "age" groups in the level of employee satisfaction in the Bank. Testing the difference of qualification to the employee satisfaction: One-Way ANOVA Test showed that the significance level among groups is = (<0.05), so we conclude there is a difference among the "qualification" group in the level of employee satisfaction in the Bank. Testing the difference of departments to the employee satisfaction: The results showed that the significance level among groups is = (<0.05), so we conclude there is a difference among the "departments" groups in the level of employee satisfaction in the Bank. Based on the satisfaction average value among groups shows the employees in the internal departments have a higher satisfaction than the employees in other units. Testing the difference of positions to the employee satisfaction: The results showed that the significance level among groups is = (>0.05), so we conclude there is no difference among the "positions" groups in the level of employee satisfaction in the Bank. 12

13 Thus, according to the analysis, the hypotheses of differences in personal characteristics affect the employee satisfaction with the results as follows: H6, H9, H11 are rejected, H7, H8, H10 are accepted. 6. Recommendations The study results show the level of employee satisfaction at the Bank is not low, but there are still some factors which have the level of satisfaction lower than the level of general satisfaction. Therefore, the author proposes some recommendations to leaders of BIDV Quang Nam as follows: 6.1 Improving the Income and Benefits - Salary policies have to make sure of internal equity and external competitiveness. The Bank needs to accurately assess the performance of each employee based on the work results they perform. - For the issues of benefits, the BIDV Quang Nam is performing quite well, but the level of satisfaction is not high. The programs of rest, employee recovery should be paid more attention. 6.2 Enhancing the Quality of Leadership, Improving Co-Worker Relations We need to select and appoint people with enough competencies, qualifications into proper positions of management. Holding programs, movements, activities of exchange to strengthen co-worker relations. 6.3 Improving the Policy of Training Promotion Organizing training courses associated with the professional activities of employees. We should invite lecturers to teach at the BIDV Quang Nam in order to enable the related employees to attend. For the plan of appointment, the Bank's decisions should be very fair and more public. The persons appointed should have work results outstanding and clearer to prove themselves. 6.4 Improving the Quality of Work The Bank needs to finalize the description of jobs, provides facilities and support tools so that employees can complete their jobs well. In addition, the Bank s recruitment policy should be improved to select persons with professional capability, and skills to perform the job well. 6.5 Improving the Environment, Working Conditions Need to invest equipment, facilities at the workplace, not only at the transaction places with customers, but also at all working areas of employees. Building good relationships among staff, especially the employees working in the different departments or at different transaction offices through union activities. 13

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