Factors influencing employee loyalty directly and indirectly through job satisfaction - A study of banking sector in Ho Chi Minh City

Abstract

This study attempted to identify the relationship between job satisfaction and organizational loyalty of employees who are working in banking industry in Ho Chi Minh City (HCMC). In addition, this study also elicited employees views on the different factors contributing to their loyalty toward their current banks. Quantitative approach was the major method used, with statistical techniques applied, including factor, multiple regression, and path analyses. The unit of analysis was at individual level with the sample size of 201 employees of eleven banks operating in HCMC. The findings of this study indicated that the higher levels of satisfaction, supervisor support, fringe benefits, teamwork, working environment, and training were positively associated with the higher level of organizational loyalty. The factors of satisfaction, supervisor support, teamwork, and working environment play crucial roles and significantly affect employees loyalty. Based on the results of the path analysis, this study argued that in order to achieve high employee loyalty, companies in banking industry should achieve high level of employee job satisfaction, enhance supervisor support and teamwork among employees, and provide good working environment.