An Empirical Study on Factors Affecting Employee Loyalty in the Wood Processing Industry

Abstract

In general, human resources are important aspects of any organization. In order to gain the loyalty of employees and stabilize the human resources department, management must always consider employee loyalty. In this study, the author seeks to determine which reward structure best promotes affects job satisfaction among employees, including the influence level of incentives, the support of superiors and promotions among hierarchical positions, and thereby most impacts their loyalty to the company. Using a theoretical foundation and practical studies on job satisfaction and employee loyalty, the author built a five-point Likert scale to determine the reward structure as well as the influencing level of each factor on employee loyalty. Additionally, this study determines the level of influence of three factors—Rewards, Empowerment, and Hierarchical Position—on the job satisfaction of employees, The interaction of job satisfaction and employee loyalty is a statistically significant indication of employee loyalty. In practical terms, this study illustrates the factors that affect the satisfaction of employees working at GiaVinh Co., Ltd.

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