FACTORS INFLUENCING EMPLOYEE RETENTION THROUGH THE MEDIATOR JOB SATISFACTION: A STUDY OF OFFICE STAFFS IN HO CHI MINH CITY

Abstract

This paper examines the relationship between employee-related factors and Employee Retention through the mediator Job Satisfaction of office employees in Ho Chi Minh City. The conceptual model is adapted from previous research and Herzberg’s two-factor theory. The theory emphasized the certain elements belonging to two categories namely intrinsic and extrinsic value that lead to people’s satisfaction. Six factors include Training, Pay, Recognition, Working Environment, Leadership and Career Development. The data is collected through questionnaires from 422 office staffs in Ho Chi Minh then only 395 qualified responses are analyzed. SPSS and AMOS tools are used to analyze the data through Reliability test, Model fit test, SEM method. The final result reveals that Pay and Training are insignificantly related to Job Satisfaction meaning that the relationship among Pay, Training and Employee Retention through mediator Satisfaction cannot be concluded. Whereas Recognition, Working Environment, Leadership and Career Development have significant positive relationships with Satisfaction, these variables also have indirect positive relationship with Employee Retention through the mediator. This research is useful for organizations which aim to build the retention strategy to keep the best employees in the company.