INTRODUCTION:

The issue of salary, bonus and personnel treatment is certainly not strange to those who have been participating in the labor market. This is one of the important elements of Human Resource Management; is an effective human resource management and development tool of enterprises. A suitable policy of salary, bonus and remuneration will be the motivation and inspiration for employees to devote themselves to work, thereby improving work efficiency and productivity. According to a survey by Ernst and Young, the remuneration factor is one of the top three reasons why employees leave their positions (over 70%), which demonstrating that salary, bonus and remuneration policies contribute to helping businesses maintain the stability of human resources because this is one of the ways for enterprises to attract personnel, retain talented employees to work, minimize job abandonment, thereby improving efficiency of corporate governance functions.

In addition, the salary, bonus and remuneration regimes for personnel have strong impacts on the development of society, ensure the spiritual and material life for employees, improve the quality of life, and reduce poverty. Social problems, maintaining social stability. At the same time, the work efficiency that employees create for businesses also contributes to a certain extent to the national economy, improving the socio-economic life of the country. Nowadays, the salary, bonus and remuneration policies are applied flexibly by enterprises, depending on the vision, business strategic goals and especially the human resource policy that enterprises pursue.

LITERATURE REVIEW:

Employee Satisfaction:

Employee satisfaction is a concept that has not been agreed by researchers from different perspectives. Maslow's (1943)¹ need scale theory states that when employees meet the needs from low to high. Since then, Kusku (2003)² suggests that employee satisfaction reflects the needs and wants of employees are met and the extent to which employees perceive their work. Wrightand Kim (2004)³ also suggested that employee satisfaction at work is the match between what employees want from the job and what they feel from the job. Job satisfaction was considered on three bases, i.e. based on number of employees, willingness to quit and other factors. (Usha, 2014)⁴. Faizan (2015)⁵ believes that job satisfaction is closely related to many organizational phenomena such as motivation, performance, leadership, attitude, conflict, ethics, etc. Besides, Job Satisfaction basically refers to a person's feeling towards their job, which acts as a motivation to work (Shweta et al. 2016)⁶. Job satisfaction is also a way to attract and retain the right kind of people into the profession to help them operate at peak efficiency and performance (Ruchika, 2017)⁷.

Previous Studies onFactors Affecting Consumer's Decision to Purchase Services:

The problem of Employee Satisfaction has also been studied by many scholars around the world.

Pravin (2012)⁸aims to provides a framework for employee satisfaction and identifies the key factors of employee satisfaction. Data analysis shows that there is a positive relationship between each element of employee satisfaction, named satisfaction from salary and benefits, satisfaction from colleagues, satisfaction from management level. management, satisfaction from working environment, satisfaction from superiors and overall loyalty of employees in Spinning factories.

Antonette et al. (2015)⁹ shows that employee satisfaction plays an important role in candidate performance. Employee satisfaction in simple terms is how satisfied an employee is with his or her job. Unsatisfied employees produce less than they are capable of thus resulting in lower revenue. So creative elements can be used together with traditional elements for high performance. This can be done in banking as government sector banks are highly stressed nowadays due to their workload and staffs currently do not have customer satisfaction surveys.

Pooja et al. (2016)¹⁰ indicated that performance management system allows a business to maintain profitability and performance by linking employee wages to competence and contribution. It provides opportunities for synchronous personal growth and professional development. It brings together all employees under a single strategic umbrella. Most importantly, it gives supervisors and subordinates an equal opportunity to express themselves in structural terms.

The objective of the study Shilpi et al. (2018)¹¹ is to analyze the relationship between ‘Employee satisfaction’ and related organizational factors in the workplace. Employee satisfaction refers to job satisfaction and fulfillment of needs and wants among employees. Five main themes emerged from the thematic assessment, namely - Human Resource Practices, Career Development, Rewards and Benefits, Work Environment and Culture, and Learning and Training. The article concludes that all the factors considered have significant and significant impact on employee satisfaction, which in turn affects employee motivation and overall performance.

Shobha et al. (2014)¹² study on Employee Welfare. This study analyzes various aspects of labor welfare measures applied to employees. It highlights the awareness and satisfaction of workers about various welfare measures and methods of improving welfare measures in Tamil Nadu Sate Transportation Corporation.

Alekh et al. (2014)¹³ explores the main determinants of welfare activities in the banking sector. To achieve this goal, data was collected from 524 bankers from different regions of Punjab. Factor analysis was used to find out the determinants of welfare practice. The results explored seven determinants of wellbeing practice viz; perceived importance of welfare practices, mandatory amenities, healthcare facilities, work-life balance, educational facilities, employee engagement and lending facilities.

Employee Satisfation have been mentioned in previous studies, which have made a positive contribution to finding out the factor effecting Employee Satisfation. However, these studies did not define the classification of Employee Satisfation.

RESEARCH MODEL AND HYPOTHESES:

Based on the researches of a conceptual model was developed which consisted of the determinants of Employee satisfaction, the hypotheses are proposed:

Hypothesis H1: Salary has a positive impact on Employee satisfaction.

Hypothesis H2: Bonus has a positive impact on Employee satisfaction.

Hypothesis H3: Welfare has a positive impact on Employee satisfaction.

Hypothesis H4: Praise and recognition has a positive impact on Employee satisfaction.

Hypothesis H5: Fame has a positive impact on Employee satisfaction.

Figure 1: The study’s Proposed Theoretical Framework

RESEARCH METHODOLOGY:

The research was carried out through 2 phases: Preliminary research and formal research. The preliminary research was carried out by group discussion with 10 people working in different departments at Thanh Long company, including the customer service department, sales department and public relations departments to explore the factors that influence the Employee Satisfaction. Based on combining with observed variables in previous studies on Employee Satisfaction that the author has synthesized, proceed to build a draft scale, based on a draft scale, the author conducts a discussion with a group of staff to discover additional new variables and remove the ones that do not agree, and unify the composition of the preliminary scale. In the quantitative research phase, the survey questionnaire method is used with a valid number of observations of 160. The quantitative analysis methods that will be used for the data analysis part include:

Testing the reliability of the scale by Cronbach's Alpha: This test reflects the degree of correlation between the observed variables in the same factor. The standard to test the reliability of the scale is that the measurement variables have the total correlation coefficient of Corrected Item - Total Correlation ≥ 0.3, then the variable meets the requirements.

Exploratory Factor Analysis (EFA): This method helps to evaluate two important types of values of the scale: convergent value and discriminant value. The condition for exploratory factor analysis is to satisfy the following requirements: Factor loading > 0,5; KMO (Kaiser-Meyer-Olkin) in the range 0,5 ≤ KMO ≤ 1, Bartlett test has statistical significance (Sig. < 0,05).

Confirmatory factor analysis (CFA): is one of the techniques that allow testing how well the measured variables represent the factors. The CFA method is used to confirm the univariate, multivariate, convergent, and discriminant validity of the factor scale.

Multiple Regression Analysis: Multiple regression analysis is a statistical technique that used to analyze the relationship between the dependent variable and multiple independent variables, in which more than one independent variable is assumed to affect the dependent variable. In this multiple regression analysis, multiple independent variables of the study will be entered into the same types of regressions equation. A separate regression of each variable will calculated to define the relationship with the dependent variable. The relationship that occurs between each dependent variable and independent variable is linear. All the variables of the questionnaire are measured by likert scales. Multiple regressions will be calculated using the proposed formula to study the relationship between the independent variables and dependent variables.

RESULTS:

Testing The Reliability of Scale by Cronbach's Alpha:

After testing Cronbach's Alpha for 5 independent variables and 1 dependent variable in the research model (Table 1), all factors have Cronbach's Alpha coefficients that meet the requirements (>0.5) and no observed variables were excluded. The results of testing the reliability of the scale are summarized in Table 1. After testing the reliability coefficient of Cronbach's Alpha, all observed variables meet the requirements for EFA analysis.

Table 1: Cronbach's Alpha test results

Concept	Factor	Number of observed variables	Reliability
	Salary	4	0.884
	Bonus	4	0.832
	Welfare	6	0.891
	Praise and Recognition	3	0.886
	Fame	4	0.850
Decision to purchase Digital marketing		4	0.934

Source: Processing results from survey data, 2021

Exploratory factor analysis (EFA):

The results of EFA analysis are shown in Table 2 with the KMO coefficient = 0.875; the Bartlett test value is significant (Sig < 0.05), all observed variables have factor loading coefficients greater than 0.5 so no variables are excluded.

Table 2: EFA results of the scale

Items	Factors
Items	1	2	3	4	5	6
WEL3	0.816
WEL1	0.765
WEL5	0.750
WEL4	0.690
WEL6	0.663
WEL2	0.659
SAL4		0.918
SAL2		0.917
SAL1		0.733
SAL3		0.538
BON3			0.775
BON2			0.759
BON1			0.722
BON4			0.686
FAM1				0.803
FAM3				0.790
FAM2				0.776
FAM4				0.628
PAR1					0.866
PAR3					0.855
PAR2					0.596
ESA2						0.926
ESA3						0.914
ESA4						0.910
ESA1						0.905

Source: Processing results from survey data, 2021

Table 3: Model Summary

Model	R	R Square	Adjusted R Square	Std. Error of the Estimate	Durbin- Watson
1	0.975^a	0.951	0.508	0.48650	1.927

Source: Processing results from survey data, 2021

Testing the correlation coefficient (R value):

The Multiple Regression Analysis is used to determine the significant relationships between independent variables and dependent variable.

Based on the Model Summary Table 3, the correlation coefficient (R value) for this research is 0,951. This means that the dependent variable strong positively affects independent variable because R value is positive value and 0,951 is fall under coefficient range ±0,71 to ±1.

Testing the Anova:

Table 4: Anova

Model		Sum of Squares	Df	Mean Square	F	Sig.
1	Regression	69.286	5	13.857	595.211	0.000^b
	Residual	3.585	154	0.023
	Total	72.871	159

Source: Processing results from survey data, 2021

In the Anova table 4, it shows that the F value of 595.211 greater than 5 and the p-value is 0.00 which is less than 0.05 (p< 0.05) so significant at the 0.05 level. The significance value was-is less than 0.05, an indication that the model was-is significant. In overall the regression model with those five independent variables is suitable for explaining the variation in Employee Satisfaction.

Develop regression equation with standardized coefficients:

The standardized coefficients predict the influence level of independent variables on Employee Satisfaction in Thanh Long company. We can be determined by the following regression equation with standardized coefficients as below:

Y = 0,329*X1 + 0,263*X2 + 0,175*X3 + 0,256X4 + 0,243X5

Or:

Decision to purchase digital marketing = 0.329*Salary + 0.263*Bonus + 0.175*Welfare + 0.256 Praise and Recognition + 0.243 Fame

DISCUSSION:

The research model is designed to study the factors affecting Employee Satisfaction at Thanh Long company. The proposed model includes 1 dependent variable and 5 independent variables including: Salary, Bonus, Welfare, Praise and Recognition and Fame. Based on theories and qualitative research results, the scale of 5 independent variables and 1 dependent variable is built with 25 observed variables. Data were collected from 160 survey forms analyzed using SPSS20 software. Testing the reliability of Cronbach's Alpha scale is done with the results that all observed variables are satisfactory. Next, we performed an analysis of the discovery factor of EFA and the results obtained was that there was no type of variable, the adjusted model consisted of 1 dependent variable and 5 independent variables as initially. Based on the standardized Beta coefficients, the factor that has the strongest impact Employee Satisfaction is Salary (0.329). The factor that has a decreasing impact is Welfare (0.175).

According to research, the company needs to improve the salary increase plan for employees in a specific way, and widely disseminated to all employees for employees to know and strive for. The salary increase regime should be built with clear criteria, associated with the capacity and work results of each individual, department and the whole company. An unexpected salary increase should be applied to excellent individuals who make effective contributions to the company once or several times a year. Review and adjust salary in accordance with individual capacity based on work results on the basis of the general salary. Need to add more salary increase policy for new employees. Besides, The company should diversify bonuses so that they are worthy of their contributions and dedication such as loyalty bonus (seniority), bonus for guaranteeing working day, bonus for well observance of the Company's rules and regulations. Applying this form will encourage employees to work fully and strictly to comply with the Company's rules. On major holidays, it is necessary to organize awarding sessions for the whole company to recognize the contribution over time, giving to individuals and teams with good achievements, direct cash donation will be a lever to stimulate the spirit. working spirit for employees throughout the company. In addition, The company needs to make full payment of insurance (social insurance, health insurance, unemployment insurance) for employees at the company. As a company in the field of construction, ensuring safety at work is a necessary and very important factor, besides the company needs to do a better job of paying for health insurance as well as other types of insurance. Social insurance for employees in the company. This ensures the interests of employees as well as the interests of the company.

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Received on 08.09.2022 Modified on 01.11.2022

Asian Journal of Management. 2023;14(1):1-5.

DOI: 10.52711/2321-5763.2023.00001