INTRODUCTION:

Humans are the creators of all material and spiritual values of society. In the process of producing material wealth, people is both the subject of organizing social production and participating in the production process as a factor of the productive forces. In that sense, people are the decisive factor in the development of productive forces. Therefore, in order for businesses to thrive, it is necessary to have an effective human resource strategy. When Vietnam's economy integrates into the world, the competitive nature of the market economy is increasingly fierce, especially high-quality human resources is always an essential issue. Currently, most Vietnamese enterprises are not really aware of the importance of detecting, fostering, using and retaining talent. The biggest difficulty today is that businesses cannot recruit good people. For sustainable development, besides organizing, building and perfecting a team of capable managers and talented staff, enterprises need to carry out many activities related to maintaining and human resource development.

LITERATURE REVIEW:

Employee Retention:

In today's global landscape, an effective employer brand is essential for competitive advantage. The current economic downturn and pressures to cut costs and increase productivity have made the need to hire the best people for the right jobs all the more urgent (Sindhu, 2016)¹. Current HR practices lag behind in culture and ethnocentrism while engaging with millennials. Such activity restriction can be very dangerous for any organization as it can may aggravate into cognitive dissonance (Suman, 2016)². The retantion of human resources is an important activity for the development and fulfillment of the goals and objectives of the organization (Kumari et al, 2013)³. Employee retention is a process by which employees are encouraged to stay with the organization for the maximum period of time or until the completion of a project (Shilpi et al, 2014)⁴. Business leaders are facing employee retention as the most important workforce management challenge due to a shortage of skilled workers both in terms of globalization and technological innovation and growth. economy and employee turnover (Smruty et al, 2017)⁵.

Previous Studies on Factors affecting Consumer's Decision to Purchase Services:

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

Sonia et al (2017)⁶ showed that attracting such people requires a lot of motivation in terms of work, workplace culture, supervisors and of course salary. There are many HR practices an organization implements to engage people because engagement leads to productivity. The only way HR can maintain a competitive edge is by continuously innovating the fundamentals of people management.

Surathan et al (2016)⁷ studied variables of the human resource are working environment, employee relationship, employee support, career opportunity, compensation and welfare The survey questionnaires were used as research instrument. The data is analyzed for percentage, mean, and standard deviation. Multiple linear regression analysis is used for hypothesis testing. The study results show the level of employee retention is in moderate level. The factor that most affect employee retention is compensation and welfare. This is the main factor that attracts employees to work with the company in the long term. The second and third factors in range is employee support and employee relationship. It will increase awareness regarding the organization in a positive way.For working environment and career opportunity has not affect with employee retention in company.

Sindhu et al (2011)⁸ indicated that businesses have learned that employee orientation plays a very important role in the development and performance of an employee. Managers often assume that employees have the same work ethic and workplace knowledge as they do. They assume that people know what is expected of them. But the reality is that employees need to know not only how to perform their duties, but also the organization's policies, procedures, and expectations before they assume their responsibilities.

Bidisha et al (2013)⁹ introduced 9 factors influential in employee retention for the company: Compensation, Rewards and recognition, Promotion opportunities, Participation in the decision-making process, Working – Life Balance, Working environment, Training and development, Leadership, Job security. This study is descriptive and only second - data is used in it. The second - data includes various research books and journals. The above model clearly describes that the factors that influence employee retention have a direct relationship to job satisfaction. If these factors exist within the organization, the tendency to leave work or move on to some other work will decrease.

Bilal (2018)¹⁰ showed that despite a great deal of research and restructuring of the entire people policy over the years, organizations still face employee stability issues. This study was done to find out what 21^st century employers are missing in employee retention, or quite simply, why people leave an organization. This study is based on the author's personal observations spanning half a decade across various industries in India.The study brings out the exact spots that an employer needs to target to combat the turnover problems. The study bases its discussion on the fact that needs are not static, they evolve over time. Consequently, employers need to relearn the need philosophies behind motivation.

Manoj et al (2021)¹¹ showed a significant difference between the employee demographic variables in the IT industry, the organizational variable and its performance. IT industries need to find ways to increase employee retention to achieve more of the organization's goals. Furthermore, the organization should understand the potential grievances that prevent employees from leaving. The IT industry is constantly looking for ways to improve HR practices and there is no single policy for employee retention. The study showed that compensation, Training and development, Rewards/Recognition, Work-life balance, Work environmentrelated to Job satisfaction.

Muhammad et al (2011)¹² aimed to investigate the impact of variables (career development, supervisor support, work environment, work life balance) on employee retention. A total of 50 interviews were taken from managers of different BPO organizations in Pakistan. Graphical Analysis is indicating that these variables have significant and positive impact on employee retention.

Shyamasundar (2022)¹³ paper aimed to explore and recognize the impact on employee retention and satisfaction on formal quality management practices and different approaches to total quality. To create a competitive advantage and improve company efficiency and employee loyalty, more and more companies are using absolute quality control as a strategic basis. As a result of intense global competition, the idea of total quality management was born. The concepts of total quality management, processes, tools and strategies are valued by international business and competition organizations.

Khue et al (2018)¹⁴ 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

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

RESEARCH MODEL AND HYPOTHESES:

Based on the researches of a conceptualmodel was developed which consisted ofthe determinants of Employee retention, the hypotheses are proposed:

Hypothesis H1: Compensation, Rewards and Welfare has a positive impact on Employee Retention.

Hypothesis H2: Trainning and Development has a positive impact on Employee satisfaction.

Hypothesis H3: Working Environment has a positive impact on Employee Retention.

Hypothesis H4: Superior Relationship has a positive impact on Employee Retention..

Hypothesis H5: Colleague Relationship hasa positive impact on Employee Retention.

Hypothesis H6: Working– Life Balance has a positive impact on Employee Retention.

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 Danang Dapharcocompany, including the human resource management department, Logistic department, Purchasing department, Pharmacy system and Factory that influence the Employee Retention. Based on combining with observed variables in previous studies on Employee Retention 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 173. 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 6 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.

Exploratory factor analysis (EFA):

The results of EFA analysis are shown in Table 2 with the KMO coefficient = 0.795; 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	7
CRW2	0.841
CRW5	0.834
CRW7	0.825
CRW4	0.819
CRW6	0.808
CRW3	0.794
CRW1	0.747
TD2		0.800
TD1		0.787
TD3		0.776
TD5		0.772
TD4		0.770
WLB4			0.927
WLB2			0.874
WLB3			0.864
WLB1			0.790
WE3				0.765
WE2				0.747
WE5				0.742
WE4				0.722
WE1				0.711
CR2					0.786
CR4					0.775
CR1					0.748
CR3					0.718
SR3						0.728
SR2						0.717
SR1						0.697
SR4						0.662
ER3							0.795
ER2							0.795
ER1							0.683
ER4							0.602

Source: Processing results from survey data, 2022

Testing the correlation coefficient (R value):

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

Table 3: Model Summary

Model

R Square

Adjusted

Square

Std. Error

of the Estimate

Durbin- Watson

0.856

0.733

0.725

0.26682

2.003

Source: Processing results from survey data, 2022

Based on the Model Summary Table 3, the correlation coefficient (R value) for this research is 0.856. This means that the dependent variable strong positively affects independent variable because R value is positive value and 0.856 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	32.603	5	6.521	91.594	0.000
	Residual	11.889	167	0.071
	Total	44.492	172

Source: Processing results from survey data, 2022

In the Anova table 4, it shows that the F value of 91.594 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 Retentionin Danang Daphaco company. We can be determined by the following regression equation with standardized coefficients as below:

Y = 0.329*X1 + 0.301*X2 + 0.287*X3 + 0.213X4 + 0.193X5 + 0.401X6

Or:

Decision to purchase digital marketing = 0.329* Compensation, Rewards and Welfare +0.301* Trainning and Development +0.287* Working Environment + 0.213 Superior Relationship +0.193 Colleague Relationship +0.410 Working - Life Balance

DISCUSSION:

The research model is designed to study the factors affecting Employee Retention at Danang Dapharco company. The proposed model includes 1 dependent variable and 6 independent variables including: Working – Life Balance (β6=0.401), Compensation, Rewards and Welfare (β1=0.356), Trainning and Development (β2=0.301), (3) Working Environment (β3=0.287), Superior Relationship (β4=0.213), (5) Colleague Relationship (β5=0.192). Based on theories and qualitative research results, the scale of 6 independent variables and 1 dependent variable is built with 33 observed variables. Data were collected from 173 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 6 independent variables as initially. Based on the standardized Beta coefficients, the factor that has the strongest impact Employee Retention is Working – Life Balance(0.401). The factor that has a decreasing impact isColleague Relationship (0.192).

The results of the study show that Compensation, Rewards and Welfare have the strongest influence on employee retention. To maximize the capacity of employees, the Company has also developed a Compensation, Rewards/Welfare policy to ensure the harmony of benefits and objectives between the organization and employees. However, the distribution of salaries, bonuses, and benefits is highly appreciated by employees but there are still things that are not reasonable, have not created a motivation to promote production and business activities, and attract human resources. The company needs solutions to solve problems that are not satisfactory to encourage them to work more long-term with the company.

The research results also show that Training and Development has the second effect on employee retention. shows that employees always have the desire and need to improve their expertise to work effectively and better. But now the company's training is not really good. The training time is little, the training content is not diversified,... Training qualified staff and help them to have a clear idea will ensure both quantity and quality of human resources for the company. To build the relationship between superiors and employees, the better it becomes, it is necessary to have the support of their superiors, the management of the company strives to be the role model for the employees themselves. Research results show that leadership has the third most powerful influence on employees' motivation. Therefore, to have harmony between employees and superiors, leaders and managers need to have a fair attitude towards all employees, respect and trust subordinates in work, the leader should exercise employee empowerment that must be conducted regularly.

REFERENCES:

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Received on 19.12.2022 Modified on 07.02.2023

Asian Journal of Management. 2023;14(2):146-150.

DOI: 10.52711/2321-5763.2023.00024

Concept	Factor	Number of observed variables	Reliability
	Compensation, Rewards and Welfare	7	0.920
	Trainning and Development	5	0.857
	Working Environment	5	0.798
	Superior Relationship	4	0.676
	Colleague Relationship	4	0.783
	Working– Life Balance	4	0.896
Empoyee Retention		4	0.934