The link between compensation and affective commitment to organization: A study on information - technology employees in Ho Chi Minh City
Abstract
Nowadays, the IT industry lacks of the high-qualified engineers but employees tend to leave their companies and come to other better organization. Therefore, this issue makes human resource manager hard to keep talents and attract many employees. For these reasons, this research aims at studying the correlation between compensation and affective commitment to organization. The subject of this study is IT employees in Ho Chi Minh city. The three-component model of organizational commitment written by Meyer and Allen (1990) was applied to support framework of research. However, only one component of the model was used because the purpose of this study is to find out the relationship between psychological state of commitment and company‟s compensation in return to employees‟ performance. Compensation focused on salary, benefits and reward which was suitable for Vietnamese organization‟s context.
Before collecting data, the main factors of compensation were clarified by in- depth interview with some employees. After that, a quantitative method was applied by delivering 200 forms of survey questionnaires to respondents working in IT companies.
In the stage of data analysis, the software SPSS 16.0 was used to conduct some crucial tests, namely, descriptive statistics, reliability, exploratory factor analysis and regression analysis.
As a result, regression test indicated that salary, benefit and reward had positive impacts on affective commitment. Especially, salary is the strongest factor that influences on affective commitment. Therefore, human resource manager should plan a suitable policy to attract and encourage employees to work hard for organization‟s goals
and value.