An investigation of factors influencing employee loyalty in small enterprises in Ho Chi Minh City
Abstract
The aim of this research is to examine factors that can influence employee loyalty in
Ho Chi Minh City. Two hundred and ninety six employees from small and very small companies
in Ho Chi Minh City constituted the research’s sample. By structural equaling model, three
research questions were answered with the dependent variables are Employee Loyalty (AP) and
Employee Satisfaction (ES). First, the relationship between employee satisfaction, employee
loyalty and six dimensions is considered. The findings pointed out that Corporate Culture,
Compensation and Benefits, Performance Management, Career and Personal Development
Opportunities have links with Employee Satisfaction. While, Employee Empowerment and
Relationship with Supervisor have no impact on Employee Satisfaction. Second, these four factors
have positive impact on employee satisfaction. This results can be used when owners of small
enterprises consider building an environment where employee can engage themselves in the long
term.