Factors affecting employee loyalty in postal service industry - A case study in Nha Trang post office Khanh Hoa province

Abstract

Employee loyalty is one of the most crucial concepts in the business management field emphasized for dramatic impacts on organizational vitality and development. Recognizing the significance of retaining employees, many Vietnamese researchers have invested effort to investigate the pattern of employee loyalty and related issues in the service factor in the economic environment of Vietnam, such as in the banking industry and hospitality industry (Khuong & Tien, 2013; Tran & Tran, 2020). However, the topic seems to be new since there was no research concerning employee loyalty in the Vietnamese postal industry before this thesis. Thus, it is necessary and important to study the factors affecting employee loyalty in the postal service to contribute to the universal comprehension of organization management. Previously, some researchers have indicated various HRM aspects, particularly, remuneration significantly affect employee loyalty (Akhigbe & Ifeyinwa, 2017). Parallelly, many have demonstrated the indirect relationship between plenty of those practices such as working environment, job characteristics, supervisor support, appraisal system, and even remuneration on employee loyalty through the level of satisfaction (Chang et al., 2010; Robbin & Judge, 2008; Griffin et al., 2001; Boswell & Boudreau, 2000; Charles & Marshall, 1992). Relying on former work, the conceptual framework with seven hypotheses was proposed to study the extent to which how specific determinants influence the faithfulness of employees. To make this quantitative research a reality, 425 workers in Nha Trang Post Office, Khanh Hoa Province, were invited to participate in filling questionnaires. 411 valid observations forming research data were taken into consideration for further research with two statistical applications, SPSS 20 and AMOS 20. Also, by employing Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), and Structural Equation Modeling (SEM), the selected factors are concluded to have significant impacts on employee loyalty in the research organization, both indirectly and directly. Moreover, the research findings lighten interesting discussions, signal improvable shortcomings, and suggest practical recommendations for following business scholars.