Luận văn thạc sĩ UEH retention of professional bankers at commercial banks in ho chi minh city

1

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

------------------------------ Doan Duc Minh

RETENTION OF PROFESSIONAL BANKERS

AT COMMERCIAL BANKS

IN HO CHI MINH CITY

ID: 60340102

MASTER OF BUSINESS (Honours)

SUPERVISOR: Dr. LE NGUYEN HAU

Ho Chi Minh City – Year 2012

LUAN VAN CHAT LUONG download : add [email protected]

RETENTION OF PROFESSIONAL BANKERS i

ACKNOWLEDGEMENTS

Beginning of my thesis, I would like to express all my sincere thanks to those

people who made this thesis possible and an unforgettable experience for me.

First of all, I would like to show my deepest sense to my supervisor Dr. Le

Nguyen Hau, who offered his continuous advice and encouragement throughout

the course of this thesis. Dr. Hau has offered me the systematic guidance and

great inspiration in putting into me toward the scientific field.

Then, I am thankful to all my colleagues and Board of Management in Shinhan

Bank Vietnam, United Overseas Bank, Hong Leong Bank, Vietnam Commercial

Bank, Asia Commercial Bank, Saigon Commercial Bank, Dong A Commercial

Bank for the consultation, orientation and support during my research process.

Last but not least, this is a great time for a son of family, husband of wife to take

this opportunity to express the profound gratitude from my deep heart to my

beloved family for their love and continuous support both spiritually and

materially.

LUAN VAN CHAT LUONG download : add [email protected]

RETENTION OF PROFESSIONAL BANKERS ii

ABSTRACT

Employees retaining is an important goal of every corporate organization, which

drives company to hit the target. This thesis explores the factors that can

significantly impact employee retention in an organization, and specializes in

field of commercial banks in Ho Chi Minh City. It attempts to relate some of the

factors discovered to major theories in employee retention. The literature

surveyed by this study mention employee motivation and job satisfaction as the

main factors that influence employee retention rates. This survey implies that still

significant for managing employee retention in today’s rapidly expanding

banking industry.

Human resources is definitely one of the most valuable assets in the

organizations, however, high turnover is currently being mentioned recently.

There are a lot of researches around this topic because retaining employees were

realized to be very costly to the organizations. Therefore, retention of key

personnel is a precedent issue for all banks and it seems not many research

reports conducted in Vietnam banking industry.

In the labor market, competitors are always attracting key personnel who are

valued core and not satisfied with their current job. This research explores the

current situation of job satisfaction of key personnel and figures out the

antecedent factors, which impacts job satisfaction. Finally, managerial

implications are withdrawn for improving the level of satisfactions, retaining key

personnel.

Employing a quantitative approach, in which, the data were collected from 160

professional bankers (“bankers”) in commercial banks in Ho Chi Minh City,

multiple regression analysis has resulted in the determinants of job satisfaction,

and a significant impact of job satisfaction on job satisfaction. Pay and leadership

support are found to be two most important factors, other factors include benefit,

opportunities of training and promotion, work challenges. The analysis results

LUAN VAN CHAT LUONG download : add [email protected]

RETENTION OF PROFESSIONAL BANKERS iii

also show that bankers in selected commercial banks are currently not completely

satisfied with their jobs. Based on the statistical results, managerial implications

have been discussed and recommendations are provided to improve the retention

rate of the banking industry in Ho Chi Minh City.

LUAN VAN CHAT LUONG download : add [email protected]

RETENTION OF PROFESSIONAL BANKERS iv

TABLE OF CONTENTS

ACKNOWLEDGEMENTS......................................................................................i

ABSTRACT.............................................................................................................ii

TABLE OF CONTENTS........................................................................................iv

LIST OF TABLES...................................................................................................vi

LIST OF FIGURES................................................................................................vii

CHAPTER 1: INTRODUCTION…………………………………….…………....1

1.1Background…………………………………………………….….…....…1

1.2 Problem statements………………………………………………..….…..2

1.3 Research objectives……………………………………………….……...3

1.4 Scope of study…………………………………………………….……...3

1.5 Thesis structure…………………………………………….…….….……3

CHAPTER 2: LITERATUE REVIEW………………………………….….……...4

2.1 Maslow’s hierarchy of needs……………………………………..………4

2.2 Retention………………………………………………………….……....5

2.3 Job satisfaction and antecedent factors…………………………....……...7

2.4 Moderating factors………………………………………………...…….12

2.5 Research model ……………………………………………….………..13

2.6 Summary of hypotheses…………………….…………………..…..…..13

CHAPTER 3: RESEARCH METHOD…………………………….……….……15

3.1 Research procedure…………………………………………….….……15

3.2 Measurement scales……………………………………………….……15

3.3 Method of data collection……………………………………………....19

3.4 Method of analysis…………………………………………….…….….19

3.4.1 Assessment of measurement of scale……………………….….…20

3.4.2 Multiple regression………………………………………….…..…21

CHAPTER 4: RESEARCH RESULT………………………………………........22

4.1 Introduction………………………..……………………………………22

4.2 Sample characteristics……………………………..……………………22

4.3 Assessment of measurement of scales…………….……….……….…..23

LUAN VAN CHAT LUONG download : add [email protected]

RETENTION OF PROFESSIONAL BANKERS v

4.3.1 EFA for individual scales of antecedent factors…………….……23

4.3.2 EFA for all scales together of antecedent factors……….………..26

4.3.3 Assessment for job satisfaction……………………………….…..29

4.4 Assessment of theoretical model and hypotheses……………….……..30

4.4.1 Assessment of theoretical model………………………….……....30

4.4.2 Assessment level of overall job satisfaction………………….…..32

4.4.3 Assessment of influences of organization/ employee

characteristics to impact of antecedent factors on job satisfaction……..33

4.4.4 Test of hypotheses……………………………………………..…..35

4.5 Discussion………………………………………………………….…....39

4.6 Managerial implications……………………………………………..….40

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS……….………...46

5.1 Conclusion……………………………………………………….……...46

5.2 Recommendations………………………………………………..……..46

5.3 Limitation and further research directions………………………….….48

REFERENCES…………………………………………………….…….....……viii

QUESTIONAIRRES………………………………………………….….………xii

LUAN VAN CHAT LUONG download : add [email protected]