The impact of employer attractiveness on employee retention in Vietnamese enterprises

Abstract

This study aims to test the model of the impact of employer attractiveness on employee retention in Vietnamese enterprises. Using quantitative research method to evaluate model and research hypotheses, with Partial Least Squares Structural Equation Modeling (PLS-SEM) techniques on a sample size of 303 employees in Ho Chi Minh City. Research results show that employer attractiveness (EA) has a direct impact and through organizational commitment, psychological contract, job satisfaction affects employee retention (ER). Both have an impact on ER, but job satisfaction has a stronger impact than psychological contract. There is a statistically significant difference in genders (male, female) and the firm size (large enterprise, SME) for employee retention in Vietnamese enterprises, males and working in SMEs are more strongly influenced by employee retention than females, working in large enterprises. This study shows the importance of EA to ER in Vietnamese enterprises, changing the perception of managers towards investing in EA and makes a small contribution to strengthen the research of Vietnamese and international authors of the EA - Mediator - ER of framework models in enterprises. In addition, the study has some limitations such as not considering the role of social media and the context of Vietnamese enterprises with international workers or international business.