Factors influencing job satisfaction and its impact on employee loyalty

Abstract

The study explores the critical factors influencing employee loyalty in Vietnam's dynamic economic landscape, focusing on job security, internal communication, employee compensation, and training and promotion opportunities. Using a quantitative research approach with data collected through a structured survey, the research analyzed the relationships between these factors and job satisfaction, employing Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings suggest that all four variables exert a positive influence on job satisfaction, with internal communication emerging as the most significant predictor. Augmented job satisfaction exhibits a substantial correlation with heightened employee loyalty, thereby underscoring the necessity of strategic human resource initiatives that emphasize communication, job security, and developmental prospects to retain talent and enhance organizational efficacy. The research provides actionable recommendations for organizations aiming to bolster employee loyalty and advocates for further investigation into these dynamics across various industrial contexts.