Employee Loyalty in the Organization

Management efficiency Work attitude Market price Product demand

This high ratio indicates high labor productivity, which is favorable for businesses in the process of creating material wealth.

This low ratio means unfavorable working processes such as: high costs of purchased materials and services or increased waste of time and human resources.

Among the factors affecting labor productivity, the level and ability to motivate each enterprise strongly affects labor productivity through determining the direction of development; division and cooperation of labor; organization and service of the workplace; working conditions; salary and bonus system; attitude of managers... When the above factors are ensured, they will contribute significantly to improving labor productivity in the enterprise. Therefore, to evaluate the effectiveness of motivation in the enterprise, people can evaluate through the labor productivity in each period of that enterprise.

1.3.3.2. Proactive and creative at work

Having a team of employees who work with a proactive and creative spirit is the desire of all managers. Employees who have initiatives to improve techniques, come up with new product designs, or new production methods that effectively save input materials will bring great benefits to every business.

Employee initiative and creativity at work are important in improving labor productivity, reflecting labor quality, creating individual working methods for each person and forming a style.

Corporate culture. This is also an important criterion in evaluating work performance and motivating workers.

1.3.3.3. Employee loyalty in the organization

Every manager wants to have the loyalty of each employee towards his business. Because according to an article in the Journal of Commerce by Robert E Ewin, Associate Professor of Philosophy at the University of Western Australia, loyalty to the company was defined as: "Loyalty is an important driving force leading to responsibility, it helps promote good qualities such as: courage, gratitude, fairness and helps us practice conscience". For each company, loyalty affirms the level of the manager because the manager can only achieve success when he has the absolute loyalty of the employees. Factors affecting the loyalty of employees include: the leadership ability of the manager; salary and bonus regime; recognition, promotion; corporate culture ... Therefore, loyalty is considered an important measure in evaluating motivation in each business.

Employee loyalty in the enterprise is demonstrated through criteria such as:

- Number of strikes per year in the enterprise.

- Attrition rate:

quit one's job

Proportion

=	Total number of people quitting in a period
	Total number of employees working during that period

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1.3.3.4. Employee satisfaction level in the enterprise

Nowadays, retaining good employees in an organization is becoming more and more important. Stability of the human resources helps businesses save on training and recruitment costs, reduces possible professional errors, and builds trust.

and shaping corporate culture. Employee satisfaction is the feeling of satisfaction or dissatisfaction with the results received from the organization's provision compared to the employee's expectations, or the desire for work quality, working environment... To assess the level of employee satisfaction, a sociological survey method can be used, which is to use a questionnaire, through which the business will know whether the motivation of labor at its unit has really met or exceeded the expectations of employees. The survey form can be designed according to 5 levels:

1. Very dissatisfied;

2. Not satisfied;

3. Satisfaction;

4. Very satisfied;

5. Enjoy.

On that basis, determine the average score, combined with the percentage of people choosing the options for evaluation. If the average score is high, it shows a high level of satisfaction and vice versa. If employees are satisfied, they will be loyal to the company, work productively, with high quality and efficiency, and promote the company. Otherwise, they will work with low efficiency and soon leave the company.

Employee satisfaction is considered the result of motivation. When a business effectively motivates its employees, it will encourage and motivate them to work. Motivation can also be considered the result of satisfaction. Therefore, employee satisfaction is considered one of the important criteria for evaluating the effectiveness of motivation in a business.

1.4. Factors affecting labor motivation in enterprises

Factors affecting motivation are diverse and abundant, and can be divided into two groups: Group of factors within the enterprise and Group of factors outside the enterprise. All of these factors have different impacts on motivation depending on each specific condition and circumstance and need to be considered comprehensively.

1.4.1. Group of factors within the enterprise

1.4.1.1. Organization's development goals and strategies

Each organization sets its own development goals and strategies. These development goals and strategies can be set in the short, medium and long term. To achieve these goals, it is necessary to make the most of the human factor in the context of limited other resources. To achieve the goals and complete the development strategies, human resource management policies in general and labor motivation policies in particular need to aim at achieving the above goals and strategies.

1.4.1.2. Business production efficiency of the enterprise

The production and business efficiency of an enterprise also strongly affects wages. For enterprises that regularly make profits, the ability to pay wages to employees will be more convenient and easier. On the contrary, if the enterprise makes a loss or is ineffective, the wages of employees will be affected, possibly leading to a long-term debt of wages.

1.4.1.3. Business owners' views on the issue of labor motivation

The business owner is the head of the organization, so their views on any issue in the management and operation of the organization have a decisive influence on the policy making of that organization.

Motivational policies must therefore be based on the employer's perspective on labor motivation. In reality, the level of material benefits, high or low, depends on the business owner's perspective, which is the policy of investing heavily in materialized resources (modern machinery and equipment,

…) or human resources. If business owners consider attracting talent, creating and strengthening human resources effectively as a top priority, then all tools to attract and motivate employees will be considered more carefully and reasonably.

1.4.1.4. Characteristics of the Company's industry and field of operation

Each company operating in different industries and fields will have different positions and characteristics, different conditions and ways to motivate workers. Because each enterprise operating in different industries will have different policies on material and spiritual incentives to attract and retain employees. Specifically, according to statistics from the Ministry of Labor, Invalids and Social Affairs in 2014, the average salary of employees at 100% state-owned enterprises in the fields of oil and gas, electricity, coal... was 8.14 million VND/month. The banking and finance group had a higher level of 10.5 million VND/month. At 36 parent companies of special-class state-owned enterprises, the salary of advantageous enterprises (oil and gas, coal, electricity, aviation, postal services, banking, finance, tobacco...) was 3.35 times higher than that of the group without advantages (forestry, textiles, railway transport, sugar cane, paper...). Thus, businesses operating in fields with many advantages and good production and business efficiency will have a greater level of material stimulation through salaries, bonuses, and benefits.

1.4.1.5. Factors related to employees

* Labor qualifications

Highly qualified workers will have higher incomes than lower-qualified workers because to achieve that level, workers must spend an equivalent amount of money, time, effort and intelligence on that training. Long-term training can be done in schools or in enterprises. In the annual Human Development Index (HDI) report of the United Nations Development Program (UNDP), the education index is used to assess the education level of countries and can be compared internationally. The higher the education level of workers, the better this quality of workers. In order to do jobs that require a high level of knowledge and qualifications to perform, bringing high economic efficiency to enterprises, it is inevitable that workers with higher qualifications receive higher salaries.

* Years of work experience

Seniority and work experience often go hand in hand. A person who has worked for many years will gain a lot of experience, limit the risks that may occur at work, improve their sense of responsibility for work to achieve high quality productivity, so their income will increase. Nowadays, in many organizations, seniority may not be a decisive factor for salary increases. Seniority is just one of the factors that help promote and reward employees.

*. Level of work completion

Each person's salary income also depends on their level of work completion. Even if their ability is the same, if their level of work completion is different, their salary must be different. That is also an inevitable reflection of fairness in salary policy.

* Employee potential

Potential people are those who are not yet capable of performing difficult tasks, but in the future they have the potential to do so. Paying for potential is considered an investment in the future, helping to retain and develop talent for future potential. There may be young people who are paid high salaries because they have the potential to become senior managers in the future.

* Other factors

– Loyalty: People who are loyal to the organization are those who stick with the organization for a long time. Paying for loyalty will encourage employees to be dedicated to the development of the organization. Loyalty and seniority are related but can reflect different values. Chinese organizations value loyalty while Japanese organizations value seniority in compensation.

– Physical and mental health: Psychology, or in other words, the reaction to a high salary, is the top criterion for determining salary. This concept includes both aspects: the requirements when setting the employee's salary, the amount of work the employee intends to perform corresponding to the amount of money; the acceptable salary standards and the requirements set for that salary by the employer.

– Adaptability and dynamism: demonstrated in the right career orientation to learn a profession that suits one's aptitude, interests, abilities, family circumstances and market needs; in awareness and determination in learning, lifelong learning; skills to quickly grasp market information; interview answering, negotiation and agreement skills; the ability to be ready to move and change jobs in the labor market; the ability to respond to shocks and risks in the market economy, especially due to business bankruptcy, economic crisis, institutional reform... leading to layoffs and unemployment.

employment and unemployment. In recent years, this quality of Vietnamese workers has tended to improve, especially in the group of young workers and trained workers, especially those trained at a high level, but in general it is still limited. In particular, they are very passive and biased in career orientation; lack of quickness in grasping and accessing market information; weak in interviewing, negotiating and agreement skills; low dynamism and mobility in moving and changing jobs; quite passive in responding to risks that occur...

– The professional culture of workers includes the attitudes, thoughts, and behaviors of workers towards human values (ethics, professional conscience, attitudes, working style, awareness of law compliance, labor discipline, etc.) in professional activities and constantly perfecting these values and standards to regulate the behavior of workers in performing work, or a certain profession, becoming the responsibility and self-awareness, daily of workers, or becoming a crystallized professional culture in people.

1.4.2. Group of factors outside the enterprise

1.4.2.1. Factors related to the labor market

When the supply of labor is greater than the demand for labor, wages tend to decrease, when the supply of labor is less than the demand for labor, wages tend to increase, and when the supply of labor is equal to the demand for labor, the labor market reaches equilibrium. Wages at this time are equilibrium wages, this wage level is broken when factors affecting the supply and demand for labor change such as (marginal productivity of labor, prices of goods, services, etc.). However, current wages are not really linked to the relationship between supply and demand for labor in the market, the rate of wage increase is slow while the demand for human resources is large.

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