FACTORS AFFECTING EMPLOYEE LOYALTY OF ORGANIZATIONS IN VIETNAM 

Ching-Sung Lai, I-Shou University, Taiwan (ROC)

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Abstract

The retention of the employees implies the preservation of the domain knowledge and the potential development of a company. Studies have stated that employee loyalty directly affects the retention of employees and has vital influences on the benefits of a company. Earlier studies on employee loyalty had tended to concentrate on this issue in developed countries. This paper, in contrast, tries to find out the impact of significant factors on employee loyalty and establish the relationships between them in a developing mid-income country, Vietnam. Subjects are from the metropolitan area of Ho Chi Minh City and quantitative methods are utilized. The results showed that co-workers’ support has the strongest effect on employee loyalty. Surprisingly, the salary/income ranked the least significant factor on employee loyalty. 

Keywords: employee loyalty, intra-organizational factors, developing country

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