The impact of motivation, loyalty and commitment on employee retention of public utility enterprises - A case study of Hanoi

• Published in: Tạp chí Khoa học Đại học Mở Thành phố Hồ Chí Minh- Kinh tế và Quản trị kinh doanh (bản điện tử) Vol. 19; no. 3; pp. 78 - 94
• Main Authors: Nguyễn Danh Nam, Uông Thị Ngọc Lan
• Format: Journal Article
• Language: Vietnamese
• Published: TẠP CHÍ KHOA HỌC ĐẠI HỌC MỞ THÀNH PHỐ HỒ CHÍ MINH 01-03-2024
• Subjects: giữ chân tập thể công nhân; gắn kết tổ chức; hà nội; lòng kiên định; xí nghiệp công ích; động cơ làm việc
• ISSN: 2734-9306; 2734-9578
• DOI: 10.46223/HCMCOUJS.econ.vi.19.3.2598.2024

Employee retention is considered by researchers as a critical aspect of an organization’s competence. In the past time, the public utility enterprises have seen a high turnover rate of their employees, which, in turn, has tended to have an impact on productivity and work efficiency. Therefore, the strategies needed to implement how employees stay committed to their work have become a challenge. The current literature pointed out that many factors that influence employee retention in the public sector. The purpose of the study is to discover the influence of work motivation, organizational commitment, and employee loyalty on employee retention at public utility enterprises in Hanoi. This study adopted the SEM to test the fit of the model and the proposed research hypotheses in combination with collecting cross-sectional data from 453 employees. The findings show work motivation, organizational commitment, and employee loyalty have a significant positive impact on employee retention at public utility enterprises in Hanoi City. Besides, work motivation has a significant correlation with organizational commitment and employee loyalty as well as a commitment, has an active correlation to employee loyalty. Based on the research findings, several implications are suggested to support leaders of public utility enterprises to increase employee retention.