tailieunhanh - Measure pay satisfaction and loyalty of Vietnamese office workers

This paper utilized the Pay Satisfaction Questionnaire (PSQ) developed by Heneman and Schwab (1985) to test the pay satisfaction of Vietnamese office workers (hereafter referred to as employees) and then determined which dimension of PSQ deeply affects their loyalty. | JED July 2012 | 127 Measure Pay Satisfaction and Loyalty of Vietnamese Office Workers TRẦN KIM DUNG Associate Professor, Doctor of Philosophy, University of Economics HCMC Email: tkd@ NGUYỄN DƯƠNG TƯỜNG VY Master of Economics, University of Economics HCMC Email: mayb500@ ABSTRACT This paper utilized the Pay Satisfaction Questionnaire (PSQ) developed by Heneman and Schwab (1985) to test the pay satisfaction of Vietnamese office workers (hereafter referred to as employees); and then determined which dimension of PSQ deeply affects their loyalty. The Structural Equation Model was utilized with a population of 224 office workers who graduated from three-year colleges at the least and have been working in HCMC. The results showed that the four-dimension PSQ was suitable to measure the pay satisfaction of Vietnamese employees; and these four dimensions include pay scale, pay raise, benefits, and pay administration. Of which, the pay administration affects the loyalty of employees more strongly than the pay scale does. The paper also discussed and extended some solutions that enterprise managers could consider for improving the pay satisfaction and loyalty of their employees. Keywords: pay satisfaction, loyalty, Pay Satisfaction Questionnaire (PSQ) 128 | Trần Kim Dung Measure Pay Satisfaction and Loyalty 1. INTRODUCTION The remuneration, either salary or wage, plays a crucial role in attracting and maintaining human resources; and it was proven more vital when the 2011 inflation peaked . Many enterprise managers state that employees are dissatisfied with the remuneration because the enterprise is not financially competent in making a corresponding pay raise. Additionally, not only is the remuneration low but the pay administration is also irrational. This paper utilizes the four-dimension PSQ by Heneman and Schwab (1985) and a population of 224 employees who graduated at least from three-year colleges and have been working in HCMC to .