Factors affecting employee engagement: using sem model for study case of social insurance in Ba Ria - Vung Tau province

Abstract

The employee engagement is an approach in the study of organizational behavior. There have been many studies done to find out the factors affecting the employee engagement to the organization. Limitation of previous studies is that, when choosing the number of factors to be retained, authors based only on the Eigienvalues (eigenvalue-one criterion). They did not take into account the cumulative percentage, screening test, percentage. The variance is calculated for each factor and the interpretability of each factor (The Interpretability Criterion). When doing confirmatory factor analysis (CFA), previous studies also did not test the statistical power of the studies. Samples of those studies, have often been taken according to empirical formulas that did not take into account the required statistical power and degrees of freedom of the study. This study was conducted at the social insurance agency of Ba Ria - Vung Tau province, from January 2019 to May 2019, with the aims to finding out and identify the factors that affect to employee engagement, with the analysis has supplementing and overcoming the shortcomings as mentioned above. In this paper, We use statistical software SAS to perform steps key component analysis (CPA), assess the reliability of the scale by Cronbach's Alpha index, exploratory factor analysis (EFA), Confirmation factor analysis (CFA) and Linear structural model analysis (SEM). The analysis results show that employee engagement with the organization is positively affected by 5 factors. The order of impact level are: Salary, bonus and welfare; Training and development opportunities; Organizational culture; Relationships with colleagues and Organizational Leadership Style.