The effect of bonuses for holidays on employee retention in firms

Abstract

Employee retention is a process in which the employees are encouraged to remain with the organization for a lifetime or maximum period of time (Aburub, 2020). This research is conducted to examine the effect of bonuses for the Lunar New Year holiday on employee retention in firms in Vietnam. The authors develop the results of previous studies, in which the firms can reward employees for their retention. This study was conducted in Hanoi City in Vietnam through an online and direct questionnaire of 208 people. Based on the data collected, we run Cronbach’s alpha, exploratory factor analysis (EFA), Kaiser–Meyer–Olkin (KMO) test, Barlett’s test, and regression by using Statistical Package for the Social Sciences (SPSS) software. The results show that employee retention in firms is influenced by the total value of bonuses for the Tet holiday (GT), bonuses for the Tet holiday in kind (HV), and the process and the formula to calculate bonuses for the Tet holiday (QC). Moreover, it recognizes the higher important role of bonuses for the Lunar New Year holiday in the activity of firms. Besides, this paper’s findings are critical for firms in effectively designing human resources policies in confronting labor force fluctuations. Based on the findings, some recommendations are proposed relating to employee benefits for enhancing employee retention in firms.

Navigating Employee Retention: The Importance of Compensation in Phnom Penh’s Private Companies, Cambodia

“…Hence, the role of bonuses as a form of compensation is crucial when considering strategies to boost employee retention. This research provides valuable insights for companies seeking to improve employee retention through the implementation of strategic bonus schemes that are sensitive to cultural and seasonal contexts (Do et al, 2023).…”