The impacts of human resource management practices on employees’ motivation and loyalty

Abstract

The research was conducted in order to identify the relationships between human resource practices, employee motivation and employee loyalty. Quantitative research method was applied with questionnaires directly delivered to 595 employees in hospitality sector in Ho Chi Minh city, Vietnam. Statistics techniques including exploratory factor analysis, reliability analysis, multiple regression and mediation analysis were used. The empirical results showed that variables of team spirit, career development, compensation, relationship with manager and working environment directly affected employee motivation and consequently, they provided indirect effects on loyalty through the mediation of employee motivation. In addition, employee loyalty was also directly affected by career development, working environment and employee motivation. It is suggested that hospitality sector should develop attractive compen-sation and benefit policies, comfortable workplace environment, coherent teamwork culture as well as straightforward career training and development plan for achieving higher level of employee loyalty.