STRUCTURAL INFLUENCE OF COMPETENCY, WORKING ENVIRONMENT AND EMPLOYEE SATISFACTION AFFECTING THE EMPLOYEE LOYALTY OF THE MACHINERY MANUFACTURING INDUSTRY IN RAYONG PROVINCE

Abstract

The objectives of this research is to 1) study the level of the competency, working environment, employee satisfaction and employee loyalty, 2) study the influence of employee satisfaction as the mediator between the competency and the employee loyalty, and 3) study the influence of employee satisfaction as the mediator between the working environment and employee loyalty in the machinery manufacturing industry, Rayong Province. The samples used in the research were 175 employees in the machinery manufacturing industry in Rayong Province. The research tool was a questionnaire. The statistics used in research consist of frequency, percentage, mean and standard deviation values. The structural equation model (SEM) was analyzed by using Smart PLS 3.0 program.

As results, it was found that (1) employees of the machinery manufacturing industry in Rayong Province have an overall level of competency, working environment, employee satisfaction and employee loyalty at a high level with the mean values of 3.94, 3.85, 3.85 and 3.82, respectively, and the standard deviations of 0.570, 0.650, 0.664 and 0.812, respectively, (2) the employee satisfaction is the mediator connecting the competency to the employee loyalty with the lower bound coefficient of 0.570 and the upper bound of 0.907, and (3) the employee satisfaction is also the mediator connecting the work environment to the employee loyalty with the lower bound coefficient of 0.582 and the upper bound of 0.912. The results shown that the competency results in the employee satisfaction, and the working environment affects the employee satisfaction. The employee satisfaction is the most important factor affecting employee loyalty, significantly.