Does the perception of training in labor law knowledge affect job satisfaction and organizational commitment in commercial banks?

• Published in: Banks and bank systems 2023, Vol.18 (4), p.255-267
• Main Authors: Dao Mong, Diep, Phan Thanh, Hai
• Format: Article
• Language: English
• Subjects: Commercial banks; Employees; Job satisfaction; Labor law; organization commitment; PLS-SEM; training
• ISSN: 1816-7403; 1991-7074
• DOI: 10.21511/bbs.18(4).2023.21

This study investigates the relationship and the magnitude of the influence of perceived training in labor law knowledge on employees’ organizational commitment, with job satisfaction as a mediating factor. The study concentrates on the commercial banking sector in Vietnam, an emerging developing country in Southeast Asia. Data were gathered through interviews with 496 employees from 20 commercial banks in Vietnam. Applying partial least squares structural equation modeling, the analysis indicates that employees’ perceptions of training in labor law knowledge have both direct and indirect effects on their job satisfaction and organizational commitment. The perceived motivation for training, perceived benefits of training, perceived availability of training, and perceived support from management and colleagues all serve as significant mediators in this relationship. Notably, increased job satisfaction significantly contributes to a positive impact on employees’ commitment to the organization. However, the study results suggest that employees’ perceived benefits of labor law training do not have a significant influence on their commitment to the organization. Nonetheless, these results serve as a foundation for managerial implications, offering valuable insights to enterprise managers in the commercial bank sector to improve future labor law training. AcknowledgmentThis collaborative research involves scholars from the University of Law – Hue University and Duy Tan University. The authors extend their gratitude to both institutions for their support and assistance in facilitating the publication of this research.