| Summary: | The semiconductor industry is a major contributor to Malaysia’s economy, especially to Penang. The upgrading of the industry to a high-value added industry has resulted in high turnovers and job hopping among the engineers as the demand for them increases. Thus, retaining engineers has become an important issue for the semiconductor companies because retention of skilled engineers help the organizations to achieve their goals. This study intends to identify factors used to increase employees’ retention. Specifically, this study examines the relationship between person-job (PJ) fit and employees' retention. The data was collected through questionnaires among engineers in semiconductor companies, in Penang. A total of 268 questionnaires were analyzed using the Statistical Package for Social Science (SPSS). The results indicate that PJ fit had positive inclination towards employees’ retention. Based on the findings of this study, semiconductor companies should enhance engineers’ PJ fit in order to motivate them to remain in the organizations. The outcome of this study produced practical contribution to semiconductor companies as they can outline effective guidelines for training activities that could increase PJ fit level among engineers.
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