What makes employees want to stay? A study in the Malaysian manufacturing sector

An organization's employee retention rate can signal a source of competitive advantage or risk. Yet, many of the factors that can affect retention rates have not been adequately studied, particularly in sectors where competition for highly qualified employees is fierce, such as the Malaysian ma...

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Main Authors: Subramaniam, Chandrakantan, Choo, Ling Suan, Johari, Johanim
Format: Article
Published: John Wiley & Sons, Inc 2019
Subjects:
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author Subramaniam, Chandrakantan
Choo, Ling Suan
Johari, Johanim
author_facet Subramaniam, Chandrakantan
Choo, Ling Suan
Johari, Johanim
author_sort Subramaniam, Chandrakantan
collection UUM
description An organization's employee retention rate can signal a source of competitive advantage or risk. Yet, many of the factors that can affect retention rates have not been adequately studied, particularly in sectors where competition for highly qualified employees is fierce, such as the Malaysian manufacturing industry. To assess the impact of three categories of organizational initiatives—performance management, rewards and recognition, and hiring and promotion practices—on employee retention in Malaysia, researchers polled 130 employees in a semiconductor manufacturing facility. They also examined the moderating role of work environment and job design. Using a structural equation approach to analyze several hypothesized relationships, the researchers found that performance management, as well as rewards and recognition, had a significant impact on employees' willingness to remain with their employer, and that work environment and job design significantly moderated the relationship between hiring and promotion and employee retention. Employers that wish to improve their employee retention rate can begin by strengthening human resources practices that foster employee engagement and commitment.
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spelling uum-265712019-11-05T08:33:55Z https://repo.uum.edu.my/id/eprint/26571/ What makes employees want to stay? A study in the Malaysian manufacturing sector Subramaniam, Chandrakantan Choo, Ling Suan Johari, Johanim HD28 Management. Industrial Management An organization's employee retention rate can signal a source of competitive advantage or risk. Yet, many of the factors that can affect retention rates have not been adequately studied, particularly in sectors where competition for highly qualified employees is fierce, such as the Malaysian manufacturing industry. To assess the impact of three categories of organizational initiatives—performance management, rewards and recognition, and hiring and promotion practices—on employee retention in Malaysia, researchers polled 130 employees in a semiconductor manufacturing facility. They also examined the moderating role of work environment and job design. Using a structural equation approach to analyze several hypothesized relationships, the researchers found that performance management, as well as rewards and recognition, had a significant impact on employees' willingness to remain with their employer, and that work environment and job design significantly moderated the relationship between hiring and promotion and employee retention. Employers that wish to improve their employee retention rate can begin by strengthening human resources practices that foster employee engagement and commitment. John Wiley & Sons, Inc 2019 Article PeerReviewed Subramaniam, Chandrakantan and Choo, Ling Suan and Johari, Johanim (2019) What makes employees want to stay? A study in the Malaysian manufacturing sector. Global Business and Organizational Excellence, 38 (5). pp. 33-43. ISSN 1932-2054 http://doi.org/10.1002/joe.21949 doi:10.1002/joe.21949 doi:10.1002/joe.21949
spellingShingle HD28 Management. Industrial Management
Subramaniam, Chandrakantan
Choo, Ling Suan
Johari, Johanim
What makes employees want to stay? A study in the Malaysian manufacturing sector
title What makes employees want to stay? A study in the Malaysian manufacturing sector
title_full What makes employees want to stay? A study in the Malaysian manufacturing sector
title_fullStr What makes employees want to stay? A study in the Malaysian manufacturing sector
title_full_unstemmed What makes employees want to stay? A study in the Malaysian manufacturing sector
title_short What makes employees want to stay? A study in the Malaysian manufacturing sector
title_sort what makes employees want to stay a study in the malaysian manufacturing sector
topic HD28 Management. Industrial Management
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