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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John Wiley & Sons, Inc
2019
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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. |
first_indexed | 2024-07-04T06:33:17Z |
format | Article |
id | uum-26571 |
institution | Universiti Utara Malaysia |
last_indexed | 2024-07-04T06:33:17Z |
publishDate | 2019 |
publisher | John Wiley & Sons, Inc |
record_format | dspace |
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 |
work_keys_str_mv | AT subramaniamchandrakantan whatmakesemployeeswanttostayastudyinthemalaysianmanufacturingsector AT choolingsuan whatmakesemployeeswanttostayastudyinthemalaysianmanufacturingsector AT joharijohanim whatmakesemployeeswanttostayastudyinthemalaysianmanufacturingsector |