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What makes employees want to stay? A study in the Malaysian manufacturing sector
Author(s) -
Subramaniam Chandrakantan,
Choo Ling Suan,
Johari Johanim
Publication year - 2019
Publication title -
global business and organizational excellence
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 16
eISSN - 1932-2062
pISSN - 1932-2054
DOI - 10.1002/joe.21949
Subject(s) - employee retention , promotion (chess) , business , competitive advantage , employee engagement , marketing , affect (linguistics) , polling , work (physics) , competition (biology) , human resource management , retention management , manufacturing , manufacturing sector , public relations , psychology , management , labour economics , economics , mechanical engineering , ecology , communication , politics , political science , computer science , law , biology , engineering , operating system
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.