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

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

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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.

Item Type: Article
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Othman Yeop Abdullah Graduate School of Business
Depositing User: Mrs. Norazmilah Yaakub
Date Deposited: 05 Nov 2019 08:33
Last Modified: 05 Nov 2019 08:33
URI: http://repo.uum.edu.my/id/eprint/26571

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