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Strategiesof Improving Employee Retention in Malaysian Organization

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Abstract

An organization’s capacity to provide a framework that ensures arobust employee retention structure is paramount in its realizationof aspired success factors. Several factors that determine the extentto which a firm can achieve employee retention provide a frameworkfor the paper. In addition, the uses of different variables thatmeasure the degree of employee retention within organizations ensurea lengthy elaboration of the problem. For critical assessment of theproblem, the study identifies employee retention in both outcomes andstrategies aspect thus, it embraces retention as the ability toretain employees, and the efforts that a firm employ to retain itsemployees. Indeed, the context of retention and its impact on theoverall turnover is a critical segment of the research. This studyaims to address the research question, Strategies of ImprovingEmployee Retention in Malaysian Organization.

The research examines current literatures together with a study onMaybank, one of the largest banks in Malaysia. The research uses acase study designed with qualitative data through a series of indepth interviews, questionnaires and surveys, which most studies haveidentified as the best method for a contemporary business research(Meyer and Gagné, 2008). Hence, the data analysis produces threecore results of interesting finding include the use of ineffectiveinduction and selection of techniques job satisfaction, motivation,leadership and recognition, performance and development. The studyprovides a better understanding and coherent consideration of theimprovement of employee retention within Malaysian Organizations tolower turnover rates, and provides recommendations for retainingemployees effectively and efficiently

Tableof Content

Strategiesof Improving Employee Retention in Malaysian Organization 1

Abstract 2

Strategiesof improving employee retention in Malaysian organization 6

CHAPTERONE: INTRODUCTION 6

1.1 Background of the problem 8

1.2 Statement of the problem 9

1.3 Objectives of the study 9

1.4 Research Questions and hypothesis 10

1.5significance of the study 11

CHAPTERTWO: LITERATURE REVIEW 12

2.1 Introduction 12

2.2 Previous studies 13

2.2.1 Employee Retention 13

2.2.2 Retention Techniques 14

2.2.2.1 Job Satisfaction and motivation 14

2.2.2.2 Employee engagement 15

2.2.2.3Career development and leadership 16

2.2.2.4 Performance assessment recognitionand rewards, training 17

2.2.2.5 Employee empowerment 18

2.3Related theories 19

2.3.1 Absenteeism and Morale 19

2.3.2 Motivation 20

2.3.3 Work environment and communication 21

2.3.4 Stress 22

2.4 Theoretical framework 23

CHAPTER3: METHODOLOGY 25

3.1 Introduction 25

3.2 Research design 25

3.2.1 Quantitative research 26

3.3 Sampling and population 27

3.4Instruments and Measurement 27

3.4.1 Research Strategy Methods 28

3.4.2 Quantitative and qualitativemethods 29

3.5 Methods of data collection 29

3.5.1 Self-administered Interviews 30

3.5.2 Questionnaires 31

3.5.3 Design of the survey 31

3.6 Descriptive analysis 32

CHAPTER4: DATA ANALYSIS AND RESULTS 35

4.1 Introduction 35

4.2 Data Analysis 35

4.2.1 Overview of the findings 36

4.2.3. Descriptive analysis 37

4.3.1 Regression and ANOVA analyses 38

4.3.2 Cronback- Regression analysis 40

. 40

CHAPTER5: DISCUSSIONS AND RECOMMENDATION 44

5.1 Introduction 44

5.2 Discussions of key findings 44

5.3 Implications of the study 47

5.4 Conclusions and recommendations 48

Bibliography 50

Table 1: Reliability Analysis 60

Table 2: Test of Collinearity 60

Table 3: Regression Results 61

4.3.1 Regression and ANOVA analyses 62

Table 4: Regression 62

Table 7: ANOVA Model Summary 64

Strategiesof improving employee retention in Malaysian organizationCHAPTERONE: INTRODUCTION

Employee turnoveris strong aspect within organizations that determine the flow ofdevelopment and productivity hence, the profitability oforganizations. In its endeavor to realize vision 2020, the governmentof Malaysia seeks the support of all Malaysians. In this regards, thehuman resource management has a predominant place in the realizationof the economy development agenda of 2020. In fact, the humanresource is the most substantial capital in the processes oforganizations within the country thus, the need for organizations toretain the most productive employees to accomplish the ultimateobjective. Employee retention has become a predominant player in thecreation of business success factors within organizations since theloss of employees may exacerbate wide-ranging consequences, and atthe extreme may endanger efforts to accomplish structural goals.Employee engagement, aspirations, and motivations thus, become themost significant aspects of organizational behaviors that ensurecompanies achieve a robust employee retention structure. Besidesnurturing organizational obligation and productivity, these aspectsallow organizations to achieve a significant market share and gainextensive returns. Most HR notions and theories regard humans asresources motivated by complicated collection of interconnectedaspects such as desire for expressive occupation, acknowledgement,and interpersonal associations.

Studies on employeeretention show that employee turnover crises have severe impacts onthe productivity and profitability of an organization. In thisregards, further studies on the strategies that organizations can useto achieve high levels of employee retention need critical conductionusing theories and models that explain why employees feeldissatisfied and disregard their job descriptions. Such studies willhelp explain how organizations can improve employee retention inorder to achieve their organizational objectives. Furthermore,outcomes from the literature review suggest that employee retentionis a critical aspect in an organization’s endeavor to create astructural change designed to offer create strong productivity andprofitability issues. In this regards, employee retention is acritical aspect in organizations’ endeavors of achieving extensivemarket share, create value for the country, and help reduceunemployment rates in Malaysia.

Ranked at position332 in the leading companies across the world by Forbes, Maybank isthe largest company in Malaysia with a market capitalization of morethan US$ 25.4 billion. The private sector has in the recent pastencountered numerous issues of high employee turnover thus,strategies to improve employee retention will allow organizations inMalaysia to inhibit rises in employee turnover. In this regards,employee retention will increase market share of organizations,increase productivity, and enhances business success factors, whichwill lead to low levels of unemployment throughout the country. Theevaluation of the strategies that improve employee retention willhelp organizations identify their weaknesses and strengths that theycan utilize to provide favorable environments for employees in orderto lower turnover rates and improve retention.

1.1Background of the problem

Employment engagement programs have become predominant in the currentbusiness world hence, organizations that have remarkable performancemanagement processes have remained highly competitive. The programshave enabled employees remain committed to the goals and mission ofan organization, which has improved productivity, morale, andbusiness success factors. Employment engagement remains the mostnoteworthy driver of effectiveness and performance in firms sincemost methodologies to performance and output often offers short-termsolutions to firms. In this regards, organizations with remarkableperformance management processes have enhanced their profitability bymore than 20%, and reduced employee turnover by over 80% (Böckermanet al., 2012). Böckerman et al. (2012) assert that anorganization can improve profitability and enhance employee retentionby ensuring that it provides critical performance managementprograms. In their research, Böckerman et al. (2012) showthat a firm that improves it employee retention rate not only reduceemployee turnover, but also increases its profitability. Goalmanagement has helped organizations accomplish performance throughpremeditated and effective manners. The changing dynamics in thebusiness world have forced organizations to seek ways of enhancingemployment engagement programs to achieve the desired goals.

Organizations continue to engage and motivate employees in a bid toretain a high number of them thus, employee retention is a criticalelement in an organization. Furthermore, employee retention ensuresthat an organization increases employee’s morale and productivitythrough the numerous efforts it embark on to promote employees. Sincehigh rates of employee turnover decrease an organization’sefficiency and its business success factors, the cultivation of arobust employee retention program is a key development in theorganization. In this case, employee retention involves five majoraspects of an organization i.e. compensation, environment, support,relationship, and growth.

1.2Statement of the problem

Employee retention has enabled numerous organizations to cultivateways of engaging and motivating their employees thus, low rates ofemployee turnover. Employee retention programs allow organizations tocreate a favorable environment, which ensures high productivity andmorale. In essence, the research tries to define the framework ofemployee retention and how firms can improve on their existingdynamics to ensure a robust employee retention rate. The researchaims to provide a framework on the different programs thatorganizations use to retain employees. In this regards, the researchis an analysis of how organizations can manage employees hence,achieve high levels of retention. The research provides specificmeasures and strategies that organizations ought to cultivate inorder to achieve high levels of employee retention. The researchprovides several elements of the importance of employee retentionsuch as improved productivity, morale, and business success factors.Strategies of employee retention suggest that organizations canimprove retention of employees through providing mechanisms thatmotivate employee to become part of an organization that lets themdevelop their career.

1.3Objectives of the study

The research aims to provide a framework on the different programsthat organizations use to retain employees. In this regards, theresearch is an analysis of how organizations can manage employeeshence, achieve high levels of retention. The research providesspecific measures and strategies that organizations ought tocultivate in order to achieve high levels of employee retention. Inaddition, the research identifies the different environments thatemployees need in the organization i.e. learning environment, workenvironment, support environment, work profile, training anddevelopment environment, and personal objectives and growth.

1.4Research Questions and hypothesis

The research attempts to define how an organization can improveemployee retention. However, the research incorporates other aspectsof organizational behavior and performance management that haveinherent impact on employee retention. The research draws out theimportance of enhancing employee retention by a firm by providing anoverview of conducted research and a case study. Using theories andearlier studies, the research aims to draw out strategies thatorganizations can cultivate to improve employee retention withoutlosing on other business success factors. In this regards, theresearch identifies the strategies that organizations can use toimprove employee retention, chief among them: employee engagement,motivation, performance assessment, empowerment, and careerdevelopment and training. In essence, the research contemplates onthe following questions

  • How organizations can improve employee retention?

  • What are the main aspects of employee retention?

  • What are the some of the measures that organizations leave out in their attempt to improve employee retention?

  • What are the positive impacts of employee retention on employees and organizations?

  • How do organizations manage disengaged employees to increase retention?

Hypotheses of study

Employee engagement

H1: Thereis significant relationship between employee engagement and staffretention.

Performanceassessment

H2: Thereis significant relationship between performance assessment andemployee retention.

Motivation

H3: Thereis significant relationship between motivation and employeeretention.

Staff and careerdevelopment

H4: Thereis significant relationship between staff and career development andemployee retention.

Empowerment

H5: Thereis significant relationship between empowerment and employeeretention.

1.5significanceof the study

The researchdescribes the contemporary strategies employed within mostorganizations in globally thus, the study provides a comprehensiveanalysis on the importance of employee retention. In addition, itdetermines whether an organization has managed its pool of employeeseffectively hence, an effective retention level. The study providesa framework through which an organization can understand how themanagement of employees affects aspects such as satisfaction,commitment, engagement, and productivity. In addition, the studyprovides the link between employees’ management and retention.

In this regards,the outcome of the research implies that low rates of employeeturnover are about managing people and not employee retention. Inaddition, organizations achieve high levels of employee retentionthrough offering initiatives that engage employee effectively. Inthis regards, employee retention influences the business successfactors of an organization greatly with organizations that have weakleadership and communication frameworks experiencing high levels ofemployee turnover.

CHAPTERTWO: LITERATURE REVIEW2.1Introduction

Effective employee retention will help an organization to preserveits competitive edge thus, it will remain highly effective in theprovision of services. With multiple programs such as employmentengagement initiatives, performance management initiatives, andorganizational behavior, the organization may achieve high levels ofemployee retention. In essence, employee retention is one of the mostcritical aspects that the organization needs to undertake.

2.2Previous studies

In today’s climate, it is highly difficult toretain skilled employees, which makes it harder for organizations,especially in the banking sector to reduce employee turnover (Edwardsand Phillips, 2009). In addition, Siong etal. (2006), assert thatorganizations may face numerous challenges because of poormanagement, which leads to lack of strong employee retentionstructures. Issues such as lack of company stability, poor businesssuccess factors, high recruitment, selection, and training costs, andlow productivity. On the other hand,

efficientemployment retention assists organizations in preserving theircompetitive edge thus, a highly productive workforce (Huang etal., 2005 Edwards and Phillips,2009).In this regards, staff retention is one of the most imperativeaspects of an organization business success factor (Arocas and Camps,2007 Edwards and Phillips, 2009).

2.2.1Employee Retention

Employee retention is a critical aspect in the organizationalstructure of a firm. In the recent past, organizations have embarkedon numerous programs to ensure that they retain majority of theiremployees since this reduces costs and ensure that they realize highproductivity. With a changing economy and increased focus oncompetition and production of high quality products, employeeretention has increasingly become a difficult task (Musso et al.,2014). However, organizations that have realized its significancehave continually embarked on several programs to ensure that theyretain majority of their employees. In fact, organizations that failto embark on employee retention programs face numerous problems suchas poor performance, increased costs in training and recruitment,lack of stability, and stiffer competition (Edwardsand Phillips, 2009).

2.2.2Retention Techniques2.2.2.1 JobSatisfaction and motivation

Jobs given to employees should match their goals. This ensures thatworkers enjoy their work guaranteeing a satisfaction to both theemployee and the employer (Hausknecht et al., 2009).Furthermore, an open door policy should be adopted to ensure optimumemployment engagement. Appropriate communication in line of work isdesirable for organizations keen on implementing the employmentengagement concept (Musso et al., 2014). In this case,organizations embark on different programs of performance managementto ensure that employees remain satisfied thus, high levels ofemployee retention.

By linking structural goals to employee’ efforts, an organizationensures that employees have maximum impact on the productivityframework of the organization. An organization should ensure that itmakes the linkages between employee’s efforts and structural goalsas deliberative as possible to enhance business success factors(Edwards and Phillips, 2009). Musso etal. (2014) in their research show that a firm can embark onsetting out goals and defining its objectives effectively to motivateemployees thus, such employees will feel contented. Likewise, Meyerand Gagné (2008), shows that a firm can offer job satisfaction toits employees through definition of objectives and setting of goalsas a way of enhancing its employee retention rate.

An organization usually has a plan for its success. In order toeffectively measure the level of organizational success, the organization has to have an employee performance assessment process which incorporates goal setting, measurement of performance, frequentperformance feedback, employee performance recording and employeerecognition (Musso et al., 2014). By using performanceassessment reports and records, the management of this organizationwill be able to gauge every employee based on their performance andmake informed decisions on who to retain and who not to (Shields,2007).

2.2.2.2Employee engagement

Employment engagement is a notion in human resource management thatdescribes an engaged employee. It is a quantifiable degree of anemployee’s attachment to their profession, co-workers, andorganization that persuades their enthusiasm to work (Meyer andGagné, 2008). Employment engagement is the way an employee issatisfied, motivated, and involved in her work. Engagement is abusiness inventiveness that has both the outcome element and theprocess element. For a company to achieve the desired productivityand performance there have to be a culture shift in the competence ofthe workforce (Meyer and Gagné, 2008). Collaboration becomes anurgent aspect in the productivity of an organization as it pushes thegrowth of firm upwards.

Engaged employees are linked to business factors such as efficiency,performance, retention, customer satisfaction, and profitability(Hausknecht et al., 2009). Relations among employees at alllevels are a main aspect of employment engagement as it plays anessential role in how employees relate with each other. Engagedrelations among employees are vital factors in the profitability ofan organization (Edwards and Phillips, 2009).

Employee’s distinctive practice in line with the makeup of theorganization is a major aspect of employment engagement. Engagedemployees will often magnify the experience they have on the businesspractice that is applicable in their own department (Edwardsand Phillips, 2009). Likewise, Buckingham (2008) shows that afirm can enhance employee retention by providing an environment thatengages all employees. Individuals have different psychologicalelements, which dictate their performance in a job involvement. Theowners and their capability to create conditions that encourageemployment engagement is a main aspect (Hausknecht et al.,2009).

Employee engagement ensure that there is full employee commitment toorganizational objectives and values and that they are motivatedenough to contribute towards the success of the organization, whileat the same time enhancing their workplace well-being (Musso etal., 2014). Successful employee engagement breeds jobsatisfaction, job involvement, sense of empowerment and mostimportantly, organizational commitment (Frey et al., 2013).Employee performance is directly attributable to employee engagement,thus, the management should implement an all-positive engagementprocess with the employees in order to yield employee job andorganizational commitment. An engaged employee is highly likely to beretained (Hutchinson, 2010).

2.2.2.3Careerdevelopment and leadership

People who are directly responsible for the performance ofincorporation, institution, or nay establishment realizes theirattributes to effective leadership through employment engagement,their intensity to delegation, and motivation (Hausknecht et al.,2009). In the study, Hausknecht et al, (2009) assert that aneffective leadership framework within an organization ensures thatthe organization promote performance management thus, increases itsrate of employee retention. This inspiration forms the conception ofservant leadership. The willingness to offer service to others inorder to reach stipulated goals extricates the intensity ofleadership (Buckingham, 2008). Buckingham asserts that inspirationtransforms a person into a complete team builder and the ability todepict the strengths of adherents to become a follower reveals theattributes of humility, honesty, integrity and focus to a leader.

An essential entitlement to people is the idea of participation andpresence in decision-making, which puts emphasis on leadershipstrengths. Intertwining the dynamics of presence and participation tooffer an entity dedicated to moral purpose and guidance reveals theattributes of an effective leader in a person (Frey et al.,2013). The approach of guidance employed by an effective leaderoffers a forum for employees to view their concerns and potentials(Armstrong and Stephens, 2005). In this regards, an effectiveleadership structure in a firm allows the organization to increaseretention through motivating and inspiring employees (Hausknecht etal., 2009). Furthermore, an effective leadership increasesbehavioral management structures and communicates informationeffectively thus, employees feel they belong to the organization.

2.2.2.4Performance assessment recognition and rewards, training

An organization with levels of engagement provides employees withopportunities to expand their capabilities acquire new skills andrealize their potential. People will invest in companies that planfor their career paths. Career growth manipulates engagement foremployees and retains the best for providing growth to theorganization.

Anorganization should provide wages and benefits paid for a standardworking week should not be lower than the national legal standards orindustry benchmark standard (Shields, 2007). The management alsoprovides that whatever the condition is, wages should meetrudimentary needs and provide some flexible income. Moreover, thecompany provides workers with written and reasonable informationabout their employment settings in comparison to wages before theyaccept employment. It also provides that any deductions from the payas a disciplinary tactic shall not be acceptable. As such, strongrewards and robust career development programs allow organizations toretain majority of its employees.

The management of an organization, in this case, should implementviable employee development steps aimed at equipping the employeeswith enhanced knowledge, which will aid them in effectivelydischarging their duties. The management should seek to develop keyemployee skills and talents a move which is highly likely toincrease the motivation, desire and ability of employees toconstantly perform at high levels (Shields, 2007). The management canalso consider on-job training of employees to polish their expertiseand skills. In addition, the management should offer opportunitiesfor career advancement for the employees to prevent dissatisfactionwith the same job over a long period (Frey et al., 2013).

2.2.2.5Employee empowerment

Organizations uses goal commitment measures and personality measuresto align individual goals to self-efficacy thus, the attainment ofthe set goals. The uses of detailed objectives and self-effectivenesshave allowed the firm to mediate a path of visionary leadership,which allows extensive productivity across major department. In fact,the uses of self-efficacy and specific aims procedures have allowedthe firm to become a major player in the clothing and footwearsectors across the globe (Allen and Bryant, 2012). To avoid ascenario where individual aspirations compete negatively with thefirm’s mission, an organization utilizes goal-setting procedures,which include keeping individual objectives compatible with thefirm’s mission, cultivating teamwork in the departments, andutilizing learning procedures. The firm set high learning proceduresto discover the various ways of attaining its objectives andunraveling complex tasks without employee conflicts. This usuallyinvolves development of plans, planned change, focus on goals, andcognitive comprehension of the specific goals set.

In order to improve the rates of employee retention in theorganization, the management may choose to create a new position toaccommodate and retain valuable members of the staff whoseperformance and commitment to the organization is integral in itssuccess in the near future (Shields, 2007). The process shouldconform to organizational goals, mission, vision, managementguidelines and popular culture (Allen and Bryant, 2012). It alsoserves the purpose of reducing workplace differences throughstrategic job alignment and well-structured job model. Themanagement should consider the varying cost and workplace harmonyimplications of the new position and how well it will bond with themanagement and operational structure of the organization (Shields,2007).

2.3Relatedtheories2.3.1Absenteeism and Morale

Managers have often complained of absenteeism as a major humanproblem in managing employee retention. Absenteeism refers to failureby employees to attend to their secluded job, which usually affectsorganization productivity. Numerous theories and thoughts such asSteers and Rhodes model as explained by Allen and Bryant (2012)explain how absenteeism affects an organization retention ratehence, its productivity. The model introduces a conceptual frameworkon the attendance of employee. In this regards, the model assertsthat employee enthusiasm to attend a job and his or her capacity toattend affects the attendance rate in an organization (Allen andBryant, 2012). On the other hand, the Social Theory of Absenteeismasserts that absenteeism acts as an exchange of informal contractbetween an employer and an employee (Allen and Bryant, 2012). In thisregards, organizations need to understand the factors that lead toabsenteeism since it affects the capacity of an organization toproduce. Employee turnover may be used to determine the employees afirm should retain (Allen and Bryant, 2012). Likewise, Musso etal., (2014) believe that competitive workers are retained basedon their overall turnover and this works to cushion the organizationagainst costs related to employee replacements and decrease inproduction. To filter performing and non-performing employees, anorganization should incorporate measures such competitivecompensation, employee recognition and assistance programs in orderto maintain and improve the level of production in the organization.These factors also work towards improving the morale of employeeswhile in the workplace. The atmosphere within the organization cansap morale from employees or increase it. Either this can lead to anegative or a positive job environment and either weaken orstrengthen the commitment of employees to the organization. Theretention of these employees is thus dependent on their workplacemorale and their turnover (Allen and Bryant, 2012).

Job absence and employee turnover are two employee relations aspectsthat are quantifiable. They are used as indicators of employeealienation or satisfaction. Excessive absenteeism and high employeeturnover rates are key contributory factors towards decreasedproductivity. This approach will enable the management to figure outthe productive, motivated and committed employees, and can then makeretention decisions based on the data available (Allen and Bryant2012).

2.3.2Motivation

Employers and management of an organization can enhance employeeretention through various motivational strategies aimed at making theemployees feel comfortable and rejuvenated to work. Whatever strategythe management chooses to adopt, it is paramount that it beconsistent with the vision, mission, objectives, values, and cultureof the firm (Allen and Bryant, 2012). Allen and Bryant (2012) suggestthat a management should recognize that the business world is morecompetitive than ever and as such, come up with motivational stepsaimed at increasing the desire of employees to continue offeringtheir services to the firm. Allen and Bryant show that a managementcan set financial reward programs to excellent performers andemployees who reach a set level of production (Allen and Bryant,2012). The management of the firm should also recognize thatopportunities for career development and advancement would motivateemployees to generate results and inculcate an individualdetermination to grow (Allen and Bryant 2012). Arthur asserts thatemployees feel more satisfied with their work and the organization atlarge if they are recognized and commended for their efforts.Recognition breeds loyalty and increased motivation among employeesas it creates a positive, innovative, and productive organizationalclimate (Young et al., 2013). To ensure that the recognitionprocess generates positive results, the management would appear wiseif it ensured that the recognition process is fair, inclusive,transparent, frequent, varied and timely (Young et al., 2013).

2.3.3 Workenvironment and communication

The basic interaction of employees with management and customers playa crucial role in influencing the physical and psychological responseof the employees towards their work (Musso et al., 2014). Thelevel of work environment control also has a significant influence onjob commitment. An organization may need to allow substantive abilityand freedom to influence the environment in their workplacepositively, as this will enhance their sense of belonging andappreciation for their efforts (Hutchinson, 2010). Majororganizational decisions, changes, and situations should becommunicated to the employees for them to feel that the organizationconsiders them as an integral part of their success (Musso et al.,2014). In light of the above argument, the management is obligated toset up direct lines of communication with their employees in order toenhance their perception of the firm’s direction and their chancesof extending their employment tenures with the firm (Hutchinson,2010).

2.3.4Stress

The state of mind of employees within their individual work settingmay affect their motivation negatively or positively and desire towork and subsequently their desire to remain with the sameorganization (Young et al., 2013). Employee wellbeing ishighly linked to job satisfaction, which plays a huge role in theemployee retention process. Different factors within the firm maycontribute to stressful employee behaviors in the workplace (Young etal., 2013). Unfair treatment, lack of care or concern for theirwellbeing, mistrust, and poor communication may develop a sense ofdisengagement among employees who may consider leaving the firm forbetter opportunities elsewhere. Employees may also feel financiallyundercompensated for their efforts and coupled with limited chancesof career development within the firm, they may develop a negativeattitude and other stress factors, which may work against the spiritof employee retention within the firm (Frey et al., 2013).

People typically define stress from a demand-sensitivity standpoint,a view that Lazarus and Folkman assimilated into Cognitive Theory ofStress, which has developed into a common theory in the research ofoccupational stress (Frey et al., 2013). Frey et al,(2013) define stress as a precise association between a person andthe situation that is evaluated by the person as demanding or beyondthe person’s capitals and jeopardizing his or her welfare. In thisregards, Frey et al, (2013) assert that stress relates topeople’s discernment of the demands expected of them and to theirobservation of their capacity to achieve the demands. People assumethat social and physical situations, people’s traits, socialinformation that people get, and people’s reasoning structure ofreality influence the perception of people to a stress.

Likewise, Young et al, (2013) note that internal factors suchas physical disorder or illness and external factors such as workpressures and workmates affect work stress. In this regards, stressaffects people physically, mentally, and psychologically thus,affecting their productivity. In fact, work stress affects both theindividual and the organization greatly as it leads to absenteeismand high turnover rates. Young et al, (2013) have determinedthat stress has short and long-term effects on a person’s wellbeingwhere during short term reactions, people experience mooddisturbances while in long term they experience mental problems.Longitudinal studies indicate that stress is linked with escalatedlevels of depressive symptoms among people (Frey et al., 2013)

2.4Theoretical framework

Theresearch framework indicates how organizations link employeeengagement, motivation, performance assessment, development andtraining, and empowerment together to reach significant heights ofemployee retention.

Assessment

Career and development

Motivation

Employee engagement

Empowerment

Employee retention = dependant variable

An organization uses and underscore the need for a feedback system tomoderate the specific goals set and control its system in aneffective manner. The identification of active feedback as a factorthat contributes to high performance allows the firm monitors thecontinuous changing business environment through visionary andreflationary processes. The company evaluates the process of reactionand identifies the different uncertainties that may arise thus, thecompany achieves success without manipulating employees. The feedbacksystem enables the employees to achieve self-regulation, add value tothe firm, and achieve the set goals without increasing employmentturnover rates. The firm uses the theories progressively toaccomplish its business success factors such as productivity andmorale without disengaging employees. The use of these programs suchas employment engagement and performance management allowsorganizations to improve employment retention (Shields, 2007).

CHAPTER3: METHODOLOGY

3.1Introduction

Maybankor Malayan Banking Berhad is the most predominant financial andbanking group in Malaysia with substantial operations in Indonesia,Philippines, and Singapore. The banking group began in 1960 to offerbanking and financial services to people. It has enjoyed phenomenalgrowth in South East Asia over the years due to a robust humanresource management system. This organization believes in attracting,recruiting, and retaining the most appropriate agents for it frontline staff. In a highly dynamic and competitive market environment, ameticulous recruitment process is critical towards ensuring thatensures the best talent is brought on-board. It prides in having anenabling culture, which cultivates the best attitude among theirstaff to ensure they do not feel the need to leave the company. Thisresearch paper seeks to review the organization’s human resourcemanagement strategy towards staff retention by addressing theresearch question Strategiesof Improving Employee Retention in Malaysian Organizationthrough the grounded theory methodology.

3.2Research design

Tofind out how a Malaysian organization can improve on staff retention,an explanatory research design is favored. Explanatory researchdesign tends to focus primarily on the question why? It examinestrends as well as compares performance within an industry or sector(Creswell, 2014). To review the phenomenal growth of Malaysianorganizations within the banking industry, more so with regard to anexceptional employee retention strategy, the research methodologywill incorporate an explanatory research design. This Explanatoryresearch design will concentrate on the question why the company hasbeen able to realize its employee retention strategy and positionitself well in the contact center industry by collecting data throughinterviews, questionnaires, and surveys.

Theaim of the research design will be to seek explanations as to whythis has been the case and why other organizations in the sameindustry have lagged behind. As such, empirical data will help inunderscoring the need for explanations as to the research question(Mehta etal.,2014). Casual explanations for Malaysian organizations’effectiveness in employee retentions will be addressed through casualexplanations, which will incorporate direct, indirect, and complexaspects of the research question (Guest, 2011). There will be adegree of uncertainty involved such that the premises tend to justifythe conclusion.

3.2.1Quantitative research

Quantitativeresearch strategies conform to one or more of three distinct forms ofstudy techniques. These can be either interpretive, explanatory orcritical which can be incorporated into different study methods, inthis case ethnography, which refers to the study of social groupingsand phenomenology, which relates to the study of situations andthings as perceived by people (McNabb,2013).In Quantitative research, data collection takes on many forms frominterviews, group and individual interviews to the analysis ofavailable literature. Two major research approaches, which can beapplied to study a Malaysian organization’s attempt to improve onstaff retention, are ethnography and case studies (McNabb,2013).However, this paper will focus on interviews, questionnaires, andsurveys to gather data.

3.3Sampling and population

Samplesize is dependent on time, accessibility, as well as cost (Bryman,2012). For the review of the organization, the sample size willconsist of fifty participants. This sample size is deemed to be largeenough to offer data that is both precise and accurate (Guest, 2011).The participants will include 1 senior manager, 3 supervisors and 50front line staff members of three teams. Since the geographicalspread is small, the questionnaires, staff surveys, and face-to-faceinterviews will be conducted differently. Self-administeredinterviews will be conducted at the organization offices whilesurveys and questionnaires will be handed to the participants at theorganization platform and collected five days later.

3.4Instrumentsand Measurement

Themeasures of the research will be ordinal and placed in intervals toavoid premeditated knowledge of the research. The significance of thedata collected will form the main analysis of the research, whichwill later incorporate the use of regression and correlation. Thegrounded theory methodology offers to generate theories with whichsocial actions, processes, and reactions can be explained. In thiscase, to explain how a Malaysian organization can improve on staffretention (Petty etal.,2012). This research paper intends to conform to the social sciencephilosophical doctrine that is positivism. Positivism underscores anassumption providing that it is possible for researchers to makeobservations on social trends to realize valid knowledge that isreliable explaining how social life revolves around the society (Yin,2009). Positivism provides an argument that sociology should limitresearch to only that which is observable via human senses andrelated theories should be constructed in a manner that is not onlymethodical but also rigid and linear. It will incorporate a socialand physical reality independent of the observer, involve scientificknowledge in the perceived reality, and apply scientific inquirybased on positivist epistemology. This methodology enhances aresearcher`s aptitude towards producing positive knowledge throughrepresentations of what the researcher will consider to define thereal world situation in management (Mehta etal.,2014). This entails delving into is observable as an outcome of humanactivity as second tier constructs which may include market dynamicssuch as demand and supply.

3.4.1Research Strategy Methods

Strategicbusiness management calls on an emphasis for close attention withregard to measurement and conceptualization of business performance.As such, any researchers strongly comprehend that measurementapproaches need critical evaluations towards enhancing theunderstanding of underlying constructs(Venkatraman and Ramanujam, 2010).In this regard, to ensure a Malaysian organization improves onemployee retention, this has to be adhered. This paper also intendsto apply inductive research methods by taking into considerationobservations of a Malaysian organization`s staff retention strategiesand how they have worked to enhance the company’s overalloperations strategy. Thereafter, relate the observations into ascientific pattern through which a tentative hypothesis will befounded (Mehta etal.,2014). The hypothesis will then be used to define the theory withwhich this paper seeks to explain the best means with which torealize improved staff retention in organizations.

3.4.2Quantitative and qualitative methods

Thestudy adopted the multi methods, which entails articulatingimplications as well as actual practices resulting from theincorporation of qualitative and quantitative data collection andanalysis techniques in a single study (Creswell, 2014). The multimethods approach is significantly useful in studies whereby intercultural interactions maybe obscured by features grounded in morethan two cultures. This allows for more flexible approaches inengaging participant participation with regard to communicativereferences (Mehta etal.,2014).

Thedifference between multiple methods and mixed methods is thatmultiple methods applies quantitative and qualitative methods datacollection techniques but data collected is taken as two distinctdata sets analyzed distinctively through qualitative and qualitativetechniques accordingly (Mehta etal.,2014). However, quantitative will form the main segment of the paperusing self-administered and interview administrative interviews.Self-administered approach will involves the use of telephone,postal, email, and internet base while the interview- administrativeapproach will involves the use of questionnaire. Quantitative methodis a significant approach of data collection since it quantifiesdata thus, provide critical areas under review.

3.5Methods of data collection

Quantitativeinquiry considers the different realities witnessed or experienced bystudy participants in an effort to capture accurately insiderperspectives. The most prevalent sources of quantitative data aredocuments, questionnaires, and interviews(Miles and Huberman, 2004).This paper will focus more on interviews and questionnaires. In aneffort to draw up comprehensive conclusions towards the effectivenessof a Malaysian organization’s HRM strategy in retaining employeesat the organization data has to be collected. In this case, thequantitative method will be applied as the mode of data collectionincorporating questionnaires, and self-administered interviews.

3.5.1Self-administered Interviews

This approach will utilize random sampling in identifyingparticipants. The research does not subject participants topredetermined projections on racial, social, or religious status. Theresearch will analyze items by use of simple regression tools. Acollection of the participants’ answers will be used to form thebasis for the research. The approach will involve employees of Malayaorganization. Self-administered approach will use telephones, email,internet base, and postal codes. In addition, letters will be sent tothe participants containing a return mail address and postal charges(willingness to partake). This is the most commonly preferred modefor conducting interviews as this allows for the exploration ofin-depth experiences and more so prior history of the participants(Venkatraman and Ramanujam,2010). This will serve to allow new content to behighlighted, which may complement on the already existing informationby engaging participants to offer phenomenological aspects of theirperceived working environment at a Malaysian organization.Self-administered Interviews targeted towards the HR management willoffer an added advantage in establishing as to how the organizationhas been able to attain commendable levels of employee retention asthey are not only flexible but also on a personal level (Guest,2011).

Incases where participants have certain degrees of difficulty inunderstanding questions put across, the researcher will be in aposition to clarify them. There is also the high possibility that aresearcher will note interesting observations allowing for moreexploration to the specificity of the subject matter thus reaching tomore informed conclusions by engaging the HR manager and supervisors.These staff members are in a position to show trends in staffretention and highlight the organizations strategies towardsimproving staff retention. Further data will be sourced throughquestionnaires targeting employees and front-line supervisors.

3.5.2Questionnaires

Aquestionnaire can be described as highly structured tool-offeringresearchers with opinionated answers with regard to the respondent’sattitude, behavior, and factual knowledge on a given subject (Guest,2011). In this case, the questionnaires will target the HR managersand supervisors in an effort to understand their experiences,understanding of the organization`s culture and expectations on whatcan be done to improve on staff retention. As such, the questionnairewill involve questions such as what organizational factors at Malayaninfluence you motivation and performance degree at the organization.Explain your reason, how often do you receive positive feedback andnegative feedback from your supervisor at Malayan? What is yourethnic background? How long have you worked at Malayan?

Otherquestionnaires will also be designed to get responses fromsupervisors, managers, and senior managers to gather more insight asto why the organization has been so successful in retaining the rightemployees. The questionnaire will provide critical assessment of thevariables since the research will require participants to answerquestions that relate to their work experiences.

3.5.3Design of the survey

Carefullydesigned and professionally conducted staff surveys offer richinformation on staff perceptions and attitudes with which researcherscan analyze and make suggestion to management on how to improve onstaff retention (Milesand Huberman, 2004).Surveys are very important tools for data collection in qualitativeresearch methodology and imply asking direct questions that offerresearchers answers necessary towards reaching to a logical andcomprehensive conclusion (Milesand Huberman, 2004).Surveys will be designed to solicit short written responses onemployee attitudes, and beliefs with regard organizational culture.The surveys will encompass both open ended and closed ended queries(Guest, 2011). They will be filled in either through online means orin a hand written format. Staff and organizational facilities will beimportant in data collection towards reaching a logical andcomprehensive conclusion and as such, participant information will beheld with the utmost degree of privacy and confidentiality. Surveyswill identify critical areas that employees feel require analysis inan organization bid to improve employee retention.

Thedesign of the research will act as the complete outline of the wholestudy since it will describe the course and the method that the studywill utilize to gather data especially primary data. The researchwill conduct the surveys by use of quantitative approach of research,which will help in computing impartial facts using independent anddependent variables. In addition, the design of the survey will alsosee the separation of data from notion and then the research analyzeand emphasizes the reliability and validity of the surveys. Theresearch will use a quantitative method to develop the hypotheses,which will encompass all the variables that will empirically researchthe data through SPSS. After the surveys, the research willempirically study each variable to determine the link between thevariables and employee retention.

3.6Descriptive analysis

The study will use measures of central tendency i.e. mean, mode, andmedian to describe the set of data collected through the quantitativeapproach. In this regards, the measures of central tendency willidentify the central positions of the set data in order to offersummarized statistics. Standard deviations and correlations willoffer the significance of the study. The R2 or the coefficient ofdetermination will measure the degree to which changes in employeeretention can be explained by employee empowerment, engagement, andcompensation, training, and appraisal systems. The t-statistic andthe P-value willimply the statistical significance of the variables.The study will use simple regression analysis in validating thefindings of the research. In addition, the research will use computerapplications to identify some findings. Cronback’s alpha of 95% andbenchmarks of 5% will indicate that the hypothesis will hold in thestudy. Reliability and validity is grounded on the positivistparadigm and is applied in testing the comprehensiveness ofqualitative research (Venkatraman and Ramanujam, 2010). Reliabilityas a concept evaluates the degree of quality in a particular study togenerate understanding (Venkatraman and Ramanujam, 2010). On theother hand, validity is a contingent construct applied by aresearcher and is rooted in the intentions and chosen processes of aresearch method. It is determined by a researcher’s professionalperception of the meaning of validity (Venkatraman and Ramanujam,2010). Data collected from the participants either via surveys,questionnaires, or self-administered interviews will be subjected tocompliance by an eternal auditor to ensure compliance to the intentof the review. This is to validate the accuracy of the data collectedso as not to compromise the outcome of the research. This willeliminate biases and ensure that the systematic methodology outlinedin the research design is adhered too.

Theresearch will involve several ethical considerations to ensurevalidity and compliance of research principles during the entirestudy. Ethics is in essence a branch of philosophy, which addressesthe moral aspects of a research study such as what is wrong or right,good or bad. It defines principles defining professional perceptionson virtue, justice and morality(Venkatramanand Ramanujam, 2010).Thisresearch methodology highlights the fact that information given byparticipants in the sample size will be treated with confidentiality,respect and with their direct consent. Consent refers to the directapproval by the participant in a research study for informationoffered to be applied in the study. This is to ensure that ethicalaspects of qualitative research are adhered to. The research willnotify all participants on the full intent of the review and keepcollected information secure.

Theresearch methodology for the review on the organization aims atlooking into ways in which the organization has realized appropriatestrategies towards employee retention the research paradigm based onthe positivism philosophy will be aligned to the epistemologyparadigm. The inductive research methodology adapted to conformcomprehensively to the expectations of the research that is to offeran answer to the research query Strategiesof Improving Employee Retention in Malaysian Organization. Methodsof data collection, sampling techniques and ethical considerationdelving into questions of participant confidentiality and protectionof data collected have been highlighted.

CHAPTER4: DATA ANALYSIS AND RESULTS

4.1Introduction

Chapter4 focused on the research methodology challenges and identified thepragmatism pattern espoused or this research applying multi methodsfor data collection. For the quantitative research, questionnairesurveys were applied for data collection while for the qualitativeresearch face-to-face interviews were the chosen form of datacollection. This chapter seeks to illustrate findings from the datacollected for the research study, Strategiesof Improving Employee Retention in Malaysian Organization.Consequently,findings from interview, questionnaires, and semi structuredface-to-face interviews were appropriately classified in groups, asthis chapter tends to present. Theresearch determines the significance of the variables by using SPSS.

4.2Data Analysis

Datacollected from the qualitative research method approach was derivedfrom questionnaire surveys was used in the analysis of key findingsdiscovered from the study. Data from the qualitative method wasessentially coded based on notes compiled from semi structuredface-to-face interviews. The questionnaires used on the surveycomposed of 32 questions as well as a 5 point Likert scale rangingfrom (I) Strongly agree to (V) strongly disagree.

Respondentsfilled in and submitted survey questionnaires which containedquestions on the primary characteristics of respondents’ items withregard to age, race, and gender and so on formulated to assess theorganization`s HRM practices as well as business performance. OneLikert scale has 5 statements with the other scale numbered from oneto ten respondents were required to apply to a single selection.Interviews were made up of foundation questions followed byadditional questions where it was considered necessary. SPSS was usedfor data analysis as well as for graphical presentation for findingsdiscussed in this chapter.

4.2.1Overview of the findings

Thisresearch study highlights the need to carry out interviews as well assurveys to investigate and explore employee opinions with regard tothe various aspects related to employee retention at Maybank.

HRMpractices: Seven measured variables were applied to exhibit HRMcomponents in practice, which included compensation, performanceappraisals, training and development, and employee security.

Businessperformance: This was measured by applying items which were developedby Lee and Lee in 2007 with wordings changed minimally to reflect theMalaysian organization`s business context. These items were measuredthrough the linear regression method to improve on the accuracy ofthe study measurements. Each of the items identified for the studywas also measured through a Likert scale of 1 to V.

InTable 1, the items are numbered with regard to each scale. Inaccordance to Nunnally (2007) reporting, reliability as well as theCronbach alpha to exhibit scale reliability obtained in relation tothis specific research study. This research study reflected areasonable degree of reliability at alpha being greater than 0.70.

4.2.3.Descriptive analysis

Thiswas done to further highlight on the development of factors, whichaid in offering explanations as to the roles played by the employeeexperience factor and the on-line brand trust with regard to thereference group. In 1995, Hair etal,(2007) offered suggestions that were applied in the analysis for thiscase study. Of the seven factors chosen for the overall factoranalysis through the application of the Eigen value criterion, whichprovides for extracting factors for eigen values greater than 1. Hairetal,(2007) and Sang (2010) findings were adhered to in carrying out thefactor analysis with seven factors chosen to further explain the60.12% of the overall variance. The extraction method appliedinvolved the Varimax rotation factored with the principal axis. Asaccredited by Alexander and Colgate (2009) this method is widelyapproved as a dependable method for factor analysis calculations. Forthe survey, the Kaiser-Meyer-Olkin method was applied and showed asampling adequacy level of 0.86 that was significantly above thelevel recommended by Malhotra (2003) such that the data could beeffectively factored.

Thesemeasures for HRM practices were created to ensure that a heavy factorload exceeding 0.4 was approved for analysis. It is important to notethat all HRM practice items had to be loaded at above 0.4 with HRplanning and training and development items being enjoined andsubsequently loaded together along with other items as they werefound to be of values insignificant and thus removed from furtheranalysis.

Forthe qualitative analysis, the following is the breakdown of the datacollected.

4.3.1Regression and ANOVA analyses

Resultsexplained the reasons individuals were attracted to specific roles atMaybank as well as why they applied for those roles ranging fromremuneration and benefits, flexibility and the process of recruitingnew employees. These three reasons topped the list as to why theychose to work for the organization. All participants in the studyreported to be satisfied with the organization`s recruitment process.An interesting observation was noted at this level of the study, nineof the thirty respondents selected the assessment center that waspart of the recruitment process.

Thesurvey was also designed to obtain the participants` views on theorganization`s adopted induction process and more so how they thinkimprovements can be made in this stage of the recruitment process.About 80% of employees at the organization reported that they wentthrough an induction process with more than 50% responding that theywere not satisfied with the process. This reflects that the inductionprocess does not involve all new employees and that the majority werenot happy with the organizations recruitment process.

Resultsindicated that every participant involved in this study clearly had apersonal period, which dictated how long they intend to stay at theorganization. Nearly 60% of the staff at the organization indicatedthe time after which they will have left the organization. This wasseen as being closely related to the aspect of job satisfaction.

Morethan 50% of the participants indicated that they intended to leavethe company after a year with just about 25% of the respondentsindicating that they intended to stay with the organization for aperiod exceeding two years. This ultimately depicted the Malaysianorganization not actively recruiting, selecting potential employeesand assimilating newly recruited individuals into the organization inan effective way.

H1:There is an important relationship consistent between staffempowerment and employee retention.

H2:There is Significant Relationship between Employee Compensation andEmployee Retention.

H3:There is Significant Relationship between Employee Training andEmployee Retention.

Multiple LinearRegressions

The principles and concepts formulated in relating to simple linearregression (i.e. a single explanatory variable) can be extended tocope with a number of explanatory variables.

Model summary

  1. Predicting values: (Constant), average summation of appraisal, average summation of empowerment, average summation of compensation and average summation of training

  2. Dependent Variables: the average summation on retention rate

Table 6: MultipleRegression Model Summaries

According to the model summary above, the R square value had gained0.680, which is 68 percent. These mean that 68% of dependent variableof retention can be explained by it 4 independent variable. Theindependent variable refer to include employee empowerment,compensation, training and appraisal system in this research, it willconclude that 32% (100% – 68%) of dependent variable of retention isexplained by other potential factors. The value of adjusted R squarewith value of 0.463 which 46.3% represented the significantcontribution of the 4 independent variable toward dependent variable.This implies that the study is statistically significant at 5% sinceP&lt0.05.

Total alpha (α): α = 1 – (confidence level / 100) = 0.05

Critical probability (p*): p* = 1 – α/2 = 1 – 0.05/2 = 0.975

Margin of error = 1.96 * 0.95 = 1.86 this shows that the researchhas a confidence of 95%

ANOVA

Table 7 establishesthe satisfactory results as the impact level of this model does notexceed or become smaller than 0.05. Therefore, this model applied inthis research is appropriate.

4.3.2Cronback- Regression analysis

Usinga 30 question Likert scale (1= strongly disagree 5= strongly agree),the research on the employee retention strategies were administeredin Maybank Company. The survey forms were received and programmedusing the procedures of SPSS to determine the significance of thevariables. In this regards, to make the manifestation on cronback’salpha probable, the research used the variablesas the analyzing factor. The research used the alpha to conclude howinadequately selected items affected the research. In essence, theresearch used the Cronback alpha as an indicator of reliability andvalidity linked with the variables accounted by the true score of theresearch construct. Ranging from 0 to 10, the research manifested acronback’s value of around 0.7 as indicated in Table 1.

InTable 1, the items are numbered with regard to each scale. Inaccordance to Nunnally (2007) reporting, reliability as well as theCronback alpha to exhibit scale reliability obtained in relation tothis specific research study. This research study reflected areasonable degree of reliability at alpha being greater than 0.70.Nunnally (2007) suggests that one can use alpha coefficient varietiesof values 0 to 1 to determine the dependability of factors fromLikert scale questions. In fact, Nunnally (2007) has indicated 0.7 tobe a satisfactory reliability coefficient as the most determiningvalue since running all items in an exploratory SPSS procedure derivea value more than 0.7. The research has an average alpha value of0.78, which is a good reliability value considering that the researchused a Likert scale.

Y= C + βX1 + βX2 +βX3 +…+ βXn

Y= Predictionrelationship of types of variables toward retention.

C= Constant value.

β= Non-standardizedcoefficient.

X= Dimension ofindependent variable (employee empowerment, compensation, trainingand appraisal system).

Based on the abovetable, one derives the following equation:

Y= 0.577 + 0.047X1 +0.413X2 + 0.155X3 + 0.262X4

This can be interpreted that the increase of one unit of employeeempowerment (X1) may incur the raise of 0.047 units in retention (Y).However, for the independent variable of compensation, every one unitof increase will incur the raise of 0.413 units in dependentvariable, retention. On the others hand, 1 unit increase in trainingmay cause 0.155 units of retention to increase. Finally, appraisalvariable also have a constant relation with retention, it is every1-unit increase in appraisal with incur the raise of 0.262 units inretention.

Resultsindicated that in the entire organization, only a single employeeresponded as having applied for a promotion. This individual howeverresponded as being unsuccessful at the attempt. It is therefore not asurprise that of the 50 staff members, their opinions with regard topromotion and employee development initiatives were unfavorable. Theinterviews conducted revealed that only two staff members wereapproached by senior management staff on their readiness to take up apromotion to ancillary positions. These two employees showed thatthey were actually carrying out their previous roles with very fewinstances in which they assumed supervisory roles.

Thischapter provides an overview of the analysis and discussionssupporting existing literature material on the topic Strategiesof Improving Employee Retention in Malaysian Organization. Thisconclusion shows that the organization under research is faced withhigh employee turnover rates attributable to retrogressive employeeretention strategies. This is an indication that most of the HRdepartments in the organizations are managed inadequately and thehigh employee turnover was a result of such inadequacies. In thefollowing chapter, recommendations as well as solutions for the HumanResource Department in this organization will be discussed while atthe same time addressing pertinent issues and conclusions to themanagement on the best way forward to realizing lower employeeturnover rates.

CHAPTER5: DISCUSSIONS AND RECOMMENDATION

5.1Introduction

Malaysianorganizations with appropriate employee management strategies haveexhibited extended periods of good performance and have continued toremain highly competitive such that they compete withwell-established global brands. The order of this paper has been toshow how improvements in employee retention strategies can beharnessed consistently to realize increased operational output andprofitability while realizing high degree of employee retention.Chapter 4 of this paper has sought to analyze data collected fromboth qualitative and quantitative methods via a multi methodsapproach. This chapter seeks to discuss and provide recommendationsbased on the results from the analysis highlighted in the previouschapter in ensuring that better strategies for improving employeeretention in Malaysian organization are pro-actively enhanced byMalaysian organizations.

5.2Discussions of key findings

H1:There is a statistical significance between staff empowerment andemployee retention.

Fromthe resultant hypothesis testing, a positive reflection exhibited inthe relationship between empowerment (independent variable) and staffretention (dependent variable). The value 0425 shows empowerment asnot correlated to staff retention. The p value 00456 reflects that pis less 0.05 thus H1 is supported.

Itis common to find that rising an employee`s empowerment level will inmost cases translate to improved staff retention levels in anorganization. As provided by Yin (2009), an organizational culturefavoring employee empowerment leads to empowered leaders, which serveto further implementation of practices that enhance employeeempowerment. This also enables employees towards initiatives, whichcall for individual self-management.

Itis important to note that in other Asian countries, which exhibithigh degrees of power distance such as Japan and Taiwan, empowermentis applied ineffectively. For instance, in a study conducted inmainland China, a paternal oriented style of leadership is consistentin the Chinese culture where organizations play the role of Parentsand employees are regarded as children. As such, as a parentorganizes tasks for his or her children, so do organizationscarefully organize crucial tasks for their employees (Alexanderand Colgate, 2009).The empowerment aspects in these organization is rather low such thatemployees continue to work within these Chinese organizations as aresult of perceived loyalty towards their organizational leaders,

Yin(2009), showed that high output staff are more likely to be found inorganizations conforming to the culture of staff empowerment and suchstaff members are found to be well motivated by such a culturetherefore realizing enhanced organizational efficiency and overallproductivity. Alexanderand Colgate (2009)further supported the role of empowerment towards organizationalcommitment. Empowerment can be described as the process of promotingfeelings of self-efficacy amongst members in an organization byidentifying conditions that encourage negative empowerment. Throughthe removal of identifiable negative empowerment conditions, viainformed organizational strategies and some informal practices,self-efficacy can be improved towards better staff retention levels.Self-efficacy on the other hand can be described as an individual`sown judgment on his or her own abilities to conform to certainbehaviors and practices to attain expected results by adhering toidentified objectives.

H2:There is Significant Relationship between Employee assessment andEmployee Retention.

Aftertesting the above hypothesis, a notably significant and positiverelationship was witnessed between compensation (independentvariable) and staff retention (dependent variable). The R-value 0f0.612 suggests that staff compensation positively correlates toretention such that the p value is 0.00 where p it therefore lessthan 0.01.

Ina dynamic labor market such as in the Malaysian context, competitionamong industry players for the best kills and talent often play asignificant role in attracting an organization desired labor pool andas such individual equity determines an organizations ability toretain the best talent as defined by the adopted compensation system.It is a common perception among employees in Malaysian organizationsthat good compensation translates into appreciation by theorganization for an employee`s contributions and performance towardsthe attainment of organizational goals (Guest, 2011). Where employeesare well remunerated, they tend to exhibit high levels of motivationand strive to perform better and contribute more towards anorganization`s set objectives.

Theseorganizations tend to have better employee retention levels ascompared to organizations, which compensate employees poorly. It isimportant to note that in this context compensation should also beunderstood to reflect contributions an employee has made towards therealization of an organization`s goals (Alexanderand Colgate, 2009).Compensation systems are quite important in industries, which areintelligence intensive such as in the banking, or educational sectorsas the competent staff are in essence the backbone of organizationsoperating in the sectors.

H3:There is Significant Relationship between Employee development andEmployee Retention.

Aftertesting this hypothesis, a significant positive relationship was seento manifest itself between training (independent variable) and staffretention (dependent variable). The R-value of 0.592 underscores thefact that a positive correlation exists between employee training andretention as is exhibited by the p value of 0.012 where p is greaterthan 0.05. Thus, hypothesis three is supported.

Accordingto Alexanderand Colgate (2009),employee-training programs have been known to positively enhanceproblem-solving abilities among employee participants. Moreover, itis a well-known fact among human resource professionals that oncestaff members have an improved sense of confidence and motivation tobelieve that they can carry out a given task as expected, then thereis a very high probability that they will exhibit more commitmenttowards their assigned roles and the staff retention rate is high.Guest (2011) provides that organizations should continuouslyformulate and conduct training programs to ensure staff remainsconfident in carrying assigned roles as organizational developmentsmay require. Training also enables staff to work independently withlittle or no supervision which goes a long way in ensuring that theyfeel a stronger sense of commitment to an the organization.

5.3Implications of the study

Organizationsin Malaysia will find the findings from this study useful tocomprehend how they can enhance employee retention strategies. Theresearch explored how employees perceive the significance ofengagement, performance assessment, motivation, empowerment, andcareer development. These strategies are fundamental human resourcemechanisms that organizations usually utilize to enhance strategicmanagement. As the research suggests, there exists close connectionbetween the strategies and employee retention. In this regards,organizations need to assess the needs of employees in offering newskills, experience, decision-making, and delegation of duties thus,the research presupposes that organizations may realize employeeretention of they adopt means that lead to employee satisfaction. Onthe other hand, organizations in Asia, Malaysia included have notmanaged to adopt empowerment effectively because of high power.

5.4Conclusions and recommendations

HumanResource departments should use better strategies aimed at increasingemployee productivity and enhancing employee retention. Techniquesthat ensure employees match with employment opportunities resonatebest with activities that they enjoy doing. This serves to decreaseemployee turnover dramatically in an organization and increaseemployee productivity exponentially. This is a strategy that can workwell with any Malaysian organization but the only challenge remainswith the human resource departments. It is quite a challenge forstaff tasked with managing organizational human resource to matchindividual employee personal traits with positions in an organizationaccurately, which incorporates activities that a particular employeewill find exciting and enjoyable to perform. An organization canmotivate its employees, realize improved staff retention and increaseoverall efficiency as well as productivity with this one way.

Assuch, human capital solutions have the propensity to offerorganizations in Malaysia with priceless tools, which canincreasingly enhance consistency in practices, which allow forappropriate, positive, and effective management of employees. Inprevious chapters, the paper has addressed the fact that goodorganizational human capital management is all about how wellemployees fit into their assigned job descriptions, workplacerelations with superior officers, cohesiveness among teams, and theorganizational culture on employee management. This implies that theorganization has to incorporate an enabling culture for attracting,selecting, recruiting and retaining the best employees, which can beassessed through continuous staff appraisal exercises.

Throughstaff assessments, the human resource departments in organizations inthe Malaysian context can have access to invaluable information fromtheir very employees on how to improve employee productivity.Employee productivity can be upheld through understanding whatmotivates them to improve on individual and team outputs towardsenhancing overall organizational performance. Organizationalleadership can source many insights from such assessments.

Jobsatisfaction is critical to employee retention. Each employee isunique in his or her own right and more so, in this age ofglobalization, an organization may be made up of people from diversecultures. It is important to note that each employee has a uniquereason as to why they opt to seek employment, continue working inthat organization or opt to look for employment in otherorganizations. Understanding how each employee reacts to certainconditions can help in designing training programs, which can enablesuch employees to increase their productivity within theorganization.

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Appendices

Questionnaire:

SectionA

Pleasetick appropriately

  1. Gender

Male (1)

Female (2)

  1. Age

20-25 years (1)

30-40 years (3)

25-30 years (2)

40 and above (4)

  1. Level of Education

High school (1)

University (3)

Other (specify) (5)

College (2)

Postgraduate (4)

  1. How many years have you served this organisation?

0-2 years (1)

4-6 years (3)

2-4 years (2)

6 years and above (4)

  1. How long have you worked in the present occupation?

1-2 years (1)

4-6 years (3)

2-4 years (2)

6 years and above (4)

Section B:

Question1-6: Employee engagement

Question7-12: Employee performance assessments

Question13-18: Motivation and confidence

Question19-24: Staff training and career development

Question25-30: Staff empowerment

Strongly disagree

Disagree

Neutral

Agree

Strongly agree

  1. There exists strong performance management initiatives

1

2

3

4

5

  1. Managers identify and contemplate diverse individual needs

1

2

3

4

5

  1. There exists social and information flow among employees

1

2

3

4

5

  1. Managers express satisfaction to junior staff.

1

2

3

4

5

  1. The existing leadership understands the role of employees in driving productivity

1

2

3

4

5

  1. Management engages the employee in decision-making processes

1

2

3

4

5

  1. Management coaches and trains employees

1

2

3

4

5

  1. The management develops employee strengths and skills

1

2

3

4

5

  1. Management conducts effective employee evaluation programs

1

2

3

4

5

  1. The performance appraisal is a continuous process

1

2

3

4

5

  1. Management delegates and initiate job descriptions as per employee strengths

1

2

3

4

5

  1. The management meet with the employees once or twice a year to contemplate on employee performance

1

2

3

4

5

  1. The existing leadership inspires the employee

1

2

3

4

5

  1. Management is knowledgeable and successful in instilling assurance in employees

1

2

3

4

5

  1. Employees trust in the competencies, abilities and credentials of the managers

1

2

3

4

5

  1. Leadership is transformative and delegates duties to employees

1

2

3

4

5

  1. Relationship between management and employees is cordial

1

2

3

4

5

  1. Employees manage to emulate effective and transformative aspects of the management if they exists

1

2

3

4

5

  1. The organization boasts in effective and comprehensive training programs for employees

1

2

3

4

5

  1. Management motivates employees to seek further education in a bid to instil a culture of skills and experience

1

2

3

4

5

  1. Management clusters employees in occupations that fit their careers

1

2

3

4

5

  1. Management promote effective development of employees strengths

1

2

3

4

5

  1. Employees take part in inter-organizational events that promote career development

1

2

3

4

5

  1. Presence of effective information flow that promote a sense of belonging to the organization

1

2

3

4

5

  1. The organization gives bonuses and incentives to employees

1

2

3

4

5

  1. Management streamlines employees’ payments according to their achievements

1

2

3

4

5

  1. The organization promotes effective employees

1

2

3

4

5

  1. Management ties incentives with job descriptions

1

2

3

4

5

  1. Effective empowerment programs designed to instil discipline to employees

1

2

3

4

5

  1. Management treats engaged employees differently with disengaged employees

1

2

3

4

5

SectionC: Open-ended questions

  1. What do you think is the strongest aspect of the organization?

  2. Does the organization engages employees in the decision-making processes or decisions are entirely left at the hands of the management?

  3. Based on the current aspects of the organization, do you think you will continue offering your services to the organization?

Table1: Reliability Analysis

Variables

Coefficient Alpha

Training and Development

0.717

Team Work

0.799

Compensation

0.864

HR planning

0.787

Performance Appraisal

0.7341

Employees Security

0.759

Business performance

0.829

Table2: Test of Collinearity

Variable

Tolerance

VIF

Training and Development

.597

1.675

Team Work

.555

1.802

Compensation

.700

1.429

HR planning

.646

1.548

Employees Security

.613

1.632

Table3: Regression Results

Independent variables

Parameter

estimate

Standard

error

t-value

p-value

Constant

2.162

.032

Training and Development**

0.218

0.329

2.803

0.006

Team Work*

.183

0.065

2.266

0.025

Compensation

.084

.072

1.172

.243

HR planning**

.286

.070

3.829

.001

Performance Appraisal*

.167

.073

2.128

.035

Employees Security

-.022

.081

-.287

.774

*p 0.05 **p 0.01 N=153

Overall model: F=21.80 p 0.0001 R2=0.473 Adjusted R2=0.451

Forthe qualitative analysis, the following is the breakdown of the datacollected.

4.3.1Regression and ANOVA analyses

Number of Employees

Length of Service

Change in Satisfaction vs. Length of

service

1

Less than 1

year

Increased

2

1-2 years

Stayed The Same

3

2-3 years

Decreased

4

3-4 years

Table4: Regression

Hypothesis

Result

Supported

H1 : There is significant

relationship between

employee empowerment and

employee retention.

r =0.417

p=0.00454

(p &lt 0.05)

Yes

H2 : There is significant

relationship between

employee compensation and

employee retention.

r = 0.608

p = 0.00

(p &lt 0.01)

Yes

H3 : There is significant

relationship between

employee training and

employee retention.

r = 0.485

p = 0.013

(p &lt 0.05)

Yes

H4 : There is significant

relationship between

appraisal system and

employee retention.

r = 0.579

p = 0.00

(p &lt 0.01)

Yes

Model

R

R square

Adjusted R Square

Std error in estimate

1

.680

.463

.455

.55463

ANOVA

Table7: ANOVA Model Summary for all hypotheses

Model

Summation of squares

df

Mean square

F

Sig

Regression

72.955

4

18.239

59.290

0.000

Residual

84.595

275

.308

Total

157.551

279

Model

Non standardized Coefficients

Standardized Coefficients

T

Sig.

B

Standard error

Beta

1 (Constant)

.577

.208

2.778

0.006

Average summation of empowerment

.047

.063

.041

.750

.00454

Average summation of compensation

.413

.062

.378

6.692

.000

Average summation for training

.155

.062

.145

2.496

.013

Average summation for appraisal

.262

.065

.252

4.042

.000