Enhancing Employee Retention: The Impact of Training, Career Development and Remuneration Benefits in Selected Manufacturing Companies of Johor Bahru
Abstract
The lack of employee retention programs is the most persistent difficulty in most organizations today. Employees are a crucial and precious asset for an organization for them to achieve their company goals and objectives. This has raised the demand for staff training programs, career development, and remuneration benefits in most organizations to ensure employee retention. The study aimed to identify the influence of employee training, career development, and remuneration benefits on employee retention in selected manufacturing companies in Johor Bahru, Malaysia. For data collection, a structured questionnaire was administered to 152 employees from seven departments of manufacturing companies in Johor Bahru. All the data was analyzed using SPSS statistics. The finding implies that career development appeared to be the most significant variable among all independent variables. Therefore, organizations should put more focus on the improvement of career development among their employees. Top management should emphasize career development and regularly offer training programs to gain employees’ interest in staying in the organizations. Top management should also highlight the importance and benefits of the career development programs and encourage them to join. This in turn enhances retention and increases productivity at selected manufacturing companies in Johor Bahru, Johor.
Downloads
References
Abba, M. T. (2018). EfAbba, M. T. (2018). Effects of training and development on employee retention in Bauchi state metropolis banks. International Journal of Business Administration and Management, 4(1), 24–39.
Abdulai Sawaneh, I., & Kanko Kamara, F. (2019). Evaluating Employee Retention Strategies on Job Performance. Science Journal of Business and Management, 7(3), 67. https://doi.org/10.11648/j.sjbm.20190703.12 DOI: https://doi.org/10.11648/j.sjbm.20190703.12
Adnyani, N. L. P. R., & Dewi, A. A. S. K. (2019). Pengaruh Pengalaman Kerja, Prestasi Kerja Dan Pelatihan Terhadap Pengembangan Karier Karyawan. E-Jurnal Manajemen Universitas Udayana, 8(7), 4073. https://doi.org/10.24843/ejmunud.2019.v08.i07.p03 DOI: https://doi.org/10.24843/EJMUNUD.2019.v08.i07.p03
Akther, S., & Tariq, J. (2020). The Impact of Effective Training on Employee Retention: A Study in Private Banks of Bangladesh. Journal of Economics and Business, 3(1). https://doi.org/10.31014/aior.1992.03.01.181 DOI: https://doi.org/10.31014/aior.1992.03.01.181
Azami, N., Azmee, D. S. S., Keng, N. Z., Xue, N., Qing, N. Z. S., & Han, L. K. (2023). Factors Affecting Employee Retention Among SMES’Millennial Employees in Klang Valley, Malaysia. Journal of Academic Research in Business and Social Sciences, 13(3), 868-888. DOI: https://doi.org/10.6007/IJARBSS/v13-i3/16455
Bougie, R., & Sekaran, U. (2019). Research methods for business: A skill building approach. John Wiley & Sons.
Bostley, M. A. (2019). Basics of research design: A guide to selecting appropriate research design. International Journal of Contemporary Applied Researches, 6(5), 76–89. https://www.researchgate.net/publication /342354309 _Basics_of_Research_Design_A_Guide_to_selecting_appropriate_research_design.
Carda, M. (2024). Implementation of Career Development Strategies in Improving HR Performance: Case Study in the Indonesian Manufacturing Industry. Journal of Management, 3(2), 374-390.
Challa, R., Parne, M. D., Srinivas, M., & Shravya, N. (2024). Crafting code keepers: An in-depth exploration of talent management strategies for sustainable employee retention in the software industry. In MATEC Web of Conferences, 392, 01053. EDP Sciences. DOI: https://doi.org/10.1051/matecconf/202439201053
Das, B. L. (2013). Employee Retention: A Review of Literature. IOSR Journal of Business and Management, 14(2), 08–16. https://doi.org/10.9790/487x-1420816 DOI: https://doi.org/10.9790/487X-1420816
Deery, M. (2008). Talent management, work-life balance and retention strategies. International Journal of Contemporary Hospitality Management, 20(7), 792–806. https://doi.org/10.1108/09596110810897619 DOI: https://doi.org/10.1108/09596110810897619
Deery, M., & Jago, L. (2015). Revisiting talent management, work-life balance and retention strategies. International Journal of Contemporary Hospitality Management, 27(3), 453–472. https://doi.org/10.1108/IJCHM-12-2013-0538 DOI: https://doi.org/10.1108/IJCHM-12-2013-0538
Halim, H. A., & Ha, N. C. (2010). The impact of human resource management strategy on human resource outsourcing. Jurnal Pengurusan, 30(4), 3–23. https://doi.org/10.17576/pengurusan-2010-30-01 DOI: https://doi.org/10.17576/pengurusan-2010-30-01
Hamed T. (2016). Sampling Methods in Research Methodology; How to Choose a Sampling Technique for Research. International Journal of Academic Research in Management (IJARM), 5. ffhal-02546796f
Hong, E. N. C., Hao, L. Z., Kumar, R., Ramendran, C., & Kadiresan, V. (2012). An Effectiveness of Human Resource Management Practices on Employee Retention in Institute of Higher Learning Regression Analysis Intercultural Communication and Barriers in Malaysian Public Universities View project management strategies for SMEs ORGA. International Journal of Business Research and Management (IJBRM), 3(2), 60. https://www.researchgate.net/publication/267725979
Jumawan, J., Ali, H., Sawitri, N. N., & Rony, Z. T. (2024). The Influence of Employee Education and Work Experience on Employee Performance and Employee Loyalty. Siber International Journal of Digital Business (SIJDB), 2(1), 62-73.
Kandasamy, V., Sugumaran, G., & Ragothaman, S. (2019). Effect of career planning and career development on employee retention with mediating role of succession planning. Journal of Advanced Research in Dynamical and Control Systems, 11(2 Special Issue), 2145–2152.
Khalid, K., & Nawab, S. (2018). Employee Participation and Employee Retention given Compensation. SAGE Open, 8(4). https://doi.org/10.1177/2158244018810067 DOI: https://doi.org/10.1177/2158244018810067
Kharuddin, A. F., Azid, N., Mustafa, Z., Kamari, M. N., Ku Ibrahim, K. F., & Kharuddin, D. (2020). Determination of Sample Size in Early Childcare Centre (TASKA) Service Project in Malaysia: Classification and Analytical Approach. Albukhary Social Business Journal, 1(2), 104–112. https://doi.org/10.55862/asbjv1i2a010 DOI: https://doi.org/10.55862/asbjV1I2a010
Khan, U. (2020). Effect of employee retention on organizational performance. Journal of Entrepreneurship, Management, and Innovation, 2(1), 52-66. DOI: https://doi.org/10.52633/jemi.v2i1.47
Kinyili, J. M. (2018). Role of remuneration practices on the retention of employees in public health institutions in Machakos County, Kenya. International Journal of Advanced Research in Management and Social Sciences, 7(9), 53–71.
Krejcie, R. V., & Morgan, D. W. (1970). Sample size determination table. Educational and Psychological Measurement, 30, 607-610. DOI: https://doi.org/10.1177/001316447003000308
Kwan, L. Y., & Mansor, N. S. (2023, October). Factors of talent retention in the Malaysian construction industry: Employee’s perspective. In AIP Conference Proceedings, 2881, 1. AIP Publishing. DOI: https://doi.org/10.1063/5.0167660
Landsman M D, I. (2004). Cricoid pressure: indications and complications. Paediatric Anaesthesia, 14(2), 43–47. DOI: https://doi.org/10.1046/j.1460-9592.2003.01202.x
Magaisa, G. M., & Musundire, A. (2021). Relationship Between Transformational Leadership and Commitment of Consultants in South African Management Consulting Firms. International Journal of Applied Management Theory and Research (IJAMTR), 3(2), 24-37. DOI: https://doi.org/10.4018/IJAMTR.2021070103
Mbugua, G. M., Waiganjo, E. W., & Njeru, A. (2014). Relationship between Strategic Performance Management and Employee Retention in Commercial Banks in Kenya. International Journal of Business Administration, 6(1), 53–62. https://doi.org/10.5430/ijba.v6n1p53 DOI: https://doi.org/10.5430/ijba.v6n1p53
Mohamad Mazlan, M. R., & Jambulingam, M. (2023). Challenges of Talent Retention: A Review of Literature. Journal of Business and Management Review, 4(2), 078–091. https://doi.org/10.47153/jbmr42.6302023 DOI: https://doi.org/10.47153/jbmr42.6302023
Niati, D. R., Siregar, Z. M. E., & Prayoga, Y. (2021). The effect of training on work performance and career development: the role of motivation as intervening variable. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 4(2), 2385-2393. DOI: https://doi.org/10.33258/birci.v4i2.1940
Ping, K. Y., Sing, H, K., & Jee, W. L. C. (2022). Impacts of Remuneration on Employee Retention and Job Satisfaction The Impacts of Remuneration on Employee Retention and Job Satisfaction among Private Higher Education Institutions’ Lecturers. International Journal of Service Management and Sustainability, 7(2), 193–221. https://doi.org/10.24191/ijsms.v7i2.19953
Prasetyo, I., Aliyyah, N., Tjaraka, H., Kalbuana, N., & Syafi'ur, A. (2021). Vocational training has an influence on employee career development: A case study Indonesia. Academy of Strategic Management Journal, 20(2), 1-14.
Putri, W. A., & Frianto, A. (2019). Pengaruh Pengembangan Karier Terhadap Motivasi dan Dampaknya Terhadap Kinerja Karyawan (Studi Kasus di PT. Barata Indonesia (Persero) Gresik). Jurnal Ilmu Manajemen, 7(2), 1–10. DOI: https://doi.org/10.32493/frkm.v2i1.3417
Samuel, M., & Chipunza, C. (2009). Employee retention and turnover: Using motivational variables as a panacea. African Journal of Business Management, 3(8), 410–415. https://doi.org/10.5897/AJBM09.125
Sari, I. D. A., & Dewi, I. (2020). The Effect of Career Development, Work Environment, And Organizational Commitment to Employee Retention. American Journal of Humanities and Social Sciences Research (AJHSSR), 4(6), 129–134.
Singh, D. (2019). A Literature Review on Employee Retention with Focus on Recent Trends. International Journal of Scientific Research in Science, Engineering and Technology, 6(1), 425–431. https://doi.org/10.32628/ijsrst195463 DOI: https://doi.org/10.32628/IJSRST195463
Tadesse, W. M. (2018). Factors Affecting Employee Retention in Ethiopian Public Organizations. Journal of Strategic Human Resource Management, 7(3), 22–32. http://publishingindia.com/jshrm/
Terera, S. R., & Ngirande, H. (2014). The impact of rewards on job satisfaction and employee retention. Mediterranean Journal of Social Sciences, 5(1), 481–487. https://doi.org/10.5901/mjss.2014.v5n1p481 DOI: https://doi.org/10.5901/mjss.2014.v5n1p481
Triasmoko, D. (2014). PENGARUH PELATIHAN KERJA TERHADAP KINERJA KARYAWAN (Penelitian pada Karyawan PT Pos Indonesia (Persero) Cabang Kota Kediri). Jurnal Administrasi Bisnis S1 Universitas Brawijaya, 12(1), 82871.
Uwimpuhwe, D., Mushabe, D., & Kajugiro, S. B. (2018). The Influence of Compensation System on Employee Attraction and Retention. International Journal of Advanced Academic Research | Social and Management Sciences|, 4(11), 2488–9849.
Wassem, M., Baig, S. A., Abrar, M., Hashim, M., Zia-Ur-Rehman, M., Awan, U., Amjad, F., & Nawab, Y. (2019). Impact of Capacity Building and Managerial Support on Employees’ Performance: The Moderating Role of Employees’ Retention. SAGE Open, 9(3). https://doi.org/10.1177/2158244019859957 DOI: https://doi.org/10.1177/2158244019859957
Wildes, V. J. (2007). Attracting and retaining food servers: How internal service quality moderates occupational stigma. International Journal of Hospitality Management, 26(1), 4–19. https://doi.org/10.1016/j.ijhm.2005.08.003 DOI: https://doi.org/10.1016/j.ijhm.2005.08.003
Wright, P. M., & Boswell, W. R. (2002). Desegregating HRM: A Review and Synthesis of Micro and Macro Human Resource Management Research. Journal of Management, 28(3), 247–276. https://doi.org/10.1177/014920630202800302 DOI: https://doi.org/10.1016/S0149-2063(02)00128-9
Wright, P. M., & Nishii, L. H. (2007). Strategic HRM and organizational behavior: Integrating multiple levels of analysis. CAHRS Working Paper Series, 468. http://digitialcommons.ilr.cornell.edu/cahrswp/468
Yousuf, S., & Siddiqui, D. A. (2018). Factors Influencing Employee Retention: A Karachi Based Comparative Study on IT and Banking Industry. International Journal of Human Resource Studies, 9(1), 42. https://doi.org/10.5296/ijhrs.v9i1.14111 DOI: https://doi.org/10.5296/ijhrs.v9i1.14111
Yuniana, S., & Hanafia, F. (2024). The Influence of Training, Career Development, and Compensation on Employee Retention at PT. Seiwa Indonesia. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 7(3), 5084-5107.
Copyright (c) 2024 Nur Syafiqah Jamaludin, Murni Zarina Mohamed Razali, Nor Farehan Omar
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.