Skip to main content

Employee Retention in the Manufacturing Sector: Is There a Simple Solution?

  • Conference paper
  • First Online:
Proceedings of the Second International Conference on the Future of ASEAN (ICoFA) 2017 - Volume 1

Abstract

Employee retention is one of the key issues in many organizations. The inability to retain employees can cost the organization financially and nonfinancially. Although employee retention has been widely investigated, less attention is given to the manufacturing sector. Such neglect is unfortunate because the manufacturing sector in Malaysia is reported to experience between 18% and 20% annual human capital turnover rates. This chapter argues that despite having limited resources to formulate a holistic mechanism to retain employees, concern for employee retention should not be ignored. Against this backdrop, this chapter proposes a model that hypothesizes the role of management practices in promoting employee retention initiatives.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 259.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 329.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Aguinis, H., Joo, H., & Gottfredson, R. K. (2011). Why we hate performance management—And why we should love it. Business Horizons, 54(6), 503–507.

    Article  Google Scholar 

  • Alamzeb, A., Abu Bakar, A. H., Maqsood, H., & Chaudhry, S. A. (2016). Work-life balance, job satisfaction and nurses retention: Moderating role of work volition. International Journal of Business Excellence, 10(4), 488–501.

    Article  Google Scholar 

  • Brown, M., Hyatt, D., & Benson, J. (2010). Consequences of the performance appraisal experience. Personnel Review, 39(3), 375–396.

    Article  Google Scholar 

  • Business Circle. (2014). High-value manufacturing – Malaysia’s next frontier. From http://www.businesscircle.com.my/high-value-manufacturing-malaysias-nextfrontier/.

  • Cafaro, D. (2001). When the honeymoon ends: Thinking in long-term solutions. Woskspan, 44(2), 42–46.

    Google Scholar 

  • Cascio, W. F. (2014). Leveraging employer branding, performance management and human resource development to enhance employee retention. Human Resource Development International, 17(2), 121–128.

    Article  Google Scholar 

  • Chew, Y. T. (2005). Achieving organisational prosperity through employee motivation and retention: A comparative study of strategic HRM practices in Malaysian institutions. Research and Practice in Human Resource Management, 13(2), 87–104.

    Google Scholar 

  • Chua, G. N., Yee, L. J., Sim, B. A., Tan, K. H., Sin, N. K., Hassali, M. A., et al. (2014). Job satisfaction, organisation commitment and retention in the public workforce: A survey among pharmacists in Malaysia. International Journal of Pharmacy Practice, 22(4), 265–274.

    Article  Google Scholar 

  • Coyle, S., Jacqueline, A. M., Conway, N. (2004). The employment relationship through the lens of social exchange. J. A.-M. Coyle-Shapiro, Shore, Lynn M, Taylor, Susan M, Tetrick, Lois, The employment relationship: Examining psychological and contextual perspectives. (5–28). Oxford: Oxford University Press.

    Google Scholar 

  • Deci, E. L., Koestner, R., & Ryan, R. M. (1999). A meta-analytic review of experiments examining the effects of extrinsic rewards on intrinsic motivation. Psychological Bulletin, 125(6), 627–668.

    Article  Google Scholar 

  • Deery, M., & Jago, L. (2015). Revisiting talent management, work-life balance and retention strategies. International Journal of Contemporary Hospitality Management, 27(3), 453–472.

    Article  Google Scholar 

  • Department of Statistics Malaysia. (2016). Monthly manufacturing statistics. Kuala Lumpur: Department of Statistics Malaysia.

    Google Scholar 

  • DeVaro, J., & Morita, H. (2013). Internal promotion and external recruitment: A theoretical and empirical analysis. Journal of Labor Economics, 31(2), 227–269.

    Article  Google Scholar 

  • Farris, G. F. (2000). Rewards and retention of technical staff. Paper presented at the Proceedings of the 2000 I.E. Engineering Management Society.

    Google Scholar 

  • George, C. (2015). Retaining professional workers: What makes them stay? Employee Relations, 37(1), 102–121.

    Article  Google Scholar 

  • Hamid, S. N. A., & Yahya, K. K. (2016). Mediating role of work engagement on the relationship between person-job fit and employees’ retention: Evidence from semiconductor companies in northern region of Malaysia. International Review of Management and Marketing, 6(Special Issue), 187–194.

    Google Scholar 

  • Heneman, H. G., & Judge, T. A. (2015). Staffing organization (8th ed.). Mishawaka: Pangloss Industries.

    Google Scholar 

  • Korsakienė, R., Stankevičienė, A., Šimelytė, A., & Talačkienė, M. (2015). Factors driving turnover and retention of information technology professionals. Journal of Business Economics and Management, 16(1), 1–17.

    Article  Google Scholar 

  • Koys, D. J. (2001). The effects of employee satisfaction, organizational citizenship behavior, and turnover on organizational effectiveness: A unit-level, longitudinal study. Personnel Psychology, 54(1), 101–114.

    Article  Google Scholar 

  • Kuvaas, B. (2006). Performance appraisal satisfaction and employee outcomes: Mediating and moderating roles of work motivation. The International Journal of Human Resource Management, 17(3), 504–522.

    Article  Google Scholar 

  • Leslie, W. R., Nabil, A. I., & Lloyd, L. B. (2016). Human resource management (11th ed.). New York: McGraw-Hill Education.

    Google Scholar 

  • Levy, P. E., & Williams, J. R. (2004). The social context of performance appraisal: A review and framework for the future. Journal of Management, 30(6), 881–905.

    Article  Google Scholar 

  • Lo, M. C., Ramayah, T., & Kui, L. C. (2013). Mentoring and job satisfaction in Malaysia: A test on small medium enterprises in Malaysia. International Journal of Psychology: A Biopsychosocial Approach, 13, 69–90.

    Google Scholar 

  • Mak, B. L., & Sockel, H. (2001). A confirmatory factor analysis of IS employee motivation and retention. Information Management, 38(5), 265–276.

    Article  Google Scholar 

  • Mansor, M., & Idris, A. (2015). Employee retention in the Malaysian banking industry: Do flexible practices work? South African Journal of Business Management, 46(1), 1–9.

    Article  Google Scholar 

  • Milman, A., & Dickson, D. (2014). Employment characteristics and retention predictors among hourly employees in large US theme parks and attractions. International Journal of Contemporary Hospitality Management, 26(3), 447–469.

    Article  Google Scholar 

  • Nurul, E. A., Norzanah, M. N., & Roshidi, H. (2014). Examining the mediating effect of employee engagement on the relationship between talent management practices and employee retention in the information and technology (it) organizations in Malaysia. Journal of Human Resources Management and Labor Studies, 2(2), 227–242.

    Google Scholar 

  • Presbitero, A., Roxas, B., & Chadee, D. (2016). Looking beyond HRM practices in enhancing employee retention in BPOs: Focus on employee–organisation value fit. The International Journal of Human Resource Management, 27(6), 635–652.

    Article  Google Scholar 

  • Shields, M. A., & Ward, M. (2001). Improving nurse retention in the National Health Service in England: The impact of job satisfaction on intentions to quit. Journal of Health Economics, 20(5), 677–701.

    Article  Google Scholar 

  • Simons, T., & Hinkin, T. (2001). The effect of employee turnover on hotel profits. Cornell Hotel and Restaurant Administration Quarterly, 42(4), 65–69.

    Article  Google Scholar 

  • Towers Watson. (2014). Global Workforce Study. Kuala Lumpur: Towers Watson.

    Google Scholar 

  • Tymon, W. G., Jr., Stumpf, S. A., & Doh, J. P. (2010). Exploring talent management in India: The neglected role of intrinsic rewards. Journal of World Business, 45(2), 109–121.

    Article  Google Scholar 

  • Whitaker, B. G., Dahling, J. J., & Levy, P. (2007). The development of a feedback environment and role clarity model of job performance. Journal of Management, 33(4), 570–591.

    Article  Google Scholar 

  • Zin, M. L. M., Pangil, F., & Othman, S. Z. (2012). The moderating role of job stress in the relationship between organization support and employee retention. Jurnal Pengurusan, 36, 33–44.

    Article  Google Scholar 

Download references

Acknowledgments

The authors gratefully acknowledge the helpful comments and suggestions of the reviewers, which have improved the presentation.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Chandrakantan Subramaniam .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer Nature Singapore Pte Ltd.

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Subramaniam, C., Suan, C.L., Johari, J. (2019). Employee Retention in the Manufacturing Sector: Is There a Simple Solution?. In: Mat Noor, A., Mohd Zakuan, Z., Muhamad Noor, S. (eds) Proceedings of the Second International Conference on the Future of ASEAN (ICoFA) 2017 - Volume 1. Springer, Singapore. https://doi.org/10.1007/978-981-10-8730-1_11

Download citation

Publish with us

Policies and ethics