THE STUDY ON FACTORS INFLUENCING EMPLOYEE TURNOVER IN E&E MANUFACTURING INDUSTRY IN NORTHERN MALAYSIA

Abstract

This study investigates whether factor such as training, supervisor, pay and fringe benefits; and perceived organizational support (POS) influence employee turnover in E&E manufacturing industry in northern Malaysia. Herzberg Theory and Social Exchange Theory underlie the model framework in current study. Self-administered questionnaire was the method for data collection with a total of 150 respondents taking part in this study. Partial Least Square (PLS) and Statistical Package for Social Sciences (SPSS) were utilized to analyze the data. Only pay was found to be crucial in influencing employee turnover. Training, supervisor, fringe benefits and perceived organizational support do not influence employee turnover. Employee commitment has a negative relationship with employee turnover. In addition, pay, fringe benefits and perceived organizational support (POS) have a positive influence on employee commitment. Employee commitment was found to mediate the effect of pay and fringe benefits on employee turnover. The research findings from this study will enable E&E manufacturing industry in northern Malaysia and the Malaysian government policymaker to better comprehend the needs of employee in order to retain the workers by establishing effective retention program and improving employee policy. The findings are mostly based on respondents in states such as Penang, Kedah.