Title: Factors Influencing Employee's Retention: An Investigation into Human Resource Management Practices in Malaysia
Authors: Shahril Bin Abdullah, Asst. Prof. Dr. Sapowan Bin Sanusi, Assoc. Prof. Dr. Hj. Mustafa Bin Dakian
Volume: 10
Issue: 2
Pages: 175-191
Publication Date: 2026/02/28
Abstract:
Employee retention is a critical aspect of organizational success, particularly in today's dynamic and competitive business landscape. This thesis explores the various factors that influence employee retention within organizations, focusing on the role of Human Resource Management (HRM) practices. The primary objective is to gain a deeper investigating the several factors influencing employee retention in Malaysia. The factors are work compensation, job satisfaction and Prevalence of Turnover as aspects of HRM contribute to employee retention in organizational sustainability. This study adopts a quantitative descriptive by using cross sectional research approach to investigate the research questions. The convenience random sampling method is use to give more probability to the populations are selected and minimum of reliability biases. Data collection is primarily conducted through 166 surveys administered to employees across four (4) different industries and organizational sizes. The total population of study is 480 respondents. The research design involves the use of structured questionnaires to gather relevant information on compensation structures, job satisfaction levels, and prevalent turnover rates. Statistical analysis techniques, including correlation and regression analysis, are employed to analyze the collected data and draw meaningful insights. The practical and theoretical implication of study's findings represent a significant advancement in our theoretical understanding of the intricate dynamics between compensation, job satisfaction, and employee retention. By elucidating the mediating role of job satisfaction in the relationship between compensation and retention, the research aligns with and extends established motivational and job satisfaction theories. Maslow's hierarchy of needs posits that individuals are motivated by a hierarchy of needs, where higher-order needs such as esteem and self-actualization are contingent upon fulfilling basic needs like compensation. The contributions of study that leveraging employee feedback to continuously refine and enhance the work environment, organizations can strengthen employee engagement, boost job satisfaction, and ultimately fortify their retention efforts in a dynamic and evolving landscape.