A STUDY ON FACTORS CONTRIBUTING TO TURNOVER INTENTION AMONG THE EMPLOYEES OF SGA TECHCORDIA (M) SDN BHD
Employee retention is the most critical issue faced by corporate leaders as result of the shortage of skilled labor, economic growth and employee turnover. High turnover rates adversely affect an organization in other ways such as loss of institutional memory, diversion of management focus, diversion of peers to train new hires, affect the organization’s reputation and poor morale among the remaining employees. Therefore it is important for Human Resource practitioner in an organization to curb these phenomena by minimizing such problems by implementing the strategic employee retention management in their organization. Many employers who are from the small firms have lack of exposure of the strategic employee retention management. The study is conducted to examine the factors that affecting warehouse (logistic) employee turnover intention in SGA Techcordia (M) Sdn Bhd. The findings will help to identify which factors that have strong effect over the turnover intention and its relationship with job satisfaction among the warehouse (logistic) employees. The study is important because it will help to effectively solve the current problems faced by the organization, enables the Human Resource Manager to focus planning on the strategic employee retention management.
1. Background of study
One of the most critical issues in employment faced by many employers is employee retention and employee turnover. Even though during the global economic crisis, in order to maintain the organization stability, some employers took the exercise to downsize their employment, but some employers are struggling to retain their human talent. This is also shown by recent studies conducted by many researchers that employee turnover and retention are crucial issues in many organizations. In today’s workplace, employers are not only having a hard time attracting employees, but are also having a difficult time keeping them (Harkins, 1998). Based on a study by Jardine, 2001, employees leave for a variety reasons, including poor supervision, unchallenging positions, limited advancement opportunities, lack of recognition, limited control over work, perceived pay inequity, and the perception of more favorable opportunities in other companies. Abassi, 2000, stated that high employee turnover is one of the greatest cause of declining productivity and decreased morale in corporate America. Meanwhile Secretan, 2001, added that the morale decreases, recruiting and training costs increase and an organization can find itself in a vicious cycle.
An interview conducted with the management of Techcordia (M) Sdn Bhd and it was found that the company had the difficulties in retaining their employees for being loyal to the company. Staff turnover in the company was high that the company has to bear the cost of recruitment and placement for the employee who had resigned from the company. They also have to train the new employee and such necessary planning is in need. This resulted to the increased in recruitment cost and other complication such as decreased in employee morale, declining productivity of the company. Furthermore there were no research done to find out the reason for the above situation, therefore this study will examine the factors that contribute to the high employee turnover intention in the company and its relationship with job satisfaction and employee turnover intention.
2. Problem Statement
The issue of employee turnover and the difficulties faced by SGA Techcordia (M) Sdn Bhd in employee retention gives greater impact towards the company recruitment and training cost, the declining in productivity, decrease efficiency towards customer services and affect the other employees’ morale. The management of SGA Techcordia (M) Sdn...