Author

  • Haney Shafira Abdul Halim

    • Faculty of Business and Management, Universiti Teknologi MARA, Malaysia & UEM Edgenta, Malaysia
    • Malaysia
  • Dilla Syadia Ab Latiff

    • Faculty of Business and Management, Universiti Teknologi MARA, Malaysia
    • Malaysia

Abstract

Employee retention is crucial for organizational success, especially in dynamic fields like Digital, Technology, and Innovation. This correlational study investigated factors influencing employee retention within the DTI department of a Malaysian GLC, guided by Herzberg's Two-Factor Theory. The study examined the relationship between employee retention (dependent variable) and compensation & benefits, work-life balance, career growth opportunities, and training & development (independent variables). Data was collected from a diverse sample of DTI employees using a comprehensive survey and analyzed using Statistical Package for Social Sciences (SPSS) version 29. The findings revealed no significant relationship between compensation & benefits, work-life balance, or career growth opportunities and employee retention. However, a significant positive relationship was found between training & development and employee retention. This study provides insights into the unique factors affecting retention in DTI departments and offers practical recommendations for creating a supportive work environment that enhances employee retention. Specifically, the study highlights the importance of robust training and development programs in fostering employee satisfaction, skills development, and ultimately, higher retention rates.

Keywords

References

  • Abdulkhamidova, F. (2021). Herzberg's Two-Factor Theory. https://www.researchgate.net/publication /352465259_Herzberg's_Two-Factor_Theory
  • Aman-Ullah, A., Aziz, A., Ibrahim, H., Mehmood, W., & Abdullah Abbas, Y. (2021). The impact of job security, job satisfaction and job embeddedness on employee retention: An empirical investigation of Pakistan’s health-care industry. Journal of Asia Business Studies, 16(6), 904–922.
  • Agovino, T. (2021). The Pandemic Put an End to the Five-Day, 9-to-5, In-Office Workweek. So Where Do Businesses Go From Here? HR Magazine, 66, 33-39
  • Al-Kassem, A. H. (2021). Significance Of Human Resources Training And Development on Organizational Achievement. PalArchs Journal of Archaeology of Egypt/Egyptology, 18(7).
  • Al-Suraihi, W., Samikon, S., Al-Suraihi, A., & Ibrahim, I. (2021). Employee Turnover: Causes, Importance and Retention Strategies. European Journal of Business and Management Research. https://doi.org/10.24018/ejbmr.2021.6.3.893.
  • Aleem, M., & Bowra, Z. A. (2020). Role of training & development on employee retention and organizational commitment in the banking sector of Pakistan. Review of Economics and Development Studies, 6(3), 639-650
  • Bellmann, L. and Hubler, O. (2020), “Working from home, job satisfaction and work-life balance– robust or heterogeneous links?”, International Journal of Manpower, 42(3), 424-441
  • Birruntha, S. (2021). Malaysia should address the skill gap, and attract specialized talent in the digital industry. The Malaysia Revers. https://www.mampu.gov.my/wp-content/uploads/2021/08/18-Aug-The-Malaysian-Reserve-Malaysia-should-address-skill-gap-attract-specialised-talents-in-digital-industry.pdf
  • Brown, D. & Brooks, L. (Eds.). (1990). Career choice and development (second ed.). San Francisco: Jossey-Bass
  • Cabaya, M. G. (2023). Employees’ career growth and development: Outlook and challenges of a first-class accounting unit. International Journal of Engineering, Business and Management, 7(1), 5–11. https://doi.org/10.22161/ijebm.7.1.2
  • Chawla, S., & Singla, J. (2021). Factors Affecting Employee Retention Strategies Hospitality Sector. Turkish Journal of Computer and Mathematics Education, 12(10), 1861–1872.
  • Elsafty, A., & Oraby, M. (2022). The Impact of Training on Employee Retention: An Empirical Research on the Private Sector in Egypt. International Journal of Business and Management, 17(4). https://doi.org/10.5539/ijbm.v17n5p58
  • Ercanbrack, M. (2023). Attrition vs. turnover: Learn how to calculate rates and why they matter. BambooHR. https://www.bamboohr.com/blog/employee-turnover-vs-attrition-context-is-the-key
  • Etikan, I. (2016). Comparison of Convenience Sampling and Purposive Sampling. American Journal of Theoretical and Applied Statistics, 5(1), 1. https://doi.org/10.11648/j.ajtas.20160501.11
  • Franklin, N. (2023). Women value work-life balance more than men – unless they are managers. Workplace Insight. https://workplaceinsight.net/women-value-work-life-balance-more-than-men-unless-they-are-a-manager/
  • Frimayasa, A. (2021). Effect of Compensation, Career Development and Work Environment on Employee Retention (Study on Employees of PT Telkom Witel Tangerang BSD). Journal of Research in Business, Economics,and Education, 3(1), 1715–1730.
  • Haddad, H., Khatib, N. E., & Ashaal, A. (2023). The nexus between extrinsic motivation and employees’ retention; do compensation packages and flexible working hours matter? Open Journal of Business and Management, 11(02), 530–551. https://doi.org/10.4236/ojbm.2023.112028
  • Half, R. (2023). Making work-life balance a part of employee retention. Robert Half. https://www.roberthalf.com/us/en/insights/management-tips/making-work-life- balance-a-part-of-employee-retention
  • Hanai, E. (2021). The Influence of Work Environment on Employee Retention: Empirical Evidence from Banking Institutions in Dar Es Salaam, Tanzania. International Journal of Managerial Studies and Research. https://doi.org/10.20431/2349-0349.0901004
  • Hassan, Z. (2022) Employee Retention through Effective Human Resource Management Practices in Maldives: Mediation Effects of Compensation and Rewards System. Journal of Entrepreneurship, Management and Innovation, 18, 137-173. https://doi.org/10.7341/20221825
  • Hassan, Z., & Govindhasamy, C. (2020). An investigation on extrinsic and intrinsic rewards on employee retention among Gen Y: A study in Malaysian manufacturing companies. Journal of Business and Economic Analysis, 03(01), 55–69. https://doi.org/10.1142/j_10.36924sbe.2020.3104
  • Hassan, Z. A., Schattner, P., & Mazza, D. (2006). Doing a pilot study: Why is it essential? Malays Fam Physician, 1(2), 70–73.
  • Herrity, J. (2024, February). The importance of training employees: 11 benefits. indeed.com. https://www.indeed.com/career-advice/career- development/importance-of-training
  • Houssein, A. A., Singh, J. S. K., & Arumugam, T. (2020). Retention of Employees through Career Development, Employee Engagement and Work-life Balance: An Empirical Study among Employees in the Financial Sector in Djibouti, East Africa. Global Business and Management Research: An International Journal, 12(3).
  • Islam, M. A., Hack-Polay, D., Rahman, M., Hosen, M., Hunt, A., & Shafique, S. (2022). Work environment, HR practices and Millennial employee retention in hospitality and tourism in Bangladesh. International Journal of Emerging Markets. https://doi.org/10.1108/ijoem-06-2021-0859
  • Ismail, J., & Awis., M. L., Amin, S. H. M., & Arapa, A. (2010). The Influence of Physical Workplace Environment on the Productivity of civil servants: The case of the Ministry of Youth and Sports, Putrajaya, Malaysia. Voice of Academia, 5(1), 71-78.
  • Kamei, A. (2022). The post-COVID “great resignation” comes to Asia: Hays CEO. Nikkei Asia. https://asia.nikkei.com/Economy/The-post-COVID-Great- Resignation-comes-to-Asia-Hays-CEO
  • Kamselem, K. M., Nuhu, M. S., Lawal, K. A. A., Liman, A. M., & Abdullahi, M. S. (2022). Testing the nexus between reward system, job condition and employee retention through intervening role of employee engagement among nursing staff. Arab Gulf Journal of Scientific Research, 40(1), 34–53. https://doi.org/10.1108/agjsr-05-2022-0061
  • Kang, S. Y. (2021). Growth, salary and work-life balance: What comes after “The Great Resignation”? HR ASIA. https://hr.asia/featured/growthsalary-and-work-life-balance-what-comes-after-the-great-resignation/
  • Kaplan, J. (2021). The Psychologist Who Coined the Phrase “Great Resignation” Reveals How He Saw It Coming and Where He Sees It Going. Business Insider, 14-17
  • Khan, U. (2020). Effect of employee retention on organizational performance. Journal of Entrepreneurship, Management, and Innovation, 2(1), 52–66. https://doi.org/10.52633/jemi.v2i1.47
  • Krishnamoorthy, N., & Aisha, A. (2022). An empirical study of employee retention in the information technology sector in Bangalore City. East Asian Journal of Multidisciplinary Research, 1(7), 1333–1342. https://doi.org/10.55927/eajmr.v1i7.902.
  • Kumari, S., Shah, S., &, Mishra, N. (2022). The Impact Of Training And Development On Employee Retention. International Journal of Scientific Research In Engineering And Management. https://doi.org/10.55041/ijsrem13044.
  • Lessa, A. D., Cabral, F. C., Tonial, C. T., Costa, C. A., Andrades, G. R., Crestani, F., Einloft, P. R., Bruno, F., Sganzerla, D., Matte, M. C., Fiori, H. H., Latour, J. M., & Garcia, P. C. (2020). Brazilian translation, cross-cultural adaptation, validity, and reliability of the empowerment of parents in the intensive care 30 (empathic-30) questionnaire to measure parental satisfaction in Picus. Pediatric Critical Care Medicine, 22(6). https://doi.org/10.1097/pcc.0000000000002594
  • Maru, G. and Omodu, M. (2020) Compensation Management System and Employee Retention Practice in the Niger Insurance Plc, Port Harcourt. International Journal of Advanced Academic Research, 6, 59-67. https://doi.org/10.46654/ij.24889849.s6527
  • Miligi, E., Salem, S. S., Abou-El-Soud, F. A., Alasraj, A., Alblawi, S., Alenzi, A., & Alharthi,R.(n.d.).Impact of the intrinsic and extrinsic motivation factors on the Turnover Intention among Academic Staff. Journal of Nursing and Health Science, 9(6), 16–23. https://doi.org/DOI: 10.9790/1959-0906031623
  • Murad, D. (2021). Has the “ Great Resignation” hit Malaysia? The Star.
  • Nagalakshmi, B. B., Ashok, R., Kavya, P., & Vinesh, C. (2023). A study on employee retention at Saawariya Education Consultancy. International Journal For Multidisciplinary Research, 5(1). https://doi.org/10.36948/ijfmr.2023.v05i01.1439
  • Ng, T. W. H., Eby, L. T., Sorensen, K. L., & Feldman, D. C. (2005). Predictors of objective and subjective career success: A meta-analysis. Personnel Psychology, 58(2), 367–408
  • Nguyen, C., & Duong, A. (2020). The Impact of Training and Development, Job Satisfaction and Job Performance on Young Employee Retention. International Journal of Future Generation Communication and Networking, 13(3), 373–386.
  • Pallathadka, H., Leela, V., Patil, S., Rashmi, B., Jain, V., & Ray, S. (2021). Attrition in software companies: Reason and measures. Materials Today: Proceedings. https://doi.org/10.1016/J.MATPR.2021.05.596.
  • Rahman, Z. U., Ali, S. S., & Hussain, F. (2020). The Critical Elements Determining Employee Retention In The BPO Sector Of Bangladesh, 9(1), 2580–2588.
  • Roopavathi, S., & Kishore, K. (2020). The Impact Of Work-Life Balance On Employee Performance. Journal of Interdisciplinary Cycle Research, 7(10), 31–37.
  • Rowley, J. (2014). Designing and using research questionnaires, Management Research Review, 37(3), 308-330. https://doi.org/10.1108/MRR-02-2013-0027
  • Sepahvand, R., & Khodashahri, R. B. (2020). Strategic Human Resource Management Practices and Employee Retention: A Study of the Moderating Role of Job Engagement. Iranian Journal of Management Studies, 437–468.
  • Sharma, T., & Gupta, V. (2020). Work-Life Balance Practices And Its Impact On Employees Retention: A Study On Knowledge Worker In NCR Region. Journal of Critical Review, 7(8).
  • Sindhuja, K., & Subrmaniam, S. S. (2020). Impact of Work-Life Balance on Employee Retention- A Study on Banking Sector. International Journal Management, 7(3), 78–81. https://doi.org/https://doi.org/10.34293/ management.v7i3.1629
  • Singh, B. K. (2023). Understanding employee retention: Factors beyond compensation. LinkedIn. https://www.linkedin.com/pulse/understanding-employee-retention-factors-beyond-brijesh-kumar-singh
  • Siyal, S., & Garavan, T. (2020). Employee Benefits. Global Encyclopedia of Public Administration, Public Policy, and Governance, 1–6. https://doi.org/https://doi.org/10.1007/978-3-319-31816-5_361-1
  • Sorn, M. K., Fienena, A. L. R., Ali, Y., Rafay, M., & Fu, G. (2023). The Effectiveness of Compensation in Maintaining Employee Retention. Open Access Library Journal, 10. https://doi.org/https://doi.org/10.4236/oalib.1110394
  • Styr, C. (2022). 5 things that keep workers at their job and it’s not salary. World Economic Forum. https://www.weforum.org/agenda/2022/12/5-things-that-make-workers-stay-at-their-jobs-not-salary/
  • Sundram, V. P. K., Rajagopal, P., Bahrin, A. S., Mohd, R., Sayuti, N. M., & Othman, A. A., (2016). Research Methodology: Tools, Methods and Techniques. Malaysia Logistics and Supply Chain Association (MLSCA).
  • Tetteh, J., & Asumeng, M. A. (2022). Succession Planning, Employee Retention and Career Development Programmes in Selected Organisations in Ghana. African Journal of Management Research, 151–169. https://doi.org/https://dx.doi.org/10.4314/ajmr. v27i1.9
  • Times, B. (2024). Aon: Salary increases to stay flat at 5PC in Malaysia: New Straits Times. NST Online. https://www.nst.com.my/business/economy/2024/01/1005287/aon-salary-increases-stay-flat-5pc-malaysia
  • U.S. Bureau of Labor Statistics (2021). Job Openings in January 2021 Little Different from One Year Earlier. U.S. Bureau of Labor Statistics.
  • Watkins, R., & Fusch, P. (2022). Employee Monetary Compensation and Employee Job Satisfaction. Open Journal of Social Sciences, 10, 321-339. https://doi.org/10.4236/jss.2022.109021
  • Weng, T.-C., Shen, Y.-H., & Kan, T.-T. (2023). Talent sustainability and development: How talent management affects employees’ intention to stay through work engagement and perceived organizational support with the moderating role of Work-Life Balance. Sustainability, 15(18), 2–20. https://doi.org/10.3390/su151813508
  • Wooll, M. (2022). Career growth: What it is and why it matters. BetterUp. https://www.betterup.com/blog/career-growth
  • Xuecheng, W., Iqbal, Q., & Saina, B. (2022). Factors affecting employee’s retention: Integration of situational leadership with Social Exchange theory. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.872105

Downloads

No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.

How to Cite

Abdul Halim, H. S., & Ab Latiff, D. S. (2024). Retaining Talent in Digital, Technology and Innovation Department: Key Factors Influencing Retention at a GLC in Malaysia. Information Management and Business Review, 16(3(I)S), 817-831. https://doi.org/10.22610/imbr.v16i3(I)S.4111

Share this article

Section

Research Paper

Published

2024-10-07

Submissions

Have research to publish? Information Management and Business Review welcomes submissions.

Make a Submission