Factors influencing millennial employees’ turnover intention in multinational corporations in Penang, Malaysia

Shin Jing Tan, Walton Wider, Leilei Jiang, Lester Naces Udang, Toong Hai Sam, Jem Cloyd M. Tanucan

Article ID: 3922
Vol 8, Issue 7, 2024

VIEWS - 15 (Abstract) 13 (PDF)

Abstract


This quantitative study explores the influence of organizational culture on the turnover intentions of millennial employees within multinational corporations (MNCs) in Penang, Malaysia. As millennials increasingly comprise a substantial portion of the workforce, their turnover rates have significant implications for organizational efficacy. The research examined the relationship between key elements of organizational culture—namely employee empowerment, work-life balance, and reward systems—and millennials’ decisions to stay with or leave their employers. Data were gathered through a questionnaire distributed to 183 millennial employees in the Penang MNC sector, employing a random sampling approach and utilizing Google Forms for submission. The survey instruments were based on established scales from prior research to ensure robustness and relevance. The findings indicate that all the studied variables significantly affect turnover intentions, with employee empowerment emerging as the strongest predictor, followed by work-life balance, and then reward systems. These results underscore the critical role of organizational culture in shaping millennial turnover intentions. The study’s insights can guide MNCs in Penang to implement strategic initiatives aimed at fostering a positive work environment that emphasizes empowerment, balance, and appropriate rewards, thereby enhancing employee retention within this pivotal demographic. While this study provides detailed insights specific to the Malaysian context, its findings may serve as a preliminary reference point for MNCs in similar regional contexts, suggesting further research to explore the applicability of these insights globally.


Keywords


organizational culture; multinational corporations; millennial employees’ turnover; mental health

Full Text:

PDF


References


Abate, J., Schaefer, T., & Pavone, T. (2018). Understanding generational identity, job burnout, job satisfaction, job tenure and turnover intention. Journal of Organizational Culture, Communications and Conflict, 22(1), 1–12.

Acheampong, N. A. A. (2020). Reward Preferences of the Youngest Generation: Attracting, Recruiting, and Retaining Generation Z into Public Sector Organizations. Compensation & Benefits Review, 53(2), 75–97. https://doi.org/10.1177/0886368720954803

Afolabi, O. T. (2021). An investigation of the factors that affect turnover intentions amongst millennial employees: using Ireland as a case study [PhD thesis]. Dublin, National College of Ireland.

Al Aina, R., & Atan, T. (2020). The Impact of Implementing Talent Management Practices on Sustainable Organizational Performance. Sustainability, 12(20), 8372. https://doi.org/10.3390/su12208372

Al-Suraihi, W. A., Samikon, S. A., Al-Suraihi, A.-H. A., et al. (2021). Employee Turnover: Causes, Importance and Retention Strategies. European Journal of Business and Management Research, 6(3), 1–10. https://doi.org/10.24018/ejbmr.2021.6.3.893

Alegre, J., & Pasamar, S. (2017). Firm innovativeness and work-life balance. Technology Analysis & Strategic Management, 30(4), 421–433. https://doi.org/10.1080/09537325.2017.1337091

Ali, B. J., & Anwar, G. (2021). Employee Turnover Intention and Job Satisfaction. International Journal of Advanced Engineering, Management and Science, 7(6), 22–30. https://doi.org/10.22161/ijaems.76.3

Ezaili Alias, N., Hazieqah Rohmanan, N., Ismail, S., et al. (2018). Factors Influencing Turnover Intention in a Malaysian Manufacturing Company. KnE Social Sciences, 3(10), 771. https://doi.org/10.18502/kss.v3i10.3171

Allen, D. G., & Vardaman, J. M. (2021). Global Talent Retention: Understanding Employee Turnover Around the World. Global Talent Retention: Understanding Employee Turnover Around the World, 1–15. https://doi.org/10.1108/978-1-83909-293-020211001

Almaaitah, M. F., Harada, Y., Sakdan, M. F., et al. (2017). Integrating Herzberg and Social Exchange Theories to Underpinned Human Resource Practices, Leadership Style and Employee Retention in Health Sector. World Journal of Business and Management, 3(1), 16. https://doi.org/10.5296/wjbm.v3i1.10880

Alrawahi, S., Sellgren, S. F., Altouby, S., et al. (2020). The application of Herzberg’s two-factor theory of motivation to job satisfaction in clinical laboratories in Omani hospitals. Heliyon, 6(9), e04829. https://doi.org/10.1016/j.heliyon.2020.e04829

Ardi, R., & Anggraini, N. (2022). Predicting turnover intention of indonesian millennials workforce in the manufacturing industry: a PLS-SEM approach. Industrial and Commercial Training, 55(1), 47–61. https://doi.org/10.1108/ict-08-2021-0056

Aris, A. Z. Z., Hassan, A., & Kassim, M. A. M. (2023). Enhancing Organizational Commitment through Effective Computer Communication Practices: A Proposal for Malaysian Organizations. E3S Web of Conferences, 440, 04011. https://doi.org/10.1051/e3sconf/202344004011

Baqir, M., Hussain, S., Waseem, R., & Islam, K. A. (2020). Impact of reward and recognition, supervisor support on employee engagement. American International Journal of Business and Management Studies, 2(3), 8–21.

Baird, K., Tung, A., & Su, S. (2020). Employee empowerment, performance appraisal quality and performance. Journal of Management Control, 31, 451–474.

Bella, K. M. J. (2023). The power of employee well-being: A catalyst for organizational success. International Journal of Scientific Research in Modern Science and Technology, 2(4), 20–26.

Berisha, G., & Lajçi, R. (2020). Fit to Last? Investigating How Person-Job Fit and Person-Organization Fit Affect Turnover Intention in the Retail Context. Organizations and Markets in Emerging Economies, 11(22), 407–428. https://doi.org/10.15388/omee.2020.11.40

Bi, O. T.(2021). An investigation of the factors that affect turnover intentions amongst millennial employees: using Ireland as a case study [PhD thesis]. Dublin, National College of Ireland.

Bundtzen, H. (2023). Adapting Herzberg’s Motivation-Hygiene Theory to a VUCA world-a repertory grid study, 7(1), 99–115. https:10.26417/914kzv77e

Cappelli, L. (2020). An investigation into the best practices of retaining millennials in the financial sectors [PhD thesis]. Dublin Business School.

Chavadi, C. A., Sirothiya, M., & M R, V. (2021). Mediating Role of Job Satisfaction on Turnover Intentions and Job Mismatch Among Millennial Employees in Bengaluru. Business Perspectives and Research, 10(1), 79–100. https://doi.org/10.1177/2278533721994712

Chiat, L. C., & Panatik, S. A. (2019). Perceptions of Employee Turnover Intention by Herzberg’s Motivation-Hygiene Theory: A Systematic Literature Review. Journal of Research in Psychology, 1(2), 10–15. https://doi.org/10.31580/jrp.v1i2.949

Clar,T. L., & Schwerha, D. J. (2020). Millennial preferences in training messages: The role of teamwork and corporate social responsibility. Work, 66(4), 799–815.

Deery, M., & Jago, L. (2015). Revisiting talent management, work-life balance and retention strategies. International Journal of Contemporary Hospitality Management, 27(3), 453–472. https://doi.org/10.1108/ijchm-12-2013-0538

Devi, S., Vasudevan, A., Subramaniam, K., et al. (2022). Turnover Intentions among Gen Y in Malaysia’s Banking Industry. International Journal of Management and Sustainability, 11(3), 147–160. https://doi.org/10.18488/11.v11i3.3126

Dwaikat, N., Qubbaj, I., Madbouly, A., & Queiri, A. (2020). In Education Excellence and Innovation Management: A 2025 Vision to Sustain Economic Development during Global Challenges. (pp. 2150–2158). Seville, Spain: International Business Information Management Association (IBIMA).

Al-Dmour, R., Yassine, O., & Masa’deh, R. (2018). A Review of Literature on the Associations among Employee Empowerment, Work Engagement and Employee Performance. Modern Applied Science, 12(11), 313. https://doi.org/10.5539/mas.v12n11p313

Fadhil, A. H. (2021). The Influence of Work Life Balance, Job Satisfaction, and Organizational Commitment toward Millenial Employee Turnover Intention in Main Office of Bank Nagari [Phd thesis]. Universitas Andalas.

Fang, T., Gunderson, M., & Long†, R. J. (2021). Profit Sharing and Workplace Productivity Growth in Canada: Does Teamwork Play a Role? Articles, 76(1), 90–114. https://doi.org/10.7202/1075575ar

Fernandez, E. S. (2022). A study on factors influencing job satisfaction and retention of millennials in QI Malaysia [Master’s thesis]. Universiti Tun Abdul Razak.

Gautam, P. K. (2019). Comprehensive Reward System, Employee Motivation and Turnover Intention: Evidence from Nepali Banking Industry. Quest Journal of Management and Social Sciences, 1(2), 181–191. https://doi.org/10.3126/qjmss.v1i2.27418

Gerhart, B. (2008). Compensation. The Routledge Companion to Strategic Human Resource Management, 224–244. https://doi.org/10.4324/9780203889015.ch14

Ghani, B., Zada, M., Memon, K. R., et al. (2022). Challenges and Strategies for Employee Retention in the Hospitality Industry: A Review. Sustainability, 14(5), 2885. https://doi.org/10.3390/su14052885

Ghasempour Ganji, S. F., Johnson, L. W., Babazadeh Sorkhan, V., & Banejad, B. (2021). The effect of employee empowerment, organizational support, and ethical climate on turnover intention: The mediating role of job satisfaction. Iranian Journal of Management Studies, 14(2), 311–329.

Gosnell, G. K., List, J. A., & Metcalfe, R. D. (2020). The Impact of Management Practices on Employee Productivity: A Field Experiment with Airline Captains. Journal of Political Economy, 128(4), 1195–1233. https://doi.org/10.1086/705375

Gulyani, G., & Sharma, T. (2018). Total rewards components and work happiness in new ventures. Evidence-Based HRM: A Global Forum for Empirical Scholarship, 6(3), 255–271. https://doi.org/10.1108/ebhrm-12-2017-0063

Harris, M. L. (2019). Women-Owned Small Businesses and Government Contracting: A Qualitative Study [PhD thesis]. Northcentral University.

Hassan, M. M., Alam, M. N., Campbell, N., et al. (2022). Human Resource Management in Health Care Industries for Generation Y: Challenges of the 21st Century. Australasian Business, Accounting and Finance Journal, 16(1), 21–40. https://doi.org/10.14453/aabfj.v16i1.3

Hassan, M. M., Jambulingam, M., Narayan, E. A., et al. (2021). Retention Approaches of Millennial at Private Sector: Mediating Role of Job Embeddedness. Global Business Review, 097215092093228. https://doi.org/10.1177/0972150920932288

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, 3(01), 55–69. https://doi.org/10.1142/j_10.36924sbe.2020.3104

Hee, O. C., & Ann, Y. S. (2019). Factors Influencing Employee Turnover in the Food Manufacturing Industry in Malaysia. International Journal of Academic Research in Business and Social Sciences, 9(1). https://doi.org/10.6007/ijarbss/v9-i1/5423

Hosen, Md. E. (2022). Factors affecting employee turnover in multinational companies in malaysia. Malaysian Management Journal, 26. https://doi.org/10.32890/mmj2022.26.2

Indrayani, I. G. A. P. W. (2022). Authentic Leadership on Turnover Intention of Millenial Hotelier: Worklife Balance as Mediator. TRJ Tourism Research Journal, 6(2), 187. https://doi.org/10.30647/trj.v6i2.177

Indrayani, I., Nurhatisyah, N., Damsar, D., et al. (2023). How does millennial employee job satisfaction affect performance? Higher Education, Skills and Work-Based Learning, 14(1), 22–40. https://doi.org/10.1108/heswbl-01-2023-0004

Islam, M. A., Jantan, A. H., Yusoff, Y. M., et al. (2020). Green Human Resource Management (GHRM) Practices and Millennial Employees’ Turnover Intentions in Tourism Industry in Malaysia: Moderating Role of Work Environment. Global Business Review, 24(4), 642–662. https://doi.org/10.1177/0972150920907000

Ivanova, M., & von Scheve, C. (2019). Power through empowerment? The managerial discourse on employee empowerment. Organization, 27(6), 777–796. https://doi.org/10.1177/1350508419855709

Jaharuddin, N. S., & Zainol, L. N. (2019). The Impact of Work-Life Balance on Job Engagement and Turnover Intention. The South East Asian Journal of Management, 13(1). https://doi.org/10.21002/seam.v13i1.10912

Juariyah, L., & Saktian, I. R. (2018). Does Motivators Determine Employees’ Job Satisfaction? Testing Herzberg Theory of Motivation in Indonesian Café and Restaurant Context. KnE Social Sciences, 3(3), 482. https://doi.org/10.18502/kss.v3i3.1905

Kasa, M., Leong, C.-M., Pudun, J., et al. (2021). The Relationship of Human Resource Practices (HRP) Constructs With Turnover Intention Among Employees in Sarawak, Malaysia. Research in World Economy, 12(1), 43. https://doi.org/10.5430/rwe.v12n1p43

Nida, K., Sajjad, A. A., Maqsood, H., & Saima, B. (2021). Test of Mediating Effect of Employees’ Commitment between the Link of Employees’ Empowerment and Employees’ Turnover Intentions: A Study of Private Higher Educational Institutions. Journal of Business & Tourism, 4(1), 13–25. https://doi.org/10.34260/jbt.v4i1.87

Lee, Y-H. (2022). Strategies to attract and retain Malaysian Gen Zs and millennials. The Star. Available online: https://www.thestar.com.my/business/business-news/2022/09/26/strategies-to-attract-and-retain-malaysian-gen-zs-and-millennials (accessed on 2 Febuary 2024).

Lee, S. H., & Ha-Brookshire, J. (2017). Ethical climate and job attitude in fashion retail employees’ turnover intention, and perceived organizational sustainability performance : a cross-sectional study. Sustainability, 9(3), 465. https://doi.org/10.3390/su9030465

Mappamiring, M., Akob, M., & Putra, A. H. P. K. (2020). What millennial workers want? Turnover or intention to stay in company. Economics and Business, 7(5), 237–248. https://doi.org/10.13106/jafeb.2020.vol7.no5.237

Mauristhene, D. (2020) The experiences of millennials as university administrative staff [PhD thesis]. Northeastern University Boston.

Mendis, M. V. S. (2017). The impact of reward system on employee turnover intention: A study on logistics industry of Sri Lanka. International journal of scientific & technology research, 6(9), 67–72.

Mladenović, M., & Krstić, B. (2021). Barriers and measurement of work/life balance of managers and other employees. Economics of Sustainable Development, 5(1), 23–31. https://doi.org/10.5937/esd2101023m

Ahmed, T. M. (2021). A Novel Classification Model for Employees Turnover Using Neural Network to Enhance Job Satisfaction in Organizations. Journal of Information and Organizational Sciences, 45(2), 361–374. https://doi.org/10.31341/jios.45.2.1

Mulang, H. (2022). Analysis of The Effect of Organizational Justice, Worklife Balance on Employee Engagement and Turnover Intention. Golden Ratio of Human Resource Management, 2(2), 86–97. https://doi.org/10.52970/grhrm.v2i2.169

Murphy, K. R. (2019). Performance evaluation will not die, but it should. Human Resource Management Journal, 30(1), 13–31. Portico. https://doi.org/10.1111/1748-8583.12259

Murray, W. C., & Holmes, M. R. (2021). Impacts of Employee Empowerment and Organizational Commitment on Workforce Sustainability. Sustainability, 13(6), 3163. https://doi.org/10.3390/su13063163

Musadieq, M. A. (2023). The influence of organisational culture, work-life balance, and employee engagement on the employee turnover intention of China National Oil Offshore Company South. International Journal of Business Excellence, 29(3), 390. https://doi.org/10.1504/ijbex.2023.129116

Nathan, L. (2021). Employees need more than monetary benefits. The Malaysian Reserve. Available online: https://themalaysianreserve.com/2021/02/18/employees-need-more-than-monetary-benefits/ (accessed on 18 August 2023).

Ng, Y. N., & Salamzadeh, Y. (2020). The impact of ethical leadership on the intention to stay among the generation-Y workforce of MNCs in Penang, Malaysia: Mediating role of employee rewards. International Journal of Business Science & Applied Management (IJBSAM), 15(2), 16–37.

Ngqeza, K., & Dhanpat, N. (2021). Investigating the effects of employee empowerment on turnover intention in a mining organisation. SA Journal of Human Resource Management, 19. https://doi.org/10.4102/sajhrm.v19i0.1564

Okochi, K., & Ateke, B. W. (2020). Employee empowerment: A strategy for optimizing employee performance. Nigerian Journal of Business and Social Review, 11(2), 125–137.

Ongori, H. (2009). Managing behind the scenes: A view point on employee empowerment. African Journal of Business Management, 3(1), 009–015.

Phang Ooi, T., & Ban Teoh, K. (2021). Factors affecting the turnover intention among employees in Penang manufacturing industry. Annals of Human Resource Management Research, 1(1), 29–40. https://doi.org/10.35912/ahrmr.v1i1.379

Pradita, N. Y., & Franksiska, R. (2020). Work-life balance: A perspective of multinational corporation (MNCs) employee. Jurnal Bisnis Dan Manajemen, 7(1). https://doi.org/10.26905/jbm.v7i1.4077

Prakash, K., & Tiwari, P. (2021). Millennials and Post Millennials: A Systematic Literature Review. Publishing Research Quarterly, 37(1), 99–116. https://doi.org/10.1007/s12109-021-09794-w

Purwatiningsih, E., & Sawitri, H. S. R. (2021). Analysis on the effect of work-life balance and career development on turnover intention for millennial generations. Management and Entrepreneurship: Trends of Development, 1(15), 80–88. https://doi.org/10.26661/2522-1566/2021-1/15-05

Rahman, S., Wahab, R., & Nadzri, S. (2018). Motivation of academic staff: Herzberg motivation-hygiene theory. In: Proceeding of the 5th International Conference on Management and Muamalah. pp. 443–449.

Rakhra, H. K. (2018). Study on factors influencing employee retention in companies. International Journal of Public Sector Performance Management, 4(1), 57. https://doi.org/10.1504/ijpspm.2018.088695

Rawashdeh, A. M. (2018). The Impact of Talent Management Strategies on Bank Performance in Jordanian Commercial Banks. Modern Applied Science, 12(12), 49. https://doi.org/10.5539/mas.v12n12p49

Rezeki, F. (2023). Work Attachment as Intervening Transformational Leadership and Work-Life Balance to Intention to Stay in Millennial Generation in Automotive Company. International Journal of Social Science and Business, 7(2), 476–482. https://doi.org/10.23887/ijssb.v7i2.57642

Rouse, M. A. (2020). The Relationship between Flexible Work Environments and the Engagement of Healthcare Information Technology Employees [PhD thesis]. Walden University.

Rudnak, I. (2020). The study of employee motivation in a Chinese private enterprise. Educația Plus, 26(1), 20–34.

Sahni, J. (2021). Employee Engagement Among Millennial Workforce: Empirical Study on Selected Antecedents and Consequences. SAGE Open, 11(1), 215824402110022. https://doi.org/10.1177/21582440211002208

Sahroni, H., & Suganda, U. K. (2022). Effect of Work Life Balance and Organizational Commitment on Turnover Intention of Employees of PT. Santosa Adi Perkasa. Kontigensi : Jurnal Ilmiah Manajemen, 10(1), 113–121. https://doi.org/10.56457/jimk.v10i1.260

Ali Salahat, M. (2021). Employee Empowerment, Knowledge Management and Decision-making Agility; Mediating Role of Extra-role Performance. International Journal of Academic Research in Business and Social Sciences, 11(7). https://doi.org/10.6007/ijarbss/v11-i7/10327

Sathyanarayana, S., Gargesa, S., & Lekha, V. (2019). Effectiveness of talent management strategies: evidence from Indian IT sector. Int J Manag Stud, 6, 19–33. https://doi.org/10.18843/ijms/v6i1(1)/03

Abdulai Sawaneh, I., & Kanko Kamara, F. (2019). An Effective Employee Retention Policies as a Way to Boost Organizational Performance. Journal of Human Resource Management, 7(2), 41. https://doi.org/10.11648/j.jhrm.20190702.12

Schwartz, A. C., McDonald, W. M., Vahabzadeh, A. B., et al. (2018). Keeping Up With Changing Times in Education: Fostering Lifelong Learning of Millennial Learners. FOCUS, 16(1), 74–79. https://doi.org/10.1176/appi.focus.20170004

Imran, A. S., Atallah, F. A., Muhammad, F., et al. (2021). Twenty-Five Years of the Asian Academy of Management Journal (AAMJ): Intellectual Structure Mapping and Bibliometric Review. Asian Academy of Management Journal, 26(1), 25–46. https://doi.org/10.21315/aamj2021.26.1.2

Sorn, M. K., Fienena, A. R. L., Ali, Y., et al. (2023). The Effectiveness of Compensation in Maintaining Employee Retention. OALib, 10(07), 1–14. https://doi.org/10.4236/oalib.1110394

Stephens, D. O. (2020). Strategies to improve millennial employees' engagement within the hospitality industry [PhD thesis]. Walden University.

Subramaniam, C., Choo, L. S., & Johari, J. (2019). What makes employees want to stay? A study in the Malaysian manufacturing sector. Global Business and Organizational Excellence, 38(5), 33–43. Portico. https://doi.org/10.1002/joe.21949

Vu, H. M. (2020). Employee empowerment and empowering leadership: A literature review. Technium: Romanian Journal of Applied Sciences and Technology, 2(7), 20–28. https://doi.org/10.47577/technium.v2i7.1653

Waworuntu, E. C., Kainde, S. J. R., & Mandagi, D. W. (2022). Work-Life Balance, Job Satisfaction and Performance Among Millennial and Gen Z Employees: A Systematic Review. Society, 10(2), 384–398. https://doi.org/10.33019/society.v10i2.464

Weerarathne, R. S., Walpola, M. D. C. P., Piyasiri, A. D. W. D., et al. (2022). ‘Leave or remain’: intentions of Gen X and Y employees. Quality & Quantity, 57(3), 2249–2268. https://doi.org/10.1007/s11135-022-01456-z

Weerawardhana, R. D. T. I., & Lasanthika, W. J. A. J. M. (2022). Impact of talent management practices on employee retention of generation ‘Y’ in apparel industry in Sri Lanka; with mediating effect of organizational commitment. In 5th Annual Research Symposium in Management (p. 287).

White, I. (2022). Leader-Member Exchange and Work-Life Balance: Predicting Millennial Turnover Intent [PhD thesis]. Capella University.

The importance of work-life balance on employee performance millennial generation in indonesia. (2020). Journal of Critical Reviews, 7(09). https://doi.org/10.31838/jcr.07.09.203

Yunus, M., Iis, E. Y., Adam, M., & Sofyan, H. (2020). Does Motivation Mediate the Effects of Employee Staff Empowerment, Talent, Working Environment, and Career Development on Staff Performance?. Calitatea, 21(175), 91–96.

Zainal, N. S. B., Wider, W., Lajuma, S., et al. (2022). Employee Retention in the Service Industry in Malaysia. Frontiers in Sociology, 7. https://doi.org/10.3389/fsoc.2022.928951

Zhang, S. X., Liu, J., Afshar Jahanshahi, A., et al. (2020). At the height of the storm: Healthcare staff’s health conditions and job satisfaction and their associated predictors during the epidemic peak of COVID-19. Brain, Behavior, and Immunity, 87, 144–146. https://doi.org/10.1016/j.bbi.2020.05.010

Yong Zhao, T., Kartar Singh, J. S., & Alisa Hussain, I. (2022). Wellbeing of Millennials Working Remotely in Malaysia. International Journal of Academic Research in Business and Social Sciences, 12(5). https://doi.org/10.6007/ijarbss/v12-i5/13156

Zhuo, F., & Yuan, L. (2021). The impact of knowledge distance on turnover intention of millennial employees: from the perspective of Mianzi. Journal of Knowledge Management, 26(10), 2558–2578. https://doi.org/10.1108/jkm-07-2021-0542




DOI: https://doi.org/10.24294/jipd.v8i7.3922

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Shin Jing Tan, Walton Wider, Leilei Jiang, Lester Naces Udang, Toong Hai Sam, Jem Cloyd M. Tanucan

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.