The relationship between employee engagement, affective commitment and retention

Zahari, Nur Izzati Farisha (2019) The relationship between employee engagement, affective commitment and retention. Project Report. Universiti Teknikal Malaysia Melaka, Melaka, Malaysia. (Submitted)

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Abstract

According to the Productivity and Innovation Alliance (MAPI) Foundation, manufacturing industry experienced one percent (1%) decrease in 2015 compared to three percent (3.5%) in the previous year. This is due to the shortage of skilled workers and the decline in the retention rate of employees in most industries, especially in manufacturing industry, where employee dissatisfaction, external environment, engagement and employee commitment are the key factors in the challenge of retaining workers in the industry. This is supported by the study of Othman, Alias, Ariadi, & Abdullah (2017) which described that employees in the manufacturing industry has recorded a low percentage of employee retention which only twenty-four percent (24%). This has led Malaysian government to provide full initiative through the 11th Malaysia Plan on addressing the issue of employee retention with the belief that the manufacturing industry plays an important role in Malaysia's economic growth. Therefore, this study was conducted to study the relationship between employee engagement, affective commitment and employee retention at Sumitomo Electric Interconnect Product Sdn Bhd (SEPM). A total of 132 employees were involved as respondents through random sampling. Questionnaires are a major research tool for data collection. Descriptive analysis, Pearson correlation and liner regression were used through the Statistical Package for Social Sciences (SPSS). The findings indicate a significant positive relationship between employee engagement and retention. This study is believed to benefit industry practitioners and academics as a reference for future research

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