Factors affecting workers turnover intention in manufacturing sector at Melaka

Adnan, Ruzlinda (2018) Factors affecting workers turnover intention in manufacturing sector at Melaka. Project Report. Universiti Teknikal Malaysia Melaka, Melaka, Malaysia. (Submitted)

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Abstract

Employees are important assets in any running of a business; without them the business would ne unsuccessful. Employee turnover is the process of replacing one worker with another for any reason. A turnover rate is the percentage of employee that a company must replace within a given time period. This rate is a concern to most companies because employee turnover can be a costly expense, especially for lower-paying jobs, which typically have the highest turnover rates. Having an employee leave a company, either because of his or her choice or after being fired or otherwise let go, might require various administrative tasks to be performed and severance pay or other payments made to the employee. Replacing the employee might require such things as advertising the open position, using a so-called head hunter or other service to finding potential job candidates, bringing in candidates for interviews and eventually training the new employee. The continuous training and positive reinforcement develops an employee to be more committed, competent, consistent, competitive and effective which also in long run plays a very important role in the employee turnover which is result of global competitiveness. Employee turnover is always taken as a negative aspect of any business house. It not only affects the production and in long run the profit but also the working culture and learning environment of the corporate sector. Employee turnover has been defined as a permanent movement of the employee beyond the boundary of the organization. Interest in the topic has gained momentum in the recent past among organizational psychologists, economists, and sociologists with different perspectives. In this study, the researcher conducts a study on the factors that impact turnover intention of employees in manufacturing sector at Melaka. The dependent variable is turnover intention and the independent variables involved are job stress, work overload, work environment, leader-member exchange, reward practices.

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