Determinants of Turnover Intention Among Employees: A Case Study of Manufacturing Company

Abstract

In today’s competitive world, quality services provided to the customers are very important to spur company’s growth. A good quality service is largely contributed by valuable human capital that a company could have. However, high turnover rate reduces productivity of any organisation, increases the cost of hiring new employee, and gives bad reputation to the organisation in the market. Based on a case study of a manufacturing company in Malaysia with considerably high recorded turnover rates, this study examined whether employee involvement, working environment, role of higher management, training and development are associated with turnover intention. A total of 104 employees from a population of 134 participated in a survey questionnaire. Pearson’s correlation analysis was performed to determine the correlation among variables. Dissatisfaction towards higher management were found as the most highly associated factor to increase turnover intention, followed with employee’s disengagement, inefficient training and development and less conducive working environment. It is thus recommended that the highest priority to address the turnover is placed on role of higher management roles. The insights from this study provide ways to retain employees from turnover intention, control financial losses, improve the quality of work and earn customer loyalty.