Factors Affecting Retention Of Millennial

STUDENT NAME & ID NO

Lim Li Yin (P17008242)

BROAD AREA

Human Resource

Concise Title

Factors Affecting the Retention of Millennial in Manufacturing

Industry in Penang

Problem Definition

Many challenges affect the manufacturing industry in Malaysia

while trying to preserve the aptitude pool in the industry (Penang

Institute, 2015). Unlike South East Asia, Malaysia is as well

identified as one of the uppermost three nations facing increased

turnover rate mainly in manufacturing industry (Othman et al.,

2017). As per the Institute of Labour Market Information and

Analysis (2018), the average turnover rate in Malaysia was at 20%.

According to the Labour Force Survey Report (2019), obvious that

the general membership in the labour market was the utmost at 86.7

per cent for groups aged from 25 to 34 years. Some research

identified that the biggest percentage of Malaysian workers have the

very minimal service time to their company lasting for less than a

year (MichaelPage, 2015). Several studies recognized that the

personnel from Millennials played part in getting increased revenue

rate considerably (Sujansky & Ferri-Reed, 2009; Khalid et al, 2013;

Yusoff et al, 2013). Therefore, Millennials worrkers have minimal

retention purpose unlike other generation (Solnet et al, 2012).

Research Questions OR

Objectives

The utmost objective of this study is to recognize the factors

affecting the retention among Millennial in manufacturing industry

in Penang, Malaysia.

Research Objectives

1. To identify whether there is a substantial connection between

reimbursements and worker retention.

2. To realize if there is an essential association between teaching

and growth and worker retention.

3. To recognize whether there is a critical connection between

working atmosphere and employee retention.

4. To identify if there is an important association between work-

life balance and worker retention.

5. To govern whether there is a substantial bond between job

satisfaction and worker retention.

Research Questions

1. Is there a connection between compensation and worker

retention?

2. Is there an association between teaching and growth and worker

retention?

3. Is there a connection between work atmosphere and worker

retention?

4. Is there a association between work-life balance and worker

retention?

5. Is there a bond between job satisfaction and worker retention?

Scope of Study

This study is to inspect the factors on retention of Millennials

employees. Therefore, it will target the worker from the group aged

from 19 to 39 years who are presently serving in manufacturing

industry in Penang.

Significance of the Research

The results of this research will be used by industry practitioners in

knowing more about factors influencing the retention of the

Millennials workers to keep them and minimize the turnover rate.

Also, the research findings offer assistance and allusion to the

academic viewpoint for the academic scholars to know the factors

influencing the retention of Millennials workers and cover the

literature gap for more investigators.

Literature Review

Employee Retention

Worker retention refers to the ability of employers to hold their

trained and brilliant workers and stop them from leaving the

companies (Johnson, 2000). Retaining workers is vital for

accomplishment in the current workplace to remain economically

viable (Das & Baruah, 2013). The withholding of worker will aid a

company to accomplish cost saving, improve the workers’

enactment and yields to achieve the set goals to increase the profit

(Ahlrichs, 2000; Oladapo, 2014).

Millennials

Millennials also identified as Generation Next, Generation Y or

GenMe (Lamm & Meeks, 2009). Many researchers usually identify

Milennials as the ones born from 1980 to 2000 (Hess & Jepsen,

2009; Acar, 2014; Queiri et al., 2015). Khalid et al. (2013)

recognize that Gen Y have rising turnover intent unlike other

generations. Nonetheless, it will be solemn sensation with

Millennials worker retention if there is no understanding of the

demand for Millennials at the organization (Queiri et al., 2015).

Compensation

Reimbursement or reward is to give something to the workers

according to the input and recital toward the company and fulfil

interests of workers (Aguenza & Som, 2012). Compensation is

normally monetary or non-monetary for the workers as per their

performance (Patnaik & Padhi, 2012). Every company will have its

compensation strategies to preserve workers (Scott et al., 2012).

Compensation is the key factor to hold workers and inspire them to

perform (Terera & Ngirande, 2014).

Training and Development

Provision of education or the progress of behaviour, information

and abilities gained are vital for workers to perform systematically

and successfully (Tangthong et al., 2014). Training and

development are identified as vital initiative to improve worker

retention, predominantly those with the ambition to look for career

development (Chen, 2014).

Working Environment

Work atmosphere is the workplace where employees are expected

to be productive and able to meet their interests (Narang, 2013). The

quality or comfort acquired from work atmosphere can define

workers’ rate of job satisfaction and ability to improve their

productivity (Noah & Steve, 2012). Therefore, high satisfaction rate

towards a work atmosphere will assist in to increasing the workers’

obligation in a company (Adekola, 2012).

Work-Life Balance

The term refers to the balance between the work and personal life

aspects (Bal, 2010). Different researchers identified that work-life

balance positively and indirectly influence organizational profit

(Downes & Koekemoer, 2011; Michie & Williams, 2003; Morgan,

2009). Hence, the company offer the elasticity to their workers to

accomplish the balance between their effort and individual life will

aid in increasing worker’s presentation and minor turnover (Chao,

2005).

Job Satisfaction

Work gratification is the individual positivity or negativity at

workplace (Weiss, 1999). Job satisfaction is a vital factor to the

worker’s well-being and interpreter of the worker turnover purpose

(Diaz-Serrano & Cabral Vieira, 2005; Gazioglu & Tansel, 2006).

However, job satisfaction can influence the yield, employees’

obligation; eliminate nonattendance and turnover plan (Ellickson &

Logsdon, 2002; Diaz-Serrano and Cabral Vieira, 2005).

Research Methodology

The study was done using, the intended questions which were

amended and adopted from past studies. Non-probability sampling

was used, and endorsed technique was convenient sampling because

of being easily available according to samples collection process

(Lewis et al, 2012). A questionnaire survey was directed

appropriately to 100 individual millennial adults operating in

manufacturing industries in Penang.

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