SWNOV2-2 - 3 - Chapter 4-5

Running Head: Factors That Influence Employees Turnover In Private Companies In Malaysia 1
FACTORS THAT INFLUENCE EMPLOYEES TURNOVER IN
PRIVATE COMPANIES IN MALAYSIA

Factors That Influence Employees Turnover In Private Companies In Malaysia 2
Abstract
The dissertation chapter deals with the analysis of the factors that influence the employee
turnover rate in Malaysia. The main factors of the study were lack of motivation, less rewarding
facilities, unethical work environment and the office politics that caused influence on the rate of
employee turnover in Malaysian organization and the target population for conduction the
research was the employees of some of the reputed companies of the country. First chapter is
about a detailed introduction to the topic and has produced research background followed by
specifying the problem statement regarding the issue. Each factor was discussed by giving a
research objective and a research question along with giving light on the significance of the
study with respect to the research work. A brief description of all the chapters was given finally.
The literature review dealt with the discussion on each of the variables along with detailing about
the theory used for the research. There were two theories discussed namely ERCs retention
model and the Maslow’s hierarchy of needs. The literature review stated the entire problem
statement that is involved in the research. The hypothesis development of the dissertation was
also produced that shown the relationship between the factors and the issue. The research
methodology consisted of introduction and research h hypothesis. Various research instruments
like qualitative, quantitative and mixed research method was explained after which a short
description on pilot study, data analysis tools and sampling techniques were provided. A research
equation was increased at the end of the chapter. The fourth chapter is detailed about the findings
and analysis of the dissertation. It gives the calculation and the statistical data with regards to
different tools in SPSS. A pilot study for 30 average respondents was calculated and the
descriptive analysis was identified focusing on the 200 target respondents. On the basis of 200
employees the data for reliability analysis, normality test, linearity test, collinear analysis and
regression analysis was taken out from the SPSS application. Finally the result of the hypothesis
development was showcased. The last chapter is produced for the results and conclusion of the
overall findings and analysis followed by implication of the study. Various limitations observed
by the researchers were also given and at the end two recommendations for improvement of the
issue was proposed through SMART method. Prior to this, conclusion for overall research was
given.
Acknowledgement
I am extremely grateful to all individuals who have helped me to conclude this research study
successfully. I have been able to develop my skills on the different approaches related to the
research for employee turnover in Malaysian organization which is affected by several factors
like lack of motivation of employees and their irregular rewarding policies. I would specially
want to convey my deep gratitude to my professor who has guided me whenever I needed any
help during the study. I would also like to thank my librarian on helping me through providing
the books and journals. I have accessed some of the premium journals from the World Wide
Web. I am excessive thankful to my classmates for sharing their knowledge on employee
satisfaction in Malaysia. I am thankful to the 200 respondent employees to take part in survey
process. Finally, I would like to thank my friends and family who have been a constant source of
support for me and has endured my tantrums during the conduction of the study.
Thank You.
Chapter 4 – Findings and analysis
4.1. Introduction
Findings and analysis is related to all the calculations statistical data compilation based on the
information generated. The chapter deals with gathering statistical data of the responses of the
employees of Malaysian organizations and calculating various analyzing figures. According to
Zhang (2016), the pilot study of all the variables and also the data analysis with specifically
focusing on the descriptive analysis of the data is based on the sample. Reliability analysis,
normality test and correlation and regression analysis is also done in this assignment.
4.2. Pilot study
Pilot study is one of the objectives of a research to analyze the feasibility of the selected
questionnaire which is intended for a larger scale of population. In this study, the sample
population of this study is 200. Before conducting the survey, it is always advisable to conduct a
pilot test that would help in identifying the feasibility of the questionnaire (Hom et al. 2017).
Cronbach’s alpha test is used to assess the feasibility of the same. If the value of Cronbach’s
alpha test is more than 0.60, then the questionnaire is good and can be used for the large scale
survey. However, values lower than 0.60 means there is irregularity in the data. This pilot test is
conducted using a population of 30 respondents.
4.2.1. Pilot test for all variables
As observed from the table, it provides the reliability analysis of all the variables in the pilot
study. The Cronbach’s alpha value is at 0.992 for all the 28 items in the questionnaire. Hence,
the data is reliable and the questionnaire is good to go for the survey (Li, Kim, & Zhao, 2017). A
table below signifies the individual Cronbach’s alpha value for each of the variable and it will
determine the reliability of each of the IVs and DV used in the research. Therefore, with a value
of 0.992, it can be finally state that there is a very high level of internal consistency internal
consistency in the pilot study. The data is also reliable to carry forward for the next stage of
survey with a larger sample size.
4.2.2. Pilot test for each variable
DV IV
Employee Office Lack of Lack of Unethical
Turnover Politics rewarding motivation work
and environme
awarding nt
policy
Cronbach’ 0.992 0.912 0.922 0.919 0.917
s Alpha
Number 4 6 6 6 6
Table 4.2.2.1: Reliability of Pilot test
Source: Created by author
Case Processing Summary
N %
Valid 30 96.8
Cases Excludeda 1 3.2
Total 31 100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's N of Items
Alpha
.992 28
Table 4.2.2.2: Reliability of Pilot test for total value
As observed from the table, the Cronbach’s alpha value for all the IVs and DV are more than
0.60 values which indicates good data consistency as well as steady rate of IVs in comparison to
the DV. In this case, the value for the DV, employee turnover is at 0.992 as compared with that
of the overall reliability analysis value of all the variables in the earlier section (Reina et al.
2017). Both the values are same that indicates strong consistency and uniformity among the
variables. IV 1 of Office Politics also have a good value at 0.912 followed by IV 2 of Lack of
rewarding and awarding policy that has a Cronbach’s alpha value of 0.922. Similarly, the other
two IVs of Lack of motivation and Unethical work environment also has strong reliability
analysis returns at 0.919 and 0.917 respectively. As stated by Li et al. (2016), it determines that
the questionnaire is consistent and is good enough to proceed with the final survey.
4.3. Data analysis
4.3.1. Descriptive analysis
Gender
The descriptive analysis of the gender of the sample population is provided here. The percentage
of female is 55.7% to that of male respondents of 44.8%. About 0.5% of the population was of
other gender or did not disclose it.
GENDER
Frequency Percent Valid Percent Cumulative
Percent
MALE 90 44.8 45.0 45.0
Valid FEMALE 110 54.7 55.0 100.0
Total 200 99.5 100.0
Missing System 1 .5
Total 201 100.0
Table 4.3.1.1: Descriptive analysis of Gender

Age
Majority of the population in the survey was in the age range of 31-35 with a comprehensive
participation of 24.9%.
AGE
Percent
1 .5 .5 .5
< 20 30 14.9 14.9 15.4
21 - 25 40 19.9 19.9 35.3
Valid 26 - 30 40 19.9 19.9 55.2
31 - 35 50 24.9 24.9 80.1
36 > 40 19.9 19.9 100.0
Total 201 100.0 100.0
Table 4.3.1.2: Descriptive analysis of Age

Qualification
Most of the respondents in the study have a qualification of certification like professional course.
This segment of the population made up about 29.9% of the entire sample population.
QUALIFICATION
Percent
1 .5 .5 .5
HIGH SCHOOL 35 17.4 17.4 17.9
DIPLOMA 35 17.4 17.4 35.3
BACHELOR DEGREE 30 14.9 14.9 50.2

Valid
POSTGRADUATE 40 19.9 19.9 70.1
OTHERS (PROFESSIONAL
60 29.9 29.9 100.0
CERTIFICATE, ETC ACCA)
Total 201 100.0 100.0
Table 4.3.1.3: Descriptive analysis of Qualification

Profession
In terms of profession, majority of the respondents were in the rank of manager to senior
managerial posts. About 29.9% of the respondents held a managerial position while around
12.4% of respondents held a senior managerial position.
PROFESSION
Percent
1 .5 .5 .5
STUDENT 30 14.9 14.9 15.4
EXECUTIVE 45 22.4 22.4 37.8
Valid SENIOR EXECUTIVE 40 19.9 19.9 57.7
MANAGERIAL 60 29.9 29.9 87.6
SENIOR MANAGERIAL 25 12.4 12.4 100.0
Total 201 100.0 100.0
Table 4.3.1.4: Descriptive analysis of Profession

Income
A high income population in the salary range of RM 5001 – 7000 participated in the survey. It
also signifies that the data generated in the table also include low income employees.
INCOME
Percent
1 .5 .5 .5
< RM 2000 40 19.9 19.9 20.4
RM 2000 - RM 3000 35 17.4 17.4 37.8
Valid RM 3001 - RM 5000 35 17.4 17.4 55.2
RM 5001 - RM 7000 55 27.4 27.4 82.6
> RM 7001 35 17.4 17.4 100.0
Total 201 100.0 100.0
Table 4.3.1.5: Descriptive analysis of Income

Race
The table below depicts that there were respondent from four different racial background like
Indian, Chinese, ethnic Malays and other significant races.
RACE
Percent
1 30 14.9 15.0 15.0
2 50 24.9 25.0 40.0
Valid 3 70 34.8 35.0 75.0
4 50 24.9 25.0 100.0
Total 200 99.5 100.0
Missing System 1 .5
Total 201 100.0
Table 4.3.1.6: Descriptive analysis of Race

Experience
The table below depicts the experience level of respondents participating in the survey process.
EXPERIENCE
Percent
1 70 34.8 35.2 35.2
2 49 24.4 24.6 59.8
Valid 3 50 24.9 25.1 84.9
4 30 14.9 15.1 100.0
Total 199 99.0 100.0
Missing System 2 1.0
Total 201 100.0
Table 4.3.1.7: Descriptive analysis of Experience

Marital Status
The table below depicts the marital status of respondents participating in the survey process.
While 54.7% of the respondents were married, around 5% of the respondents neither did nor
discloses their marital status.
MARITAL
Percent
1 110 54.7 55.0 55.0
2 80 39.8 40.0 95.0

Valid
3 10 5.0 5.0 100.0
Total 200 99.5 100.0
Missing System 1 .5
Total 201 100.0
Table 4.3.1.8: Descriptive analysis of Marital status

4.3.2. Reliability analysis
Variable Cronbach’s alpha value Number
Employee Turnover (DV) 0.990 4
Office Politics (IV1) 0.990 6
Lack of rewarding and 0.989 6
awarding policy (IV2)
Lack of motivation (IV3) 0.991 6
Unethical work environment (IV4) 0.988 6
Table 4.3.2: Reliability analysis of all variables

As observed from the table above, the data suggests that the data set is reliable and very
consistent throughout. Each of Cronbach's alpha value is very high and is way beyond the
threshold of 0.60 coefficients. It signifies that the data generated is reliable and feasible for
analysis. The survey data is also very significant as the DV’s Cronbach’s alpha value is 0.990
that is closely related to the Pilot study’s Cronbach’s alpha value. At the same time, the IV1’s
value is also the same which is followed by IV2’s data at 0.989. The other two IVs are also very
closely related that are 0.991 and 0.988 respectively. It signifies that all the IVs are in direct
relation or parity with the DV (Lee et al. 2017). It can be summarized from the reliability
analysis that the DV of employee turnover is closely related to the IVs of office politics, lack of
motivation and other variables.
4.3.3. Normality test
Normality test is done for assessing the normality of the data or its efficiency to get normally
distributed using random variable distribution. As opined by Hou et al. (2019), it shows how
well modeled a data is and is also generated using Kolmogorov-Smirnov and Shapiro-Wilk test.
In this case, the Dependent variable (combined transformed of all DV statements) is normalized
as per this. The sigma value of 0.00 in both the cases proves the normality of the data.
Tests of Normality
Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Dependent .276 200 .000 .721 200 .000
a. Lilliefors Significance Correction
Table 4.3.3.1: Normality test

In the descriptive, it is seen that the mean value of Dependant variable is17.1200 and has a lower
bound of 16.6274 with upper bound of 17.6126. The Z-score test of Skewness and Kurtosis of
the same is also done here. The skewness value of -1.851 by that of the error 0.172 is the value
of Skewness and Kurtosis’ Z-score test.
Descriptives
Statistic Std. Error
Mean 17.1200 .24978
95% Confidence Interval for Lower Bound 16.6274
Mean Upper Bound 17.6126
5% Trimmed Mean 17.5944
Median 16.5000
Variance 12.478
Dependent Std. Deviation 3.53242
Minimum 4.00
Maximum 20.00
Range 16.00
Interquartile Range 4.00
Skewness -1.851 .172
Kurtosis 4.099 .342
Table 4.3.3.2: Z-score test

4.3.4. Linearity test
In order to verify whether the relationship between the IVs and DV is linear or not, this test is
done. It is necessary to analyze whether the data is liner or not for better correlation. Therefore, if
the value of the sigma deviation is less than 0.05 for linearity, then the relationship between the
IVs and DV is linear. If it is more than 0.05, then the relationship is not linear.
ANOVA Table
Sum of df Mean F Sig.
Squares Square
Dependent * Betwee (Combine 2479.870 13 190.759 10917.298 .000
Indepdenden n d)
t1 Groups Linearity 2463.580 1 2463.580 140992.57 .000
2
Deviation 16.290 12 1.358 77.691 .000
from
Linearity
Within Groups 3.250 186 .017
Total 2483.120 199
Table 4.3.4: Linearity test
The sigma value is less that 0.05 which means that there is linear relationship between the
dependant variable and independent variable. In this case the ANOVA test is down with the link
of DV and IV1 that is compute and checked for linearity.
4.3.5. Correlation analysis
Correlations
Dependent Indepdendent1
Pearson Correlation 1 .996**
Dependent Sig. (2-tailed) .000
N 200 200
Pearson Correlation .996** 1
Indepdendent1 Sig. (2-tailed) .000
N 200 200
**. Correlation is significant at the 0.01 level (2-tailed).
Table 4.3.5.1: Correlation analysis of DV and IV1

The Pearson correlation value is 0.996 which is between the range of 0.80 and 1 that signifies
that there is strong correlation between DV and IV1. Therefore it can be state that there is strong
analytical links with employee turnover and Office Politics.
Correlations
N 200 200
N 200 200
analytical links with employee turnover and Lack of rewarding and awarding policy.
Correlations
N 200 200
N 200 200
analytical links with employee turnover and Lack of motivation.
Correlations
N 200 200
N 200 200
analytical links with employee turnover and Unethical work environment.
4.3.6. Linear Regression analysis
4.3.6.1. Linear Regression analysis for IV1
Model Summary
Mode R R Square Adjusted R Std. Error of
l Square the Estimate
1 .996a .992 .992 .31415
a. Predictors: (Constant), IV_1
Table 4.3.6.1.1: Model summary for IV1
(Source: created by the author)
The value of R is 0.994 for the first variable and that signifies that the office politics issue has a
high number of correlations with the replacement of the employees in the country. R square
value was found to be 0.992 which means that the amount of variation in the turnover can be
explained by 99.2% of the independent variable identified. The standard error of the observed
value is 0.31415 which is in between -1 and 1. This data and statistics determine that the
information in context with the fact of office politics on the issue is reliable.
ANOVAa
Model Sum of df Mean F Sig.
Squares Square
Regression 2463.580 1 2463.580 24963.470 .000b
1 Residual 19.540 198 .099
Total 2483.120 199
a. Dependent Variable: DV
b. Predictors: (Constant), IV_1

Table 4.3.6.1.2: ANOVA test for IV1
(Source: done by writer)
The ANOVA model is for predicting the relation between variables as it states the statistical
importance of the model of regression. The F value is calculated as 24963.470 whereas the value
of significance is 0.0000001 which is quite less than 0.05 and that portrays the politics in office
premises affects the turnover of workers.
Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) -.203 .112 -1.818 .071

1
IV_1 .676 .004 .996 157.998 .000
Table 4.3.6.1.3: Coefficient for IV1
(Source: Writer)
As per the case scenario, the value of significance was found out as 0.0000001 which is
considerably less than 0.5 and hence the data is valid and appropriate for research. In addition to
this, the regarded hypothesis development is acknowledged.

Model Summary
1 .997a .993 .993 .28980
Table 4.3.6.2.1: Summary of Model for IV2
(Source: Researcher)
The R figure is 0.997 for the second factor and that portrays that the lack of rewarding and
appraisal policy issue has a high amount of correlations with the turnover of the employees in the
country. R square value was calculated to be 0.993 which means that the variation in the issue
can be explained by 99.2% of the independent variable identified. The standard error of
estimation is 0.28980 which occurs between -1 and 1. It shows that the decrease in the rewards
and recognition facilities can be indirectly proportional to the employee quitting rate.
ANOVAa
Squares Square
Regression 2466.491 1 2466.491 29368.629 .000b
1 Residual 16.629 198 .084
Total 2483.120 199

Table 4.3.6.2.2: ANOVA test for IV2
(Source: writer)
The F figure for the ANOVA model of analysis is calculated as 29368.629 whereas the
significance number is 0.0000001 which is significantly less than 0.05 and that shows that the
issue of fewer rewards highly affects the employees.
Coefficientsa
B Std. Error Beta
(Constant) .068 .102 .671 .503

1
IV_2 .664 .004 .997 171.373 .000
Table 4.3.6.2.3: Coefficients value for IV2
(Source: Developer)
According to the result, the coefficient data signifies that the information is reliable as well as it
is valid for the purpose of research. The p value is in less than 0.05 and this is the reason of the
above statement. The relationship between the predictor and the response rate is found to be
connecting.

Model Summary
1 .997a .993 .993 .28582
Table 4.3.6.3.1: Model summary for IV3
The R value regarding this factor is 0.997 that further predicts the connection between the
motivational lack and the replacement of the workers. The value of R square was calculated to
be 0.993 which means that the variation in the issue can be explained by 99.3% of the lack of
motivation. Estimated error of standardization is 0.28582 that is between -1 and 1. The result
defines the correlation strength between both the facts and hence specifies that lack of
motivational technique application can cause the employees to lose their job.
ANOVAa
Squares Square
Regression 2466.945 1 2466.945 30197.403 .000b
1 Residual 16.175 198 .082
Total 2483.120 199
Table 4.3.6.3.2: Test for ANOVA for IV3
(Source: Writer)
The F value defined as per the ANOVA is 30197.403 and based on the sigma figure; it has been
observed that the predictor variable which is lack of motivation has significantly increased the
rate of labor knock-out. The data also specifies that there is large number of variations as per the
values identified.
Coefficientsa
B Std. Error Beta
(Constant) .838 .096 8.747 .000

1
IV_3 .636 .004 .997 173.774 .000
Table 4.3.6.3.3: Coefficients for IV3
(Source: Writer)
The coefficient statistics portrays that the significance value is 0.0000001 that is relatively less
than 0.05. The result signifies that the data has fulfilled the context of reliability, validity and
appropriateness.
Model Summary
1 .997a .995 .994 .26253
Table 4.3.6.4.1: Summary of model for IV4
The regression value of the data is 0.997 thereby predicting the correlation between the unethical
work environment and the omitting of the laborers of Malaysian organization. The R square line
for the sample concerning IV4 was found to be 0.995 followed by their standard error of
estimation as 0.26253.
ANOVAa
Squares Square
Regression 2469.473 1 2469.473 35828.632 .000b
1 Residual 13.647 198 .069
Total 2483.120 199
(Source: Author)
The F score for the ANOVA test is calculated as 35828.632 and that says the predictability of the
data to be appropriate for the purpose. The value of significance is 0.0000001 that is quite less
than 0.05 and hence the variation is high.

Coefficientsa
B Std. Error Beta
(Constant) -.632 .096 -6.610 .000

1
IV_4 .690 .004 .997 189.285 .000
(Source: Developer)
The coefficients of the variable are under the predictor’s rate which is less than 0.05 and that
specifies that the data is reliable and valid.
4.3.7. Multiple regression analysis
Model Summaryb
Model R R Adjusted Std. Error Change Statistics Durbin-
Square R Square of the R F Change df1 df2 Sig. F Watson
Estimate Square Change
Change
1 .998a .997 .997 .19821 .997 15752.634 4 195 .000 1.022
a. Predictors: (Constant), IV_3, IV_1, IV_4, IV_2
b. Dependent Variable: DV
Table 4.3.7.1: summary of model for multiple regressions
(Source: author)
The R value for the data was observed as 0.998 and the square of regression value was found to
be 0.997 that signifies high co linearity between the variables. The Durbin Watson figure was
1.022.
ANOVAa
Squares Square
Regression 2475.459 4 618.865 15752.634 .000b
1 Residual 7.661 195 .039
Total 2483.120 199
b. Predictors: (Constant), IV_3, IV_1, IV_4, IV_2
Table 4.3.7.2: combined data of DV and all the IVs
The ANOVA test for F value was calculated as 15752.634 score and that denotes the variation in
the variables to be high.
Coefficientsa
Model Unstandardized Standardized t Sig. Collinearity
Coefficients Coefficients Statistics

B Std. Error Beta Tolerance VIF
(Constant) -.137 .096 -1.426 .156
IV_4 .280 .037 .405 7.637 .000 .006 177.911
1 IV_1 .091 .036 .135 2.569 .011 .006 173.518
IV_2 .159 .040 .238 3.924 .000 .004 233.384
IV_3 .141 .038 .222 3.769 .000 .005 218.936
Table 4.3.7.3: Coefficients for DV
(Source: Developer)
The significance figure of the data is 0.0000001 which is less than 0.05 and the data specifies
that the information with regards to all the variables affect the employee turnover rate highly and
also the data is reliable and valid.
4.4. Hypothesis Results
Hypothesis Correlation Multiple Results
Analysis Regression
Results
H1: There is a positive relationship between Sig: 0.000 Sig: 0.0000001 Accepted
the employee turnover and Office Politics. Pearson: ß: 0.135
0.996 Significant
Significant
the employee turnover and Lack of Pearson: ß: 0.238
rewarding and awarding policy. 0.997 Significant
Significant
the employee turnover and Lack of Pearson: ß: 0.222
motivation. 0.997 Significant
Significant
the employee turnover and Unethical work Pearson: ß: 0.405
environment. 0.997 Significant
Significant
Table 4.4: Hypotheses results
4.5. Chapter summary
The chapter four of dissertation is about the statistical data compilation with regards to the issue.
A sample of 200 people was interviewed and their responses were generated as simple random
sampling. The pilot study was calculated for 30 responses whereas the reliability analysis and
either data were done on the basis of 200 respondents. The overall value of all the data was near
to 1 and that signified the correlation of the factors to be connected with the issue concerned. The
main issue was the increasing rate of employee turnover in Malaysia and the factors that affected
it were the lack of motivation and rewarding policies, unethical work environment and office
politics. The data consisted of both input and output of the variables.
Chapter 5 - Results and conclusion
5.1. Introduction
Employee’s turnover rate is dependent on many factors that are dealt with, in an organization.
This chapter is about the overall conclusion to the findings and analysis of the factors. As opined
by Hom et al. (2017), the factors leading to the increase of employee turnover rate in Malaysia
are the lack of facilities, low salary and various other reasons. The implication of the study is
provided followed by the limitation that had been observed by the researchers during the
analysis. Finally some SMART recommendations are given for the research.
5.2. Overall findings based on the research objectives
The retention rates in Malaysia are observed to be decreasing with time in the last few years and
the reason behind the fact is that the employees are not quite satisfied by the treatment of the
hierarchy. Office politics is defined by getting into the limelight without much effort. The
collaboration in the team members is not that strong enough and they often use the blame games
upon sudden risky or tricky situations. As stated by Li et al. (2017), the personal behavioral
relationships also affect the workplace and that lead to decrease the trust level between
individuals. The politics in office makes the employees more interested in each other's work
rather than making them focus on their own task. Therefore the workplace politics is related to
the employee turnover.
The second factor that affects the employee replacing is that they are not rewarded as per their
expectations. The amount of salary is relatively low as per their average work that they perform
daily. According to Reina et al. (2018), sick leave and additional benefits are not abundant in the
workforce. There are not many policies about the rewarding and recognition of the workers in
the country and hence it has been observed that the employee replacement rate is interrelated
with the lack of rewarding and appraisal policy.
Motivation heals the process of many psychological pressure and anxiety. The leaders and
managers in Malaysia are not as much concerned about the work pressure that makes the
laborers feel pressured about the task. They fail to motivate them in their task. Moreover, the
lack of motivation and support make the employees feel low thereby affecting the work
productivity. According to Li et al. (2016), if the staff is not well motivated their work
performance gradually decrease and that will directly affect organizational performance in the
industry. The lack of motivation can make the employee turnover rate to increase as they will not
want to work under pressure for longer period and therefore an interrelation between these two
factors are seen.
Unethical working environment is brought about by doing tasks in ways that are prohibited as
per the norms of the company. The leader might be rude to the employees while they ask certain
suggestions or task related help. The code of compliance and integrity are not well maintained by
the management of the company and that may lead the employees to feel depressed and
devastated from the job. Therefore the unethical work system in the organization can also affect
the employee turnover rate.
5.3. Implication of the study
The employee turnover rate is a major issue that Malaysia has been dealing with lately. There are
four main factors that directly affect the replacement rate. The office politics makers the work
environment becomes toxic. Lee et al. (2017), stated that the employees rarely get on well
together and there is lack of unity amongst them. The various internal issues arise due to jealousy
and lack of trust. The good performers might make their teammates jealous unknowingly and
that person might fall victim to a lot of backstabbing and misdeeds in the workplace. The
rewarding and appraisal policies must be restructured in the country as there is high demand
from the employees regarding this issue. It has been observed from previous studies that the
work pressure is increasing significantly due to globalization and rising competitiveness so in
order to work productively, the employees must be given certain rewarding benefits.
The excellent performer of the company can be given rewards and recognition at the end of
every few months. The lack of motivation is another factor that makes the employees leave their
job often. The issue can be resolved by developing the personalities of the leaders so that they
can handle them effectively. They can also launch motivational events like that in TED talk
where the CEO or senior team of the organization shared their experiences with the employees.
The function will help the workers to be motivated about their job and also will increase their
work performance. According to Hou et al. (2019), the management of the leaders to work with
their team in an unethical way can further led to the workers to follow the same path of violating
the code of ethics of an organization. The entire study deals with the evaluation of these four
factors and to develop certain strategies to handle the situation of Malaysia. The employee
satisfaction is necessary for overcoming these issues and that can only be achieved by
developing plans for proper treatment and rewarding policies with regard to their employees. The
improvement in the following factors can highly affect the employee turnover rate and also make
the employees to be retained in the company for a longer period.

5.4. Limitation of the study
The researchers had to focus on the employees of a certain organization of Malaysia and for that
they had to gather primary data from the sources. There were many kinds of struggle that they
observed during the research work. The meeting with the workers was fixed after many days of
documentation for permission. This issue was resolved by requesting their supervisor for
gathering permission from the authorities of the companies. The second problem was to manage
the time of preparation of the research work. The technique of time managing was in a way that
they distributed each task into a group of two people. There were a total of five groups in each
team and the first team had to gather information for collecting the primary data. The second
group went to the target population for carrying the interviews from the employees of Malaysian
companies. The overall compilation of the data and information in the format of the dissertation
was completed after one and a half months. A small amount of fees was also spent while
preparing the research and they had to spend a little money for printing stuff and also in
accessing the appropriate journals and articles. They also found some secure websites by which
they were able to generate reliable sources of information for carrying out the work.
5.5. Recommendations
As per the case scenario, the employee turnover rate can be improved by motivational techniques
and certain rewarding policies.
A) Motivation in the system can highly impact the workflow of the company and
increase productivity.
Objectives Goals
Specific The motivational approach is specific as it can help in improving the
quality of performance in the employees.
Measureable The above strategy can be measured by analyzing the performances of the
employees and their work dedication.
Actionable According to Aguenza & Som (2018), the leadership style need to be
improved for making the employees motivated at the workplace.
Realistic The objective is realistic as it can make the workers be active and
dedicated to their organization and they will also be interested in their
own job rather than getting distracted from the tasks of others.
Time bound The time period for adopting motivational techniques of working is 15-20
days.
Table 17: SMART objectives and goals for adoption of Motivational techniques
(Source: Created by the author)

B) Rewarding policies can be adopted for improving the employee turnover rate.
Objectives Goals
Specific As opined by Al Mamun & Hasan (2017), the rewards and recognition
policy is specific as it can increase the performance of the employees.
Measureable The strategy is measurable as it makes the employees be dedicated towards
their work thereby being effective in serving the organization.
Actionable The strategy can be actionable as it will directly put a positive impact on
retaining the employees for longer periods.
Realistic High earning workers tend to be more productive as compared to the low
earnings and that is why the strategy is realistic.
Time bound The recommendation can be operated within 1-2 months period.
Table18: SMART objectives and goals for Rewarding policy
(Source: Created by the author)

5.6. Conclusion
The chapter sheds light on the four main issues that affect the increase in employee turnover rate
in Malaysia. The first chapter is about a brief introduction and the problem statement of the
considered topic. The literature review deals with the description of the factors and the issue
followed by their hypothesis declaration. The research methodology is about the brief
descriptions of the entire research data and their analytical figures. The fourth chapter details the
entire data related statistics based on the findings and analysis of the sample response. The target
population for conducting the research is 200 employees of Malaysian organization from
different fields. Finally the last chapter was for the results and conclusion of the entire research
work.
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Running Head: Factors That Influence Employees Turnover In Private Companies In Malaysia 1

FACTORS THAT INFLUENCE EMPLOYEES TURNOVER IN

PRIVATE COMPANIES IN MALAYSIA

methodology consisted of introduction and research h hypothesis. Various research instruments

Web. I am excessive thankful to my classmates for sharing their knowledge on employee

Chapter 4 – Findings and analysis

employees of Malaysian organizations and calculating various analyzing figures. According to

4.2. Pilot study

conducted using a population of 30 respondents.

4.2.1. Pilot test for all variables

survey with a larger sample size.

4.2.2. Pilot test for each variable

Employee Office Lack of Lack of Unethical

Turnover Politics rewarding motivation work

Cronbach’ 0.992 0.912 0.922 0.919 0.917

Table 4.2.2.1: Reliability of Pilot test

Source: Created by author

Case Processing Summary

Cases Excludeda 1 3.2

a. Listwise deletion based on all variables in the

Table 4.2.2.2: Reliability of Pilot test for total value

Source: Created by author

4.3. Data analysis

4.3.1. Descriptive analysis

other gender or did not disclose it.

Frequency Percent Valid Percent Cumulative

MALE 90 44.8 45.0 45.0

Valid FEMALE 110 54.7 55.0 100.0

Total 200 99.5 100.0

Total 201 100.0

Table 4.3.1.1: Descriptive analysis of Gender

Source: Created by author

Frequency Percent Valid Percent Cumulative

< 20 30 14.9 14.9 15.4

21 - 25 40 19.9 19.9 35.3

Valid 26 - 30 40 19.9 19.9 55.2

31 - 35 50 24.9 24.9 80.1

36 > 40 19.9 19.9 100.0

Total 201 100.0 100.0

Table 4.3.1.2: Descriptive analysis of Age

Source: Created by author

Frequency Percent Valid Percent Cumulative

HIGH SCHOOL 35 17.4 17.4 17.9

DIPLOMA 35 17.4 17.4 35.3

BACHELOR DEGREE 30 14.9 14.9 50.2

Total 201 100.0 100.0

Table 4.3.1.3: Descriptive analysis of Qualification

Source: Created by author

12.4% of respondents held a senior managerial position.

Frequency Percent Valid Percent Cumulative

STUDENT 30 14.9 14.9 15.4

EXECUTIVE 45 22.4 22.4 37.8

Valid SENIOR EXECUTIVE 40 19.9 19.9 57.7

MANAGERIAL 60 29.9 29.9 87.6

SENIOR MANAGERIAL 25 12.4 12.4 100.0

Total 201 100.0 100.0

Table 4.3.1.4: Descriptive analysis of Profession

Source: Created by author

Frequency Percent Valid Percent Cumulative

< RM 2000 40 19.9 19.9 20.4

RM 2000 - RM 3000 35 17.4 17.4 37.8

Valid RM 3001 - RM 5000 35 17.4 17.4 55.2

RM 5001 - RM 7000 55 27.4 27.4 82.6