0

2

TABLE OF CONTENT

INTRODUCTION 3 RESEARCH METHODOLOGY 4-5

CONCEPTUAL FRAMEWORK DATA COLLECTION ANALYSIS

FINDINGS AND DISCUSSION 6-9

FACTORS INFLUENCING RETENTION

1. COMPENSATION

2. GROWTH OPPOTURNITY

3. FLEXIBLE WORK SCHEDULE

4. JOB SECURITY

5. ORGANIZATIONAL CULTURE AND ENVIRONMENT

6. PERSON-FIT JOB

7. MANAGERS AND SUPERVISORS BEHAVIOR

8. UNIQUE BENEFITS

9. PERFORMANCE APPRAISAL

10. CO-WORKER RELATIONSHIP

CONCLUSION 10

BUSINESS STRATEGY CARD 11

3

INTRODUCTION

Intellectual capital is a multifaceted resource for every company. It is obvious that every organization has employees, who play a vital role for the success and growth of the organization. Human capital is one of the valuable assets which can make competitive advantage for every firm. In other word, workforce is one of the components that firm are able to create value and core competency. Organizational success increasingly correlated with tenure of skills and talented employees. There was time when organization loses their market, value and their customers by losing their key and talented employees. Keeping talented and skilled young employees is one of the ways to make the core competency stronger. Turnover of high performance is more likely to be dysfunctional for the organization.

Young employees below 30 years old are a critical issues for every company especially for human resource management departments since the have more intention to leave the organization. Human resource managers should find out the appropriate factors to motivate them to remain in a firm. Nowadays, workforce is feeling high stress, low satisfaction and high absenteeism in their work, which would bring high turnover in the organizations. Young employees turnover make major problems for many organizations. Corporate chaos and limited career opportunities are the key reasons for unwanted turnover or unsuccessful retention.

The aim of this research is to explore the different factors influencing young employee’s retention (generation Y, 18-35 years) in Klang Valley. Some of the important factors for young employees are job security, growth opportunities, compensation, organizational culture and environment, person-job fit, managers and supervisor’s behavior, unique benefits, co-workers relation, performance appraisal and flexible work schedule. This research studied these ten factors to find out the effect of each of them on young employee retention. Managers should consider these factors as a motivator for this generation. What these organizations need to do for keeping their young employees below 35 years (generation Y, 18-35 years) is to use appropriate factors that help employees feeling they got their desire in the organization.

Moreover, this paper will discover the effective factors which are more influencing the young employees’ retention. By discovering these factors firm can spend appropriate money in attracting and hiring process. Besides that, managers can focus on young employee’s valuable factors to keeping them. The key finding of this research shows all the 10 factors have a positive impact on young employee retention in Malaysia. Most of the respondents were young employees with the age of 26-30, married with bachelor degree. From the result of Pearson correlation all the ten mentioned factors (independent variables) have a positive relationship with young employee retention (dependent variable). From the result of simple regression all the factors have been discussed in this study had a significant positive relationship with young employee retention.

8

policies like flexible work time, family leave, five day working, and assistant program for workforce is happening recently. The result of friendly rules and policies shows high organizational commitment and convey considerably lower intention to leave. To retain young employees, organizations may establish friendly rules and policies which also bring healthy and productive workforce. Comfortable work environments lead the employees to be satisfied of being there and retain them in the firm.

6. PERSON-FIT JOB There is a positive relationship between person-job fit and young employee retention. Analysis found out that young employees’ retention can be predict by person-job fit.

Bill Pollock says “knowing how to select the right people and indeed selecting them is essential to successful performance”. Nowadays, hiring the right employee for the right job is significantly important for every human resource department.

The cost of replacing wrong employee is equal to two and one-half times of annual salary of one employee. When employees can fulfilled their job requirement, they felt a sense of satisfaction and less likely to change company. Other studies too have shown that rate of retaining young employees is higher when employees fit with their jobs. 7. MANAGERS AND SUPERVISORS BEHAVIOR Managers and supervisors’ behavior have positive relationship with young employee’s retention. Analysis found out that young employees’ retention can be predicted by managers and supervisors’ behavior.

Manager or supervisor is the one, can build a positive and negative relationship with their employees. Supervisors must appreciate their employee’s every day and continuously work to keep them on board. Supervisors and managers should admire employees in public and sometimes make them “star”. Workforces working with supervisors and managers who have high level of jobs’ skill will convey more positive energy to employees. Managers must explain the employees the reason they are being asked to do something. Moreover, employees must know what’s in it for them.

Managers’ request shall be relevant and behave in a way which gains the respect of the subordinate. Young employee has difficulty submitting to the leadership of corrupt, dishonesty, dramatic and messy leader. Young employee will found this to be confusing and lead to change superior or organization.