Employee Attrition in the Malaysian Service Industry: Push and Pull Factors

Abstract

The growth of the Malaysian services industry has become a critical factor in regional business development but it is dependent largely on the availability of human capital with required technical and non-technical skills. The success of the service industry is, in part, dependent on recruiting and retaining workers with the right combinations of skills, but is threatened by high rates of staff attrition and job-hopping. Using survey, focus group and interview techniques, this study explores the factors influencing the intention to turn-over among young, well-educated professionals within the Malaysian service industry. The results showed that there was a high tendency for this group of young employees to switch jobs. This was motivated by both push factors (interference with work-family-lifestyle balance, poor relations with co-workers, work stressors, unsatisfactory supervisory relationships) and pull factors (offers of better compensations, more interesting work, promotion opportunities, desire to return for academic studies). The importance of human capital management in the service industry has been linked to maximizing all employees’ values to reach the firms’ objectives. By identifying these push and pull factors, it provides valuable insights to Malaysian employers to understand better what current young workers are seeking for and to utilize more innovative strategies to attract and retain their top talent.