Key Determinants Influencing Lower & Junior Management Employee Retention: A Case Study of a Glove Manufacturer

Abstract

Employee retention is one of the challenging process in human resource management although there are many research studies have been carried out in the past. Poor employee retention in an organization incurs high intangible cost and resources to maintain the operation performance, includes the glove manufacturer. This paper aims to identify and examine the key determinants influencing lower & junior management employee retention in a glove manufacturer for outlining the major areas that should be improved to increase the employee retention rate. Occupational Safety & Health, Performance Management, Training & Development, Total Rewards and Employee Motivation are the variables that obtained through literature review from the previous studies. These variables have been hypothesized to examine the cause-and-effect towards Employee Retention in the glove manufacturer. Primary data is collected through survey questionnaires into 300 lower and junior management employees in the glove manufacturer. Partial Least Squares-Structural Equation Modeling (PLS-SEM) is selected as the most appropriate technique to analyze the quantitative data. As a result, Training & Development and Total Rewards with Employee Motivation as the Full Mediator show a positive significance relationship to Lower & Junior Management Employee Retention in a glove manufacturer. Current reward system should be examined to enhance the employee motivation by considering paying higher than market rate for retaining the employees effectively. Training contents need to align with the technology implementation pace for upskilling plan to the technicians and staying competitive. Achieving high competency rate improves the operation and business growth at the same time. Sustainable practices in occupational safety & health and performance management fulfilled basic needs among the employees and thus insignificant to employee retention strategy in the glove manufacturer.