Explaining Generation-Y Employees’ Turnover in Malaysian Context

Abstract

Among the various speculation published in media reports about the reasons why generation-Y workforce in Malaysia changes job frequently include dissatisfaction with pay and fringe benefits, seeking work-life balance, perceived status work-values fit, normative commitment, perceived availability of alternative job and job hopping, This study aims to empirically justify or refute some of the anecdotal information about generation-Y employees' decision to leave an organisation in the context of Malaysia. Using structural equation modelling with a sample size of 150 respondents, this study revealed that satisfaction with payment and fringe, perceived availability of alternative job and job hopping are significant to generation-Y employees' intention to quit. Additionally, normative commitment as part of employees' loyalty is insignificant to generation-Y employees' intention to quit. This study provides implication to human resource (HR) managers that generation-Y employees' intention to quit may not be entirely due to HR strategies. Instead, cultural and economic factors play an important role in such decisions. However, there are other reasons that are widely held about generation-Y employees' intention to quit, which may not be held true or empirically validated. Lastly, normative commitment does not influence their intention to stay or to leave an organisation, as their loyalty is to their personal lives.

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