Factors Effecting Employees Retention in The Malaysian Manufacturing Industry During the Pandemic Covid-19: The Mediating Role of Job Satisfaction

  • Ishaq Ibrahim Dr.


This study aims to investigate the direct impact of organizational justice and autonomy on employee retention within and after the pandemic of COVID-19 in the Malaysian manufacturing industry. As well as, exploring the indirect impact of organizational justice and autonomy on employee retention with mediating the role of job satisfaction on the relationship between the variables. This quantitative study adapted a survey and distributed it among the employees, 463 samples were valid to be analyzed via SPSS and AMOS to do CFA and EFA for the collected data. The study found a significant direct effect between organizational justice and autonomy on employee retention, while job satisfaction is partially mediating the relationship between organizational justice and autonomy toward employee retention in the Malaysian manufacturing industry. The authors conclude that the countries shall handle the current situation and retain skilled and talented employees to endure the sustainability of the organizations.


Adams, J. S. (1963). Towards an understanding of inequity. The Journal of Abnormal and Social Psychology, 67(5), 422. https://doi:10.1037/h0040968
Ahmad, W. I. W., & Abdurahman, S. M. (2015). Job satisfaction among academic staff of Universiti Utara Malaysia: A work environment perspective. Mediterranean Journal of Social Sciences, 6(3 S2), 251. https://dOI: 10.36941/mjss
Ahsan, N., Fie, D. Y. G., Foong, Y. P., & Alam, S. S. (2013). Relationship between retention factors and affective organisational commitment among knowledge workers in Malaysia. Journal of Business Economics and Management, 14(5), 903-922. https://doi:10.3846/16111699.2012.701226
Ali, N., & Zia-ur-Rehman, M. (2014). Impact of Job Design on Employee Performance, Mediating Role of Job Satisfaction: A Study of FMCG’s Sector in Pakistan. International Journal of Business and Management, 9(2). doi:10.5539/ijbm.v9n2p70
Al-Suraihi, W. A., Samikon, S. A., Al-Suraihi, A. H. A., & Ibrahim, I. (2021). Employee Turnover: Causes, Importance and Retention Strategies. European Journal of Business and Management Research, 6(3), 1-10.
Al-Tahitah, A., Abdulrab, M., Alwaheeb, M. A., Al-Mamary, Y. H. S., & Ibrahim, I. (2020). The effect of learning organizational culture on readiness for change and commitment to change in educational sector in Yemen. Journal of Critical Reviews, 7(9), 1019-1026.
Al-Zu’bi, H. A. (2010). A Study of Relationship between Organizational Justice and Job Satisfaction. International Journal of Business and Management, 5(12). doi:10.5539/ijbm.v5n12p102
Andrade, L. S. (2010). Validation and Initial Test of the Employee Equity Model For Predicting Employee Retention (Doctoral dissertation. University of Texas at San Antonio).
Arasanmi, C. N., & Krishna, A. (2019). Employer branding: perceived organisational support and employee retention–the mediating role of organisational commitment. Industrial and Commercial Training. https://doi.org/10.1108/ICT-10-2018-0086
Aturamu, Y. (2016). Exploring Employee Disengagement Perceptions in Canadian Manufacturing Companies: A Multiple Case Study (Doctoral dissertation, University of Phoenix).
Bergiel, E. B., Nguyen, V. Q., Clenney, B. F., & Stephen Taylor, G. (2009). “Human resource practices, job embeddedness and intention to quit”. Management Research News, 32(3), 205-219. https://doi.org/10.1108/01409170910943084
Boo, M. C., Yen, S. H., & Lim, H. E. (2017). A note on happiness and life satisfaction in Malaysia. Malaysian Journal of Economic Studies, 53(2), 261-277.
Boxall, P., Macky, K., & Rasmussen, E. (2003). “Labour turnover and retention in New Zealand: The causes and consequences of leaving and staying with employers”. Asia Pacific Journal of Human Resources, 41(2), 196-214. https://doi.org/10.1177/10384111030412006
Cardy, R.L., Miller, J.S., & Ellis, A.D. (2007). Employee equity: Toward a personbased approach to HRM. Human Resource Management Review, 17: 140-151. https://doi.org/10.1016/j.hrmr.2007.03.006
Choi, S. L., Goh, C. F., Adam, M. B. H., & Tan, O. K. (2016). Transformational leadership, empowerment, and job satisfaction: the mediating role of employee empowerment. Human Resources for Health, 14(1). https://doi:10.1186/s12960-016-0171-2
Cropanzano, R., Li, A., & James, K. (2007). Intraunit justice and interunit justice and the people who experience them. In Multi-Level Issues in Organizations and Time (pp. 415-437), Emerald Group Publishing Limited. https://doi.org/10.1016/S1475-9144(07)06019-5
Dahlan, A., Nicol, M., & Maciver, D. (2010). Elements of life satisfaction amongst elderly people living in institutions in Malaysia: A mixed methodology approach. Hong Kong Journal of Occupational Therapy, 20(2), 71-79. https://doi.org/10.1016/S1569-18611170006-7
Datta, D. K., Guthrie, J. P., Basuil, D., & Pandey, A. (2010). Causes and effects of employee downsizing: A review and synthesis. Journal of Management, 36(1), 281-348. https://doi.org/10.1177/0149206309346735
Davis, T. L. (2013). A Qualitative Study of the Effects of Employee Retention on the Organization. Insights to a Changing World Journal, 2013(2).
Dawal, S. Z., Taha, Z., & Ismail, Z. (2009). “Effect of job organization on job satisfaction among shop floor employees in automotive industries in Malaysia”. International Journal of Industrial Ergonomics, 39(1), 1-6. https://doi.org/10.1016/j.ergon.2008.06.005
de Sá, A. C. P., & e Sá, P. M. (2015, August). Job Characteristics and their Implications on the Behaviours and Satisfaction Levels of Call Center Employees: A Study on a Large Telecomunicatios Company. In Toulon-Verona Conference" Excellence in Services". https://doi: 10.7819/rbgn.v16i52.1553
Deery, M. (2008). "Talent management, work‐life balance and retention strategies". International Journal of Contemporary Hospitality Management, 20(7), 792–806. https://doi.org/10.1108/09596110810897619
Dries, N., Pepermans, R., & De Kerpel, E. (2008). “Exploring four generations' beliefs about career: Is “satisfied” the new “successful”?”. Journal of managerial Psychology, 23(8), 907-928. https://doi.org/10.1108/02683940810904394
Duda, J., & Žůrková, L. (2013). Costs of employee turnover. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 61(7), 2071-2075. https://doi.org/10.11118/actaun201361072071
Dunay, A. (2015). Relationship between organisational justice and organisational citizenship behaviour: examining the mediating role of job satisfaction. https://doi: 10.17626/dBEM.ICoM.P00.2015.p062
Fairchild, A. J., & McQuillin, S. D. (2010). Evaluating mediation and moderation effects in school psychology: A presentation of methods and review of current practice. Journal of school psychology, 48(1), 53-84. https://doi.org/10.1016/j.jsp.2009.09.001
Fauzi, N. F. B., Ahmad, F., & Gelaidan, H. M. (2013). The employee retention status in paddy and rice industry in Malaysia. Middle-East Journal of Scientific Research, 18(5), 642-650. https://doi: 10.5829/idosi.wasj.2013.25.04.13311
García‐Serrano, C. (2011). Does size matter? The influence of firm size on working conditions, job satisfaction and quit intentions. Scottish Journal of Political Economy, 58(2), 221-247. https://doi.org/10.1111/j.1467-9485.2011.00544.x
Geneau, J. (2007). “Aiding retention with unique health benefits incentives”. Strategic HR Review, 6(2), 12-13. https://doi.org/10.1108/14754390780000949
Ghazali, H., Jules, N. J., & Othman, M. (2018). Examining the influence of perceived organizational support towards job-hopping behaviour: a case of casual dining restaurant employees’in klang valley area, malaysia. International Journal of Accounting, 3(12), 101-108.
Ghazali, H., Nashuki, N. M., & Othman, M. (2018). The Influence of Perceived Organizational Support (POS), Perceived Supervisory Support (PSS) and Organizational Commitment (OC) towards Intention to Leave or Intention to Stay: A case of Casual Dining Restaurants in Klang Valley, Malaysia. INTERNATIONAL JOURNAL OF ACADEMIC RESEARCH IN BUSINESS AND SOCIAL SCIENCES, 8(9). http://dx.doi.org/10.6007/IJARBSS/v8-i9/4869
Ghosh, P., Rai, A., Chauhan, R., Gupta, N., & Singh, A. (2015). Exploring the moderating role of context satisfaction between job characteristics and turnover intention of employees of Indian public sector banks. Journal of Management Development, 34(8), 1019-1030. https://doi.org/10.1108/JMD-10-2014-0138
Hair Jr, J. F., Sarstedt, M., Matthews, L. M., & Ringle, C. M. (2016). Identifying and treating unobserved heterogeneity with FIMIX-PLS: part I–method. European Business Review. https://doi.org/10.1108/EBR-09-2015-0094
Hair, J. F., Anderson, R. E., Babin, B. J., and Black, W. C. (2010). Multivariate data analysis: A global perspective (7): Pearson Upper Saddle River, NJ.
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2013). Partial least squares structural equation modeling: Rigorous applications, better results and higher acceptance. Long range planning, 46(1-2), 1-12. http://dx.doi.org/10.1016/j.lrp.2013.01.001
Hannay, M., & Northam, M. (2000). “Low-cost strategies for employee retention”. Compensation & Benefits Review, 32(4), 65-72. https://doi.org/10.1177/08863680022097920
Herzberg, F. (1987). "Workers’ needs: the same around the world." Industry week 21.9: 29-30.
Heywood, J. S., & Jirjahn, U. (2004). "Teams, teamwork and absence." The Scandinavian Journal of Economics, 106.4. 765-782. https://doi.org/10.1111/j.0347-0520.2004.00387.x
Holtom, B. C., & Darabi, T. (2018). Job Embeddedness Theory as a Tool for Improving Employee Retention. Psychology of Retention, 95–117. https://doi:10.1007/978-3-319-98920-4_5
Hong, L. C., Hamid, N. I. N. A., & Salleh, N. M. (2013). A study on the factors affecting job satisfaction amongst employees of a factory in Seremban, Malaysia. Business Management Dynamics, 3(1), 26.
Hussain, I. A., Yunus, N., Ishak, N. A., & Daud, N. (2013). The influence of intention to leave towards employee engagement among young bankers in Malaysia. International Journal of Business and Management, 8(14), 89. https://doi:10.5539/ijbm.v8n14p89
Ibrahim, I., Ali, K., Al-Suraihi, W. A., & Al-Suraihi, A. H. A. (2021a). The Impact Of COVID-19 Pandemic on Sustainability, Employee Retention, and Innovative Performance in The Malaysian Manufacturing Industry. Asian Journal of Research in Business and Management, 3(2), 132-139.
Ibrahim, I., Ali, K., Al-Suraihi, W. A., & Al-Suraihi, A. H. A. (2021b). The Impact of COVID-Pandemic and Media on Sustainability and Employee Retention, In Malaysian Industries. International Journal of Management and Human Science (IJMHS), 5(2), 1-6.
Ibrahim, I., Ali, K., Zumrah, A.R. (2019). An Empirical Study: The Mediating Role of Job Satisfaction on the Relationship between Belongingness and Employee Retention in Malaysian Manufacturing Industry. International Journal of Emerging Technologies, 10(1): 21–11.
Idris, A. (2014). Flexible working as an employee retention strategy in developing countries: Malaysian bank managers speak. Journal of Management Research, 14(2), 71.
Is’haq Ibrahim, K. A. (2019). The Impact of Challenging Work on Employee’s Retention in the Manufacturing Industry in Klang Valley. International Journal of Psychology and Cognitive Science, 5(1), 1-8.
Is’haq Ibrahim, Kalsom Ali. (2019). The Impact of Challenging Work on Employee’s Retention in the Manufacturing Industry in Klang Valley. International Journal of Psychology and Cognitive Science. Vol. 5, No. 1 , pp. 1-8.
Ismail, H. B., & Panni, M. F. A. K. (2009). Factors affecting customer retention toward internet banking in Malaysia. Journal of Information & Knowledge Management, 8(01), 35-43. https://doi.org/10.1142/S021964920900218X
Ismail, H., & Shaari, S. M. (2019). Retention factors of Malay male Architects in Malaysian architectural design consultant firms in the Klang Valley, Malaysia. In MATEC Web of Conferences (Vol. 266, p. 01010). EDP Sciences.
Jiménez, M. (2018). Leadership Style, Organizational Performance, and Change Through the Lens of Emotional Intelligence. Foundations of Management, 10(1), 237-250.
Kaliprasad, M. (2006). “The human factor I: attracting, retaining, and motivating capable people”. Cost Engineering, 48(6), 20–26.
Kavitha, S. R., Geetha, S. R., & Arunachalam, V. (2011). “An empirical study on employee retention strategies in a biscuit manufacturing company in India”. Interdisciplinary Journal of Contemporary Research in Business, 3(4), pp.762-772.
Kline, and B., R. (2016). Principles and practice of structural equation modeling.
Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30, 607-610. https://doi.org/10.1177/001316447003000308
Kyndt, E., Dochy, F., Michielsen, M., & Moeyaert, B. (2009). Employee Retention: Organisational and Personal Perspectives. Vocations and Learning, 2(3), 195–215. doi:10.1007/s12186-009-9024-7
Lam, W., & Chen, Z. (2012). When I put on my service mask: Determinants and outcomes of emotional labor among hotel service providers according to affective event theory. International Journal of Hospitality Management, 31(1), 3-11. https://doi.org/10.1016/j.ijhm.2011.04.009
Ledimo, O. (2015). Generational differences in organizational justice perceptions: An exploratory investigation across three generational cohorts. Foundations of Management, 7(1), 129-142.
Li, Y., Sawhney, R., & Tortorella, G. L. (2019). Empirical Analysis of Factors Impacting Turnover Intention among Manufacturing Workers. International Journal of Business and Management, 14(4). https://doi:10.5539/ijbm.v14n4p1
Liker, J. and Convis, G. L. (2011). The Toyota Way to Lean Leadership: Achieving and Sustaining Excellence Through Leadership Development, McGraw-Hill. New York.
Lim, H. E. (2017). Estimating psychological impact of unemployment: The case of Malaysian graduates. Malaysian Journal of Economic Studies, 47(1), 33-53.
Litheko, E. (2008). Training them young is the way to up the skills base. Sunday/Business Times, 29, 26.
Mat, S., Case, K., Mohamaddan, S., & Goh, Y. M. (2017). “A study of motivation and learning in Malaysian manufacturing industry”. Production & Manufacturing Research, 5(1), 284-305. https://doi.org/10.1080/21693277.2017.1374892
Matz, A. K., Wells, J. B., Minor, K. I., & Angel, E. (2013). Predictors of turnover intention among staff in juvenile correctional facilities: The relevance of job satisfaction and organizational commitment. Youth Violence and Juvenile Justice, 11(2), 115-131. https://doi.org/10.1177/1541204012460873
Melhem IIB (2016) Impact of the Human Resources on the Risk Management and the Company Performance. Int J Econ Manag Sci 5: 320. doi:10.4172/2162-6359.1000320
Melhem, I. I. A. B. (2019). The Mediating Effect of Job Satisfaction on the Relationship Between Belongingness and Challenging Work Towards Employee Retention (Doctoral dissertation, Universiti Sains Islam Malaysia).
Mohamed, S. A. (2014). The relationship between organizational justice and quality performance among healthcare workers: a pilot study. The Scientific World Journal. https://doi.org/10.1155/2014/757425
Montana, P. J., & Lenaghan, J. A. (1999). “What motivates and matters most to Generations X and Y”. Journal of Career Planning & Employment, 59(4), 27-30.
Nix, J., & Wolfe, S. E. (2016). Sensitivity to the Ferguson Effect: The role of managerial organizational justice. Journal of Criminal Justice, 47, 12-20. https://doi.org/10.1016/j.jcrimjus.2016.06.002
Österberg, J., Rydstedt, L. W., Kleiven, J., & Brandebo, M. F. (2017). The path to job satisfaction. Applying the theory of purposeful behavior to military conditions. Journal of Defense Resources Management, 8(1).
Ozturk, A. B., Hancer, M., & Im, J. Y. (2014). Job characteristics, job satisfaction, and organizational commitment for hotel workers in Turkey. Journal of Hospitality Marketing & Management, 23(3), 294-313. https://doi.org/10.1080/19368623.2013.796866
Paolillo, A., Platania, S., Magnano, P., & Ramaci, T.(2015). Organizational Justice, Optimism And Commitment To Change. Procedia-Social and Behavioral Sciences, 191, 1697-1701. https://doi.org/10.1016/j.sbspro.2015.04.479
Razafindrambinina, D., & Anggreni, T. (2017). Intellectual capital and corporate financial performance of selected listed companies in Indonesia. Malaysian Journal of Economic Studies, 48(1), 61-77.
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach. John Wiley & Sons.
Shin, D. H., C. S. Oh, J. Y. Chai, M. J. Ji, H. J. Lee, & M. Seo. (2012). Sixteenth century Gymnophalodes seoi infection on the coast of the Korean peninsula. Journal of Parasitology, 98, 1283–1286. https://doi.org/10.1645/GE-2920.1
Shonubi, O. A., Abdullah, N., Hashim, R., & Hamid, N. B. (2017). Appreciation: An empirical review on the colossal impact on telecom industry employee retention in Malaysia. PEOPLE: International Journal of Social Sciences, 3(1). https://dx.doi.org/10.20319/pijss.2017.31.4052
Spence Laschinger, H. K., Leiter, M., Day, A., & Gilin, D. (2009). Workplace empowerment, incivility, and burnout: Impact on staff nurse recruitment and retention outcomes. Journal of nursing management, 17(3), 302-311. https://doi.org/10.1111/j.1365-2834.2009.00999.x
Tajuddin, D., Ali, R., & Kamaruddin, B. H. (2015). Developing talent management crisis model for quality life of Bank employees in Malaysia. Procedia-Social and Behavioral Sciences, 201, 80-84. https://doi.org/10.1016/j.sbspro.2015.08.133
The Star. (2017). Malaysia’s manufacturing sector continues to grow. Retrieved January 18, 2018, from https://www.thestar.com.my/business/business-news/2017/05/12/manufacturing-sector-continues-to-grow/
Tuan, V. K., & Rajagopal, P. (2019). The Effect of Transformational Leadership Style on Employee Job Satisfaction towards Small and Medium-sized Enterprises (SMEs) in Ho Chi Minh City, Vietnam. Academic Journal of Economic Studies, 5(4), 156-164.
Tyler, T. R., & Blader, S. L. (2005). Can businesses effectively regulate employee conduct? The antecedents of rule following in work settings. Academy of Management Journal, 48(6), 1143-1158. https://doi.org/10.5465/amj.2005.19573114
Tziner, A., Ben-David, A., Oren, L., & Sharoni, G. (2014). “Attachment to work, job satisfaction and work centrality”. Leadership & Organizational Development Journal, 35, 555-565. https://doi:10.1108/LODJ-08-2012-0102
Umar, M. S., Jennings, P., & Urmee, T. (2013). “Strengthening the palm oil biomass renewable energy industry in Malaysia”. Renewable energy, 60, 107-115. https://doi.org/10.1016/j.renene.2013.04.010
Voon, M. L., Lo, M. C., Ngui, K. S., & Ayob, N. B. (2011). The influence of leadership styles on employees’ job satisfaction in public sector organizations in Malaysia. International Journal of Business, Management and Social Sciences, 2(1), 24-32.
Wang, H. J., Lu, C. Q., & Siu, O. L. (2015). Job insecurity and job performance: The moderating role of organizational justice and the mediating role of work engagement. Journal of Applied Psychology, 100(4). https://doi.org/10.1037/a0038330
Whitman, D. S., Caleo, S., Carpenter, N. C., Horner, M. T., & Bernerth, J. B. (2012). Fairness at the collective level: A meta-analytic examination of the consequences and boundary conditions of organizational justice climate. Journal of Applied Psychology, 97(4). https://doi.org/10.1037/a0028021
Yew, T. (2007). Job satisfaction and affective commitment: A study of employees in the tourism industry in Sarawak, Malaysia. Sunway Academic Journal, 4, 27-43. https://doi: 10.1504/WREMSD.2008.016210
How to Cite
IBRAHIM, Ishaq. Factors Effecting Employees Retention in The Malaysian Manufacturing Industry During the Pandemic Covid-19: The Mediating Role of Job Satisfaction. Asian Journal of Research in Business and Management, [S.l.], v. 3, n. 3, p. 24-39, sep. 2021. Available at: <https://myjms.mohe.gov.my/index.php/ajrbm/article/view/14602>. Date accessed: 24 oct. 2021.