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Why do People Stay? A Study on Factors Influencing Employees Retention in the Logistics Industry

Year: 2024

Type: article

Abstract: Employee retention remains a significant challenge within the logistics industry, particularly in the bustling hub of Klang Valley.Despite its vital role in global supply chains, high turnover rates and shortages persist indicating a necessity for research in this area.This research addresses this need by examining the factors influencing employee retention in logistics companies within Klang Valley.Drawing upon Herzberg's Two-Factor Theory, this study investigates the effect of communication satisfaction, learning and development opportunities, meaningful work, and recognition and rewards on employee retention.Using the quantitative method of convenience sampling, online questionnaires were distributed to employees in logistic companies within Klang Valley.The study collected and analyzed 391 responses.The findings show positive significant relationships of all variables with employee retention.Reward and recognition emerges as the most significant predictor of employee retention.Logistics companies are advised to focus on creating a robust reward system and cultivating a culture of appreciation.This is because employees that are valued and recognized are more likely to remain loyal and committed to their organization.

Source: International Journal of Academic Research in Business and Social Sciences

DOI: 10.6007/ijarbss/v14-i10/22931

Authors: Sharon Chang, Hanita Sarah Saad, Nur Qaisara Aisya, Soon Pui Yee, SureshKanna Selvam

Institution: UNITAR International University

Language: English

Topic: Employee Performance and Management

Subfield: Human Factors and Ergonomics

Field: Social Sciences

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W4403234002