HRM Practices, Job Satisfaction and Intention to Stay: A Study of a Private College in Penang

The purpose of this study is to identify the relationship between HRM practices, job satisfaction and intention to stay. HRM practices specifically addressed five dimensions; compensation and benefits, training and development, performance appraisal, supervisor role and career advancement. This study involved survey of the employee in KDU College, Penang Campus. A total of 190 questionnaires were distributed to the respondents and 130 questionnaires were returned and useable. The data was analysed by “Statistical Package for Social Science” (SPSS Window) Version 16.0. Correlation and multiple regression analysis were used to analyse the data.
The findings found that there were relationship between the independent variables (HRM practices and job satisfaction) and the dependent variable (intention to stay). The result indicated there were positive relationships between HRM practices and intention to stay, however the regression analysis result indicated only three of the HRM practices namely performance appraisal, career advancement and compensation and benefits are significant with intention to stay. It was also found that there were positive relationship between job satisfaction and intention to stay. The results shown that HRM practices influence intention to stay the most compare to job satisfaction.