The relationship between pay satisfaction, leadership styles, and intention to leave among local empoyees at Yamaha Electronics Manufacturing (M) Sdn. Bhd.

Employee turnover is an inevitable scenario faced by many organizations irrespective of it economic sectors. Uncontrollable turnover is extremely costly for the employer because it involves of efforts, times and costs of rehiring, training, and low productivity effects. Intention to leave is found as the strongest predictor for actual turnover in previous studies. Due to high turnover ratio among manufacturing workers in Malaysia, it demands great concern and some insights on intention to leave subject. This research explored the causes that triggering workers’ intention to leave towards their current company. In this regard, this study attempts to determine the significance relationships of pay satisfaction and leadership styles on intention to leave among local employees in electrical and electronics manufacturing company. Data were gathered using questionnaires collected from 272 local employees in Yamaha Electronics Manufacturing (M) Sdn. Bhd. The findings resulted in acceptance of the study hypothesizes formulated. Pay satisfaction, transactional leadership style (i.e. contingent rewards, action management-by-exception), and
transformational leadership style (intellectual stimulation, idealize influence, individual consideration, inspiration motivation, idealize belief, and ethical decision making) were significantly correlated and contributed to the intention to leave. Based on findings of the study, theoretical and possibility of implications are discussed. Limitation and recommendations for future research are also underlined. Hence, with limited literatures on the topic of pay satisfaction, transactional leadership style, transformational leadership style, and intention to leave in the context of electrical and electronics manufacturing sector in Malaysia, the findings have, to some extent,
contributed to the understanding of the intention to leave aspects and enrich the
knowledge of these subjects especially in Malaysian employment landscape