Employee involvement, work conditions, compensation and benefits and employee retention

The objective of this study is to examine the influence of employee involvement, work conditions and compensation and benefits have towards employee retention. This study was conducted among employees in manufacturing companies in Northern Region of Peninsular Malaysia. A total of 150 questionnaires were returned and used for data analysis using the Statistical Packages for Social Science (Version 2.0). Multiple regression analysis was carried out to examine the hypothesized relationships in this study. Based on the findings, two hypotheses were accepted and one is being rejected. Multiple regression reported a significant relation between employee involvement (B=0.378, p≤0.05) and compensation and benefits (B=0.288, p≤0.05) to employee retention while work condition (B=0.116, p≤0.05) was not significantly linked to employee retention. Discussion highlights that with the high involvement of employee and attractive compensation and benefits in workplace resulted employees are more likely to stay in an organization. Practical and theoretical implications are also presented. Finally, limitations of the study are addressed and this is followed with the conclusion of the study.