THE RELATIONSHIP BETWEEN NON-MONETARY REWARDS AND EMPLOYEE RETENTION IN THE MALAYSIAN MANUFACTURING INDUSTRY (MMI)

Abstract

This research thesis was carried out to study the relationship of Non-Monetary Rewards factors on Employee Retention in the Malaysian Manufacturing Industry (MMI). The research objective is to investigate the Non-Monetary reward factors such as Recognition, Training, and Empowerment on Employee Retention in the MMI. Based on the previous studies' observation, it has shown that Non-Monetary rewards do have a significant relationship with Employee Retention. On the research methodology, convenient sampling was deployed for this research considering the time this research was conducted, during an emergency ordinance.

Statistical analysis has shown that all three independent variables are statistically significant towards the dependent variable. Regarding the reliability of the questionnaire, factor analysis was performed to verify the reliability. Based on the Kaiser Meyer Olkin Measure (KMO) of sampling adequacy, it proves that all three independent and dependent variables have achieved the value of 0.876, which is more than 0.6. This test demonstrates that the sample size was adequate to perform data analysis for this research. Furthermore, the Pearson Correlation Coefficient test is conducted to analyse the relationship between all three independent variables with the dependent variables. The result shows that all the variables have a significant positive relationship.

Additionally, the Empowerment factor has the highest significant value at 0.832 compared to Recognition and Training, which was 0.699 and 0.666, respectively. Besides, the Cronbach Alpha value for all independent and dependent variables has achieved more than 0.6, which shows that all the have significant inter-relationship. Finally, on the Linear Regression analysis, the p-value for all the independent variables was achieved below the threshold, 0.05, which shows that all the independent variables have significant relationships with the dependent variables. Therefore, all three hypotheses for this research shall be accepted. In addition, key recommendations and improvements were suggested for future research to enhance this aspect of research.