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

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.