Determinants of employee turnover intentions from Malaysia’s manufacturing sector in north region of Malaysia

This study addresses the critical issue of employee turnover intention within Malaysia’s manufacturing sector, focusing on the semiconductor industry, a pivotal component of the inclusive economy growth. The research aims to unveil the determinants of employee turnover intentions through a comprehensive analysis encompassing compensation, career development, work-life balance, and leadership style. Utilizing Herzberg’s Two-Factor Theory as a theoretical framework, the study hypothesizes that motivators (e.g., career development, recognition) and hygiene factors (e.g., compensation, working conditions) significantly influence employees’ intentions to leave. The quantitative research methodology employs a descriptive correlation design to investigate the relationships between the specified variables and turnover intention. Data was collected from executives and managers in northern Malaysia’s semiconductor industry, revealing that compensation, rewards, and work-life balance are significant predictors of turnover intention. At the same time, career development and transformational leadership style show no substantial impact. The findings suggest that manufacturing firms must reevaluate their compensation strategies, foster a conducive work-life balance, and consider a diverse workforce’s evolving needs and expectations to mitigate turnover rates. This study contributes to academic discourse by filling gaps in current literature and offers practical implications for industry stakeholders aiming to enhance employee retention and organizational competitiveness.