WORK ENVIRONMENT AND EMPLOYEE RETENTION: EMPIRICAL EVIDENCE FROM THE MALAYSIAN PALM OIL BOARD (MPOB), SELANGOR

The purpose of this study is to examine the relationship between work environment and employee retention. The study was conducted among employees serving at the Malaysian Palm Oil Board (MPOB), Selangor. An online questionnaire was employed as the research instrument, consisting of five items on demographic information and ten items measured using a Likert scale. A quantitative approach was adopted, involving 305 MPOB employees as respondents. The data were analyzed using the Statistical Package for Social Sciences (SPSS) version 26, employing descriptive statistics (mean, percentage, and frequency), Pearson correlation, and regression analysis. The findings revealed that the work environment plays a significant role in influencing employee retention. Pearson’s correlation analysis indicated a significant relationship between the work environment and employee retention with a coefficient value of r = .530**, and a significance value of less than 0.001. This result was further supported by ANOVA analysis, which recorded a significance value of .000 and an F value of 118.421, confirming that the model used was statistically significant at p ≤ 0.001. Regression analysis also demonstrated a significant contribution of the work environment towards employee retention, with the coefficient found to be significant (Sig = 0.000, t = 10.882). From a practical perspective, the findings of this study provide valuable implications for the organization under investigation. It is recommended that MPOB should be focus on creating a conducive and safe work environment. A supportive environment enhances employees’ job satisfaction and motivates them to remain committed to the organization.