Understanding Job Satisfaction in the Industrial Sector: Insights from Penang's Industrial Employees

Abstract This study analyzes the factors contributing to job satisfaction among industrial employees in Penang, focusing on work-life balance, compensation and benefits, job security, career advancement opportunities, and job autonomy. Feedback from 300 employees was collected using structured questionnaires. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the relationships between independent variables and job satisfaction were tested. Work-life balance significantly influenced job satisfaction (p=0.036). Job autonomy, compensation and benefits, job security, and career development opportunities were significant factors in total variance explained by the job satisfaction model. Non-financial aspects of work-life balance, such as the work environment, were more significant in determining job satisfaction. This study contributes to the literature by examining job satisfaction in Penang’s manufacturing industries, portraying a unique perspective from Malaysia. In this sector, work-life balance emerged as a primary predictor of job satisfaction, surpassing compensation and job security, particularly among low- and middle-income households—a trend observed in OECD countries. These findings pave the way for industrial sectors to invest in work-life balance policies to enhance job satisfaction and retention while providing flexible schedules and wellness programs. Keywords: Employee Well-being, Employee Retention, Industrial Employees, Job Satisfaction, Work-Life Balance.