Psychological contracts and retention strategies in Malaysia: A Delphi study on contract and permanent employment

Employee retention has become an important concern in workplaces that manage both contract and permanent employment arrangements. In Malaysia, organizations increasingly manage mixed workforce structures, yet limited research has examined which organizational practices are considered most important for supporting retention in such contexts. This study aimed to identify expert-prioritized organizational practices associated with employee retention and to establish their relative importance within the Malaysian employment context. A two-round Delphi study was conducted with 26 experts in human resources, labor policy, and organizational development in the first round; 24 completed the second round. In Round 1, experts responded to an open-ended question regarding strategies, practices, or policies considered relevant to employee retention in workplaces employing both contract and permanent staff. The responses were analyzed thematically and consolidated into five retention dimensions. In Round 2, experts ranked these dimensions using a forced ranking format. Agreement was assessed using Kendall's coefficient of concordance. The analysis identified five retention dimensions: transparent career pathways and internal mobility, equitable compensation and benefits, equal development opportunities, inclusive engagement and organizational belonging, and respectful and fair workplace culture. The ranking results indicated that transparent career pathways and internal mobility were considered the highest priority, followed by equitable compensation and benefits. Kendall's W (W = 0.767, p < .001) indicated a strong level of expert consensus. Drawing on Psychological Contract Theory as an interpretive lens, the findings suggest that these organizational practices may be understood as important elements of the broader employment relationship. The study provides context-specific, expert-informed insights that may help organizations develop more inclusive and sustainable retention strategies in hybrid workforce environments.