Human resource management also determines the company's effort to retain its talented employee. Many previous studies focus on local workforce management on local labor, but less on the issues of local workforce management on foreign workers. To be more specific, Malaysia's human resources management decides whether to stay or leave a foreign employee in the company.
It is also a sign of support to encourage foreign employees to continue working in the company. The foreign employee will feel that his or her efforts are recognized and valued for the company's contribution. The effectiveness of the management of human resources in Malaysia would improve the tendency to retain foreign employees in the company.
Although personnel management related issues are always critical and difficult to predict, the Malaysian company is starting to place great emphasis on retaining foreign employees. A better understanding of the relationship between these human resources, which will benefit the company, as it is useful in determining the influence on the retention of foreign employees.
RESEARCH OVERVIEW
- Introduction
- Research Background
- Research Problem
- Research Objectives & Research Questions
- General Objective
- Specific Objectives
- Research Questions
- Research Significance
- Chapter Layout
- Conclusion
The company must anticipate the aggravated shortage of the total number of foreign workers in order to improve business competitiveness (Managing for Employee Retention, 2019). Malaysia is a country with employment opportunities for foreign workers with relatively higher incomes (Practical Guidelines for Employers on the Recruitment, Placement, Employment and Repatriation of Foreign Workers in Malaysia, 2014). The supply of foreign workers has been increasing over the years and is disrupting the employment of domestic workers.
To take this matter seriously, the company aims to improve the retention of foreign employees, highlighting the impact of human resource management in Malaysia on the retention of foreign employees. This research objective is to study the relationship between human resource management in Malaysia and foreign employee retention. From this research, researchers would gain a better understanding of how important human resource management in Malaysia is to retaining foreign employees.
To be more clear, there are three specific objectives established to discuss the relationship of each variable affecting the retention of foreign employees in Malaysia. Company must understand about the human resource management applied to foreign employee with global perspective on local concepts and pressure (Pawan, 2002).
LITERATURE REVIEW
- Introduction
- Review of Underlying Theory
- Social Exchange Theory
- Resource-based View Theory
- Review of Variables
- Dependent Variable: Foreign Employee Retention
- Independent Variable: Recruitment and Selection
- Independent variable: Training and Development
- Independent Variable: Performance Appraisal
- Independent Variable: Compensation and Benefit
- Proposed Theoretical/ Conceptual Framework
- Hypotheses Development
- Relationship between Malaysia Recruitment and Selection and
- Relationship between Malaysia Training and Development towards
- Relationship between Malaysia Performance Appraisal and Foreign
- Relationship between Malaysia Compensation and Benefit towards
- Conclusion
Considering this, retention of foreign employees can be considered as a continuous long-term adaptation initiative in Malaysia. Based on Falola (2014), the researcher believed that regular training and development will create a competitive link with retention of foreign employees. From the research of Ong C. 2018) it has been shown that the connection between recruitment and selection on the retention of foreign employees.
Based on Jha and Bhattacharyya (2012), recruitment and selection increases the attraction of potential foreign workers. According to Aguinis (2009), the importance of training and development brings positive consequences such as the retention of foreign employees. This view is supported by the relationship that highlighted that training and development management can determine the outcome of foreign employee retention.
In the previous research, researchers believed that constructive performance appraisal is interconnected with the retention of foreign employees (Ikramullah, 2011). Compensation and benefit have a direct relationship to influence foreign employee's decision to retain in the organization (Yamamoto, 2013).
METHODOLOGY
- Introduction
- Research Design
- Sampling Design
- Target Population
- Sampling Frame and Sampling Location
- Sampling Elements
- Sampling Techniques
- Sampling Size
- Data Collection Methods
- Primary Data
- Secondary Data
- Research Instrument
- Questionnaire Design
- Pilot Study
- Construct Measurement
- Original Source of Construct Measurement
- Scale of Measurement
- Data Processing
- Questionnaire Checking
- Data Editing
- Data Coding
- Data Transcribing
- Data Analysis
- Descriptive Analysis
- Scale Measurement (Reliability Analysis for Pilot Test)
- Inferential Analysis
- Conclusion
Sampling in this research focuses on foreign employees from various organizations including food and beverage, manufacturing, service, construction and agriculture. 150 respondents have been targeted in this survey while pilot tests on 30 respondents before distributing to the remaining 120 respondents. In this study, a questionnaire is chosen as the method to collect primary data from the target respondents.
In this research, online resources and UTAR e-databases were used to search journal, report, article and textbook. Cronbach's alpha is applied in the multiple questionnaire to measure the internal consistency of reliability (Douglas, 2014). It showed that compensation and benefit have the highest Cronbach's alpha of 0.979, which is excellent strength of association.
Next, foreign employee retention has the lowest Cronbach's alpha of 0.884, but still falls below very good strength of association. Cronbach's alpha score for performance evaluation of 0.956, which is in excellent strength of connection. Furthermore, recruitment and selection and training and development obtain Cronbach's Alpha of 0.977 and 0.973 respectively, which possess excellent strength of association.
My organization provides me with sufficient time for on-the-job training and off-the-job training. Three types of measurement levels have been used in this study, including nominal, ordinal and interval. Reliable questionnaires from previous studies would ensure that a valid questionnaire is constructed in this study to test reliability.
Therefore, calculating Cronbach's alpha as a common practice measures the internal consistency, which is expressed in numbers between 0 and 1. Pearson's correlation coefficient indicates the relationship between two variables, which measures the strength or extent of an association and its direction (NJ, 2017). The multiple linear regression focuses on the relationship between several independent variables and a dependent variable (Gulden, 2013).
DATA ANALYSIS
- Introduction
- Descriptive Analysis
- Respondents Demographic Profile
- Central Tendencies Measurement of Construct
- Scale Measurement
- Reliability Test for Actual Result
- Inferential Analysis
- Pearson Correlation Analysis
- Multiple Linear Regression
- Hypotheses Testing
- Conclusion
Based on Table 4.5 and Graph 4.5, it states that the marital status of majority respondents is married at the percentage of 56% or 84 respondents. Based on table 4.7 and graph 4.7, a large number of respondents work as permanent jobs in Malaysia. TAD = Training and Development PA = Performance Appraisal CAB = Compensation and Benefit FER = Retention of Foreign Employees.
Based on Table 4.11, 25 items are removed from the questionnaire for reliability testing to measure internal consistency. Most importantly, compensation and benefit have the highest correlation (0.647) with retention of foreign workers, as foreign workers look for attractive wages provided by the organization in Malaysia. The second highest rank is the correlation (0.628) of recruitment with retention of foreign workers, as foreign workers are selected based on fair and adequate job and explained clearly, therefore foreign workers will remember that a good start to their job will reduce the intention to leave.
In addition, the correlation of performance evaluation (0.560) with the retention of foreign employees due to the employer is concerned about feedback as it contributes to the welfare of the company. Mainly because training and development coverage is not enough to satisfy foreign employees. Based on table 4.13, the R value of 0.712 has shown that the independent variables have a significant positive relationship with the dependent variable.
The R-squared is interpreted as 51% which means that the predictors of independent variable account for 51% of the variance in foreign employee retention. The overall regression is statistically significant because three predictors together as a set predict the retention of foreign employees. Recruitment and selection, and compensation and benefit are significant predictors of foreign employee retention because the P value is less than 0.05.
However, training and development and performance appraisal are not significant predictors of foreign employee retention at P value greater than 0.05. For example, increase of 1 unit in recruitment and selection will contribute to additional 0.293 unit in foreign employee retention, the same is true for the remaining predictors. In total, compensation and benefit have the highest standardized coefficients beta value of 0.313 which means that it has the most significant influence on the retention of foreign employees.
DISCUSSION, CONCLUSION AND IMPLICATIONS
Introduction
Summary of Statistical Analysis
Cronbach's Alpha test was performed to assess the strength of association for 25 items on 5 independent variables. The result has shown that all independent variables achieved good, very good and excellent results. In addition, multiple linear regression analysis has shown that recruitment and selection, and compensation and benefits have a significant relationship with retention of foreign workers.
Discussion on Major Findings
- Recruitment and Selection
- Training and Development
- Performance Appraisal
- Compensation and Benefit
The research aim of this thesis is to determine the relationship between performance appraisal and retention of foreign employees. Based on Mwema (2014), the researcher supported that performance appraisal was positively related to retention of foreign workers. Today, foreign workers are not emphasized on performance evaluation, which is an important incentive for foreign workers to continue to serve the company.
Overall, H3 is rejected due to the ineffective implementation of retention firm performance evaluation. The research objective of the thesis is to determine the relationship between pay and benefits and the retention of foreign employees. Based on Yamamoto (2013), compensation and benefits are directly related to influencing the decision of foreign employees to continue to stay in the organization.
Having said that, the attractive salaries and benefits offered by the company in Malaysia support individual expenses as well as family expenses overseas or in Malaysia.
Implications of Study
- Managerial Implication
Limitation of Study
Recommendation for Future Research
Conclusion
The influence of human resource management practices on employee performance in the manufacturing sector in Malaysia. Do human resource practices, employee compensation, and employee benefits significantly influence the retention of child care teachers in the child care service industry. The main objective of this survey questionnaire is to discover the relationship between Malaysia's human resource management and the retention of foreign employees.
