Abstract
In today’s complex business environment, organization is facing challenges in retaining their employees especially young employees, known as Generation Y. The purpose of this paper is to investigate the relationship between determinants of employee engagement toward the retention of Generation Y employees in the banking sector. The study also seeks to provide the theory-based empirical evidence using social exchange theory (SET) to determine whether the role of employee engagement influence the retention of these young employees. A total of 200 bank employees representing a range of Malaysian banks will be selected using stratified random sampling. This study attempts to contribute toward the positive relationship of young employees’ retention in the organization through employee engagements determinants. Several significant findings as well as theoretical implications would be drawn from the results of the study for building better organizational environment for Generation Y employees to be retained in the organization.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsReferences
Aida, I. (2014). Flexible working as an employee retention strategy in developing countries. Journal of Management Research, 14(2), 71−86.
ALDamoe, F. M. A., Yazam, M., & Ahmid, K. (2012). The mediating effect of HRM outcomes (employee retention) on the relationship between HRM practices and organizational performance. International Journal of Human Resource Studies, 2(1), 75−88.
Ali, Q. A., Christina, S., & Qi, W. (2015). The vital role of employee retention in human resource management: A literature review. IUP Journal of Organizational Behavior, 15(3), 7–32.
Allen, D. G., & Shanock, L. R. (2013). Perceived organizational support and embeddedness as key mechanisms connecting socialisation tactics to commitment and turnover among new employees. Journal of Organisational Behaviour, 34(3), 350–369.
Andrew, O., & Sofian, S. (2012). Individual factors and work outcomes of employee engagement. Procedia-Social and Behavioral Sciences, 40, 498–508.
Anitha, J. (2014). Determinants of employee engagement and their impact on employee performance. International Journal of Productivity and Performance Management, 63(3), 308−323.
Armir, A. C., & Buckley, F. (2009). Linking trust in the principle to school outcomes: The mediating role of organization identification and work engagement. Journal of Education Management, 23(7), 574–589.
Aruna, M., & Anitha, J. (2015). Employee retention enablers: Generation Y employees. SCMS Journal of Indian Management, 94−103.
Bedarkar, M. & Pandita, D. (2014). A study on the drivers of employee engagement impacting employee performance. Procedia-Social and Behavioral Sciences, 133, 106−115).
Blau, P. M. (1964). Exchange and power in social life. New York, NY: Wiley.
Camille, K., & Nicole, S. (2011). Understanding and managing generational differences in the workplace. Worldwide Hospitality and Tourism Themes, 3(4), 308−318.
Das, B., & Baruah, M. (2013). Employee retention: A review of literature. OSR Journal of Business and Management (IOSR-JBM), 14(2), 8−16.
Dernovsek, D. (2008). Creating highly engaged and committed employee starts at the top and ends at the bottom line. Credit Union Magazine, May 2008. Credit Union National Association, Inc.
Falcone, P. (2006). Preserving restless top performers: Keep your top performers engaged so they don’t jump ship once job opportunities arise. HR Magazine. March.
Fitz-enz, J. (1990). Getting and keeping good employees. personnel, 67(8), 25–29.
Frank, F. D., Finnegan, R. P., & Taylor, C. R. (2004). The race for talent: Retaining and engaging workers in the 21st century. Human Resource Planning, 27(3), 12–25.
George, C. (2015). Retaining professional workers: What makes them stay? Employee Relations, 37(1), 102–121.
Ghosh, P., Satyawadi, R., Joshi, J. P., & Mohd. S. (2013). Who stays with you? Factors predicting employees intention to stay. International Journal of Organizational Analysis, 21(3), 288−312.
Gibbons, J. (2008). Employee engagement: A review of current research and its implications, The Conference Board, New York, NY.
Govaerts, N., Kyndt, E., Dochy, F., & Baert, H. (2011). Influence of learning and working climate on the retention of talented employees. Journal of Workplace Learning, 23(1), 35–55.
Gurumani, V. S. (2010). Invaluable tools for talent retention. Human Capital, 54−55.
Hair, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106–121.
Hair, J., Black, W., Babin, B., & Anderson, R. (2010). Multivariate data anlysis. (7th ed.) New Jersey: Prentice-hall, Inc.
Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis. Journal of Applied Psychology, 87(2), 268–279.
Homans, G. L. (1961). Social Behavior: Its Elementary Forms. NewYork: Harcourt Brace Jovanovich.
James, L., & Mathew, L. (2012). Employee retention strategies: IT industry. SCMS Journal of Indian Management, 19(3), 79−87, 53.
Jepsen, D. M., & Rodwell, J. (2010). A social exchange model of the employment relationship based on keeping tally of the psychological contract. European Relations Record, 10(2), 20−45, 54.
Johnson, M. (2000). Winning the people war. Copyright Licensing Agency, London: Talent and the Battle for Human Capital.
Kahn, W. A. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal, 33(4), 692–724.
Mahal, P. K. (2012). HR practices as determinants of organisational commitment and employee retention. The IUP Journal of Management Research, 11(4), 37−53, 52.
Margaret, D., & Leo, J. (2015). Revisiting talent management, work-life balance and retention strategies. International Journal of Contemporary Hospitality Management, 27(3), 453−472.
Merry, J. (2013). Aon hewitt’s 2013 trends in global engagement: Where do organizations need to focus attention? Strategic HR Review, 13(1), 24−31.
Osteraker, M. C. (1999). Measuring motivation in a learning organization. Journal of Work Place Learning.
Ratna, R., & Chawla, S. (2012). Key factors of retention and retention strategies in telecom sector. Sona Global Management Review, 6(3), 35–46.
Richard, M. B. (2007). The practice of engagement: Research into current employee engagement practice, Strategic HR Review, 6(6), 16−19.
Robinson, D., Perryman, S., & Hayday, S. (2004). The drivers of employee engagement, Report No. 408, Institute for Employment Studies, Brighton, April.
Saks, A. M. (2006). Antecedents and consequences of employee engagement. Journal of Managerial Psychology, 21(7), 600–619.
Salanova, M., Agut, S., & Peiro, J. M. (2005). Linking organizational resources and work engagement to employee performance and customer loyalty: The mediation of service climate. Journal of Applied Psychology, 90(6), 1217–1227.
Schaufeli, W. B., & Bakker, A. B. (2004). Job demands, job resources, and their relationship with burnout and engagement: A multi-sample study. Journal of Organizational Behavior, 25, 293–315.
Schaufeli, W. B., & Salanova, M. (2007). Work engagement: an emerging psychological concept and its implications for organizations. In S. W. Gilliland, D. D. Steiner, & D. P. Skarlicki (Eds.), Research in social issues in management (pp. 135–177). CT: Information Age Publishers, Greenwich.
Weyland, A. (2011). Engagement and talent management of Gen Y. Industrial and Commercial Training, 43(7), 439–445.
Xanthopoulou, D., Bakker, A. B., Demerouti, E., & Schaufeli, W. B. (2007). The role of personal resources in the job demands-resource model. International Journal of Stress Management, 14(2), 121–141.
Yamamoto, H. (2011). The relationship between employee benefit management and employee retention. The International Journal of Human Resource Management, 22(17), 3550–3564.
Zhao, H. (2006). Expectations of recruiters and applicants in large cities of China. Journal of Managerial Psychology, 21(5), 459–475.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2018 Springer Nature Singapore Pte Ltd.
About this paper
Cite this paper
Shahruddin, S., Daud, N. (2018). Employee Engagement Determinants and Employee Retention: A Study Among Generation Y Employees in Malaysia. In: Noordin, F., Othman, A., Kassim, E. (eds) Proceedings of the 2nd Advances in Business Research International Conference. Springer, Singapore. https://doi.org/10.1007/978-981-10-6053-3_30
Download citation
DOI: https://doi.org/10.1007/978-981-10-6053-3_30
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-10-6052-6
Online ISBN: 978-981-10-6053-3
eBook Packages: Business and ManagementBusiness and Management (R0)