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Organisational Practices, Individual Characteristics and Employee Retention in the Energy Industry in Malaysia


Employee retention is a very important dimension of human capital management in a contemporary business environment. High rates of turnover and shortage of skilled, professional employees have become a serious threat to growth of industry and commerce whereby failure to address employee retention can result in negative consequences to productivity, profitability and growth. Employee retention is also a critical issue within the energy industry in Malaysia. This study seeks to analyse whether organisational practices (supervisory support, internal promotion, career development) and individual characteristics (personal values and employee commitment) can significantly contribute to employee retention within exploration and production companies in the energy industry in Malaysia. As such it seeks to identify the variables that have a significant contribution towards employee retention. These variables can be sustainable, non-monetary mechanisms of employee retention used to devise better measures to attain employee retention. The findings of the study reveal that all the study variables contribute to employee retention. A higher-level analysis indicates that employee commitment and internal promotion contribute significantly towards employee retention.  When analysed as a group, individual characteristics have a greater contribution towards employee retention. The objectives of the study, research design and findings are discussed in depth in this report.


Human capital management, Employee retention, Energy industry

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