Revealing the Triggers of Workforce Turnover in Emerging Enterprises: A Comprehensive Study

Abstract

SMEs play a crucial role in supporting endogenous growth and creating the conditions for quicker economic development and expansion in Malaysia. In SMEs, high turnover can be particularly challenging due to their limited resources and smaller teams. It can lead to disruptions in operations, increased recruitment and training costs, and loss of valuable skills and knowledge. By addressing the underlying causes of turnover, SMEs can enhance employee loyalty, improve productivity, and create a more positive workplace environment. This study looks at the variables that influence employment turnover in Malaysian small and medium-sized enterprises in the Kemaman district. The study concentrates on the main causes of employee turnover, including wages, job security, and job stress. Using a five-point Likert scale for survey topics, 300 participants from the Kemaman district participated in the study. The questionnaire's validity and reliability were verified, and SPSS software was used to gather and examine the results. All had positive and statistically significant association coefficients. With respective values of 0.000, 0.000, and 0.000, it was discovered that the three independent variables; wages, job security, and job stress were all significant. The results were accepted and provided evidence for the theories. For SMEs in Kemaman looking to reduce staff turnover brought on by elements like job happiness, job security, and job stress, these results are helpful. These findings can aid in the development of staff turnover reduction plans, which will enhance employee retention and boost overall business success.