Employee Retention in central business PDF

Running head: LITERATURE REVIEW
Literature Review: Employee Retention in central business district of Kuala Lumpur, Malaysia
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1LITERATURE REVIEW
Table of Contents
Chapter 2. Literature Review:..........................................................................................................2
2.0 Overview....................................................................................................................................2
2.1 Phenomenon under study/ DV...................................................................................................3
2.1.1 Malaysian perspectives...........................................................................................................7
2.2 Factors influencing....................................................................................................................9
2.2.1 Factor 1- Employee empowerment.........................................................................................9
2.2.2 Factor 2- Employee Commitment........................................................................................12
2.2.3 Factor 3- Employee Compensation......................................................................................15
2.3 Gaps in the literature................................................................................................................17
2.4 Fundamental/ Grounded theory...............................................................................................20
2.5 Framework...............................................................................................................................21
References......................................................................................................................................24

2LITERATURE REVIEW
Chapter 2. Literature Review:
2.0 Overview
The essence of this literature review deals with the impact and influence of some of
essential factors that helps the central business district of Kuala Lumpur in employee retention.
The overall performance of any organization is not partly but all most completely dependent
upon the performance of the individuals associated to it (Yousef, 2017). Employee retention is an
art and by adopting certain essential work practices an organization can retain their employees
and even make them more motivated to their assigned responsibilities and roles.
In order to understand the importance of employee retention it is necessary to study the
current condition and rate of employee turnover in central business district of Kuala Lumpur,
Malaysia. The first objective of the literature review is to determine the influence of employee
empowerment to retain their consumers (Vandenberghe, Bentein and Panaccio, 2017). Other
objective of this literature review is to define the impact of employee commitment in employee
retention and the last objective of the literature is to recognize the role of employee
compensation to retain employees. The literature review has been conducted to find out the
influence and factors of employee retention.
Three hypotheses are designed to conduct the research study towards success. Not only
this but also certain factors are highlighted to reveal the hidden facts of the research work. Three
of these factors are individually analyzed throughout this literature review. The influences of
these factors are also measured and accordingly the research gaps that interrupted the success of
the research flow are also being identified. After accomplishing the research the reason of

3LITERATURE REVIEW
employee turnover will be revealed and accordingly the practices through which the employee
turnover rate can be reduced and employees can be retained are executed.
2.1 Phenomenon under study/ DV
The research phenomena undertaken to conduct this literature study is employee
retention. The employers are focused to retain their employees while businesses are facing low
unemployment and heightened competitive talent. The employers give office amenities like
ergonomic as well as standing desks to the employees. Diminished productivity and competitive
advantages are between biggest losses that are caused through employees who are leaving an
organization.
Defining and explaining the Dependent Variable (DV): Employee Retention
Employee retention is referred to as an organizational goal that helps to keep only
talented employees by reducing the rate of employee turnover. It also gives opportunity to
promote employee engagement by giving a positive working atmosphere (Zopiatis, Constanti
and Theocharous, 2014). The approach of the retention profits arising from personal
improvement which offers new possibilities while attempting to increase employee retention.
This literature review also displays that the individual difference can influence the employee
retention. The term employee retention is closely interrelated to leadership skills and employee
seniority.
According to Imna and Hassan (2015) there are many businesses which attain huge
productivity in their work and overall operational performance. In most cases the organizations
take that employee who is stepping out. The company shows the benefits to these employees
mostly. It has been found that in most cases the employees who are much confident and focused

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to their job roles are retained with additional facilities and rewards. This kind of additions
benefits both the employees and employers (Shonubi et al. 2017). They believe that employees
are the only asset who helps the companies to achieve the organizational goal with long term
sustainable future revenue. The employees who are has limited skills, knowledge and
understanding should never be entertained or retained with additional power (Beynon et al.
2015). After completion of successful analysis it has been found that under this frequently
changing contemporary economy the business organizations should foresee different technology
based innovations so that they can compete to other similar types of the organizations.
As much numbers of old employees will be retained the productivity will increased that
much accordingly. Retaining and securing skilled employees play vital roles in the business
process as the knowledge and skills of the employees are very much crucial. For the
functionalities and competitiveness of the business organizations employee retention needed
regardless of the type and size of the organization (Kim and Fernandez, 2017). The rate of
productivity will increase if the individual employee keeps themselves committed to the assigned
job roles. It implies that, working environment and work practices play vital role in employee
retention. The individual’s demographic factor also plays crucial role in employee retention. As
much the employees feel committed that much number of employees will retain in the work
environment.
The work environment keeps on changing with retaining employees. Employee retention
is rather taken as a policy or practice that the companies use to prevent their employees from
leaving the organization. According to Bibi (2017) the values of employees are not easily
replicated thus, these are also critical for the business. There are different approaches followed
by the business organizations to avoid the issues that they face after hiring a not professionally

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skilled employee for their business objective fulfillment (Shah and Beh, 2016). Skilled
employees are capable to deal with even unfavorable business conditions also. Yong (2017)
argued that, the skilled employees would also be left with the understaffed that will reduce the
commercial competitiveness.
Characteristics of Employee retention
The characteristics of employee retention are as follows:
Different characteristic are identified regarding employee retention as the companies
always look for directions to ensure the talented employees that they have hired become
onboarded and are also engaged in the values of the company (Chen, 2014). The characteristics
which help to retain new as well as old employee are discussed in the below section. The features
are culture or value recognition, community impact and continuous learning.
Cultural recognition: Cultural recognition is that one feature with which each can
related themselves the most (Alias, Noorb and Hassan, 2014). Any company requires having a
proper core value set that may define their cultural characteristics.
Continuous learning: Any newly hired employee wants to see that the company that
they become a part of is mostly focused on personal development and professional development.
These companies are more focused to personal development of the employees by giving them a
continuous learning environment and opportunities as well.
Community impact and social awareness: More likely the newly hired employees
always wish to feel that they are part of an organization therefore the companies can demonstrate