Compensation and benefits, work environment and employee retention in selected manufacturing and services industries: the mediating role of supervisor support / Norsyidahanim Zainal Abidin and Nurfadzidah Azhar

Employee retention is a continuous problem or issues that always are a major issue of any company. This is not easy to retain employee for a long period in an organization. This research has been conducted to know and investigate on compensation and benefits, working environment, supervisor support and employee retention at GG Circuits Industries Sdn. Bhd. and Suria City Hotel Johor Bahru. It is important to the companies to reduce the employee turnover that may influence the productivity of company. The data collected through the questionnaires from 157 respondents from GG Circuits Industries Sdn. Bhd. and Suria City Hotel Johor Bahru. The questionnaires were distributed to test the hypotheses that are proposed. The questionnaires designed based on three variables that are expected to be factors that influence employee retention which are compensation and benefits, working environment and supervisor support. Therefore, this research also has been conducted about the mediating analysis which is supervisor support as moderating variable. This research used process macro analysis to evaluate the total effect of compensation and benefits and work environment on employee retention which the results shown moderating variables are partially mediator on employee retention. Hence, the results from this study reveal that there is positive relationship between all independent variables which are compensation and benefits, working environment, supervisor support towards employee retention. There are many other factors that may influence employee retention which are not included in this research. The sample of this study only limited to the employees that are working in both companies which are GG Circuits Industries Sdn. Bhd. and Suria City Hotel Johor Bahru.