Title: The retention of trained production workers in a small manufacturing company in Malaysia

Authors: Mohammad Iranmanesh; A.K. Siti-Nabiha; Maryam Sabbah

Addresses: School of Management, Universiti Sains Malaysia, 11800 Penang, Malaysia. ' Graduate School of Business, Universiti Sains Malaysia, 11800 Penang, Malaysia. ' Centre for Instructional Technology and Multimedia, Universiti Sains Malaysia, 11800 Penang, Malaysia

Abstract: This study aims to investigate the challenges faced by a small company in retaining its skilled low-wage labour in a highly competitive labour market in Malaysia. The data is based on the information obtained through interviews with the director and the employees of the company which were undertaken to find out the reasons trained low wage labours choose to resign from this company. The theory of constraint and Goldratt (1992) thinking process are utilised in analysing the case and finally in providing recommendation on how to address this problem. It was found that other companies paid higher salary and benefits to skilled production workers. In addition, the workers are dissatisfied with the working conditions in the company due to reasons such as high control policy of the company and miscommunication among staff. After being trained, the workers leave the company and went to work in other companies that provide higher payment and better, more flexible working conditions.

Keywords: employee retention; labour market; manufacturing SMEs; small firms; small and medium-sized enterprises; small business; Malaysia; skilled labour; low-wage labour; theory of constraints; TOC; pay; working conditions.

DOI: 10.1504/IJESB.2012.046918

International Journal of Entrepreneurship and Small Business, 2012 Vol.16 No.1, pp.71 - 82

Published online: 14 Aug 2014 *

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