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DETERMINANTS OF EMPLOYEE RETENTION IN PRIVATE HEALTHCARE
Abstract
The continuous ongoing concern about shortages of healthcare workers in the healthcare industry in Malaysia has brought a significant impact on workforce productivity. The condition gets worsened during the COVID-19 pandemic back in 2020. Private healthcare has reported high staff turnover and caused higher costs to the business which in terms of direct financial losses and lack of continued care. The aims of this study are to identify the root causes of the high resignation rate in private healthcare. Five key factors (job satisfaction, work environment, compensation and benefits, work-life balance and employee recognition) were successfully identified and measured as significant contributors towards employee retention of selected private healthcare in Malaysia. A quantitative study was conducted via survey for obtaining primary data and information needed. There were 123 respondents and data were collected from the selected private hospitals in Sarawak, Malaysia. Based on rigorous reviewing of the literature, instrument designing and subsequent pilot testing, the study identified six (6) hypotheses which are tested using statistical technique SPSS version 26. The outcome revealed that employee recognition, with the unstandardized coefficients Beta value of 0.359 followed by job satisfaction with a Beta value of 0.295 was a supported and stronger predictor in influencing employees’ retention in the private hospitals. Other determinants like working environment, compensation and benefits and work-life balance were not strongly supported however been highlighted by respondents as important factors too. Moreover, some unique factors like training and development, fairness, leadership skills among leaders or managers and hospital facilities and equipment were highlighted by respondents in this study and these factors are regarded as crucial for getting management attention in retaining the talents in the hospitals. This study also contributes both theoretical and empirical value to private healthcare in retaining talent through building trust in their employees and having immense credibility of leaders with a long-term win-win employee relationship.
JEL: E24; J24; I10
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DOI: http://dx.doi.org/10.46827/ejhrms.v5i4.1220
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