Factors influencing millennial employees’ turnover intention in multinational corporations in Penang, Malaysia

Abstract

This quantitative study explores the influence of organizational culture on the turnover intentions of millennial employees within multinational corporations (MNCs) in Penang, Malaysia. As millennials increasingly comprise a substantial portion of the workforce, their turnover rates have significant implications for organizational efficacy. The research examined the relationship between key elements of organizational culture—namely employee empowerment, work-life balance, and reward systems—and millennials’ decisions to stay with or leave their employers. Data were gathered through a questionnaire distributed to 183 millennial employees in the Penang MNC sector, employing a random sampling approach and utilizing Google Forms for submission. The survey instruments were based on established scales from prior research to ensure robustness and relevance. The findings indicate that all the studied variables significantly affect turnover intentions, with employee empowerment emerging as the strongest predictor, followed by work-life balance, and then reward systems. These results underscore the critical role of organizational culture in shaping millennial turnover intentions. The study’s insights can guide MNCs in Penang to implement strategic initiatives aimed at fostering a positive work environment that emphasizes empowerment, balance, and appropriate rewards, thereby enhancing employee retention within this pivotal demographic. While this study provides detailed insights specific to the Malaysian context, its findings may serve as a preliminary reference point for MNCs in similar regional contexts, suggesting further research to explore the applicability of these insights globally.