Abstract
The study sets out to explore the role of psychological contract in the relationship between learning and development (L&D) factors and intention to stay within engineering firms, based on the social exchange theory, a popular framework about psychological contract and maintenance of the employee-employer relationship. The exploration of current L&D (individual and organizational) initiatives will contribute theoretically as well as empirically towards an understanding of how to retain workers by examining a range of variables, from personal and organizational factors. The methodology used in this conceptual paper is a critical literature review that sparks argument on the subject discoursed. This paper addresses the gap by providing a discussion on the challenges of employee retention. The evaluation using L&D initiatives will not only create a holistic evaluation process, but it will also assist in fostering a sense of obligation to stay among employees in the organization.
Highlights
The study sets out to explore the role of psychological contract in the relationship between learning and development (L&D) factors and intention to stay within engineering firms, based on the social exchange theory, a popular framework about psychological contract and maintenance of the employee-employer relationship
Dato Sri Mohd Najib bin Tun Abdul Razak (2010) in his speech titled Introducing the Motion to Table the Tenth Malaysia Plan quoted that the goal of achieving developed nation status by 2020 has increasingly been linked to the fostering of knowledgeable human resources
The issue here is: despite numerous training budgets have been released to both public and private sector since the Ninth Malaysia Plan (Dato Seri Abdullah bin Haji Ahmad Badawi, 2006), organizations still face a crucial shortage of engineers as a result in high employee turnover
Summary
Dato Sri Mohd Najib bin Tun Abdul Razak (2010) in his speech titled Introducing the Motion to Table the Tenth Malaysia Plan quoted that the goal of achieving developed nation status by 2020 has increasingly been linked to the fostering of knowledgeable human resources. The issue here is: despite numerous training budgets have been released to both public and private sector since the Ninth Malaysia Plan (Dato Seri Abdullah bin Haji Ahmad Badawi, 2006), organizations still face a crucial shortage of engineers as a result in high employee turnover. These organizations are not aware of their own strengths and weaknesses in terms of deploying Learning and Development (L&D) initiatives (Harrison, 2005). The role of psychological contract as a linking pin may be a logical reason on why currently only 23 per cent of Malaysian workforce is highly skilled
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