Abstract
Employee turnover is a major challenge faced by Small and Medium-sized Enterprises (SMEs) in the services sector in Malaysia. It is found that this sector has faced a conservative turnover for the past two years and further studies need to be done to solve this problem. To minimize turnover, employees need to feel safe, valued, and satisfied. Many previous literatures showed that organizations that implement and increase the level of Perceived Organizational Support (POS) among employees could help to overcome turnover problems. Increasing the level of POS is believed to help strengthen the relationship between employee and employer, thereby reducing employees' intention to seek or accept other jobs. This study aims to analyze the validity and reliability of measuring tools designed to identify how POS affects employee turnover in Malaysian SMEs. This study also extends POS research by demonstrating support for a multidimensional measure of supervisor support, organizational justice, and organizational rewards & work conditions. A quantitative method was used and a pilot test for the reliability of the questionnaires was carried out by using SPSS to examine the results of Cronbach’s Alpha. There were 33 respondents from the services sectors who participated in answering the questionnaires. The questionnaire contained 42-items and was developed after a detailed analysis of the literature. Overall, all components show measuring components under the given component providing a reliable internal consistency measure as the alpha of Cronbach for POS and Turnover Intention ranged from 0.784 to 0.856.
Highlights
Small and Medium-sized Enterprises (SMEs) activities were dominated by the services sector, which accounted for 62.4 percent of SMEs and was recognized as one of the economy's most potential sectors and a key player in the coming industrial revolution
This study aims to analyze the validity and reliability of measuring tools designed to identify how Perceived Organizational Support (POS) affects employee turnover in Malaysian SMEs
SMEs activities were dominated by the services sector, which accounted for 62.4 percent of SMEs and was recognized as one of the economy's most potential sectors and a key player in the coming industrial revolution
Summary
SMEs activities were dominated by the services sector, which accounted for 62.4 percent of SMEs and was recognized as one of the economy's most potential sectors and a key player in the coming industrial revolution. The rise in Malaysian employee's turnover rate was the main reason why foreign workers were recruited (MEF, 2016). Improving retention is one way to reduce an organization's costs associated with hiring foreign workers. Organizations, SMEs, must have wellimplemented strategies and policies that can assist them in improving employee recruitment, increasing retention rates, and increasing employee productivity (McDougall, 2018). The high turnover rate indicates potential retention issues, and more research is needed to determine the causes of such a high turnover rate. Studies have shown that turnover is exorbitant (Salleh, Samah & Anwar, 2017) as turnover can cost two times of current employee's salary due to the organization needs to spend additional money on advertising, recruiting, hiring and training new employees
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