The Influence of the Work Environment on Employee Retention in the Malaysian Banking Sector

Abdul Kadir Othman
Institute of Business Excellence, Universiti Teknologi MARA

Nasuha Husna Ahmad Zubir, Azmi Mat
Faculty of Business and Management, Universiti Teknologi MARA


In most organisations, retaining talented staff has become a serious concern due to the current rate of employee turnover. This study aims to investigate the relationship between work environment factors and employee retention. These factors comprise flexible work hours, job security, co-worker support, superior-subordinate relationships, and communication as included in Ahmad, Tariq, and Hussain’s (2015) model. Using 384 data conveniently collected from Malaysia’s banking employees via a questionnaire survey method, the results revealed that three variables have significant relationships with employee retention; communication; people support and relationships (a combination of co-worker support and superior-subordinate relationship factors); and job security. This study will help banks improve their work environments in order to retain their talent.

Keywords: Banking sector, Employee retention, Work environment