ISSN: 2222-6990
Open access
The construction sector is a crucial contributor to Malaysia economic growth development. However, the COVID-19 outbreak caused notable interruptions to the construction sector and the employees. One of the most significant challenges is the employee’s shortage has been prolonged issue of construction sector in Malaysia, particularly involvement of millennials, which becomes more severe due to compensation and benefits stagnant and turnover intention issues. Compensation and benefits for employees are the key components that underpin the competitiveness of an organization. The ability of an organization to provide satisfactory compensation and benefits is a major factor in attracting and retaining competent millennial employees. The purpose of this conceptual paper is to describe and provide insight into the impact of the relationship between compensation and benefits on turnover intentions, which is mediated by job satisfaction in the construction sector. The study’s literature highlights, compensation and benefits that satisfy the demands and desires of employees not only grant a competitive advantage to the dynamics of the organization but also significantly influence the degree to which they are satisfied and their possible tendency to leaves their jobs. Through assessing the role of job satisfaction, the study strongly suggests that compensation and benefits have significant correlation on the turnover intentions of millennial employees.
Adams, J. S. (1965). Inequity in social exchange (Leonard Berkowitz, Ed.; Vol. 2). Advances in Experimental Social Psychology, Academic Press. https://doi.org/10.1016/S0065-2601(08)60108-2
Agustine, T. D., & Nawangsari, L. C. (2020). The Effect of Compensation and Work Loads Towards Intension of Turnover with Work Satisfaction as a Variable Mediation in Clinic Employees of PT Nayaka Era Husada Branch of Bekasi. International Journal of Innovative Science and Research Technology, 5(7), 1304–1312.
https://doi.org/10.38124/IJISRT20JUL714
Akgunduz, Y., Gök, A. Ö., & Alkan, C. (2020). The Effects of Rewards and Proactive Personality on Turnover Intentions and Meaning of Work in Hotel Businesses. Tourism and Hospitality Research, 20(2), 170–183. https://doi.org/10.1177/1467358419841097
Alaloul, W. S., Musarat, M. A., Liew, M. S., Qureshi, A. H., & Maqsoom, A. (2021). Investigating the Impact of Inflation on Labour Wages in Construction Industry of Malaysia. Ain Shams Engineering Journal, 12(2), 1575–1582. https://doi.org/10.1016/j.asej.2020.08.036
Alfadil, M. O., Kassem, M. A., Ali, K. N., & Alaghbari, W. (2022). Construction Industry from Perspective of Force Majeure and Environmental Risk Compared to the COVID-19 Outbreak: A Systematic Literature Review. Sustainability (Switzerland), 14(3), 1–22. https://doi.org/10.3390/su14031135
Ali, B. J., & Anwar, G. (2021). Employee Turnover Intention and Job Satisfaction. International Journal of Advanced Engineering, Management and Science, 7(6), 22–30. https://doi.org/10.22161/ijaems.76.3
Ayodele, O. A., Chang-Richards, A., & González, V. (2020). Factors Affecting Workforce Turnover in the Construction Sector: A Systematic Review. Journal of Construction Engineering and Management, 146(2), 2–24. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001725
Azeez, M., Gambatese, J., & Hernandez, S. (2019). What Do Construction Workers Really Want? A Study about Representation, Importance, and Perception of US Construction Occupational Rewards. Journal of Construction Engineering and Management, 145(7), 1–12. https://doi.org/10.1061/(asce)co.1943-7862.0001669
Carvajal-Arango, D., Vásquez-Hernández, A., & Botero-Botero, L. F. (2021). Assessment of Subjective Workplace Well-Being of Construction Workers: A Bottom-Up Approach. Journal of Building Engineering, 36, 102154.
https://doi.org/10.1016/j.jobe.2021.102154
Chagadama, Prof. Dr. J., Luamba, Prof. Dr. D. S., & Mutamba, Prof. Dr. Ir. E. M. (2022). Reducing Voluntary Employee Turnover in Small Construction Companies for Long-term Productivity. International Journal of Business and Management Research, 10(3), 53–70. https://doi.org/10.37391/ijbmr.100301
Chavadi, C. A., Sirothiya, M. M. R. V. (2022). Mediating Role of Job Satisfaction on Turnover Intentions and Job Mismatch among Millennial Employees in Bengaluru. Business Perspectives and Research, 10(1), 79–100.
https://doi.org/10.1177/2278533721994712
Chen, X., Al Mamun, A., Hussain, W. M. H. W., Jingzu, G., Yang, Q., & Al Shami, S. S. A. (2023). Envisaging the Job Satisfaction and Turnover Intention among the Young Workforce: Evidence from an Emerging Economy. PLoS ONE, 18(6), 1–21.
https://doi.org/10.1371/journal.pone.0287284
Chin Keng, T., Nur Azirah Mohamed Nor, N., & Kah Ching, Y. (2019). Strategies of Quantity Surveying Firms to Reduce Turnover Intention. International Journal of Engineering & Technology, 8(1), 1–4. https://www.researchgate.net/publication/331025518
Deri, M. N., Zaazie, P., & Bazaanah, P. (2021). Turnover Intentions Among Hotel Employees in the Accra Metropolis of Ghana. African Journal of Hospitality, Tourism and Leisure, 10(1), 238–255. https://doi.org/10.46222/AJHTL.19770720-98
Esa, M. B., Ibrahim, F. S. B., & Kamal, E. B. M. (2020). Covid-19 Pandemic Lockdown: The Consequences Towards Project Success in Malaysian Construction Industry. Advances in Science, Technology and Engineering Systems, 5(5), 973–983.
https://doi.org/10.25046/aj0505119
Hee, O. C., Lien, C. M., Liang, S. J., Mohamed Ali, A. S., Abd Manap, N. S., & Lailee, S. N. (2018). Human Resource Management Practices and Employee’s Turnover Intention in the Manufacturing Industry in Malaysia. International Journal of Human Resource Studies, 8(2), 216–226. https://doi.org/10.5296/ijhrs.v8i2.13008
Hee, O. C., & Rhung, L. X. (2019). Motivation and Employee Retention among Millennials in Malaysia. International Journal of Academic Research in Business and Social Sciences, 9(2), 876–884. https://doi.org/10.6007/ijarbss/v9-i2/5629
Ihedigbo, K. S., Awwal, H. M., Sakiru, R. A., Olughu, C. E., & Bello, A. O. (2023). Assessment of Working Environment Factors Influencing Construction Workers’ Performance in the Nigerian Construction Industry. Journal of Sustainability and Environmental Management, 2(2), 98–105. https://doi.org/10.3126/josem.v2i2.55202
Irawan, I. A. W., & Komara, E. (2020). The Influence of Financial Compensation and Career Development Mediated Through Employee Engagement Toward Turnover Intention of Millennial Employees of XYZ Group. Jurnal Ekonomi, Manajemen Dan Perbankan, 6(2), 75–89. https://doi.org/https://doi.org/10.35384/jemp.v6i2.251
Jahya, A., Azlin, S. N. I., Othman, R., & Romaiha, N. R. (2020). Turnover Intention among Gen-Y: The Role of Training and Development, Compensation and Organizational Culture. International Journal of Academic Research in Business and Social Sciences, 10(10), 765–782. https://doi.org/10.6007/ijarbss/v10-i10/7975
Kadir, A. A., AlHosani, A. A. H., Ismail, F., & Sehan, N. (2019). The Effect of Compensation and Benefits Towards Employee Performance. Proceedings of the 1st Asian Conference on Humanities, Industry, and Technology for Society, ACHITS.
https://doi.org/10.4108/eai.30-7-2019.2287551
Lee, B., Lee, C., Choi, I., & Kim, J. (2022). Analyzing Determinants of Job Satisfaction Based on Two-Factor Theory. Sustainability, 14(19), 1–19. https://doi.org/10.3390/su141912557
Magni, F., & Manzoni, B. (2020). Generational Differences in Workers’ Expectations: Millennials Want More of the Same Things. European Management Review, 17(4), 901–914. https://doi.org/10.1111/emre.12405
Mahadi, N., Woo, N. M. F., Baskaran, S., & Yaakop, A. Y. (2020). Determinant Factors for Employee Retention: Should I Stay? International Journal of Academic Research in Business and Social Sciences, 10(4), 201–213. https://doi.org/10.6007/ijarbss/v10-i4/7120
Mahmood, S., Awang, Z., Kmeil, A. F., & Jakada, A. H. (2021). Participation of Local Youth Workers in Construction Industry and Strategies for Improvement: A Study in Kelantan and Terengganu. International Journal of Academic Research in Business and Social Sciences, 11(2), 394–401. https://doi.org/10.6007/IJARBSS/v11-i2/8225
Mahmoud, A. B., Reisel, W. D., Grigoriou, N., Fuxman, L., & Mohr, I. (2020). The Reincarnation of Work Motivation: Millennials vs Older Generations. International Sociology, 35(4), 1–22. https://doi.org/10.1177/0268580920912970
Manuti, A., Curci, A., & Van der Heijden, B. (2018). The meaning of working for young people: the case of the millennials. International Journal of Training and Development, 22(4), 274–288. https://doi.org/10.1111/ijtd.12138
Mensah, N. O., Ernest, C. A., Asare, J. K., Yeboah, E., & Donkor, A. (2020). Determinants of Job Satisfaction Amongst Employees in the Poultry Sub-Sector of Ghana: A Test of Equity Theory. Applied Studies in Agribusiness and Commerce – APSTRACT, 14(3–4), 97–104. https://doi.org/10.19041/APSTRACT/2020/3-4/11
Miao, S., Rhee, J., & Jun, I. (2020). How Much Does Extrinsic Motivation or Intrinsic Motivation affect Job Engagement or Turnover Intention? A Comparison Study in China. Sustainability, 12(9). https://doi.org/10.3390/su12093630
Ministry of Human Resource Statistic. (2022). Employment and Labour Statistic. https://www.mohr.gov.my/ebook/Statistikbil4/mobile/index.html
Fateh, M. A., Mohamed, M. R., & Omar, S. A. (2022). The Involvement of Local Skilled Labour in Malaysia’s Construction Industry. Frontiers in Built Environment, 8, 1–13. https://doi.org/10.3389/fbuil.2022.861018
Kasmuri, M. S. H., Ismail, Z., Nordin, M. R., & Hashim, N. (2022). Analysis of The Malaysian Construction Industry Professional Employee Turnover Antecedents. Jurnal Kejuruteraan, 34(5), 871–886. https://doi.org/10.17576/jkukm-2022-34(5)-15
Rasdi, M. R., Zaremohzzabieh, Z., & Ahrari, S. (2021). Financial Insecurity During the COVID-19 Pandemic: Spillover Effects on Burnout–Disengagement Relationships and Performance of Employees Who Moonlight. Frontiers in Psychology, 12, 1–14. https://doi.org/10.3389/fpsyg.2021.610138
Mohyi, A. (2021). The Effect of Job Satisfaction on Turnover Intention Through Organizational Commitment as a Mediation. Asia Pacific Journal of Management and Education, 4(3), 61–75. https://doi.org/10.32535/apjme.v4i3.1269
Morrell, D. L., & Abston, K. A. (2018). Millennial Motivation Issues Related to Compensation and Benefits: Suggestions for Improved Retention. Compensation & Benefits Review, 50(2), 107–113. https://doi.org/10.1177/0886368718822053
Moshood, T. D., Adeleke, A. Q., Nawanir, G., Ajibike, W. A., & Shittu, R. A. (2020). Emerging Challenges and Sustainability of Industry 4.0 Era in the Malaysian Construction Industry. International Journal of Recent Technology and Engineering (IJRTE), 9(1), 1627–1634. https://doi.org/10.35940/ijrte.A2564.059120
Mutiso, J. M., Mugambi, R. D., & Maranga, V. (2022). Employee Compensation Strategies and Labour Turnover in Star Rated Hotels in Nairobi City County-Kenya. African Journal of Emerging Issues, 4(4), 120–129.
Ngotngamwong, R. (2019). Working with Millennials: From the Perspective of Baby Boomers and Gen Xers. Human Behavior, Development and Society, 20(2), 62–73. https://www.researchgate.net/publication/336278646
Othman, Sanusi, A., Mei, Y. C., Abdul Rahman, I., Osman, L. H., & Che Omar, A. R. (2020). Factors Affecting Job Satisfaction: The Millennials Perspective. International Journal of Social Science Research, 2(4), 81–90.
https://myjms.mohe.gov.my/index.php/ijssr/article/view/11585
Panigrahi, S. K., & Al-Nashash, H. M. (2019). Quality Work Ethics and Job Satisfaction: An Empirical Analysis. Quality Access to Success, 20(168), 41–47. https://doi.org/https://dx.doi.org/10.2139/ssrn.3515072
Panojan, P., Perera, B. A. K. S., & Dilakshan, R. (2022). Work-life Balance of Professional Quantity Surveyors Engaged in the Construction Industry. International Journal of Construction Management, 22(5), 751–768.
https://doi.org/10.1080/15623599.2019.1644759
Prasetio, A. P., Agathanisa, C., & Luturlean, B. S. (2019). Examining Employee’s Compensation Satisfaction and Work Stress in A Retail Company and Its Effect to Increase Employee Job Satisfaction. International Journal of Human Resource Studies, 9(2), 239. https://doi.org/10.5296/ijhrs.v9i2.14791
Pratama, E. N., Suwarni, E., & Handayani, M. A. (2022). Effect of Job Satisfaction and Organizational Commitment on Turnover Intention with Person Organization Fit as Moderator Variable. APTISI Transactions on Management (ATM), 6(1), 74–82. https://doi.org/10.33050/atm.v6i1.1722
Rahman, S. M. (2020). Relationship between Job Satisfaction and Turnover Intention: Evidence from Bangladesh. Asian Business Review, 10(2), 99–108. https://doi.org/10.18034/abr.v10i2.470
Ramli, Y., & Soelton, M. (2019). The Millennial Workforce: How Do They Commit to the Organization? International Journal of Business, Economics and Law, 19(5), 7–18. https://ijbel.com/wp-content/uploads/2019/08/K19_204.pdf
Rank, S., & Contreras, F. (2021). Do Millennials pay attention to Corporate Social Responsibility in Comparison to Previous Generations? Are They Motivated to Lead in Times of Transformation? A Qualitative Review of Generations, CSR and Work Motivation. International Journal of Corporate Social Responsibility, 6(4), 1–13. https://doi.org/10.1186/s40991-020-00058-y
Ravi, B. (2020). Vroom’s Expectancy Theory Implementation in Industries - A Study. Mult Shabd Journal, 9(5), 4607–4619.
Safian, N. S. A. B., Hassan, Z., Kasa, M., Bandar, N. F. A., & Nor, N. N. M. (2021). Exploring Antecedents of Turnover Intention Among Generation Y Employees in Construction Industry. International Journal of Academic Research in Business and Social Sciences, 11(2), 117–130. https://doi.org/10.6007/ijarbss/v11-i2/8621
Soliman, E., Al-Tabtabai, H., Almusalam, A., & Hussein, M. (2023). Impact of COVID-19 on Labor’s Motivational Factors and Construction Productivity. International Journal of Construction Management, 23(15), 2699–2708.
https://doi.org/10.1080/15623599.2022.2092386
Sulaiman, S. F., & Hussain, M. N. H. (2018). Employee Retention Strategies: A Case Study of Tenaga Nasional Berhad Rawang. Proceeding of the 5thInternational Conference on Management and Muamalah 2018 (ICoMM 2018), 482–488.
http://conference.kuis.edu.my/icomm/5th/images/e-proceeding/IC-047.pdf
Vizano, N. A., Sutawidjaya, A. H., & Endri, E. (2021). The Effect of Compensation and Career on Turnover Intention: Evidence from Indonesia. Journal of Asian Finance, Economics and Business, 8(1), 471–478. https://doi.org/10.13106/jafeb.2021.vol8.no1.471
Vizano, N. A., Utami, W., Johanes, S., Herawati, A., Aima, H., Sutawijaya, A. H., Purwanto, A., Supono, J., Rahayu, P., Setiyani, A., & Widayati, C. (2020). Effect of Compensation and Organization Commitment on Turnover Intention with Work Satisfaction as Intervening Variable in Indonesian Industries. Systematic Reviews in Pharmacy, 11(9), 287–298.
Wolor, W. C., Supriyati, Y., & Purwana, D. (2019). Effect of Organizational Justice, Conflict Management, Compensation, Work Stress, Work Motivation on Employee Performance Sales People. Humanities & Social Sciences Reviews, 7(4), 1277–1284. https://doi.org/10.18510/hssr.2019.74176
(Malik & Musah, 2024)
Malik, M. H. A., & Musah, A. A. (2024). Compensation and Benefits Satisfaction on Turnover Intention among Millennial Employees in Malaysia Construction Sector: A Conceptual Study. International Journal of Academic Research in Business and Social Sciences, 14(1), 787–800.
Copyright: © 2024 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode