Determinants of job satisfaction among Malaysian youth working in the oil palm plantation sector

Abstract

Purpose Oil palm is a labor-intensive crop where the labor issue is one of the most intransigent problems facing the industry. The negative perception toward this sector associated with the unattractive working environment which commonly refers to dark, dirty and dangerous has distress local youth to stay away from this occupation. Thus, the purpose of this paper is to explore the level of job satisfaction among oil palm plantation workers in Malaysia and analyze the factors that contribute to their satisfaction level. Design/methodology/approach The survey was conducted in 2014 through interviews from the selected samples of oil palm plantation workers who aged ranging from 16 to 40 years old, which was considered as youth category and staying within the location 5 km radius within the plantation area. The structural equation modeling is used to analyze the factors affecting job satisfaction among workers in the plantation sector. Findings The study found that the government and employer policies associated with plantation worker and economic profitability offered in this sector were the most significant factors that positively contribute to the joy of working among them. On the other hand, the negative relationship between working environment and perception of social job status with job satisfaction proven that these two factors were repulsion factors. Research limitations/implications Currently, with the local youth negative perception on the agriculture sector and Indonesia’s economy booming and wages on the rise, Malaysia is struggling to attract new expatriate workers and retain those already active in the sector. Oil palm plantation companies have to counter this by enhancing worker’s welfare to ensure their job satisfaction in plantation environment. This study is to convince the organization that worker’s job satisfaction is a crucial factor to enhance their performance. With the strategy recommended by this study, employees will be getting higher level of job satisfaction, thus increasing their performance and enjoying working in the plantation sector. Originality/value To the best of the author’s knowledge, there are yet to be studies that look at the agricultural employees’ job satisfaction particularly in the plantation sector. Most of the previous studies in the field of plantation sector highlight on the labor productivity, economic performance of palm oil plantation sector and environmental impact of oil palm plantation. Thus, this study provides a better understanding of the factors that contribute to job satisfaction among plantation workers.