Malaysian Firms’ Role in Retaining Engineers

Abstract

An impediment to Malaysia's drive for knowledge economy status is thought to be a very high rate of labour mobility — overseas, to Singapore, and inter-firm — by knowledge workers, particularly engineers. While a strong external labour market may be a sign of economic dynamism, very high turnover rates may indicate a failure of the sort of organisational attachment among professionals that is needed to foster organisational learning. Moreover a ‘brain drain’ from the country of Malaysian-educated engineers remains an ongoing concern. Although this phenomenon is popularly attributed to the ‘job-hopping’ propensities of young Malaysians, it is argued here that firms, through their human resource management (HRM) practices, have an important role to play in encouraging stronger rates of knowledge worker retention. The article reports on research findings indicating varying levels of organisational commitment by a sample of Malaysian engineers. It examines possible links between high turnover and HRM approaches that afford employees few other forms of voice than exiting the firm. Evidence is provided that employee participation in decision-making, particularly relating to training and development, and the perceived fairness of performance appraisal practices, contribute to feelings of perceived organisational support (POS), and that this sense of support influences engineers’ commitment and thus turnover intentions.