Factors Affecting Employees’ Turnover Intention in Construction Companies in Klang, Selangor


This research is about factors affecting employees’ turnover intention in construction companies. Employees’ turnover intention is known as the organization’s workers’ intent or plan to leave their current working place’s position. Malaysia has scored third highest voluntary turnover rate, which is 9.5% in Southeast Asia year 2015. Most of the construction projects are difficult and complex to manage it. High employees’ turnover rate may influence the construction companies’ productivity and performances. There are many factors that will affect employees’ turnover intention, such as colleague relations, organizational commitment, organizational justice, organizational reputation, communication, and organizational politics. In order to address the issues above, this research was aims to identify the factors affecting employees’ turnover intention and to determine the relationship between the factors and employees’ turnover intention. Therefore, in order to achieve these objectives, a questionnaire survey involving 160 employees conducted to Grade 7 construction company in Klang, Selangor. There was 73 companies’ worker who responded to the survey. The data analysis conducted using SPSS and SmartPLS, and the results showed that organizational politics were mostly caused employees’ turnover intention in construction companies. The findings also showed that communication and organizational politics had a negative relationship with employees’ turnover intention. Results from this research can provide the evidence and bring convince for the construction companies in Malaysia to reduce employees turnover rate. In the future, the scope of the study can be expanded to other states of Malaysia to improve the reliability of this study.


Keywords: Employees, turnover intention, construction company

[1] Abubakar, R. A., & Abdullahi, A. I. (2017). Perceived Organizational Politics and Employee Turnover Intention: A Longitudinal Study in Nigeria. Journal on Innovation and Sustainability, 8(1), 12-17.

[2] Ahmed, M., & Nawaz, N. (2015). Impact of Organizational Commitment on Employee Turnover: A Case Study of Pakistan International Airlines (PIA). Industrial Engineering Letters, 5(8), 57-69.

[3] Ali, N., & Jan, S. (2012). Relationship between Organizational Justice and Organizational Commitment and Turnover Intentions amongst Medical Representatives of Pharmaceuticals Companies of Pakistan. Journal of Managerial Sciences, VI(2), 202-212.

[4] Allahyary, M. H., & Beheshtifar, M. (2013). Study the Relationship among Organizational Reputation with Organizational commitment and Employees’ Turnover Intention. International Research Journal of Applied and Basic Sciences, 6(10), 1467- 1478.

[5] Alniacik, U., Cigerim, E., Akcin, K., & Bayram, O. (2011). Independent and joint effects of perceived corporate reputation, affective commitment and job satisfaction on turnover intentions. Procedia Social and Behavioral Sciences, 24, 1177-1189.

[6] Al-Tokhais, A. A. (2016). The Relationship between Communication Effectiveness and Multicultural Employees’ Job Outcomes. Master Thesis, 119-120.

[7] Bateman, G. (2009). Employee Perceptions of Co-worker Support and Its Effect on Job Satisfaction, Work Stress and Intention to Quit. Masters of Science in Applied Psychology, 1-52.

[8] Buljubasic, E. (2008, June 20). Relationship with co-workers and job satisfaction.

[9] Connelly, L. M. (2008). Pilot studies. Medsurg Nursing, 17(6), 411-412

[10] Cronbach’s Alpha: Simple Definition, Use and Interpretation. (2018). Retrieved from
Statistics How To: http://www.statisticshowto.com/cronbachs-alpha-spss/

[11] Curran, P. J., West, S. G., & Finch, J. F. (1996). The robustness of test statistics to nonnormality and specification error in confirmatory factor analysis. Psychological Methods, 1,16–29.

[12] Eisenberg, E. M., & Witten, M. G. (1987). Reconsidering openness in organizational communication. Academy of Management Review, Vol. 12, No. 3, 418-426.

[13] Fee Yean, T., & Yusof, A. A. (2016). Organizational Justice: A Conceptual Discussion. Procedia - Social and Behavioral Sciences, 219, 798-803.

[14] Ferris, G.R. et al. (1996), “Perceptions of organizational politics: prediction, stressrelated implications, and outcomes”, Human Relations, Vol. 49 No. 2, pp. 233-66.

[15] Frost, J. (2013, July 5). How to Interpret Regression Analysis Results: P-values and Coefficients. Retrieved from Quality Digest: https://www.qualitydigest.com/ inside/quality insider-column/interpret-regression-analysis-results-p-values-andcoefficients.html#

[16] Greenberg, J. (1987). A taxonomy of organizational justice theories. Academy of Management Review, 12, 9-22.

[17] Hair Jr, J. F., Black, J. W., Babin, B. J., & Anderson, E. R. (2010). Multivariate Data Analysis (Seventh Ed., pp.1–758). Edinburgh: Pearson Education Limited.

[18] Hair Jr., J., M. Hult, G., Ringle, C., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (Second Edition ed.). United States of America: SAGE Publications.

[19] Hendriks, M. (2016). Organizational Reputation, Organizational Attractiveness And Employer Branding: Clarifying the Concept. Master Thesis, 23-25.

[20] Hertzog, M. A. (2008). Considerations in determining sample size for pilot studies. Research in Nursing and Health, 31(2), 180-191.

[21] Jayaram, S. V. (2015, December 3). Key Insights to Attract, Reward and Retain Talent in Malaysia: Aon Hewitt’s Views. Retrieved from HR in Asia: http://www.hrinasia.com/recruitment/key-insights-to-attract-reward-andretain-talent-in-malaysia-aon-hewitts-views/

[22] Jehanzeb, K., Rasheed, A., & Rasheed, M. F. (2013). Organizational Commitment and Turnover Intentions: Impact of Employee’s Training in Private Sector of Saudi Arabia. International Journal of Business and Management, 8(8), 79-90.

[23] Keller, A. (12 November, 2014). What is an acceptable survey response rate. Retrieved from National Social Norms Center: http://socialnorms.org/what-is-anacceptable-survey-response rate/

[24] Khan, R. A., Liew, M., & Ghazali, Z. B. (2014). Malaysian Construction Sector and Malaysia Vision 2020:Developed Nation Status. Procedia - Social and Behavioral Sciences 109, 507 – 513.

[25] Krejcie, R. V., & Morgan, D. W. (1970). Determing Sample Size for Research Activities. Educational and Psychological Measurement, 607-610.

[26] Kwon, K., & Rupp, D. E. (2013). High-performer turnover and firm performance: The moderating role of human capital investment and firm reputation. Journal of Organizational Behavior, 34(1), 129-150.

[27] Latif, F. D., & Saraih, U. N. (2016). Factors Influencing Employee Turnover in Private Sector in Malaysia: A Concept Paper. Australian Journal of Basic and Applied Sciences, 10(7), 51-55.

[28] Letchumanan, T., Apadore, K., & Ramasamy, M. (2017). Factors Influence Turnover Intention in Commercial Banks Malaysia: A Theoretical Model. Innovative Journal of Business and Management, 13-21.

[29] M.N.A, A., Majid, T., Ahamad, M., & Hanafi, M. (2012, October). A Qualitative Study of Precast Plants in Malaysia. Indian Concrete Journal, 86(10), 47 - 58.

[30] Morgan, G. A., Leech, N., Gloeckner, G., & Barrett, K. (2013). IBM SPSS for Introductory Statistics (Fifth Edition ed.). New York: Ryouledge Taylor & Francis Group.

[31] Nkomo, W., & Thwala, WD. (2009). Problems Facing Construction Companies in Retention of Employees in South Africa: A Case Study of Gauteng Province. CIDB Paper 22, 116-127.

[32] Olcer, F., & Ozenir, İ. (2017). The Relationship between Organizational Communication, Organizational Commitment and Intention to leave. European Journal of Business and Social Sciences, 6(5), 30-53.

[33] Palaganas, M. A. (2018, February 27). High Employee Turnover as a Silent Construction Manpower Crisis . Retrieved from Rensol Recruitment: https://rensol. com/employee-turnover-construction-industry/

[34] Rahman, I. A., Memon, A. H., & Abd. Karim, A. (2013). Significant Factors Causing Cost Overruns in Large Construction Projects in Malaysia. Journal of Applied Sciences, 13(2), 286-293.

[35] Raisiene, A. G., & Vilke, R. (2014). Employee Organizational Commitment Development at Voluntary Organizations in Lithuania. Human Resources Management & Ergonomics, VIII, 88-101.

[36] Seong, L. C. (2015). The Study on Factors Influencing Employee Turnover in E&E Manufacturing Industry in Northern Malaysia. Pulau Penang: Universiti Sains Malaysia.

[37] Tabachnick, B. G., & Fidell, L. S. (2007). Using multivariate statistics (5th ed.). Boston, MA: Allyn & Bacon.

[38] Thomas, J. (2015). Study on Causes and Effects of Employee Turnover in Construction Industry. International Journal of Science and Research, Volume 4(Issue 5), Page 3041-3044.

[39] Yang, J., & Wittenberg, P. (2016, June 13). Perceived Work-related Factors and Turnover Intention. Journal of Business Administration, 1-69.

[40] Yang, T., Shen, Y.-M., Zhu, M., Liu, Y., Deng, J., Chen, Q., & See, L.-C. (2015). Effects of Co-Worker and Supervisor Support on Job Stress and Presenteeism in an Aging Workforce: A Structural Equation Modelling Approach. International Journal of Environment Research and Public Health, 13(72), 1-15.