Factors Influencing Employee Turnover in Healthcare Industry: A Roadmap to Retention

Employee turnover is a significant challenge, especially in businesses where specific skills are required. When critical employees with niche expertise leave, it can disrupt organizational operations, reduce productivity, and jeopardize strategic objectives. This issue becomes particularly acute in industries with a restricted talent pool, as acquiring and replacing competent individuals is difficult and time-consuming. The research topic focuses into the elements that influence employee retention, with an emphasis on the work environment, compensation and benefits, and career advancement possibilities. The research is carried out at Regency Specialist Hospital in Bandar Seri Alam, with quantitative data collected from 300 employees via Likert-scale questionnaires. SPSS is used to conduct the analysis in order to gain insight into employee satisfaction and retention rates. This research is based on the Social Exchange Theory, which proposes that employees' decisions to stay or leave are impacted by the perceived balance of incentives and contributions in the employment relationship. To investigate the intricacies of employee turnover, the research uses both primary data from private sector employees and secondary data from publicly available sources. The initial findings indicate a significant negative relationship between compensation and benefits and employee turnover, implying that well-structured compensation packages are crucial for retaining employees. This emphasizes the necessity of businesses, particularly in healthcare, focusing on enhancing employee compensation and benefits to reduce turnover. Subsequently the research intends to equip businesses, particularly those in the healthcare industry, with a better knowledge of the risks involved with employee turnover and how to improve retention through effective compensation schemes. The findings that were collected could help businesses create more effective retention strategies, allowing them to keep their crucial workforce and achieve long-term success.