Understanding the Key Factors Impacting Employee Retention within the Logistics Sector of Malaysia

Fabian Nicholas A/L Martin (), Pavitralexmi A/P Vasudavan, Chua Soon Cheng, Karunanithy A/L Degeras and Afwan Hakim Md Mahdzir
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Fabian Nicholas A/L Martin: Universiti Tunku Abdul Rahman, Jalan Universiti, Faculty of Science
Pavitralexmi A/P Vasudavan: Universiti Tunku Abdul Rahman, Jalan Universiti, Faculty of Science
Chua Soon Cheng: Universiti Tunku Abdul Rahman, Jalan Universiti, Faculty of Science
Karunanithy A/L Degeras: Universiti Tunku Abdul Rahman, Jalan Universiti, Faculty of Science
Afwan Hakim Md Mahdzir: Universiti Tunku Abdul Rahman, Jalan Universiti, Faculty of Science

A chapter in Proceedings of the 13th International Conference on Business, Accounting, Finance and Economics (BAFE 2025), 2025, pp 112-128 from Springer

Abstract: Abstract Employee retention has become a critical concern in the logistics sector of Malaysia due to the increasing demand for skilled labor and the dynamic nature of the industry. Despite its significance, many logistics companies continue to face high turnover rates, which negatively impact operational efficiency and overall organizational performance. This study investigates the key factors influencing employee retention within logistics organizations in Malaysia. Specifically, the study identifies the factors that cause employees to quit, explores the effects of employee turnover, and recommends innovative strategies organizations can implement to sustain retention rates. Thematic analysis based on interviews with HR managers revealed five central themes: Work-life Balance, Remuneration, Career Development, Job Security, and Fairness. Findings highlight unique challenges faced by Malaysian logistics firms, offering actionable insights for HR policy and practice. This paper contributes novelty by providing a comprehensive retention model specific to the Malaysian logistics sector, addressing gaps in previous research and offering practical strategies for workforce stability.

Keywords: Employee Retention; Malaysian Logistics Firms; HR Strategies; Turnover (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-968-1_10

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