Citation

Tan, Kai Xin and Cheah, Yeh Ying (2026) The New Frontier: Understanding the Influence of Employee Retention in Generation Z Workforce. Technology and Entrepreneurship: Systems Driving Innovation, 612. pp. 715-725. ISSN 2198-4182

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Abstract

Retention of employees is regarded as the foundation for an organization's success. Research has proven that a higher rate of retention results in lower costs for hiring and onboarding new hires, which may then be applied to employee performance improvement initiatives This paper explores the relationship between HR practices which includes training and development, employee participation in decision-making, compensation, job security and performance appraisal and employee retention of generation Z workforce. Since Gen Z is the most recent generation to be entering the workforce, HR must focus on understanding what drives employees and how to modify the workplace to keep employees around. Recent trends demonstrate a worrying increase in Malaysia’s employment turnover rates among Generation Z workers. Employee turnover rates have steadily been increasing throughout the past few years, particularly among sectors like financial services, technology, and healthcare, according to the Malaysian Employers Federation (MEF). In order to meet the changing requirements and demands of the Generation Z workforce, organizations must review the HR processes and retention plans. The study aims to obtain the perspectives of Generation Z employees through a comprehensive method of distribution of questionnaires. The statistical methods which include statistical correlation, descriptive analysis, and validity and reliability evaluation are going to be utilized to investigate the collected information. Descriptive statistics and structural equation modeling will be used to analyse quantitative data collected from the survey. This study looks to provide organisations with practical knowledge that will assist HR to develop and execute strategies that foster a conducive environment for retaining Generation Z talent through analyzing the complex interactions between HR practices and retention within this demographic cohort. The results of the research are going to influence the creation of customized retention initiatives that communicate the specific principles, objectives, and desires of Generation Z employees. Thus, the purpose of this conceptual paper is to create a model that describes how HR practices influence Generation Z employees retention.

Item Type:	Article
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD4801-8943 Labor. Work. Working class > HD5650-5660 Employee participation in management. Employee ownership. Industrial democracy. Works councils
Divisions:	Faculty of Business (FOB)
Depositing User:	Ms Suzilawati Abu Samah
Date Deposited:	11 Feb 2026 02:26
Last Modified:	11 Feb 2026 02:26
URII:	http://shdl.mmu.edu.my/id/eprint/15351

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