1. Introduction
One of the greatest problems business faces today is the retention of its newest hires, the Millennials. Despite their pay arrangements and job scheduling proposals, these newest employees' poor retention rates translate into low return rates on these operational activities.
Turnover has become a popular phenomenon and is happening not only in Malaysia, but globally too. According to Rishesingar Ramasamy, head of Malaysia's BAE Systems Engineering Center, the average turnover for any person in any company is around two and a half years, while this turnover pattern was controlled by Generation Y or the Millennials. The reason for this is that much millennials are not gratified with their income and job condition based on the International Islamic University of Malaysia (IIUM) survey (Azizan, 2017).
International Journal of Social Science Research eISSN: 2710-6276 | Vol. 2 No. 4 [December 2020]
Journal website: http://myjms.mohe.gov.my/index.php/ijssr
FACTORS AFFECTING JOB SATISFACTION: THE MILLENNIALS PERSPECTIVE
Abdullah Sanusi Othman1, Chan Mei Yee2, Ishak Abdul Rahman3*, Lokhman Hakim Osman4 and Ahmad Raflis Che Omar5
1 2 3 4 5 Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi, MALAYSIA
*Corresponding author: haq@ukm.edu.my
Article Information:
Article history:
Received date : 23 October 2020 Revised date : 18 November 2020 Accepted date : 30 November 2020 Published date : 24 December 2020
To cite this document:
Othman, A., Chan, M., Abdul Rahman, I., Osman, L., & Che Omar, A. (2020).
FACTORS AFFECTING JOB
SATISFACTION: THE MILLENNIALS PERSPECTIVE.
International Journal Of Social Science Research, 2(4), 81-90.
Abstract: This paper attempted to investigate factors that may affect the satisfaction of Millennials at work in Malaysia. This study proposed three factors such as work- life balance, work environment and compensation. A total of 80 questionnaires were collected from Malaysians born between 1980-2000 and distributed in the Klang Valley.
SPSS 26 is used to examine the relationship between independent variables and dependent variable. By analysing the ANOVA table, the result revealed that three independent variables, work-life balance, work environment and compensation, have significant relationships with the Millennials ' job satisfaction.
Keywords: millennials, work-life balance, working environment, compensation, job satisfaction.
While Generation X continues to dominate the workplace, especially in middle and senior management positions, it has been closely followed by Generation Y, which will gradually overtake them as they enter retirement age (Kuek, Choong, & Tan, 2015). Millennials are growing in population, with about 2 billion citizens worldwide, making for around one fourth of the world's population. Much of the millennials are concentrated in Asia, with about 410 million in India, 400 million in China, even more than the millennials in Europe and the USA. Millennials in Malaysia account for 29 per cent of the country's population. Millennials account for up to 25 per cent of Asia Pacific's workforce, and the figure is projected to continue to grow. It will eventually replace the role of Generation X and baby boomers as the millennials grow in the population (Ong & Loh, 2019). Hence, in order to maintain the workforce, it is necessary to figure out what factors influence millennial job satisfaction.
2. Literature Review 2.1 Millennials
Millennials often known as Generation Y, the generational group that follows Generation X and precedes Generation Z. Although there are no specific birth years when the millennial generation starts or stops, scholars usually use birth years from the early 1980s to the mid-1990s to 2000 (Rudolph, Rauvola, & Zacher, 2018). Millennials are considered to have "inflated self-esteem, unreasonable and grandiose aspirations of top-notch jobs, bonuses and incentives, and a general lack of patience and ability to drum through unglamorous elements of employment" (Thompson
& Gregory, 2012). On the other hand, Martin (2005) describes Millennials as being typically well- educated, ambitious, authenticity, passionate and also socially aware. Also known as Millennials having the ability to do multi-tasks and also being able to take on the role of team players who are globally aware. They have realistic expectations for their employment and wages, however, where they also enjoy challenging activities that might boost their enthusiasm for work (Daud, 2016).
2.2 Job Satisfaction
Job satisfaction correlates to some sort of attitude, which usually includes two components that are affective (feeling and emotional) and cognitive (comparison and judgment) components. It is also possible to describe job satisfaction as a positive feeling about an employee or job experience (Tutuncu & Kozak, 2007). Furthermore, job satisfaction can be perceived as the product of a chain reaction involving the desire to satisfy a need. That chain incorporates many variables or motivators that will impact or trigger a performer (Marzuki, Permadi, & Sunaryo, 2012). The value of job satisfaction is often correlated in the literature with work performance and corporate effectiveness or other necessary career-related attitudes and behaviours such as attrition, absenteeism so litigation avoidance (Zhang, Yao, & Cheong, 2011). Employees who consider their workplace to be satisfactory are more likely to work and succeed in future in the current jobs and in the current organization. Therefore, employees are more likely to leave, and this will in turn affect the organization's productivity and its costs (Tutuncu & Kozak, 2007). Employers face the challenge of inspiring staff as well as creating high job satisfaction for their employees. So, it is important for managers to understand the factors that influence job satisfaction. By identifying the triggers, companies will be able to make relevant adjustments to minimize discontent among workers and low job satisfaction (Dawal & Taha, 2006).
2.3 Work-life Balance
Work-life balance is characterized as a feeling where individuals have established a sufficient work-life balance in all areas by means of personal capital, time, energy and dedication in all aspects (Kirchmeyer, 2000). For instance, individuals will be called having a high job-life balances reflecting the equal time and commitment spent in the work and personal activities (Virick, Lilly,
& Casper, 2007). Furthermore, work-life balance often describes as the personal view that work and personal interaction harmony and encourages development based on current personal life goals (Kalliath & Brough, 2008). On the other side, there are three elements included in work-life balance which are commitment balance, time balance as well as happiness balance (Greenhaus, Collins, & Shaw, 2003). Workers are said to achieve a work-life balance when there is no tension between family and work (Grzywacz & Carlson, 2007). Therefore, in order to get a good result from workers and reduce the turnover rate, businesses should provide their staff with autonomy so that they can balance their personal and working lives (Chao, 2005).
2.4 Working Environment
The work environment is described as the workplace for workers who are required to demonstrate their personal and working skills and fulfill their basic needs (Narang, 2013). It also serves as a key indicator of employee turnover levels within the organisations. Working environment may increase morale and keep employees long-term because employees usually enjoy working in an organisation that can provide a relaxed and harmonized working environment and also provide suitable job description as well as privacy and room (Wells & Thelen, 2002). Tummers et al.
(2013) have recommended that a good working climate should include workplace satisfaction, close relationships with colleagues and without harassment and bullying. The poorly managed work environment can impact employee turnover (Maslach, Schaufeli, & Leiter, 2001). In addition, too much physical and mental demand for the job can reduce job satisfaction, resulting in poor work performance (Bordia, Restubog, Jimmieson, & Irmer, 2011). Thus, it is suggested that managers and organizations encourage and develop, create and maintain a good and safe workplace environment to enhance employee satisfaction and build a sense of belonging to employees towards the organizations (Fatima, 2011).
2.5 Compensation
Pay or compensation is characterized as something that depends on the employee's commitment and results by the companies and is also considered to meet workplace needs (Aguenza & Som, 2012). The companies typically provide performance-based monetary or non-monetary bonuses for the employees (Patnaik & Padhi, 2012). Monetary compensations such as insurance, bonuses, profit sharing, rewards, wages, overtime pay and parental leave are considered to be an important factor in hiring retaining employees in the business. Also adding to employee retention are the non-monetary compensations such as expertise, commitment and experience, company-paid car and company-paid house (Tourangeau, Cummings, Cranley, Ferron, & Harvey, 2010).
Compensations are seen as encouraging the staff to deliver good performance and behavior. On the other side, by workers ' frustration, inadequate compensation plan will let the organizations face the difficulties. Consequently, employee compensation is an important factor that motivates workers to have good work performance, as well as a factor for individuals to look for a job that satisfies their standards, thereby contributing their skill and imagination (Odunlade, 2012).
2.6 Conceptual Framework
Figure 1: Conceptual Framework
2.7 Problem Statement
According to Richard Freeman, he claims that it is not pointless to answer questions about how people feel about their work, but rather to relay useful information about economic life which should not be overlooked. Work satisfaction has been found to be a significant determinant of labour market productivity in part because it reflects aspects of the population that are not reflected by traditional economic variables (Freeman, 1978). Job satisfaction is also considered a crucial indicator of the assessment of their job by the workers (Hodson, 2004). As a concept, work satisfaction assumes that workers evaluate all aspects of their work situations, consider their alternatives and arrive at an overall assessment of the efficiency of their work through an internal calculus. Research indicates that workplace satisfaction is consistently and substantially correlated with retention (Coomber & Barriball, 2007).
Given the average Millennial tenure at work, anything that has the ability to accurately assess and improve job satisfaction might theoretically raise tenure for Millennials. Several research show that low job satisfaction is a determinant of quitting and the urge to quit the job. Low employment quality has a detrimental impact on profitability and absenteeism (Tharenou, 1993). However, looking directly at the youth and Millennials, as they are dissatisfied, they react more easily and more likely to leave their jobs and pass on than past generations including baby boomers and Generation X (Twenge, Campbell, & Hoffman, 2010). This is therefore a good starting point for analysing factors that affect job satisfaction for Millennials and how these factors affect their ability to understand job tasks, social expectations, and organisation, as well as the adaptability to manage their positions in the workforce.
Work-life balance
Millennials’ Job Satisfaction in Malaysia
Working environment
Compensation
3. Method
Research methodology will discuss on the methods that researcher used to conduct this study. This study attempts to study the relationship between work-life balance, working environment, compensation, and Millennials’ job satisfaction in Malaysia. It includes research design, data collection methods, sample design as well as data analysis.
3.1 Materials
Data plays significant role in research as data collected by researcher will be interpreted into meaningful information from raw data. Primary data will be collected and used in this research.
Primary data is more credible and reliable as it is those data that obtained via first-hand and it is not published yet. Self-administered questionnaire is used in this study to gather data and all the questions are adopted from relevant journals instead of developing own question in order to ensure the accuracy of the questions. In addition, questionnaire is developed based on 5-point Likert scale and socio-demographic background will also be included.
3.1.1 Samples
Sampling is defined as selecting sample from large population. Sampling is vital in ensuring the sample could represent the population. Moreover, sampling also helps researcher to obtain better understanding of characteristics of the selected population.
This study's target population is the Millennials which was born from 1980-2000. Millennials in Malaysia were made up of 38.2 percent of the population, or about 10.8 million (Lau, 2014).
Millennials are selected for multiple reasons. First, the number of Millennials as a demographic were growing and is starting to replace older generations such as baby boomers and Generation X.
In fact, Millennials is projected to be the main population in the coming years. The respondents of this study are therefore, the workers of Malaysian Millennials who currently working in various industries.
3.1.2 Site
Questionnaires are distributed evenly to the respondents so that the study can collect different perspectives from respondents of different backgrounds and experiences. In addition, the sample size of this study is 80. In addition, this study's questionnaires are distributed in Klang Valley, as this area clustered most of Malaysia's Millennials.
3.1.3 Procedures
In this section, it explains the research design for Millennials’ job satisfaction in Malaysia.
Research design is the core plan for a research to describe the procedures and methods that adopt to collect, analyse and evaluate data. There are two type of research design which are qualitative and quantitative research design. In this study, quantitative research design is conducted. This is due to quantitative research design helps to express the relationship between variables using effect statistic where it is more appropriate and effective to test and examine the hypotheses as quantitative method can enclose widespread population.
3.2 Measurement
The study attempts to determine the relationships between three independent variables namely work-life balance, working environment and compensation and millennials job satisfaction as the dependent variable. SPSS 26 is used to examine the relationship between independent variables and dependent variable.
3.3 Data Analysis
In this study, SPSS 26 is used to examine the relationship between independent variables and dependent variable.
3.3.1 Validity and Reliability
Table 1: Reliability Statistics Cronbach’s Alpha Cronbach's Alpha Based on
Standardized Items
N of Items
.748 .724 27
4. Results and Discussion
Table 2: Work-life Balance Correlations
Work-life Balance (IV) Job Satisfaction (DV)
Pearson Correlation 1 .398**
Sig. (2-tailed)
N 80
.000 80
** Correlation is significant at the 0.01 level (2-tailed).
The Pearson correlation results (r-value) between work-life balance (IV) and job satisfaction (DV) is 0.398, whereas the p-value outcome is 0.000, which is a significant result due to it less than 0.05.
Based on the statistical results proven there is a positive relationship between work-life balance and job satisfaction. The possible reason for obtaining the positive result is due to an employee requires autonomy in managing their time between work commitment and personal activities.
Once the precedent criteria achieved, employee’s affective and cognitive levels will be increased, which reflecting employees have a higher level of job satisfaction.
Table 3: Working Environment Correlations
Working Environment (IV) Job Satisfaction (DV)
Pearson Correlation 1 .261*
Sig. (2-tailed)
N 80
.020 80
* Correlation is significant at the 0.05 level (2-tailed).
The above Pearson correlation outcomes (r-value) is the working environment (IV) and job satisfaction (DV) is 0.261 associated with a significant p-value of 0.020. The results verified that the working environment has a positive relationship with job satisfaction. The positive relationship happened may due to by developing, creating and maintaining a good and safe work environment will enhance employee satisfaction in terms of building a sense of belongings towards the organization eventually.
Table 4: Compensation Correlations
Compensation (IV) Job Satisfaction (DV)
Pearson Correlation 1 .363**
Sig. (2-tailed)
N 80
.001 80
** Correlation is significant at the 0.01 level (2-tailed).
In terms of compensation (IV), and job satisfaction (DV), the Pearson correlation results value (r-value) is 0.363, whereas its p-value is 0.001, which indicates a significant result. The statistical result proves that there is a positive relationship between compensation and job satisfaction. The potential reason which could explain the situation is that staff required active compensation in order to satisfy their basic needs and wants thereby subsequently will motivate them for delivering excellent performance and behaviour.
5. Conclusion and Limitations
This study attempts to investigate the relationship between work-life balance, working environment, compensation and Millennials’ job satisfaction in Malaysia. The results show that all the independent variables have significant relationship with Millennials’ job satisfaction especially work-life balance and compensation. This suggests that businesses across Klang Valley could have a brief idea of what is affecting Millennials ' job satisfaction and thus illustrates or focus on these variables to increase their Millennial workers ' job satisfaction as well as improve their employees ' retention rate.
Findings from this research suggested a better knowledge of variables that affected Millennials job satisfaction. The results indicated that work-life balance, work environment and compensation have significant impact on job satisfaction for Millennials. Hence, the core findings of this study also given some insights to businesses on how to build better planning to encourage, maintain and attract employees to accomplish the goal and purpose of the organization where better understanding of these factors often serves as a competitive advantage for a business.
There are several limitations to this whole research. Firstly, this study's findings are focused on the samples collected across Klang Valley. Consequently, it could not reflect all of the Millennials workers in Malaysia where different areas might have specific factor analysis affecting job satisfaction. Furthermore, time constraint is also one of the limitations of this study, where the study's consistency and precision could be improved if data are collected for longer durations.
6. Acknowledgement
This study was supported by the Business Research program commencing from January 2020 until September 2020.
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