Identifying Factors Influencing Employee Turnover Intention in Malaysian Small and Medium-Sized Enterprises (SMEs) Restaurants

Identifying Factors Influencing Employee Turnover Intention in Malaysian Small and Medium-Sized Enterprises (SMEs) Restaurants

*Hazrina Ghazali, Fatin Nabilah Misbahwazir, Ainul Zakiah Abu Bakar, Ahmad Fareed Ismail

Department of Food Service and Management, Faculty of Food Science and Technology, University Putra Malaysia, 43400 Serdang, Selangor, Malaysia

*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2024.8110127

Received: 29 October 2024; Accepted: 03 November 2024; Published: 09 December 2024

ABSTRACT

The restaurant industry in Malaysia is one of a vital component of the country’s economy, generating employment, attracting tourists, and showcasing rich cultural experiences. In recent years, the restaurant industry has experienced significant expansion, with small and medium-sized restaurants (SMEs) emerging as major contributors to Malaysia’s economic growth. However, along with the growth and opportunities one of the persistent challenges faced by SMEs restaurants is high turnover rates among their employees. Therefore, the objectives of this research are to identify the potential factors that influence employee turnover intention in SMEs restaurant in Klang Valley. In addition, this study also determines the most influential factor that causes employees’ turnover intention in SMEs Restaurant in Klang Valley. Next, the last research objective of this study is to examine the relationships between predicted variables and employees’ turnover intention. The factors used to conduct this study are job satisfaction, job stress, organizational commitment and person-organization fit. The research design for this study was constructed using a quantitative approach through a self-administered survey questionnaire. Data obtained were analysed by using Statistical Package for the Social Sciences (SPSS) version 27. The results of job satisfaction (mean=3.58), job stress (mean=3.19), organizational commitment (mean=3.25) and person-organization fit (mean=3.52) indicate a score leaning towards agreement on predicted variables. Furthermore, the findings revealed that job satisfaction and job stress had a moderate relationship with employees’ turnover intention, while organizational commitment and person-organization fit had a weak relationship. Multiple Linear Regression Analysis revealed that job stress is the most influential factor of employees’ intention to leave their job, with a coefficient of 0.450, followed by job satisfaction being the second most influential factor with coefficient of -0.301 and person-organization fit (-0.158). Findings of this study are hoped to help the owner of restaurant, the manager or department head to aware of and tolerant of potential contributing causes to employees’ intention to leave the organization. Findings also expected to provide management with a better perspective and direction in implementing an effort to reduce and minimize employee turnover intention and ultimately creating productive workplace.

Keywords: Job satisfaction, job stress, organizational commitment, person-organization fit, turnover intention, SMEs restaurant

INTRODUCTION

The restaurant industry in Malaysia plays a significant role in the country’s economy, contributing to employment generation, tourism, and cultural experiences (Lee et al., 2016). The restaurant industry is constantly changing as new businesses keep opening and closing due to several reasons. Furthermore, customers’ willingness to spend more at locations that provide exceptional food and services is driving the industry forward. In recent years, the service industry has witnessed substantial growth, and small and medium-sized enterprise (SMEs) restaurants have emerged as significant contributors to Malaysia’s economy. In Malaysia, all small and medium-sized enterprises (SMEs) have a significant impact on the country’s economic growth. According to the new SME definition guidelines, SMEs encompasses all sectors, including manufacturing, services, agriculture, construction, mining, and quarrying (SME Corporation Malaysia, 2024).

On the other hand, due to limited access to formal training and development programs and limited opportunities for career advancement, small businesses are frequently viewed as less desirable employers by both job seekers and SMEs’ employees (Krishnan and Scullion, 2017). For SMEs, keeping employees on board is crucial. The performance of a company may be impacted by the departure of high-capacity employees (Abraham et al., 2015; Cardon and Stevens, 2004; Ketkaew et al., 2020). High-performance employee turnover is costly to the organization (Allen et al., 2010), so it is critical to investigate employee turnover intentions in order to avoid employee turnover. The willingness of an employee to leave the company within a certain period of time is known as their intention of turnover, and it is considered to be the best indicator of actual employee turnover (Hom et al., 2017). The intention of turnover is terrible because it has a negative effect on employee attitudes and behavior (Akgunduz and Eryilmaz, 2018; Park and Min, 2020). As a result, employees tend to be unfocused, underutilize their full potential to achieve maximum results, lack passion for the company, and wait until they can move to another company (Suyono et al., 2020).

When employee turnover rates rise, the cost of recruitment also increases, as it is associated with hiring, training and onboarding new employees (Hee & Rhung, 2019). These expenses can have a significant impact on the financial performance and overall profitability of the organization. Furthermore, the loss of valuable knowledge and skills due to turnover can reduce productivity (Valaitis et al., 2018). The loss of experienced and competent staff can interrupt productivity, necessitate more resources for training new hires, and result in diminished efficiency. Furthermore, turnover can lower employee morale and motivation because surviving employees may feel overwhelmed or uncertain about the future. This, in turn, can have an influence on productivity and customer service quality. Addressing staff turnover is therefore critical for organizations to maintain stability, retain talent, and ensure long-term growth. Currently, there is a significant focus from academicians, human resource managers, researchers, and scholars on the topic of employee turnover (Sabir et al. 2021).

Problem statement and purpose of the study

High employee turnover presents a significant challenge for the Malaysian restaurant industry, particularly within SMEs restaurants hindering their stability, growth, and financial performance (Long & Perumal, 2014). Previous studies have focused on understanding the factors that contribute to high employee turnover rates across industries. Cardon and Stevens (2004) discovered that most SMEs frequently encounter unique HRM challenges such as the difficulty of attracting and retaining talent and lack the authority and legitimacy of labor market managers when compared to large organizations (Coetzer et al., 2019). Employee turnover leads to increased company expenses, including hiring, training, and productivity losses. Accurately estimating turnover costs is difficult. Industry experts, however, suggested that a replacement should cost no more than 25% of an employee’s salary. In addition to the financial loss, an employee’s resignation results in a longer hiring and training period for new employees. Moreover, the effectiveness of the new employee has not yet been guaranteed (Hee & Rhung, 2019).

News Straits Times (2019) reported that a survey showed that employees in Malaysia are overworked and do not get enough sleep. The survey found that 51% of workers were experiencing at least one type of work-related stress and 53% had less than seven hours of sleep in a 24-hour period. Nasir and Ghazali (2019) found that job stress was the most influential factor in employees’ intention to leave their jobs. When an employee feels burdened by too much work that must be completed within the time frame provided, they intend to leave their job. This result reflects the realities of working in the restaurant industry, which requires significant commitment from employees. Employees are expected to work shifts, long hours, little or no weekend time, do repetitive work, deal with difficult customers, and work under inefficient management (Amran, Ghazali, and Mohammad, 2018; Nasir & Ghazali, 2019).

It is worth noting that the Malaysian government has put in place several initiatives to improve the long-term performance of SMEs (Musa & Chinniah, 2016). However, along with the growth and opportunities one of the persistent challenges faced by SME restaurants is high turnover rates among their employees (Long & Perumal, 2014). By addressing this research gap, this study aims to provide valuable insights that can empower restaurant managers and policymakers to make informed decisions regarding these potential factors, ultimately reducing employee turnover and contributing to the long-term success and sustainability of SMEs restaurants in Malaysia.

Research Objectives

1. To identify the potential factors that influence employee turnover intention in SMEs restaurants in Klang Valley.
2. To identify the most influential factor that causes employee turnover intention in SMEs restaurant in Klang Valley.
3. To examine the relationships between job satisfaction, job stress, organizational commitment, person-organization fit, and employee turnover intention.

LITERATURE REVIEW

Definition of SMEs

According to SME Corp. website (2024), SMEs in the services and other sectors are classified based on two primary criteria: annual sales turnover, which must not exceed RM20 million, and the number of full-time employees, which must not exceed 75. For the manufacturing sector, SMEs are categorized as firms that have an annual sales turnover of no more than RM50 million or employ no more than 200 full-time workers. Table 1 provides a detailed definition for the size of operations of SMEs in various sectors. Additionally, SME Corp. website (2024), highlighted that SMEs are the backbone of Malaysia’s economy which make up a staggering 97.4% of business establishments and contributed 38.4% to the Gross Domestic Product (GDP) in 2022. By creating 7.9 million employment opportunities in Malaysia, SMEs contribute to the improvement of the community’s standard of living and income (Department of Statistics Malaysia, 2024).

Table 1. Definition of SMEs

Source: https://www.smecorp.gov.my (2024)

Job Satisfaction

According to Fu and Deshpande (2014), job satisfaction is the pleasant or positive emotional state that employees produce at work or the assessment of their work experience. A person’s attitude and awareness of their work play a role in their level of job satisfaction. Based on their interactions with the surrounding environment, individuals form opinions about their work (Mehmood et al., 2016). Researchers also characterize employees’ attitudes and behaviors toward their management and jobs as indicators of job satisfaction (Bakotic, 2016). The organization may see higher profit margins when employee satisfaction rises. On the other hand, low morale and decreased productivity among employees can have a detrimental effect on profit margins.

Employees who see growth opportunities and a positive work environment are more committed to their employer overall and have higher job satisfaction (Birtch et al., 2016). According to research, an employee’s overall emotional and mental attitude toward their job, work environment, work conditions, and workload adds up to their job satisfaction (Tews & Stafford, 2020). Job satisfaction can be impacted by the concrete elements of a job, such as benefits, pay, chances for growth and advancement, relationships with management and coworkers, and stress levels (Bakotic, 2016).

In a study by Mulyawan et al. (2021), they examined the relationship between job satisfaction and employees’ intentions to leave the food and beverage industry. They discovered that job satisfaction significantly lowers these intentions, with age and education being key demographic factors. It was also demonstrated in a study by Faridah et al. (2022) that there is a positive and significant relationship between job satisfaction and turnover intention, with the higher the job satisfaction, the lower the intention to leave. Nonetheless, studies by Bachri and Solekah (2021) and Dewi and Nurhayati (2021) discovered that organizational commitment significantly and negatively affects turnover intention. Since an employee’s perceived satisfaction has a direct impact on whether they plan to stay or leave the company, it is critical to evaluate it in order to forecast future behavior, particularly when it comes to turnover intention in SMEs (Mehmood et al., 2016).
Job satisfaction is a person’s feelings and thoughts regarding their current position. Severe satisfaction and extreme discontent can exist on the spectrum of job satisfaction. Employees have views not only regarding their employment in general but also about particular aspects of their jobs. These attitudes might be positive or negative. People are also able to have attitudes regarding other aspects of their jobs, such as the kind of work they do, the co-workers they interact with, the superiors or subordinates they report to, and the salary they receive. (George & Jones, 2008). As a result, those who are dissatisfied with their occupations are likely to exhibit undesirable attitudes or behaviour at work, which can lead to a sense of frustration. Even yet, employees who are happy in their professions are more productive, active, and passionate in their work than those who aren’t satisfied.

Job Stress

Mansoor et al. (2011) defined stress as a state in which an individual becomes aware of the demands placed upon them until they are unable to cope with those demands. Human error, low productivity, and poor physical and mental health are all thought to be primarily caused by job stress (Haver et al., 2019; Lu & Gursoy, 2013). Studies show that stress at work causes sickness, absenteeism, a rise in human error-related accidents, emotional eating, and poor work performance (e.g., Du et al., 2018; Okumus et al., 2018). The hospitality industry’s workforce experiences a variety of stressful everyday situations, such as rude customers and mistreatment, emotional labor, and other situations that leave them mentally and physically exhausted (Jung & Yoon, 2014; Kim et al., 2019; Kong & Jeon, 2018; Ma et al., 2019).

Prior research on workplace stress has consistently indicated that employees who experience high levels of job stress also have higher intentions to leave their jobs (Salama et al., 2022; Ahmad et al., 2021). Furthermore, Sarmawa et al. (2021) conducted a study examining the relationship between organizational commitment, work stress, and turnover intention at the Mm juice restaurant in the Bali district. The findings of this research indicated that work stress significantly and positively affects turnover intention. They also stated that high work demands and an excessive workload can increase employee stress and reduce employee commitment to the organization, causing employees to leave. If an employee’s work stress level is too high, it is very easy for him or her to leave the company without considering their commitment to it.

Organization Commitment

One of the most important employee behaviors for attracting talented employees is organizational commitment. It is a person’s strong belief in the organization’s goals and values (Alniacik et al., 2011). Allen and Meyer (1991) created the three-component organizational commitment model. They classify organizational commitment as continuance, affective, and normative. Greenberg and Baron (2003) defined continuance commitment as the desire to stay with an organization because one needs to and cannot afford to leave. They also found that when there are few job options, people are less likely to quit. For instance, a single mother working for a foodservice company with many benefits will stay even though she must work lower-volume shifts to show her commitment (Miller, 2000). Affective commitment is the desire to stay with an organization because one agrees with its goals and values (Greenberg and Baron, 2003). For instance, a food server who performs well in a restaurant could work at any restaurant in town but stays with his current employer because he is treated fairly and shares the company’s values (Miller, 2000). Normative commitment is a person’s desire to stay with an organization because they feel obligated to (Greenberg and Baron, 2003). For example, “the employee of the year” will stay with the restaurant after college because they feel indebted to the company for their past rewards (Miller, 2000). People with high normative commitment care what others think or say about them when they leave the organization, according to Greenberg and Baron (2003). Meyer and Allen (1997) found that employees with high affective organizational commitment work harder and better.

Strong affective organizational commitment motivates employees to perform better and contribute more (Brown, 2003). Once an employee is committed, they will work hard to serve the company. According to Udechukwu (2006), employees stay with the same company for many reasons. For instance, they agree with the organization’s values and goals, some stay for compensation, benefits, or other financial reasons, and others believe there are no viable alternatives. Callado et al. (2023) conducted a study to investigate the relationship between nurses’ turnover intentions and organizational commitment. These findings suggest that nurses who are more committed to their work and the organization are less likely to leave, keeping teams motivated and committed to organizational goals. According to Kim et al. (2005), individuals who strongly believe in the organization’s values and goals will have a strong desire to stay with the current organization. Furthermore, employees’ strong organizational commitment has an impact on retention, attendance, and job productivity (Kim et al., 2005).

Person-Organization Fit

According to Vekeman et al. (2016), person-organization fit is the alignment of organizational values and objectives with personal values and aspirations. When everyone respects an organization’s values and works hard to achieve its goals, it can achieve its objectives. This will occur if the company honors the objectives and core values of its employees, satisfies their needs, and responds to their requests, well-being, and wishes. Researchers and employees have recently begun to take organization fit—one of the most significant variations in an organization’s work environment—into consideration (Taghvaei-Keshtkar & Riahi, 2016). However, theory and research have shown that one of the critical elements in determining how well an organization fits its members is its values (Reisi, Bahrami, Safdari & Shafiei, 2013).

According to Westerman and Vanka (2005), P-O fit is reinforced by the presumption that attitudes, behaviors, and other people’s degree of performance originate from the relationship between these two factors rather than from individuals or work environments operating independently. P-O fit occurs only when people and organizations share fundamental values and goals (Kristof-Brown et al., 2005).Previous research has indicated that P-O fit reduces the likelihood of employee turnover. A study by Kakar et al. (2019) showed a negative correlation between HRM practices and employees’ intentions to quit. They discovered that this relationship was influenced by person-organization fit. This indicates that HRM practices indirectly reduce employee plans to leave by raising person-organization fit among employees in addition to directly lowering such plans. Another research has indicated a negative correlation between turnover intention and organizational fit. For example, a meta-analysis of 21 studies by Verquer, Beehr, and Wagner (2003) revealed a negative correlation between the intention to quit and the organization’s fit. Additionally, Hoffman and Woehr’s (2006) meta-analysis of 121 studies (1967–2003) showed a relationship between turnover and organization fit. Furthermore, a study by Jung and Yoon (2013) that investigated deluxe hotels in Korea came to a similar conclusion. These results have generally consistently shown that people who fit into an organization stay there for a more extended period.

Turnover Intention

Ozdevecioglu et al. (2015) stated that turnover intention means that employees are trying to find another job in another company and are ready to leave the company if there is a better choice and a better offer. In general, employee turnover is most likely to occur in any organization, which may be voluntary or involuntary. Employee turnover remains a constant and ongoing challenge for organizations across the globe, leading to significant consequences for the smooth running of operations and financial well-being. Studies have shown that many managers face challenges keeping employees in their organizations (Edet et al., 2017). Turnover intention, which reflects an employee’s inclination to leave their organization on their own accord, is a crucial factor that precedes actual turnover (Tett & Meyer, 1993). Gaining insight into the factors that impact turnover intention is crucial for leaders who aim to stabilize their workforce.

Research has highlighted several factors that contribute to turnover intention. These factors encompass a range of influences, including external circumstances like job opportunities, organizational elements such as leadership style and work environment, and individual factors like job dissatisfaction and length of employment (Cohen et al., 2016; Ponomariov et al., 2020). In addition, poor HR management practices might increase employees’ inclination to quit their jobs (Suhartini & Iskandar, 2020). Replacing experienced employees can significantly impact an organization’s finances, leading to substantial costs (Tarallo, 2018). Efforts to address turnover intentions often focus on implementing training programs and fostering employee engagement. Training programs have been found to improve employee skills and contribute to job satisfaction and commitment (Lee et al., 2016; Ocen et al., 2017). Likewise, fostering a sense of commitment among employees through incentives can foster a harmonious and mutually beneficial connection between employers and employees, resulting in lower employee turnover rates (Fletcher, 2016; Jaworski et al., 2018). Ultimately, recognizing and tackling turnover intention is crucial for any organization’s long-term prosperity and continuity. Organizations can create a positive work environment that promotes long-term success by gaining a deep understanding of the factors that contribute to employees wanting to leave and implementing effective strategies to improve retention.

Conceptual Framework

This study adopted the conceptual framework developed by Choong et al. (2013) to investigate turnover intentions among Generation Y employees in the fast-food industry. However, this study focuses on employees in SMEs restaurants in the Klang Valley, Malaysia.

Figure 1: Conceptual Framework

METHODOLOGY

Due to logistical and time constraints, this study adopted a convenience sampling approach. A total of 384 questionnaires were distributed among employees who are working in SMEs restaurants in the Klang Valley area. The sample size is determined based on a given population size table from Krejcie dan Morgan (1970). Questionnaires was distributed conveniently among employees working in SMEs restaurants across Klang Valley between November 2023 until January 2024. To ensure some diversity in the sample, participants were recruited from restaurants representing various cuisine types. The Klang Valley area was selected due to its strategic location with high population. For this study, employees who agreed to participate were given self-administered questionnaires. Under permission of the management, researchers distributed the questionnaires after business hours and did not interfere with operations, an appropriate protocol had been followed. Following a screening procedure, 195 valid questionnaires were proceeded on to the data analysis phase. The response rate of this study was 50.70%.

RESULTS AND FINDINGS

Demographic analysis for this study consists of gender, age, ethnicity, marital status, education level, employment status, work experience, income and types of restaurants involved. Majority of respondents were female (61.5%) which is higher than male respondents (38.5%). Most of the respondents were within the age range between 20-24 years old with the number of respondents was 107 (54.9 %). Majority of the respondents were Malay (82.1%), followed by Chinese (11.8%) and Indian (6.2%). For marital status, most of the respondents were single with the number of respondents were 165 (84.6%). The majority of respondents were full time staff (64.1%) and their highest educational level were bachelor degree (58.5%).

Table 1. Overview of Demographic Profile of Respondents

Prediction of Factors influence Turnover Intention among SMEs employees

To answer research question one, a Multiple linear regression analysis was used. This statistical technique which used multiple independent variables to help understand the variance in a dependent variable. The correlation coefficient (R) of 0.648 indicates a strong positive association between these four independent variables (job satisfaction, job stress, organizational commitment, and person-organization fit) with the dependent variable (employees’ turnover intention). These findings suggest that as levels of job satisfaction, organizational commitment, and person-organization fit increase, there is typically a moderate decline in turnover intention. On the other hand, job stress is positively correlated with turnover intention. The R square value of 0.419 suggests that around 41.90% of the variance in employees’ turnover intention can be explained by job satisfaction, job stress, organizational commitment, and person-organization fit. The R square value of 0.419 suggests a moderate relationship between the dependent and independent variables in this study. However, 58.1% (100% – 49.10%) remains unexplained in this study. It is worth noting that this study has not considered other possible factors that could also contribute to the explanation of employees’ intentions to leave. Table 2 and Table 3 show the results in detail.

Table 2: Multiple Linear Regression of Studied Variables (Model Summary)

a. Predictors: (Constant), Person Organization Fit, Job Stress, Organizational Commitment, Job Satisfaction

Table 3: Result of Multiple Linear Regression Analysis on Possible Factors that influence Employees’ Turnover Intention (Coefficients)

a. Dependent Variable: Turnover Intention; Predictors: Job Satisfaction (t-value= -5.095, p-value= <0.001) Job Stress (t-value= 7.952, p-value= <0.001); Organizational Commitment (t-value= -1.452, p-value= 0.148)

Person-Organization Fit (t-value, -2.595 p-value= 0.010)

Relationship between Possible Factors and Turnover Intention

To estimate the correlations of the factors’ associations, Pearson Correlation analysis was carried out and the results are summarized in Table 4 below. The Pearson correlation coefficient is a statistical measure used to quantify the strength and direction of the bivariate relationship between two variables. It is calculated using the method of covariance. The Pearson correlation coefficient provides information about the direction, strength, and significance of the relationship between variables that were measured at an interval or ratio level, such as job satisfaction, job stress, organizational commitment, and person-organization fit. The numerical value that represents the Pearson correlation is commonly known as a correlation coefficient. A correlation of +1 indicates that two variables are perfectly correlated.

According to the data presented below, the four independent variables were identified as having an impact on the intention of employees to leave SMEs restaurants. The findings indicate that job satisfaction, job stress and person-organization fit were statistically significant at the 0.01 level of significance, as the job satisfaction and job stress had p-values less than 0.001, while person-organization fit had a p-value of 0.010. Since those variables are significant at 0.01 significance level, the findings suggest that employee turnover intention in SMEs restaurants is significantly influenced by job satisfaction, job stress and person-organization fit.

On the other hand, organizational commitment has a p value of 0.148. Since the p value exceeds the 0.05 significance level, this indicates that the variable did not significantly influence employees’ intention to leave their current jobs. As a result, the findings indicated that job satisfaction, job stress and person-organization fit were significant predictors of employees’ intention to leave SMEs restaurants in this regard (p value less than 0.05). In contrast, organizational commitment did not demonstrate any influence on employees’ intention to leave SMEs restaurants. Employee turnover intention increases by 0.417 units for every unit increase in job stress. However, employee turnover intention decreases by 0.315 units for every unit increase in job satisfaction. Employee turnover intention decreases by 0.192 units for every one unit increase in person-organization fit. Furthermore, every one unit increase in organizational commitment reduces employee turnover intention by 0.089 units.

Table 4: Pearson Correlation Analysis

**. Correlation is significant at the 0.01 level (2-tailed)

Additionally, Table 5 below provided the mean and standard deviation of the study’s independent variables, which included organizational commitment, person-organization fit, job satisfaction, and job stress. The Likert Scale, which is used in this study to evaluate the independent variables, is as follows: 1 represents strongly disagree, 2 disagree, 3 neutral, 4 agree, and 5 strongly agree. 3.58 is the average score for job satisfaction. The mean score for job stress is 3.19 next. In the meantime, the average score for person-organization fit is 3.52 and for organizational commitment is 3.25. Therefore, the level of possible factors that influence employees’ intention to leave SMEs restaurants is between neutral and agree, based on the mean score of all independent variables, which ranges from 3 to 4.

Table 5: Mean scores for All Variables

Note: Likert Scale 1=Strongly disagree; 5 = Strongly agree

CONCLUSION AND RECOMMENDATIONS

This research has fulfilled the objectives of study on investigating possible factors that influence turnover intention among SMEs restaurants employees. Four variables were used that are job satisfaction, job stress, organization commitment and person organizational fit. Findings of this research have some notable strengths. Firstly, all the variables in this study showed a mean ranging from “neutral” to “agree”, with scale between 3 to 4. The mean score for job satisfaction is 3.58, which falls between “neutral” and “agree” on the Likert scale. This indicate that, on average, respondents answer lean towards agreement which they were satisfied with their jobs. The standard deviation of 0.70 suggests that there is some variability in the level of agreement among respondents. On the other hand, the mean score for job stress score is 3.19, indicating that, on average, respondents were slightly inclined towards “neutral” on the Likert scale regarding job stress. However, the relatively high standard deviation of 0.79 suggests that there is considerable variability in perceptions of job stress among respondents. Next, the mean score for organizational commitment is 3.25, which falls between “agree” and “neutral” on the Likert scale. This suggests that, on average, respondents tended to agree or were somewhat neutral regarding their commitment to the organization. As with job satisfaction, there is some variability in organizational commitment among respondents. The mean person-organization fit score is 3.52, indicating that, on average, respondents tended to agree or strongly agree that there was a good fit between themselves and their organizations. The standard deviation of 0.60 suggests that there is relatively less variability in perceptions of person-organization fit among respondents compared to other dimensions. Findings from this study similar with previous studies done by

To answer research question two, Multiple Linear Regression Analysis has been conducted to determine the most influencing factor of employees’ turnover intention in SMEs restaurants in Klang Valley. Results obtained from the analysis indicate that job stress is the most influential factor of employees’ turnover intention. This study’s result was found to be similar to previous study done by Sarmawa et al., (2021), that job stress has a positive and significant impact on turnover intention. Based on the results, the variable of the job stress had a significant p-value of <0.001, indicating that it is significant at 0.01 significance level.

In addition, job satisfaction and person-organization fit also are significant at 0.01 significance level. However, organizational commitment is not statistically significant as the p-value is greater than the significance level of 0.05 which is 0.148.

As for the standardized beta (β), the result showed the closer the value is to 1 or -1 indicating a strong relationship with the dependent variable. The multiple linear regression analysis showed standardized beta (β) value for the job stress is 0.450, indicating that the job stress has a moderate positive relationship with the dependent variable which is employees’ turnover intention.

To answer research question three, a Pearson’s correlation analysis was performed to analyze the relationships among job satisfaction, job stress, organizational commitment, person-organization fit, and employee turnover intention. The analysis reveals a negative correlation of -0.412 between job satisfaction and employees’ turnover intention, indicating a significant relationship between these two variables. As job satisfaction increases, employees’ inclination to leave their job decreases. The correlation is statistically significant at a significance level of 0.01, as indicated by the p-value being less than 0.001. The value of -0.412 indicates a significant negative correlation between job satisfaction and employees’ turnover intention. The result of research has been proven by Pariyanti et al., (2023) in which they found that job satisfaction has a negative relationship on employees’ turnover intention.

The correlation coefficient between job stress and employees’ turnover intention is 0.502, suggesting a significant correlation between the two variables. Consequently, as the level of job-related stress escalates, employees’ inclination to quit their organization likewise intensifies. The correlation is statistically significant at a significance level of 0.01, as indicated by the p-value being less than 0.001. The correlation coefficient of 0.502 suggests a significant and strong positive correlation between job stress and employees’ turnover intention. The result of this research has been proven by Sarmawa et al., (2021) in which they found that job stress has a positive and significant impact on employees’ turnover intention.

The correlation coefficient between organizational commitment and employees’ turnover intention is -0.261, suggesting a significant correlation between the two variables. As organizational commitment rises, employees’ inclination to depart from their organization typically diminishes. The correlation is statistically significant at a significance level of 0.01, as indicated by the p-value being less than 0.001. The value of -0.261 signifies a modestly negative correlation between organizational commitment and employees’ turnover intention. The result of this research has been proven by Sarmawa et al., (2021) in which they found that organizational commitment has a negative and significant impact on employees’ turnover intention.

Additionally, there is a negative correlation coefficient of -0.299 between person-organization fit and employees’ turnover intention, suggesting a relationship between organizational commitment and employees’ intention to leave the organization. As the level of person-organization fit rises, employees’ inclination to quit their organization generally declines. The correlation is statistically significant at a significance level of 0.01, as indicated by the p-value being less than 0.001. A correlation coefficient of -0.99 suggests a weak negative association between organizational commitment and employees’ turnover intention. The result of this research has been proven by Wulandari et al., (2023) in which they found that person-organization fit has a negative impact on employees’ turnover intention.

This study provides valuable contributions to the SMEs restaurants in various aspects. Firstly, it is important to note that there is a lack of studies relevant to the employees’ turnover intention in SMEs restaurants from a conceptual point of view. This study’s framework was borrowed and modified from a similar field of research, specifically “A Study of Employees’ Turnover Intention Among Generation Y In Fast Food Industry” conducted by Choong et al (2013). The analysis showed that there were no issues when applying these constructs and scales to the SMEs restaurants industry. The study utilized a quantitative research method and convenient sampling technique to gain insights into the factors that may influence employees’ turnover intention in SMEs restaurants.

The study found that while the same factors were used to predict turnover intention among employees, there were notable differences when applied to SMEs restaurants. One notable finding was that job stress emerged as the main factor influencing turnover intention among employees in SMEs restaurants. In addition, organizational commitment was not the determinant to employees’ intention to leave their organization. It is important to recognize that the factors examined in this study have an impact on employees’ intention to leave their job and can potentially lead to job turnover. The findings of this study will inform managers that elevated levels of job stress can result in increased employee turnover intention, and potentially result in actual employee turnover. The Malaysian food industry has experienced substantial growth on an annual basis, primarily due to the expansion of food service activities and other contributing factors. Thus, this circumstance has provided managers in the management department with a chance to attract more newcomers to join this expanding industry. Managers in this industry must possess an in-depth awareness of the factors that contribute to turnover intention and its consequences in the workplace. Implementing effective strategies, such as fostering a culture of transparent communication where employees feel at ease discussing stress with their managers and receiving necessary support, can help prevent workplace stress and reduce employee turnover. Additionally, prioritize the well-being of employees and actively support their motivation and productivity to prevent job burnout. Furthermore, the support of management can also enhance the operational productivity of the organization and cultivate a positive public perception. Indicators of employees’ desire to leave their organization can be recognized through issues such as lateness, frequent absences, or lower productivity.

Recommendations

This research requires recommendations to improve the weaknesses that occurred so that better research can be developed in the future. One of the research recommendations is to broaden the study’s target population to other sectors. Given that the current study only focuses on the SMEs restaurant industry within Klang Valley, it would be preferable to conduct better research by expanding the research area and including the target population from other restaurant industries. Furthermore, this study recommends that future research use large sample sizes. This is because a larger sample size leads to more reliable results. A larger sample size will result in more reliable and precise results, more closely reflecting the population of the SMEs restaurant industry. Lastly, another suggestion is to use a mixed method approach in future research because combining qualitative and quantitative also can be used as it will result in diverse finding and provide more rich data.

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