Factors Affecting Generation Y Employees’ Intention to Quit in Malaysian’s Business Process Outsourcing Sector

Abstract

This paper investigates the factors contributing to Generation Y employees’ intention to quit in the business process outsourcing sector (BPO) in Malaysia from four different perspectives: personnel dimensions (work overload, role ambiguity and job stress), job attitudes (satisfaction with pay and organizational commitment), work-life conflict and organizational strategies (training, career planning and empowerment). A structural equation modelling approach was employed to identify the variables that significantly affect the intention to quit. Using Amos 18, data collected from 164 Generation Y employees in the BPO sector were used to test the hypotheses. The results showed that intention to quit one’s job is explained by lack of training, lack of empowerment, organizational commitment, and lack of career planning. Also, role ambiguity and satisfaction with pay exert negative indirect effects on the intention to quit one’s job through organizational commitment. Additionally, job stress has no impact on the intention to quit one’s job. This study is considered to be among the few attempts to address the reasons behind Generation Y employees' intention to quit.

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