Key Drivers of Employee Engagement in Malaysian Manufacturing Sector

Abstract

Purpose – The study aims to explore the concept of employee engagement within the manufacturing sector in Malaysia, which has not been extensively studied before, particularly in the Asian region. It acknowledges that there is a lack of understanding and a single definitive definition of employee engagement and that it may differ across different cultural contexts. The study looked at Social Exchange Theory and the AEON Hewitt Model whilst measuring employee engagement using part of Gallup's Q12 questionnaire and offers suggestive findings. Design/methodology/approach – The study uses a quantitative method using a survey conducted on 266 respondents from various occupational levels within manufacturing sectors in Malaysia. The data is analysed using SPSS software. Findings – The study found that effective communication and organizational leadership, specifically highlighting the importance of transformational and servant leadership styles play significant key drivers in fostering employee engagement in the manufacturing industry. However, rewards, professional development and work-life balance were found to be non-significant elements to drive employee engagement in Malaysian manufacturing companies. Work-life balance is the least positive significant factor of employee engagement among all the factors. Research limitations– The study focuses only on the manufacturing industry in Malaysia, with a smaller sample size and using a quantitative research method. Practical implications – The study's findings have important implications for managers in the manufacturing sector, HR professionals, and legislators. The results display a priceless window for manufacturing companies in Malaysia into what matters most in boosting employee engagement at work such as organizational leadership, rewards, effective communication, and professional development. The study suggests accommodating policies like flexible work schedules and remote employment options should be taken into consideration as it draws close to underlining the importance of work-life balance in increasing engagement.

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