This study is intended to analyse the major contributing factors for job hopping among Gen Y especially in the ICT industry in Malaysia. Job hopping is always highly associated with orthodox factors such as monetary value and job satisfaction. However, new factors such as work life balance, attitude, employer branding and technology are never given much consideration in previous studies. Therefore, this study will be incorporating these new factors on top of the ordinary factors
2. 2
TABLE OF CONTENT
INTRODUCTION 3
RESEARCH METHODOLOGY 4
Conceptual Framework
Data Collection
Analysis
DISCUSSION AND FINDINGS 5-14
Demographic
Summary of demographic
ANALYSIS RESULT
Turnover Intention
Job satisfactions
Supervisor Support
Rewards
Opportunity to Grow
Job Itself
Work Life Balance
Attitude
Employer Branding
Technology
CONCLUSION 15
3. 3
INTRODUCTION
The definition of job-hopping can be divided into two parts. First, people switch jobs
because they want to try out new things or simply because it is fun doing so. The second part
of job-hopping consists of social influences or turnover culture.
In this new millennium, both organization and labour market change at a pace that no
one has imagined. Changes over changes taking place in the external environment which has
also impacted on the labour market worldwide. For instance, a substantial portion of current
workforces are made of Generation Y, they are also known as the Millennial Generation
whereby these groups of people are born after 1980’s.
One of the noticeable happening in current labour market is also the high turnover rate
among employees especially involving the young workforce. The frequency of switching job
among young generation nowadays is best called as ‘job hopping’. In earlier days the term
“job hopping” seems to be unpopular and seen as a taboo as far as labour market is concern.
However, in today’s labour market, it is becoming common and perhaps appears to be one of
the worrying issues among employers.
Study shows, SME’s in developing countries have recorded labour turnover ranging
from 3% to 27% of total workers employed. Surprisingly SME’s in Malaysia recorded
turnover of 19% for small enterprises and 22% for medium sized enterprises which is
relatively higher comparing to other developing countries. Hence, this gives an indication that
job hopping is becoming an epidemic in the Malaysian labour market too.
Serious considerations need to be given in order to tackle this issue, otherwise it may
turn out to be a burden for employers and may mislead young workforce to a wrong path. A
thorough understanding of the factors and reasons behind the action for job hopping is
required.
Hence, this study is intended to analyse the major contributing factors for job hopping
among Gen Y especially in the ICT industry in Malaysia. Job hopping is always highly
associated with orthodox factors such as monetary value and job satisfaction. However, new
factors such as work life balance, attitude, employer branding and technology are never given
much consideration in previous studies. Therefore, this study will be incorporating these new
factors on top of the ordinary factors.
4. 11
used as a long term talent attraction, management and retention strategy. This has supported
the finding of this study.
This independent variable fits only 3.3% into the model of this study, this is relatively
low compared to others independent variables. However, the mean score of this is seems to
be the highest. This means Gen-Y employees choose to place them in an established or well-
known organization.
Technology and turnover intention
The results show that there is a significant relationship between the technology and
turnover intention. Gen Y employees would remain longer in organizations that invests in
sophisticated technologies and make their jobs interesting, challenging and entertaining.
Gen Y employees would remain longer in organizations that invests in sophisticated
technologies and make their jobs interesting, challenging and entertaining.
On top of that in an article published by The Star on 20th
Aug 2009, it is mentioned
that technology is very crucial to Gen Y. They are the first generation to have built social
networks online, develop close friendships based on online interaction. They blog, tweet and
update their Facebook status. Basically accessing to technology is important to them.
Also, according to a survey by Deloitte (2009), Gen Y is accustomed to dealing with
rapid change whereby, they have grown up with technology and are completely comfortable
with it. To them, technology and change are second nature.
This independent variable can bring to 5.1% of changes to the dependent variable.
The mean score for this study is 3.38 and this implies that both employee and employer
realize the importance of technology.
Intention for Job Hopping and Behaviour towards Job Hopping
The result of this study shows that the intention for job hopping among Gen-Y is
somehow neutral. The mean score is only 2.8 hence, it is telling us that they have not decided
or having a clear mind set whether to stay or leave their current employment. Perhaps maybe
they are just going on with the flow and wait and see what happens next.
5.1
3.38
0 2 4 6 8 10 12 14 16 18 20
Technology
Factors for job hoping
Mean Changes (%)
2.8
3.4
0 1 2 3 4 5
Intention for Job Hopping
Behaviour towards Job Hoping
Mean
Intention for Job Hopping Behaviour towards Job Hoping
5. 12
On contrary to the findings on job hopping intention, Gen-Y employees seems showing some
behaviour towards job hopping. They are in an action to move out from their current job, this
is supported by the above data whereby, the mean for behaviour towards job hopping among
Gen-Y is showing 3.4. This shows that Gen-Y employees in the ICT industry are keeping
themselves readily available to try out new opportunities in the market.
Common and New Factors
Common Factors
The above data shows job satisfaction level among Gen-Y, it consist four major
factors which seems to be the common factors that incline towards an employee’s job
satisfaction. From the data it can be concluded that Gen-Y employees are somehow satisfied
at their current job as the data reports a mean of 3.30. However, as oppose to this, Gen-Y’s
behaviour shows that they are still actively involving into job searching commotion.
New Factors
As compared to common factors, new factors shows a higher mean which is almost to
3.50. This shows that Gen-Y employees in the ICT industry feel that these new factors are
equally important at their workplace. In fact it also proofs that the companies in the ICT
industry in Malaysia now have started incorporating this factors at their organization.
The mean for new factors may be higher compared to common factors because Gen-
Y’s expectations are generally higher compared to Gen-X employees. Hence, their
preferences have gone to new factors and yet find the common factors are necessity for them.
Significance of independent variables
The importance carried by all the independent variables in this study is 22.9%. In
other words, all the 8 independent variables in this study can explain or account for 22.9% of
the changes on the dependent variable in this study. It indicates that there could be other
factors which also contribute to job hopping among Gen-Y employees in the ICT industry in
Malaysia. Subsequently, when the number of factors increases it shows how complex it can
be for an employer handling Gen-Y employees. Employers have to be more alert and
proactive in attracting and retaining Gen-Y employees.
As found in the study conducted by Deloitte (2009), managing Generation Y is
different, but if you really understand what motivates them, it is easy to draw so much value
from them. Employer must find work that will constantly challenge this generation, or they
will leave.
3.5
3.3
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5
New Factors
Common Factors
Factors for job hoping
New Factors Common Factors