Determinants of Employee Retention in IT industry in Ipoh, Malaysia

Abstract

This study examines the determinants of employee retention in the Information Technology (IT) industry in Ipoh, Malaysia, against the backdrop of rapid digital expansion and rising competition for skilled talent. Employee retention has become a strategic concern because the IT sector depends heavily on specialised knowledge, project continuity, and the long-term commitment of qualified personnel. Guided by Social Exchange Theory, the study investigates the relationship between five predictor variables—work-life balance, work environment, career development, reward and compensation, and perceived organizational support—and employee retention. The study adopts a quantitative, cross-sectional research design and targets employees working in the IT industry in Ipoh. Data will be collected through a self-administered online questionnaire using a 5-point Likert scale. Based on G*Power analysis, a minimum sample size of 138 respondents is required, while approximately 150 respondents will be targeted to account for unusable responses. Non-probability sampling, specifically convenience and purposive sampling, will be applied. Data analysis will include descriptive statistics, normality testing, factor analysis, validity and reliability testing, correlation analysis, and multiple regression analysis. The study is expected to provide theoretical and practical insights into the key factors that influence employee retention in Ipoh’s growing IT sector.