Employee loyalty signals employee's or staff member's capacity to stay and contribute
successfully to their employment for an extended period. In recent years, employee turnover
has increased significantly in manufacturing sector in Malaysia. Prior research has shown that
excessive staff turnover has an undeniable impacts on output, productivity, profitability, and
stifling further expansion in any manufacturing firm, small, medium, or big. Despite abundance
of empirical research on employee wages and salary, organizational support, working
environment, training and development, and career development, however, a very limited study
was conducted in the manufacturing sector in Malaysia. This research focuses on the
manufacturing sector in Klang and Shah Alam Industrial Zone. The goal of this study is
fourfold namely (1) to examine the level of staff loyalty; (2) to examine the relationship; (3) to
examine the effects of employee wages and salary, organizational support, working
environment, training and development, and career development on employee loyalty; and (4)
to identify the most significant influence factors on employee loyalty. Data of the study was
distributed via questionnaires and analyzed using SPSS. This survey has gathered 388
respondents, all of whom worked for the manufacturing industry in Klang and Shah Alam
Industrial Zone. Findings of the study revealed a high level of loyalty among the employee in
the manufacturing industry. Findings of this study also discovered that all factors have
correlation with staff loyalty. Nevertheless, further analysis revealed that except for wages and
salary, all other factors have significant effect on employee loyalty. Findings also revealed that
career development is the most influent factor, followed by working environment,
organizational support and training and development respectively. The limitations and
recommendations for future research are also discussed.
