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Question 2
a) The dependent variable is the Selling Prices in SilverRia Lake. The independent variables
are the Square Footage, the number of Bedrooms and the Age (Years) of houses.
b)
Coefficientsª
Unstandardized Coefficients Standardized Coefficients

Model B Std. Error Beta t Sig.
1 (Constant) 1742.817 11846.798 0.147 0.884
Square Footage 7.927 4.871 0.142 1.627 0.116
Bedrooms 25152.149 2825.040 0.810 8.903 0.000
Age (Years) -173.798 217.962 -0.058 -0.797 0.432
a. Dependent Variable: Selling Prices
i) The regression equation:

Selling Price = b0 + b1 (Square Footage) + b2 (Bedrooms) + b3 (Age Years)
Selling Price = 1742.817 + 7.927 (Square Footage) + 25152.149 (Bedrooms) - 173.798 (Age
Years)
b1 = 7.927
Selling Price will increase, on average by $7.927 for each increase in Square Footage, the
change due to Bedrooms and Age (Years) constant.
b2 = 25152.149
Selling Price will increase, on average by $25152.149 for each increase in Bedrooms, the
change due to Square Footage and Age (Years) constant.
b3 = - 173.798
Selling price will decrease, on average by $173.798 for each increase in Age (Years), the
change due to Bedrooms and Square Footage constant.
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Descriptive Statistics
Std.
Mean Deviation N
Selling Prices 112415.83 36166.407 30
Square Footage 2325.80 646.008 30
Bedrooms 3.77 1.165 30
Age (Years) 14.40 11.970 30
ii)
Model Summaryb
Model R R Square Adjusted R Square Std. Error of the Estimate Durbin-Watson

1 .957ª 0.916 0.907 11058.397 1.818
a. Predictors: (Constant), Age (Years), Square Footage, Bedrooms
b. Dependent Variable: Selling Prices
The correlation efficient, r is 0.957. There is positive and high correlation between Selling
Prices and the three factors of Age (Years), Square Footage and Bedrooms.
For R² , 91.6% of the variation in Selling Prices is explained by the variation in Age (Years),
Square Footage and Bedrooms.
For Adjusted R², 90.7% of the variation in Selling Prices is explained by the variation in Age
(Years), Square Footage and Bedrooms when taking into account the sample size and the
number of independent variables. The Adjusted R² shows the percentage of variance in the
target field that is explained by the input or inputs.
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iii)
ANOVAª
Sum of
Model Squares df Mean Square F Sig.
1 Regression 34752768732 3 11584256244 94.729 <.001b
Residual 3179491872.2 26 122288148.93
Total 37932260604 29
b. Predictors: (Constant), Age (Years), Square Footage, Bedrooms
H0: β1 = β2 = β3 = 0
H1: β1, β2 and β3 are not zero.
Since the p-value= <.001 is less than the significance level = 0.05. Thus, reject H0. Hence, the
model is valid and there is evidence that at least one of the independent variables affects the
Selling Price.
23
iv)
Coefficientsa
Unstandardized Standardized 90.0% Confidence

Coefficients Coefficients Interval for B
Lower Upper
Model B Std. Error Beta t Sig. Bound Bound
1 (Constant) 1742.817 11846.798 0.147 0.884 -18463.294 21948.928
Square 7.927 4.871 0.142 1.627 0.116 -0.381 16.234
Footage
Bedrooms 25152.149 2825.040 0.810 8.903 0.000 20333.710 29970.589
Age -173.798 217.962 -0.058 -0.797 0.432 -545.558 197.962
(Years)
Square footage:
H0: β1 = 0
H1: β1 ≠ 0
Since the p-value=0.116 is greater than α= 0.10.
Thus, do not reject H0.
The Square footage is not significantly affecting the Selling Prices.
Bedrooms:
H0: β2 = 0
H1: β2 ≠ 0
Since the p-value= 0 is less than α= 0.10.
Thus, reject H0.
The Bedroom is significantly affecting the Selling Prices.
Age (Years):
H0: β3 = 0
H1: β3 ≠ 0
Since the p-value= 0.432 is more than α= 0.10.
Thus, do not reject H0.
The Age (Years) is not significantly affecting the Selling Prices.
24
v)
Selling Prices and Square Footage (Scatter Plot 1)
The relationship between the Selling Prices (dependent variable) and the Square Footage
(independent variable) shows a strong positive. Based on the scatter plots trend above, as the
square footage increases, the Selling Price increases too.
Selling Prices and Bedrooms (Scatter Plot 2)
The relationship between the Selling Prices (dependent variable) and the Bedrooms
(independent variable) shows a strong positive. Based on the scatter plots trend above, as the
Bedrooms increases, the Selling Price increases too.
25
Selling Price and Age (Years) (Scatter Plot 3)
The relationship between the Selling Prices (dependent variable) and the Age (independent
variable) shows a weak negative. The data points start at high y-values on the y-axis and
progress down to low values, the variables have a negative correlation. Based on the scatter
plots trend above, as the Age increases, the Selling Price decreases.
26
vi)
Referring to Scatter Plots generated from SSPS in (v) above.
1. Linearity
Selling Prices and Square Footage
Based on the Scatter Plot 1 for Selling Prices and Square Footage, it does not show consistency.
It is only considered linear when the square footage increases followed with the increase of
Selling Price. When the Square Footage is 3,000, the Selling Price is approximately over
$160,000. When the Square Footage is 4,000, the Selling Price is below $160,000. Hence, do
not show a linear relationship. Therefore, it is not linear.
Selling Prices and Bedrooms
According to Scatter Plot 2, there is linearity that exists because when the bedrooms increase,
the selling price increases as well. For instance, as per the scatter plot, [X-axis,Y-axis]
approximate figures shows with 2 Bedrooms, the Selling Price is $60,000, at 3 Bedrooms the
price is $80,000, with 4 Bedrooms the Selling Price is $100,000 and with 5 bedrooms the
selling price is $140,000.
Selling Prices and Age (Years)
The points of Selling Prices and Age in Scatter Plot 3 are in non-linear patterns therefore the
linearity is not present. There is a stagnant pattern in terms when the Age (Years) increases,
there are Selling Prices that are about the same.
2. Homoscedasticity
Based on the Scatter Plot 1, along the x-axis, there is a not a relatively uniform spread of
residuals. The data points are not about the same distance from the line. It seems to look like
heteroscedasticity.
27
The points at 4 Bedrooms have a larger variance in the x-axis compared to 2 Bedrooms in
Scatter Plot 2. The Scatter Plot 2 does not seem to have the same scatter because the points are
not about the same distance from the line.
Selling Price and Age (Years)
In Scatter Plot 3, homoscedasticity does not exist as the points are scattered and does not have
the same distance from the line. It seems to be leading to heteroscedasticity instead.
3. Detecting Outlier
Based on Scatter Plot 1, there is 2 points which are outliers as they are far away from the cluster
of other points. The 2 points are at the x-axis of 4,000 Square Footage.
Scatter Plot 2 does not show any data points that are far from the general pattern of the other
points. Therefore, no outliers spotted.
Selling Prices and Age (Years)
Based on Scatter Plot 3, the pattern of the points is not very consistent. The points are scattered
which makes it difficult to spot any outlier.
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Question 3
1) One-way ANOVA
i) The objective of the ANOVA test is to determine if there are any statistically significant
difference of intention to adopt Fintech relative to age of the respondent.
ii) The title of the journal article is “An Adoption of FinTech Service in Malaysia”. The field
of this research is Financial Technology. The names of the authors are Chong Tun-Pin, William
Choo Keng-Soon, Yip Yen-San, Chan Pui-Yee, Julian Teh Hong-Leong and Ng Shwu-Shing.
The journal article was published in 2019.
iii) The statistical tool used in this journal article is One Way Anova. The objective of this
research is to analyse the factors that contribute to new business models of financial institutions
derived from the adoption of convergent technologies and the extent that different age groups
affect this FinTech adoption in Malaysia. The dependent variable is “perceived ease of use”,
“perceived usefulness”, “social influence”, “personal innovativeness”, “security concern” and
“perceived enjoyment”. The independent variable is intention to adoption Fintech in Malaysia.
iv) The conclusion from one-way ANOVA is that there is a difference in the intention to adopt
Fintech in Malaysia in conjunction with the age of the respondents. Post hoc was not able to
be done because there was a single group of age which is less than two cases. Therefore, a
mean plot was done to examine the differences. The results showed that the respondents
between the age of 26 to 45 had the greatest intention to adopt FinTech in Malaysia.
29
2) Multiple Linear Regression
i) The objective of the test is to predict the relationship between employee retention based on
employee retention determinants. This is to find out if there is a significant difference among
the mean scores of the dependent variable (employee retention). The multiple regression allows
the researcher to analyze the relative contribution of each of the five independent variables
which are “job satisfaction”, “work environment”, “compensation and benefits”, “work-life
balance” and “employee recognition” to the variance in the dependent variable which is
“employee retention”. Multiple regression analysis to find out the strongest predictor of
employee retention in hospitals.
ii) The journal title is “Determinants of Employee Retention in Private Healthcare”. The paper
is related to the organizational, management and human resource field. The author’s name is
Andrew Sija. The journal research paper was published in year 2022.
iii) The statistical tool used in this study is multiple regression analysis to find out the strongest
predictor of employee retention. The main study objective is to find out the main determinant
which affects employee retention in private hospitals in East Malaysia. Besides that, it is to
quantify the relationship among the dependent and independent variables used and to measure
the level of significance. The dependent variable in this study is “employee retention”. The
independent variables are “job satisfaction”, “work environment”, “compensation and
benefits”, “work-life balance” and “employee recognition”.
iv) Conclusion achieved based on Multiple Regression Analysis were that two independent
variables were significant in this analysis which was employee recognition and job satisfaction.
Work environment, compensation and benefits and work-life balance variables were not
significant. The results shown (Job satisfaction, β = .361, t = 2.913, p <0.05 and Employee
Recognition, β = .414, t = 3.416, p < 0.05) indicate job satisfaction and employee recognition
to be significant to Employee Retention.
From Multiple Regression results, employee recognition was the strongest determinant of
employee retention in private healthcare in East Malaysia. The Standardized Coefficients (β)
resulted that employee recognition is the largest absolute value with 0.359, followed by job
satisfaction with 0.295.
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South East Asia Journal of Contemporary Business, Economics and Law, Vol. 18, Issue 5(February)
ISSN 2289-1560
2019
AN ADOPTION OF FINTECH SERVICE IN MALAYSIA
Tun-Pin, Chong
Keng-Soon, William Choo
Yen-San, Yip
Pui-Yee, Chan
Hong-Leong, Julian Teh
Shwu-Shing, Ng
ABSTRACT
According to Philippon (2016), Financial Technology or better known as “FinTech” is “digital innovations and technology-
enabled business model innovations in the financial sector”. In recent years, this term has gained increasing attention
worldwide and become more prominent in establishing an incremental, radical or disruptive innovation development within the
financial services industry. The 4th industrial revolution saw a financial institution implementing new business models that are
challenging to channel the exponential growth of technologies that are congregating toward new financial institution industry.
The objective of this research paper is to analyse the factors that contribute to new business models of financial institutions from
the adoption of convergent technologies and the extent that different age groups affect this FinTech adoption in Malaysia. The
Technology Acceptance Model (TAM) and Unified Theory of Acceptance and Use of Technology (UTAUT) is used to examine
the extent that perceived ease of use, perceived usefulness, social influence, personal innovativeness, security concerns,
perceived enjoyment and demographic profile affect the intention to adopt Fintech in Malaysia. A total of 300 questionnaires
were collected in Malaysia. It was found that all the above constructs had a significant and positive relationship with the
intention to adopt FinTech. Nevertheless, male respondents were reported to have higher intention as compared to female
respondents in adoption of FinTech in Malaysia. An implication of this study for marketplace practices especially on the
financial institution on banking process decision-making, the researchers further improved on the research framework and
retailer managers identified the major factors in influencing the acceptable of financial technologies such as e-wallet.
Keywords: FinTech, Technology Acceptance Model, Unified Theory of Acceptance and Use of Technology, Malaysia
INTRODUCTION
The era of innovation in information technology has emerged to ease daily commercial transactions. According to Salmony
(2014), innovated financial technology helps in creating numerous business models and caters to the need of customers. In the
aspect of economics, there are payment services, the banking industry and the financial regulations that are affected by the new
information technology. The emergence of a new information technology in the financial service industry is known as
“FinTech”. To simplify this term FinTech: it is a term that combines the term “finance” and “technology”. The National Digital
Research Centre in Dublin, Ireland, defines it as “innovation in financial services”. Alt and Puschmann (2012) stated that
FinTech launched an incremental innovation development for all applications, processes, products or business models within the
financial service sector. Malaysia’s ex-centre bank Governor, Dato Muhammad Bin Ibrahim stated in his speech in the Global
Islamic Finance Forum 5.0 (GIFF 5.0) that “the position of the financial sector is challenged by FinTech”. New business models
will arise with current standards that will be challenged by delivery channels and the cost of transaction will be reduced. Rather
than treating FinTech revolution as hostile, financial institutions should embrace this as an opportunity (Fong, 2016). This shows
that companies that adopt FinTech would have an advantage in terms of consumer’s attraction and by the expansions of their
business model.
Technology is the main channel in the financial sector and it would be an opportunity for them to explore the efficiency of
providing better experience and convenience to consumers (Devadevan, 2013). However, to adopt FinTech services, the financial
sector first needs to understand the consumer’s acceptance level towards the adoption of technology in financial services. For
instance, mobile banking provides mobility for consumers to make financial transactions remotely by using mobile devices like a
smartphone or tablet and it can be provided by financial services providers. Such services are not limited to just mobile payments
but include the usage of debit or credit cards to affect an Electronic Funds Transfer at a Point of Sales (FTPOS) payment
(Arputharaj, 2016). Nakaso (2016) stated that FinTech has the potential to unbundle and restructure the existing financial
services with changes in information technology. In a fast changing information technology environment, FinTech adds value to
the finance world by enabling users towards financial services through mobile, social media and internet, rather than the
conventional type transactions such as over the counter transactions and teller machines (Kim, Choi, Park, & Yeon, 2016).
FinTech has been progressing tremendously in the West, where financial institutions need to improve consumer’s experience by
filling in the gaps between information technology and services offered (Truong, 2016).
The term “Fintech” is very wide with a stretched history which is related to the technologies on the daily transaction ranging
from the purchase of household grocery to the banking transactions. The evolution of FinTech started as early as the 1950s,
where it started with the credit cards to ease daily transactions and the ATMs to replace tellers. In the late 1970s, electronic stock
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trading and the use of financial institution mainframe computers on record-keeping systems. In the 1990s, the internet and e-
commerce business models flourished. In the era of the millennium, financial institutions began a course of transforming from
traditional method of handling customer’s base to modern-day technologies base (Gabor & Brooks, 2017). The financial
institutions’ new business models created technologically based customers that are challenging on the financial institutions of a
long-established and traditional industry. The challenges have changed the exponential growth of Fintech as a set of technologies
are congregating toward new financial institution industry models to the modern-day financial services industry. The objective of
this research paper is to analyse the factors that contribute to new business models of financial institutions from the adoption of
convergent technologies to facilitate the customer’s base.
In Malaysia, Bank Islam Malaysia Berhad is the first bank that uses SMS banking, but now almost all the commercial banks
have mobile banking available to their customers. Lately, Hong Leong Bank Bhd (Hong Leong Bank) offers a service called
PEX (payment express) to their customers, an application that enables consumers to transfer money by simply entering their cell
phone number rather than banking details. This makes fund transfers to other local banks within Malaysia easier for Hong Leong
Bank consumers.. However, Hong Leong Bank consumers can only transfer funds through the application that is offered by the
bank. In addition, cashless payments are deemed to be increasingly popular in Malaysia when Alipay arrived in the Malaysian
market on June 2017 with the famous retailer, ‘7-Eleven’ becoming the first to recognize the payment channel (“CIMB bags
‘Best Retail Bank in Malaysia’ award”, 2017). Furthermore CIMB Bank implemented Alipay mobile wallet alongside Genting
Malaysia Berhad, Digi Telecommunications Sdn Bhd, YTL Corporation Berhad and FamilyMart (Hew, 2017).
The development of FinTech in Malaysia such as electronic payments and online banking has contributed to the increasing
advancement in technology productivity in Malaysia. The services offered by the financial institutions continue to challenge and
cater to the attitudes of consumers who are accepting of new technology products to gain market opportunities. In response to the
new technology, contemporary changes and millennium generations involving new technology applications with great market
potential for financial institution to maintained market share. Thus, according to Ryu (2018), FinTech has become an important
and interesting topic given the rapid growth and changing in the information technology. Therefore, this paper aimed to close the
research gap in Malaysian Fintech whereby financial institutions should comprehend their clients' acknowledgment of FinTech,
which is the main force that influences a customer’s aim to use FinTech in financial services. The research is needed to gather
relevant data to help companies in working towards the development of FinTech that will satisfy consumers, and fulfill the need
in accordance with the local culture to draw in more potential clients. The savage rivalry in the Malaysian business industry
ought to be inventive and imaginative with a specific end goal to be sufficiently aggressive in order to remain in the market.
According to a study by Khraim, Shoubaki and Khraim (2011), there is rapid growth in the adoption of FinTech in financial
services in the West; however, Cheah, Teo, Sim, Oon and Tan (2011) stated that FinTech adoption is still in its beginning stages
and relatively foreign to Malaysians. PricewaterhouseCoopers (2016) reported that most Malaysians are open minded toward
FinTech, however 74 percent of them still have doubts about conducting certain transaction activities via technological devices.
Thus, the usage of FinTech became unfamiliar and not fully utilized by most consumers (Venkatesh & Bala, 2008). Therefore,
this research aims to understand the intention of FinTech adoption through the Malaysian perspective and to discover the factors
that influence the acceptance of FinTech in a consumer’s daily activities.
LITERATURE REVIEW
FinTech is derived from the convergence of “finance” and “technology” which means using innovative technology such as
mobile, social media or IoT (Internet of Things) to enhance the productivity and efficiency of financial services without the help
of a financial company (Chuang, Liu & Kao, 2016; Kim et al., 2016). Although FinTech has been widely used in countries such
as China, Korea, India, Finland and the United Kingdom (Chua, Lim & Aye, 2019; Kim et al., 2016), adoption of FinTech in
Malaysia still remains at the preliminary stage (Chua et al., 2019). Moreover, intention towards the adoptions of FinTech still
remains unexplored in the Malaysian context (Chua et al., 2019; Ghazali & Yasuoka, 2018).
According to the theoretical model proposed by Wen (2016), factors like perceived usefulness, price value, personal
innovativeness, security concern and perceived enjoyment influence the intention to adopt technology. Nevertheless some
weaknesses are identified in the study by Wen (2016) as the study only focused on the adoption of plastic cards in Finland which
is a different technology context that is not related to the Malaysian region, thus this research is to enhance Wen’s model and use
it to study the intention to adopt FinTech in Malaysia.
Intention towards Adoption of FinTech

Intention towards adoption can be defined as an individual’s willingness to do or use something based on his motivation
behaviour (“What is adoption intention”, 2017). The current study analysed the adoption rate of FinTech via six independent
variables from Wen’s (2016) model. Besides that, the intention towards adoption examines the behaviour of consumers in
FinTech and predicts the willingness of consumers to adapt to the modern era of technology in daily transactions. There are
many factors that might affect the intention toward adoption of FinTech, but this study focused on the perceived ease of use,
perceived usefulness, personal innovativeness, perceived enjoyment, social influence, and security concern. According to
Abrahão, Moriguchi, and Andrade (2016), behaviour intention is used to study the intention to adopt new technology. This study
adopted the Technology Acceptance Model and Unified Theory of Acceptance and Use of Technology (UTAUT) to investigate
the extent of Malaysians’ acceptance of changes in the technology in daily transactions.
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Perceived Ease of Use toward the Adoption of Fintech

Davis (1989) defined a perceived ease of use as the level a person who believes that online transactions via mobile banking
would be effortless. The perceived usefulness and perceived ease of use are important in explaining user intention and behaviour
towards the use of new technology. According to Alsamydai, Yassen, Alanaimi, Dajani, and Al-Qirem (2014), perceived ease of
use is defined as easy to learn and use in order to prevent the problem of using technology in financial transactions. Kim et al.
(2016) has found out that among the factors that explain the acceptance of mobile banking, perceived ease of use is reported to
have significantly influenced the consumer’s acceptance of information technology. A case of access bank in Ghana, Nigeria
examined the factors which influenced the behavioural intention to use FinTech and the result showed that perceived ease of use
has positively affected the consumers’ intention to adopt this technology in the access bank (Cudjoe, Anim, & Nyanyofio, 2015).
A study from Chansaenroj and Techakittiroj (2015) from Thailand highlighted the positive relationship between perceived ease
of use and intention to use mobile banking. They concluded that, whenever the developed system is easy to use it increases the
intention to use mobile banking. Besides that, perceived ease of use can be defined as customer not requiring an additional skill
in using the new technology. It also defined that the platform has a user-friendly interface, clear instructions and helps in
facilitating online transactions. Similarly, Chen (2016) examined a case of Fintech development in China and further justified
that mobile technology has the most user-friendly interfaces. The expediency of access has increased the likelihood of Chinese
consumers’ intention to use this type of modern technology (Chen, 2016). Furthermore, Huei, Cheng, Seong, Khin and Bin
(2018) have conducted a preliminary study regarding FinTech in Malaysia and found that the perceived ease of use will
potentially affect the consumers’ attitude towards the intention to adopt FinTech products and services. However, empirical
studies are still needed to prove this (Huei et al., 2018). Thus, based on this point of view, this study proposed that:
H1: There is a positive relationship between perceived ease of use toward the adoption of FinTech.
Perceived Usefulness toward the Adoption of Fintech
According to the Theory Acceptance Model, perceived usefulness is the level of confidence a person has in using a specific
system to augment his or her performance in a job or task. In other words, it leads to the consumer’s perspective of performance
concerning the outcome of the experience (Chuang et al., 2016; Wonglimpiyarat, 2017). In the technological industry, perceived
usefulness has been an important factor that drives consumers in adopting a new technology, provided that performance of the
job is completed with more efficiency and is based on consumer standards (Chuang et al., 2016; Wonglimpiyarat, 2017).
Moslehpour, Pham, Wong and Bilgicli (2018) investigated the online purchase intention of Taiwanese consumers and found out
that perceived usefulness could be the predictor for consumers’ intention to adopt FinTech for their online purchases. Moreover,
the research conducted by Kim et al. (2016) asserted that the perceived usefulness of FinTech is most applicable for a practical
purpose such as checking one’s account balance and fund transfers.
According to Wonglimpiyarat (2017), implementing FinTech in the banking sector in Thailand has fulfilled the job relevance of
the technology. Consumers are able to obtain information needed easily rather than wasting time searching from multiple sources
of information, and with this demonstrability of finance towards the market automatically it improves consumers’ intention
toward the adoption of FinTech (Lee, 2017; Wonglimpiyarat, 2017). Moreover, previous scholars realised that individuals
frequently evaluate the consequences of their behaviour and make their choices based on the desirability of perceived usefulness
(Chuang et al., 2016; Moslehpour et al., 2018). Based on the past analysis, perceived usefulness has influenced the consumers’
intention towards the adoption of FinTech as individual consumers are able to avoid making unnecessary mistakes during the
commencement of jobs with the help of FinTech. Furthermore, perceived usefulness has a constructive outcome in affecting the
intention to use FinTech since customers will evaluate the satisfaction of conducting financial services through a technological
platform (Chuang et al., 2016; Moslehpour et al., 2018; Wonglimpiyarat, 2017). Previous studies have examined this variable as
the most effective predictor for customers’ satisfaction because the consumers judge their value of satisfaction based on the
usefulness and the strength points of the system or product in FinTech industry (Chen, Chen, Yeh & Tsaur, 2016; Lee, 2017).
Thus, there appears to be a theoretical relationship between perceived usefulness and intention to adopt FinTech although this
relationship has yet to be tested empirically. Therefore, the following hypothesis are posited:
H2: There is a positive relationship between perceived usefulness toward the adoption of FinTech.
Social Influence toward the Adoption of Fintech

Social influence is defined as the influence of others in the matter of adopting a new system and individual’s perception on the
reference group’s subjective culture (Chuang et al., 2016; Kim et al., 2016; Venkatesh, Morris, Davis, & Davis, 2003). As
mentioned by Kim et al. (2016), social influence affects a person’s behaviour through compliance, internalization, and
identification that are categorized as a response to social pressure, the potential gains in social status, and changes in one’s
beliefs structure. Research by Wen (2016) on finance related products shows the uncertainty; users of a new system tend to be
very alert in the decision-making process and conduct a lot of pre-checks. Furthermore, as argued by Wen (2016), social
influence is one of the main factors that affects a person’s opinion or experience towards the new and unfamiliar FinTech
product. Oliveira, Thomas, Baptista and Campos (2016) carried out an empirical research based on the UTAUT model which
showed that social influence has a significant influence on behavioural intentions to adopt mobile payment technology in
Portugal. Their study affirmed that social influence will affect the behavioural intention of mobile payment because individuals
are easily influenced by people around them (Oliveira et al., 2016). Since mobile payment and e-commerce play a vital role in
FinTech, there will be a high rate of potential followers who are keen to know about these new and emerging technologies.
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The impact of new technology adoption indicates that users are not only attracted by the benefits given by FinTech but they are
also influenced by the users’ social circle who use it as well (Chuang et al., 2016; Kim et al., 2016; Oliveira et al., 2016). Thus,
this study investigated whether social influence would affect the individual’s intention to adopt FinTech as consumers are
surrounded by their social circle most of the time. Accordingly, the following hypothesis is asserted:
H3: There is a positive relationship between social influence toward the adoption of FinTech
Personal Innovativeness toward the Adoption of Fintech

Personal innovativeness is defined as an individual’s willingness to accept new things and use the new information technology
apart from using traditional methods (Agarwal & Prasad, 1998;Liébana-Cabanillas, Marinkovic, de Luna & Kalinic, 2018). It
removes the resistance of an individual to use information technology product and reduce their doubts on new products.
According to Liébana-Cabanillas et al. (2018), consumers who are highly innovative can act as a pioneer or change agent for the
implementation of new information technology. Not only that, they can help to measure and predict the behaviour of the user and
make a correction if any errors are found, and they are symbolized as risk takers upon the uncertainty of new technologies
(Liébana-Cabanillas et al., 2018; Wen 2016).
According to Oliveira et al. (2016), and Liébana-Cabanillas et al. (2018), personal innovativeness is an important element in the
implementation of information technology, as the characteristics of creativeness and uniqueness will affect the acceptance of
individuals towards the new technology. However, most of the people tend to feel ambiguous on the adoption of new technology
as they do not have much knowledge and experience to use it. For instance, Wen (2016), and Liébana-Cabanillas et al. (2018)
found a significant and positive relationship between personal innovativeness and users’ intention to adopt new technology. In
relation to the intention to adopt FinTech, personal innovativeness seems to play an important role to influence a person’s
acceptance by removing their anxiety. Hence, this study proposed that:
H4: There is a positive relationship between personal innovativeness toward the adoption of FinTech.
Security Concern toward the Adoption of Fintech

Security concern is defined as the ability and willingness to keep monetary information confidential from security breaches
during transmission and storage (Taherdoost, 2017). Security concerns refer to both private information and action issues that
consumers will consider whether the technology providers are willing and able to protect the consumer’s monetary information
from hackers (Taherdoost, 2018). Security concerns have become a debatable issue and it creates an obstacle towards technology
adoption (Ogbanufe & Kim, 2018), use of mobile payments (Tseng, Han, Su & Fan, 2017), and e-commerce adoption
(Taherdoost, 2017).
Study from Tseng et al. (2017) reported that 56.2% of Taiwanese refuse to use mobile banking due to security issues. Similarly,
Ogbanufe and Kim (2018) point out that increase in cybercrime has become one of the obstacles for the implementation of
FinTech as most of the people feel unsecured of this security threat. Security concerns have always been recognized as an
important determinant in the adoption of FinTech (Taherdoost, 2018; Tseng et al., 2017). According to Ogbanufe and Kim
(2018), security and the confidentiality of personal data have be one of the fundamentals in settling and processing financial
transactions. Their study found that the loss of individual information might create negative perceptions and hinder the adoption
of technologies.
Previous studies show that security concerns have become the barrier towards the adoption of mobile payments as this type of
transaction requires the revelation of financial information which is highly personal and sensitive (Dahlberg, Guo, & Ondrus,
2015; Tseng et al., 2017; Taherdoost, 2018). Consequently, this study posited that security concerns will also have a substantial
impact towards the intention to adopt FinTech:
H5: There is a positive relationship between security concerns toward the adoption of FinTech.
Perceived Enjoyment toward the Adoption of Fintech

Perceived enjoyment can be defined as an intrinsic reward in the form of subjective psychological experience from the usage of
new information technology (Chen et al., 2016; Chuang et al., 2016). Perceived enjoyment is a motivator that will influence an
individual’s information technology acceptance behaviour (Boonsiritomachai & Pitchayadejanant, 2017). A study by
Boonsiritomachai and Pitchayadejanant (2017) regarding the adoption of mobile banking towards generation Y in Thailand
found that when technology is fun and pleasant, users will be self-motivated to adopt it. Similarly, Pousttchi and Dehnert (2018)
have gathered the online consumers’ data from Germany, U.S. and U.K. to test on the significant impact on the consumers’
decision making towards the use of digitalization in retail banking sector. Their study claimed that perceived enjoyment had
made a significant impact as the digital functions have made the system more fun to be used and made the online transactions
become easier.
Moreover, Chen et al. (2016) determined that one of the key factors which influences consumers in Taiwan to use online
financial service is perceived enjoyment because consumers tend to feel happy and pleasant to try a new system when it is
perceived to be useful and enjoyable. During the process of new technology adoption, perceived enjoyment will significantly
affect the behavioural intention to adopt a new technology because when individuals regularly repeat the action and enjoy to do
so, this action will certainly become their habit in future (Chen et al., 2016; Pousttchi & Dehnert, 2018). Based on the discussion
and previous findings, there appears to be a theoretical relationship between perceived enjoyment and the intention to adopt
FinTech. Thus, the following hypothesis is posited:
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H6: There is a positive relationship between perceived enjoyment toward the adoption of FinTech.
CONCEPTUAL FRAMEWORK
Based on the preceding discussion, a conceptual framework is constructed and outlined in Figure 1. The anchor theories used to
support this study are Technology Acceptance Model (TAM) and Unified Theory of Acceptance and Use of Technology
(UTAUT) which it shelters on the study of perceived usefulness, perceived ease of use, perceived enjoyment and social influence
towards technological acceptance (Venkatesh & Bala, 2008; Venkatesh et al., 2003). However, there are some limitations on the
TAM and UTAUT,one of which is that they forgo the need for security (Shin, 2010) and innovativeness (Turan, Tunç, & Zehir,
2015) in explaining technology acceptance. Risky technology adoption models (RTA) explain the existence and impact of
security concerns and risk occurrence while performing activities through the use of technology (Gupta & Xu, 2010).
Meanwhile, the inclusion of personal innovativeness justifies the need in explaining technology adoption (Agarwal & Prasad,
1998).
The framework in this study adopts the Technology Acceptance Model with the inclusion of personal innovativeness to study the
intention of adoption on the usage of information technology and how user willingness influences the use of new technology in
performing financial services. Moreover, the framework in this study further added security concern as risky technology from
risky technology adoption models. According to Gupta and Xu (2010), security concerns in the adoption intention can be divided
into two independent variables which are technology risk and safety awareness, both of which are important to the adoption
intention, but users will pay more concern on safety awareness than technology risk. On the other hand, motivation perspective
affects the use of information technology (Yoo, Hang, & Huang, 2012) to the extent that perceived usefulness and perceived
enjoyment can affect the intention to adopt.
Figure 1: Conceptual Framework of the Study
Perceived Ease of Use H1
Perceived Usefulness H2
H3
Social Influence
Intention to Adopt FinTech
H4 in Malaysia
Personal Innovativeness
H5
Security Concern
H6
Perceived Enjoyment
METHODOLOGY
Research Design and Data Collection

The study focuses on how Malaysian consumers adopt FinTech in a financial related transaction. In regard to this, primary data
is ideal in collecting information pertaining to Malaysian consumers of their intention in adoption of FinTech. Consumers who
own a smart phone/device and own an account in any financial institution were targeted for this study. Convenience sampling
was used to conduct the survey due to the unavailability of lists of financial institutions’ consumers. This sampling approach is
frequently utilized by social science studies due to its close proximity, accessibility, willingness and quick response (Jager,
Putnick, & Bornstein, 2017).
Respondents across states in Malaysia were surveyed through distribution of hard copy survey questionnaire and online survey.
Participants were unequivocally informed of the purpose of the study and voluntarily expressed their interest in this study. A
total of 350 questionnaires were collected across states in Malaysia and 50 questionnaires were rejected due to missing data,
incomplete questionnaires and outliers. The balance of 300, representing 85.7 percent of effective data response rate, was used to
address the objective in this research.
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Survey Instrument
A structured research questionnaire was used to examine the adoption of FinTech in Malaysia. The measurements and sources of
the survey questionnaire are listed in Table 1. Nevertheless, a 7-point Likert scale is used in the questionnaire so that reliability
in the study is optimized and reflects the true respondent judgement (Joshi, Kale, Chandel, & Pal, 2015).
To ensure the content validity and the adopted questions are relevant and suitable to the Malaysian context, a pilot test was
carried out to a cluster of experts to examine the attributes of the intended measures. Consequently, several changes to the
questionnaire were proposed and incorporated. Furthermore, internal consistency was checked on the pilot study. All the
proposed constructs were reported to have a Cronbach’s Alpha above 0.7 (refer to Table 1) and the reliability of those questions
are considered to be acceptable (Hair, Black, Babin & Anderson, 2010). Several data analysis tests, namely descriptive analysis,
pearson correlation, multilinear regression, independent sample t-test and one-way ANOVA, were performed with SPSS 22.0 to
answer the hypothesis testing of this study.
Table 1: The Structure of Questionnaires, Cronbach’s Alpha and Sources

Cronbach’s
Objects/ Variables Questions Adopted / Sources
Alpha
Davis (1989)
Perceived Ease of Use 5 0.920
Cowen (2009)
Davis (1989)
Perceived Usefulness 5 0.969
Alsamydai et al. (2014)
Xu, Li, Peng, Hsia, Huang, & Wu (2017)

Social Influence 6 0.956
Wen (2016)
Boyle & Ruppel (2006)

Personal Innovativeness 5 0.835
Rosen (2005)
Gupta & Xu (2010)

Security Concern 5 0.738
Mohamed (2013)
Wang, Lin, Wang, Shih, & Wang (2018)

Perceived Enjoyment 5 0.876
Liao, Tsou, & Shu (2008)
Venkatesh, Thong, & Xu (2012)

Intention to Adoption 5 0.944
Baraghani (2008)
DATA ANALYSIS
Descriptive Analysis
There was a total of 300 respondents in this study, of which 51.7% are males and 48.3% females. A majority of the respondents,
that is, 52% are in the age range of 18-25, followed by 33% from age 26-35, 11% from age 36-45,3.7% from age 46-55 and 0.3%
from above 55.Most of the respondents’ income level ranges from less than RM1000 (31.3%), RM1000-2499.99 (25.7%),
RM2500-3999.99 (25%) and above RM4000 (18%). In terms of race, 35% are Chinese, 34.3% are Indian, 37.7% are Malay and
3% others. Most of the participants are single (62.7%), while others are married (35%), widowed (1.7%) and divorced (0.7%).
As for the education level of the 300 respondents, 50% hold a bachelor’s degree, 15.3% a master degree, 12.3% SPM/O-level,
9% STPM/A-level, 6.7% PhD, 6.3% diploma, and 0.3% professional certificate.
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Table 2: Demographic Profiles of the Respondents

Demographic Frequency Percentage (%)
Gender
Male 155 51.7
Female 145 48.3
Age
18 - 25 years old 156 52
26 - 35 years old 99 33
36 - 45 years old 33 11
46 - 55 years old 11 3.7
Above 55 years old 1 0.3
Income Level
Less than RM 1,000 94 31.3
RM 1,000 - RM 2,499.99 77 25.7
RM 2,500 - RM 3,999.99 75 25
RM 4,000 and above 54 18
Race
Malay 83 27.7
Indian 103 34.3
Chinese 105 35
Others 9 3
Marital Status
Single 188 62.7
Married 105 35
Widow 5 1.7
Divorced 2 0. 7
Education Level
SPM / O-level 37 12.3
STPM / A-level 27 9
Diploma 19 6.3
Bachelor's Degree 150 50
Master's Degree 46 15.3
PhD's Degree 20 6. 7
Professional Certificate 1 0.3
Reliability & Discriminant Analysis
Table 3shows that the Cronbach’s Alpha on all the constructs (perceived ease of use, perceived usefulness, social influence,
personal innovativeness, security concern, perceived enjoyment, and intention to adopt FinTech) ranged from 0.789 to 0.948.
Out of all the independent variables, perceived usefulness (mean: 5.397) was reported to be the greatest influencer on intention to
adopt FinTech, followed by perceived ease of use (mean: 5.143), perceived enjoyment (mean: 4.744), security concern (mean:
4.701), social influence (mean: 4.608) and personal innovativeness (mean: 4.409).
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Table 3: Reliability, Mean and Standard Deviation

Items Cronbach's Alpha Mean Standard Deviation
Perceived Ease of Use 0.897 5.143 1.077
PEU1 5.400 1.262
PEU2 5.300 1.228
PEU3 5.270 1.206
PEU4 4.633 1.481
PEU5 5.110 1.196
Perceived Usefulness 0.948 5.397 1.180
PU1 5.267 1.347
PU2 5.457 1.262
PU3 5.520 1.302
PU4 5.460 1.291
PU5 5.283 1.281
Social Influence 0.927 4.608 1.120
SI1 4.597 1.280
SI2 4.533 1.260
SI3 4.530 1.299
SI4 4.647 1.299
SI5 4.610 1.315
SI6 4.733 1.394
Personal Innovativeness 0.816 4.409 1.062
PI1 4.593 1.440
PI2 4.110 1.346
PI3 4.067 1.452
PI4 4.500 1.430
PI5 4.773 1.322
Security Concern 0.789 4.701 0.951
SC1 4.163 1.473
SC2 4.703 1.350
SC3 4.547 1.244
SC4 5.043 1.189
SC5 5.050 1.180
Perceived Enjoyment 0.926 4.744 1.031
PE1 4.687 1.125
PE2 4.787 1.122
PE3 4.740 1.165
PE4 4.643 1.263
PE5 4.863 1.187
Intention to adopt FinTech 0.941 5.270 1.109
I1 5.377 1.200
I2 5.320 1.207
I3 5.267 1.255
I4 5.267 1.249
I5 5.120 1.256
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Correlation analysis was performed to gauge discriminant validity among the reported constructs. Based on Table 4, the
correlation coefficients for all of the constructs were reported to be significant and ranged from 0.491 to 0.686. Since the
correlation coefficient was significant and fell within the range of 0.1 to 0.85 (Hair et al., 2010), discriminant validity was
supported.
Table 4: Correlation Coefficient of Independent Variables and Dependent Variable

PEU PU SI PI SC PE I
PEU 1
PU 0.776** 1
SI 0.494** 0.563** 1
PI 0.439** 0.390** 0.315** 1
SC 0.550** 0.529** 0.507** 0.425** 1
PE 0.539** 0.570** 0.554** 0.507** 0.613** 1
I 0.638** 0.668** 0.546** 0.491** 0.597** 0.686** 1
**. Correlation is significant at the 0.01 level (2-tailed).
PEU: Perceived Ease of Use, PU: Perceived Usefulness, SI: Social Influence, PI: Personal Innovativeness, SC: Security Concern,
PE: Perceived Enjoyment, I: Intention to adopt FinTech
Regression Analysis
As documented in Table 5, R2 value was 0.624 (p = 0.000), which proposed that all the six constructs (perceived ease of use,
perceived usefulness, social influence, personal innovativeness, security concern and perceived enjoyment) explained 62.4% of
the variation of intention to adopt Fintech. The independent variables were sufficient to be classified as an explanatory variable
given that the p-value was less than 0.1. The β value for independent variable postulate the impact of the variable toward the
dependent variable. From the study, perceived ease of use (β = 0.139, p = 0.025), perceived usefulness (β = 0.223, p = 0.000),
social influence (β = 0.08, p = 0.086), personal innovativeness (β = 0.112, p = 0.013), security concern (β = 0.147, p = 0.011),
perceived enjoyment (β = 0.324, p = 0.000).
Out of the 6 independent variables, perceived enjoyment posited the strongest influence (β = 0.324), followed by perceived
usefulness (β = 0.223), security concern (β = 0.147), perceived ease of use (β = 0.139), personal innovativeness (β = 0.112), and
social influence (β = 0.08). Hence, it can be concluded that all the independent variables (perceived ease of use, perceived
usefulness, social influence, personal innovativeness, security concern, perceived enjoyment) have a positive and significant
relationship with intention to adopt FinTech.
Table 5: Regression Results of Independent Variables on Intention to Adopt Fintech

Collinearity Statistics
Intention to adopt FinTech Beta Sig. Result
Tolerance VIF
(Constant) 0.258 0.279
Perceived Ease of Use 0.139 0.025 0.358 2.793 Accept H1
Perceived Usefulness 0.223 0.000 0.343 2.920 Accept H2
Social Influence 0.080 0.086 0.583 1.714 Accept H3
Personal Innovativeness 0.112 0.013 0.696 1.437 Accept H4
Security Concern 0.147 0.011 0.531 1.882 Accept H5
Perceived Enjoyment 0.324 0.000 0.464 2.155 Accept H6
R= 0.790; R2=0.624; Sig.= 0.000
Intention to Adopt Fintech and Gender of Respondent

Table 6, T-test for equality of means was reported to be significant (0.074 < 0.1) and it was concluded that there was a difference
of intention to adopt FinTech in terms of gender of respondent. Based on the mean, males indicated a greater intention to adopt
FinTech as compared to females (5.381 > 5.152). Thus, males were reported to have greater intention to adopt FinTech than
females.
Table 6: Group Statistics and Constructs Samples Test of Gender

Standard T-test for Equality of
Constructs Gender N Mean
Deviation Means (Sig.)
Intention to adopt Male 155 5.381 1.125 0.074
FinTech Female 145 5.152 1.083
Intention to Adopt Fintech and Age of Respondent

Derived from Table 7, one-way ANOVA test was conducted and there was a difference of intention to adopt FinTech in regard
to age of the respondent (p: 0.067 < 0.1). However, post hoc test was not able to be performed as there was a single group of age
group which is less than two cases. In order to gauge the difference, mean plot was presented to further examine the differences.
It was further concluded that respondents in the age group that fell between 26 to 45 had the greatest intention to adopt FinTech,
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followed by 18 to 25, and above 55 years old (refer to Figure 2). Lastly, those aged between 46 to 55 years old had the least
intention to adopt FinTech.
Table 7: Group Statistics and Constructs Samples Test of Age

Standard ANOVA
Constructs Age N Mean
Deviation (Sig.)
18 - 25 years old 156 5.156 1.210
26 - 35 years old 99 5.453 0.993

Intention to Adopt
FinTech 36 - 45 years old 33 5.467 0.699 0.067
46 - 55 years old 11 4.655 1.330
Above 55 years old 1 5.200 -
Figure 2: Mean Plot of Intention to Adopt Fintech and Age
CONCLUSION AND DISCUSSION
This study contributes to the research gap on understanding the adoption of Fintech in Malaysia. The evolution of the Fintech
trend is greatly influenced by the perception of consumers but still equitably ambiguous in the areas of research that needed a
solid academic ground finding to support mapping on literature. Thus, the main objective of this study is to observe factors and
their significance in contributing to Malaysians adoption of FinTech. In regard to the main objective, the findings showed a
positive and significant relationship between all chosen study variables, the perceived ease of use, perceived usefulness, social
influence, personal innovativeness, security concern, perceived enjoyment, and intention towards the adoption of FinTech. The
application in the financial technology lessens required knowledge to learn the process of new system and promotes the usage in
banking transaction as cited by Alsamydai, Yassen, Alanaimi, Dajani, and Al-Qirem (2014). On top of that, the intention to use
financial technology for banking transactions is greatly influenced by system user-interface, user-friendliness and clear
instruction. According to Jeong and Yoon (2013), the technology adoption does provide greater effectiveness and efficiency to
conduct financial services. Thus, the findings in this study support the idea that functions offered by technology is another
pivotal attraction and shape consumer decisions to adopt technology in financial services. On the other hand, the findings
designate a positive impact on consumers towards the innovativeness in technology adoption by performing financial services. In
the study of Liébana-Cabanillas et al. (2018), the design and need of technology system are greatly influenced by the consumer
innovativeness where they act as change agent for the improvement. Nonetheless, the findings of this paper show low coefficient
of 0.080 on innovativeness toward the adoption given that Malaysians lean towards protectionism in particular sharing the ideas
and need that impact on technology-intensive in adopting the Fintech. The security concern is significant and positively
influences one’s intention to adopt FinTech, as the trustworthiness of new technologies is important to ensure secured personal
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data. This is consistent with the study by Ogbanufe and Kim (2018), which argued that personal data is the most important
fundamental in designing the financial technology to create consumer assurance on personal data protection throughout the
banking transactions. Nonetheless, it is crucial for technology adoption to be enjoyable as to consumer satisfaction and to lend
affluence to their lifestyle, therefore the results of this study showed the highest coefficient level of 0.324 in the acceptance of
financial technology as Malaysian internal motivations that express the usage of financial technology process.
The second objective of this study is to investigate the age group driving this research gap that contributes to the extent of
FinTech adoption in Malaysia. The findings showed that, males had greater intention as opposed to females in adoption of
FinTech, as it was reported that males have more know-how in technology, particularly in FinTech which requires enhanced
technological skills as it involves monetary transactions. Nevertheless, males are more attracted to develop confidence with
financial system as compared to females who develop anxiety, lowered interest and negative attitudes in regard to monetary
issues (Liébana-Cabanillas, Sánchez-Fernández, & Muñoz-Leiva, 2014). On top of that, the findings also indicated that the
younger generation aged 45 and below are more attracted to adopt FinTech, as opposed to the older generation. This finding is
consistent with Alalwan, Rana, Dwivedi, Lal, and Williams (2015), which postulated that younger people are keener to accept
new technology for the purpose of convenience in conducting transactions. Moreover, younger consumers have more interaction
with technology which leads them to have sufficient level of ability and knowledge towards using it. On top of that, older users
have a harder time in circumventing new technology, especially when conducting financial services through a technological
platform.
As implications of this study for marketplace practices especially regarding financial institutions can help on banking process
decision-making. On top of that, researchers can further improved on the research framework and retailer managers identified the
major factors in influencing the acceptable of financial technologies such as e-wallet. Nevertheless, the findings do provide a
generalizability of FinTech in Malaysia and TAM but not without some limitations. It is important for future research to examine
moderating effects such as gender, age or education level and also mediating effects. This additional variance of behaviour will
provide a valuable insight on a consumer’s reaction toward FinTech adoption. Thus, it would provide a more concrete
understanding on the interaction between these variables.
In a nutshell, the findings of this study suggest some points that might benefit different constituencies of stakeholders to enhance
the consumer intention in adoption of FinTech. Corresponding to the findings, financial services providers or regulators can use
these findings as a guide to encourage customers’ participation in the use of FinTech in the application of financial services. As
such, financial services providers should design and offer consumers a technological tool in which it should be user friendly,
efficient, and effective in performing its tasks. Moreover, financial services providers should integrate their technology with
greater interaction among peers in order to promote the participation in FinTech.
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Tun-Pin, Chong
Department of Finance
Universiti Tunku Abdul Rahman, Malaysia
Email: chongtp@utar.edu.my
Keng-Soon, William Choo

Department of Finance
Faculty of Business and Finance,
Email: chooks@utar.edu.my),
Yen-San, Yip
Department of Marketing
Email: yipys@utar.edu.my
Pui-Yee, Chan
Department of Commerce and Accountancy
Email: pychan@utar.edu.my
Hong-Leong, Julian Teh

Department of Business
Email: tehhl@utar.edu.my
Shwu-Shing, Ng
Department of Commerce and Accountancy
Email: nsshing@utar.edu.my
147
European Journal of Human Resource Management Studies
ISSN: 2601 - 1972
ISSN-L: 2601 - 1972
Available on-line at: http://www.oapub.org/soc
DOI: 10.46827/ejhrms.v5i4.1220 Volume 5 │ Issue 4 │2022
DETERMINANTS OF EMPLOYEE
RETENTION IN PRIVATE HEALTHCARE
Andrew Sijai
University of Technology Sarawak,
School of Business & Management,
Malaysia
Abstract:
The continuous ongoing concern about shortages of healthcare workers in the healthcare
industry in Malaysia has brought a significant impact on workforce productivity. The
condition gets worsened during the COVID-19 pandemic back in 2020. Private healthcare
has reported high staff turnover and caused higher costs to the business which in terms
of direct financial losses and lack of continued care. The aims of this study are to identify
the root causes of the high resignation rate in private healthcare. Five key factors (job
satisfaction, work environment, compensation and benefits, work-life balance and
employee recognition) were successfully identified and measured as significant
contributors towards employee retention of selected private healthcare in Malaysia. A
quantitative study was conducted via survey for obtaining primary data and information
needed. There were 123 respondents and data were collected from the selected private
hospitals in Sarawak, Malaysia. Based on rigorous reviewing of the literature, instrument
designing and subsequent pilot testing, the study identified six (6) hypotheses which are
tested using statistical technique SPSS version 26. The outcome revealed that employee
recognition, with the unstandardized coefficients Beta value of 0.359 followed by job
satisfaction with a Beta value of 0.295 was a supported and stronger predictor in
influencing employees’ retention in the private hospitals. Other determinants like
working environment, compensation and benefits and work-life balance were not
strongly supported however been highlighted by respondents as important factors too.
Moreover, some unique factors like training and development, fairness, leadership skills
among leaders or managers and hospital facilities and equipment were highlighted by
respondents in this study and these factors are regarded as crucial for getting
management attention in retaining the talents in the hospitals. This study also contributes
both theoretical and empirical value to private healthcare in retaining talent through
building trust in their employees and having immense credibility of leaders with a long-
term win-win employee relationship.
JEL: E24; J24; I10
i
Correspondence: email dr.rews@yahoo.com
Copyright © The Author(s). All Rights Reserved 53

Andrew Sija
DETERMINANTS OF EMPLOYEE RETENTION IN PRIVATE HEALTHCARE
Keywords: employee retention, job satisfaction, working environment, compensation

and benefits, work-life balance, employee recognition
1. Introduction
The high employee turnover rate especially for nurse positions in the healthcare industry
is as high as 13%-37% compared to previous which happen worldwide (Roche et. al.,
2015). Continuity of resignation occurred in the selected hospital in this study caused
understaffing, drop-in hospital performance and reputation. Referring to World Health
Organization (WHO), forecasted by the year 2035, about 12.9 million shortages of the
healthcare workforce worldwide. For nurses in some of the developed countries, low
compensation and salary packages including lesser incentives trigger higher attrition by
40%. Increasing demands however no new recruitment is placed especially in countries
with population growth which increased risk of infectious disease as refer to WHO
(2013). Recent pandemic affecting world economic become worst which give strong
impact towards daily living compared to before for example increase of jobless rate
worldwide. The U.S. Department of Health and Human Services estimate nationally, by
2020, hospitals will face a shortage of almost 800,000 nurses, 29% vacancy rate up from
the current rate of 8%. The nursing workforce is “aging out” of its profession, shrinking
the healthcare workforce; meanwhile, patient volume continues to grow as baby boomers
demand more services (Sue, 2006). ICU nurses especially have a large turnover, not only
because of the alarm fatigue but because of the desire to have lower risk or career
advancement, the healthcare system is asking retired nurses to return to work, triaging
non-emergency surgeries, and opening a new building to deal with the surge (Liana,
2020). In Malaysia, the number of nurses has soared by more than 50% from 2005 (400
nurses) to 2010 (1,049 nurses). In addition, according to Siew et al. (2011), Malaysia is also
facing the problem of nurse immigration, a turnover rate of 400 per year, especially in
English-speaking countries, such as the United Kingdom, the United States and
Australia. Before the COVID-19 Pandemic outbreak, there was a time overproduced
registered nurses, increasing the rate of jobless although bonded with Government. To
solve the problem of the registered nurses being overproduced, the Malaysian Ministry
of Health has reduced the number of intern nurses from 2,274 in 2016 to 1,742 in 2017
(decreased by 23%). After the outbreak of COVID-19 in 2020, “Malaysian hospitals are
understaffed, overcrowded, underfunded” (Khairie, 2019). Malaysia lacks nurses, given a ratio
of one nurse per 300 patients, as opposed to the World Health Organization’s optimum
number, which is one nurse per 200 patients (Athira, 2019). The demand for medical staff
tremendously increased, as in May 2020, there were 7,629 confirmed COVID-19 cases and
the number is increasing day by day.
According to Vindrola et al. (2020), some factors influencing the behaviour of
healthcare workers during epidemics were fear of contagion, concern for family health,
interpersonal isolation, quarantine, trust and support from their hospital, information
about risks and what is expected of them, and stigma. During an outbreak, health care
workers work long hours under pressure, often without adequate resources and while
European Journal of Human Resource Management Studies - Volume 5 │ Issue 4 │ 2022 54

Andrew Sija
accepting inherent dangers. These conditions can also cause discomfort with government
policies and guidelines. Other healthcare workers are also facing widespread shortages,
but nurses are at the forefront of direct patient care (Lianna, 2020). Shortage of nurses
such as the United States of America, Canada, England, Scotland, Germany and the
Philippines (Aiken et al., 2001). Many industries facing the same issue which is a high
turnover rate refers to Fibuch & Ahmed (2015) & Lopes et al., (2017). Employees are the
most valuable corporate asset. Retaining employees is a crucial issue because of fierce
competition among competitors hunted for talented and experienced employees. The
cost of employee turnover is up to 2.5 times the employee's salary and higher if involve
experience staff. High training costs with low productivity for new recruitment before
could be independents. It also will cause a lack of knowledge to be retained especially
high attrition among experienced staff. Extra work left over will be shared among
remaining staff, therefore increasing workload, increase stress which may increase
absenteeism due to tiredness or decreased level of commitment, therefore level of
productivity will be decreased (Cascio & Boudreau, 2011). Resignation in peers may
trigger others to think of resignation due to overstress and unhappiness to continue
further. The workload of existing employees will be significantly increased, causing low
productivity due to low morale. Negative impact on employees due to high turnover rate
affect drop in quality provided and affecting hospital performance (Cascio & Boudreau,
2011).
1.1 Rationale for the Study

Due to continuous resignation occurred in the selected private hospitals at Sarawak in
the year 2019 (refer to Table 1.1), and leading to a problem of shortages of staff has caused
existing employees to work overtime mainly to cover the empty load left by those who
were leaving the hospitals. The overtime work has not only increased the amount of
workload but the level of stress among existing healthcare employees in the hospitals.
Table 1.3 reveals that the overtime costs have increased by 38% in 2018 compared to the
year 2020. As such, the private hospital is facing an uphill task in retaining its employees.
Overall job satisfaction in the selected private hospitals was reported to be reduced and
increased in workload due to lack of staffing. Moreover, the high attrition rate in the
hospitals concerned was directly impacted the hospital’s profitability and this had been
proved in the study done by Yin and Yang (2002) that high attrition rate happening in
nurse group because of an increase in work stress and overwork. We also discovered the
process of recruiting new and qualified staff will take sometimes with lower productivity.
The total number of in-patients also drop in figures by 10% in total compared with the
year 2019 (refer to Table 1.2) and this would affect entire hospital revenues. Furthermore,
the quality of patient care would be threatened further if high attrition triggered by heavy
workloads caused by less workforce in the healthcare industry. According to Atefi et al.
(2013), the demand for health care workers especially experienced nurses had been
increased globally and this has caused a high attrition rate for experience nurses in the
hospitals. Additionally, high competition among competitors either locally or overseas
contribute to high turnover in private healthcare. Reasons being the workers have an

Andrew Sija
opportunity and more choices on to which hospital they prefer to work with, their
expectations have shifted due to growing concerns about COVID-19 and they are
expecting on the attractive package offered. At this time, private healthcare has to
prioritize safety, flexibility, transparency, and technology when trying to grab job seekers
to maintain their workforce. Any employer who was found attempted to force its workers
into an unsafe environment will struggle to retain them.
Table 1.1: Number of Resignations for the Year 2018 – 2020

Number of staff resigned 2018 2019 2020
Nursing team 7 15 3
Allied health team 2 1 5
Support team 3 11 6
Total of resignations 12 27 14
Source: Human Resource Services
Table 1.2: Number of In-Patient

Year 2019 2020
Number of in patient 5,627 5,047
Source: Admin services
Table 1.3: Overtime Cost

Year 2018 2019 2020
Amount (RM) 59,526 68,109 81,922
Source: Human Resource Services
In 2020, it was reported that many nurses walked away from the profession because of
experiencing burnout from the flood of extremely ill COVID-19 patients and heavy
workloads. Long time nurses opted for early retirement, and choose another profession.
According to Kenny (2021) in his study, nurse retention was a global issue before 2020,
and nurse shortages have been among the biggest threats faced by the healthcare industry
during pandemics. The report further elaborated that huge impact on the size of the
nursing workforce, which is already heading for a 10 million deficit, and even if only 10%
to 15% of the current nursing population quits because of the devastating effect of
COVID-19, the healthcare industry could have a potential shortfall of 14 million nurses
by 2030, and this is equivalent to half of the current nursing workforce. Other issues we
discovered in this study were the increase of infection rate due to busy schedule as
consequences of failing in practicing proper prevention and high medication error as
lesser checking process been enforced due to heavy workload. Although there were
efforts done by Human Resource in upgrade the salary package and increase the activity
to motivate and increase of staff morale however it is still not able to solve the turnover
issue. As the healthcare sector is losing nursing professionals for various reasons and it
becomes critical to investigate the determinants of the retention and to find out the root
cause in a short period of time to reduce the resignation rate. The main purpose of this
study is to rule out determinants causing continuity staff resignation in the selected
private hospitals in Sarawak, by referring to the 2018-2020 statistic, giving a serious

Andrew Sija
intimate to management, to investigate the cause before it becomes more serious

especially during a pandemic.
2. Literature Review
2.1 Employee Retention

According to Sinha and Sinha (2012), the concept of employee retention is a complex one
and there is no single recipe for keeping employees. There were various definitions of
employee retention. Hom and Griffeth (1995) define retention as a process whereby high
royalty among employees to their organization. In order to gain royalty, it involved all
the strategies, efforts been implemented and sustained by the organization in all aspects
to retain the talent. The retention of employees is a priority of every organization to
compete, attract and retain talented staff (Naris & Ukpere, 2010). The reasons for
retaining employees are for organizational success and sustainability (Olekers & Du
Plessis, 2012). This is further supported by Osteraker in his study conducted in 1999 that
employee retention is crucial to determine the success of an organization. Additionally,
Hughes and Rog (2008) revealed retention as “ways of keeping talent within organization”.
Rhule (2004) added that organizations need to develop and implement relevant strategies
to ensure the retention of a talented workforce. There were a few reasons for employees’
staying in an organization such as compensation and benefits, training and development,
work-life balance, work environment, job content and career advancement. However,
employers realized that some individual reasons were varied due to different
organizations and influenced by the organization’s culture, organizational management
and the nature of the organization. Nurses play a crucial role in any country healthcare
system, be it in public or private hospitals. The retention of these nurses is a great
challenge due to many factors such as increased workload, working long hours,
challenging tasks, low salaries and poor working environment. Kaestner (2005)
highlighted that human resource management in every hospital must ensure the required
workforce of nurses is well maintained particularly to cope with the growing demand for
clinical service. The healthcare industry may take an integrated HRM approach to
enhance retention strategies. For instance, research showed that a greater retention rate
saves the expenses incurred on staffing and training of the new employees, the cost could
be used for the purpose of employees’ performance improvement measures (Abbasi &
Hollman, 2000).
2.2 Job Satisfaction

According to Smith et al. (1969), job satisfaction is best defined as the feeling an individual
has about his or her job. Guest (2002) considered job satisfaction to be mediation or
intervention in any positive link between human resources (HR) practices and
organizational performance. It is a pleasurable emotional state, which results from the
evaluation that one has of his work and the realization of what this evaluation allows
concerning the satisfaction of important values. Cited from some researchers, job
satisfaction described the extent to which an employee enjoys his/her job (Kumar & Kaur,

Andrew Sija
2016; Lephalala, Ehlers, & Oosthuizen, 2008). Job satisfaction impact strongly in
identifying how good is the quality of care provided by nurses according to McNeese-
Smith in his 1999 studies. It is also to express the emotional feelings and behaviour of a
job in the organization. Job satisfaction among healthcare workers is important especially
in a nurse who rarely have high job satisfaction which triggers intention to leave (Murray,
2020). Moreover, the job satisfaction of nurses was affected by intrinsic and extrinsic work
motivation values (Khanal, Choulagai, Acharya, & Onta, 2020). Intrinsic motivation is
related to doing something inherent for fun or enjoyment, but extrinsic motivation is
related to doing something for an economic outcome (Tsgaye, 2017). As a key
determinant of the health system, job satisfaction can influence the efficiency and
productivity of healthcare human resources and become a significant factor and vital
element for nurses due to the fact that every healthcare professional had contributed
high-quality healthcare service and delivery systems around the world (Al Sabei et al.,
2020; Payne, Koen, Niehaus, & Smit, 2020). With the above assertion, we developed the
first hypothesis as:
H1: There is a positive and significant relationship between job satisfaction and employee
retention.
2.3 Working Environment

According to Cowden et al. (2011), leaders in the nursing profession need to foster better
working environments and ensure that nurses’ individual needs are met, which are likely
to increase their intention to stay and could lead to retention. Joseph et al. (2014)
emphasized the importance of a healthy work environment. They described that even
though if the organizations have a good strategy in employee retention, but very poor in
working place condition and moreover the issue of staff health and welfare were not
seriously taking care and when staff fall sick, these conditions would definitely give high
impact on the availability of workforce, affect on productivity and would damage the
quality of services in the business. The work environment should provide a sense of
belonging. The organization needs to consider employee health by providing an
environment that is free from health hazards, offers a level of privacy, noise control and
also takes into account the individual needs of each employee. In addition, an attractive
working environment incorporates a safe working environment, employment security
and secured income with a possibility to increase salary by own initiatives and work
efforts (Carsson et al., 2014; Josefsson et al., 2011). Referring to Haina and Fadilah study
in 2021, the work environment has a significant impact on employee loyalty and research
also confirmed the assumption of a high-quality working condition and environment
proved a positive relationship to retain loyalty (Wiebell's, 2019). To this assertion, we
agreed to construct the second hypothesis as:
H2: Working environment shown positive and significant relationships influence

employee retention.

Andrew Sija
2.4 Compensation and Benefits

Most employees perceive their compensation like pay as being fair if it matches their
contribution and performance in the organisation they served (Rambur et al., 2005).
Salary and benefits can directly influence an employee’s intention to stay (Luna-Arocas
& Camps, 2008). It is likely that if the number of salaries offered is reasonable, employees
will be motivated to stay on, which in turn increases job security. High retention of
employees can be achieved if compensation such as salary is transparent and
commensurate with the performance and effort (George, 2015). Likewise, Kossivi (2016)
found that a full compensation package is the main factor to attract employees’ loyalty.
Kossivi’s findings were further supported by Tangthong et al. (2014) in which their study
mentioned about high pay is crucial in retaining a productive employee. Moreover, the
study done by Muhoho (2014) about staff retention in Tanzania’s public and private
sector shown that factor affecting high turnover is low salaries. Meanwhile, Grace (2016)
in her study found that benefits offered by Geita District Hospital to keep staff staying
with them are salary package which include several types of allowances. All of these
salaries package as according to Kigathi (2017) were vital and described as motivation
factors that impacts the workforce and keeping staff. Based on this assertion, we managed
to construct two hypotheses which were:
H3: Compensation and benefits shown positive and significant relationship influence
employee retention.
H4: Compensation and benefits offered is most likely the strongest predictor of employee
retention
2.5 Work-Life Balance

The research found that in retaining employees at work, it requires employers to have a
positive balance between work and personal life (Leners et al., 2006). Deery (2008) in
his/her study has concluded that organizations should provide a more holistic experience
for employees and focus on creating a balance between their work environment and their
home life. The reason many professional workers considered the importance of work-life
balance in work is because it shows the ability of employees to handle their work and
family responsibilities as well as other activities in their lives (Parkes & Langford, 2008).
Due to the shift work and workload nurses face, they need to have time for their families
and their personal lives. By allowing healthcare workers such balance increases their
commitment to the hospitals (George, 2015). In addition, research done by Alamzeb et al.
(2016) in medical line has discovered and proved that by practiced of work-life balance
could increase job satisfaction. Moreover, Panda (2020) in his report mentioned also
work-life balance proved a positive relationship with retaining professional groups.
Hence, based on the discussion, another hypothesis is formulated:
H5: Work-life balance shown positive and significant relationship influence employee
retention.

Andrew Sija
2.6 Employee Recognition

Romero and Kleiner (2000) found that recognition encourages higher levels of employee
performance, especially in tight financial times. According to Bakker et al. (2007),
appreciation for work done and efforts made increase employee’s engagement level.
Armstrong and Murlis (2007) have asserted that recognition is one of the most powerful
tools to reward people. Recognition not only reinforces good performance but also
evokes employees’ feeling like times, efforts and ingenuity they give, this feeling
enhances their level of engagement (Brown, 2011). Jackson et al. (2012) further asserted
that rewarding of high performers by leaders encourages and uphold their performance
levels and hard work; recognition given towards any tasks may further motivate an
employee to double more efforts to accomplish the tasks. As refer to research done by
Subraminiam et al. (2019), employee recognition had a significant impact on employees'
willingness to remain with their employer. Also, in Wong et al. (2020) study, they
discovered that to lower the turnover rate of nurses, it is important of having a good
leadership strategy towards nurses by recognizing their contribution as an organization's
"asset" or valuables to improve their satisfaction and well-being. Research by Longmore
(2021) concluded that nurses were undervalued, were thinking of handling usual jobs
although in the pandemic, which trigger turnover intention. With the prevalence of
substantial review above, we formulated the final hypotheses as:
H6: Employee recognition shown positive and significant relationship that influence
employee retention.
3. Material and Methods
3.1 Population and Sample

The population for the study was healthcare workers of two selected private hospitals in
Sarawak, Malaysia. The participants were employees from three different departments
namely, nursing service, allied health service and support service. A probability
sampling technique was used, the selection of sample being on the basis of simple
random sampling. Based on reliable sources from Human Resource Service and Admin
Unit in that hospitals, the total numbers of healthcare employees were about 170. After
cross-checking and final confirmation, we agreed with 180 sets of questionnaires
distributed for all three departments. The questionnaires were administered by
professionals in full care and conscientiousness due to the data collected being subject to
the privacy of the respondents and the Covid-19 pandemic. Of these, 123 respondents
were considered for analysis, on ignoring some non-response. This sample size of 123
was selected to represent the total population found to be adequate. The assurance of
challenge size was founded on Krejcie and Morgan's table where a sample size of 123 is
acceptable as where the given population of 170, a sample size of 113 would be needed
to represent a cross-section of the population. From the samples, the majority of the
respondents (41.5 percent) are less than 31 years of age; 39 percent fall in the age group
of 31-40 years; 13.8 percent counted for age group of 41-50 years and the rest 0.8 percent

Andrew Sija
and 4.9 percent are for the age group below 20 years and above 50 years. The male-female
ratio was a little bit skewed with 87 percent of the respondents being males. Only 19
percent of the respondents have been with the hospitals for more than fifteen years, while
the majority (38.2 percent) has been with these hospitals for less than 5 years. Hence, this
is a sign of a high attrition rate in the current hospitals and clearly, a proactive retention
strategy is needed.
3.2 Measurement Instrument

This study is to use a quantitative approach and assisted with SPSS version 26. A
structured questionnaire was designed to elicit all responses on different aspects of
employee retention. Each of the variables used in the extant literature on the
determinants of employee retention includes job satisfaction, work environment,
compensation and benefits, work-life balance and employee recognition. All of these
determinants were reviewed by the human resource unit of the two hospitals studied in
light of their significance and relevance. Some of these determinants were even
encountered minor modifications by HR unit to suit the entire context of the study and
finally, the finalized items for each determinant were drawn out. A pilot test on 20
respondents was also conducted for a more in-depth confirmatory study. In doing this, a
set of similar questionnaires had been given to random employees of hospitals from
different branches. The data obtained were analyzed and a reliability test was carried out.
The internal consistency found from the reliability test was high. The questionnaires
collected information about employee retention determinants namely, job satisfaction,
work environment, compensation and benefits, work-life balance and employee
recognition. There were three sections in the questionnaires. Section: Demographic
factors; Section B: Independent variables and Section C: Dependent variable. For section
A, a set of nominal scale questions has been developed for identifying respondent’s
profile and demographic data which includes gender, age, level of education, marital
status, department, experiences and monthly salaries. For Section B and C, all items in
the scale were presented with a five-point Likert scale ranging from Strongly Disagree (1)
to Strongly Agree (5).
4. Results and Discussion
4.1 Reliability Analysis

Table 1 deliver the psychometric properties for reliability which were statistically
assessed by conducting reliability analysis and analyzing the Cronbach’s coefficient α.
The retention determinants have acceptable α. job satisfaction = 0.826; working
environment = 0.861; compensation and benefits = 0.836; work-life balance = 0.850;
employee recognition = 0.836 and employee retention = 0.918. The study used 0.75 as the
level of acceptance when assessing internal consistency (Pallant, 2010). A value that
indicates less than 0.6 is poor. From Table 1, the result of the reliability test with the value
of Cronbach’s Alpha of all six variables indicates high reliability. The value shows the
questionnaire was reliable as the closer the value to 1, the more reliable the questionnaire.

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Hence, it is concluded that all six variables have reliability and are acceptable for further
analysis.
Table 1: Reliability statistics

No Variable Cronbach’s Alpha (α) Items
1 Job Satisfaction .826 5
2 Working Environment .861 5
3 Compensation and Benefits .836 5
4 Work-Life Balance .850 5
5 Employee Recognition .836 5
6 Employee Retention .918 5
Source: Author
4.2 Frequency Analysis
Table 2: Summary of the respondent according to their profile

Category Frequency % Category Frequency %
Gender Education Level
Male 16 13.0 SPM 42 34.1
Female 107 87.0 Diploma 49 39.8
Age Post Basic/Adv Dip 12 9.8
<20 years 1 0.8 Degree 14 11.4
21 – 30 years 51 41.5 Master 2 1.6
31 – 40 years 48 39.0 Others 4 3.3
41 – 50 years 17 13.8
>50 years 6 4.9
Experience Monthly Salary (RM)
0–4 year 47 38.2 1,000 – 1,700 64 52
5–9 years 29 23.6 1,701 – 2,300 32 26
10–14 years 28 22.8 2,301 – 3,000 11 8.9
15–19 years 12 9.8 3,001 – 4,000 4 3.3
>20 years 7 5.7 Above 4,001 12 9.8
Marital Status Department
Married 73 59.3 Nursing 64 52.0
Single 41 33.3 Allied Health 14 11.4
Divorse 9 7.3 Support 45 36.6
As shown, most of the respondents were female which were 87 percent and 13 percent
represent by male staff. For marital status, 59.3 percent reported married, 33.3 percent
were single and the remaining 7.3 percent were diverse respondents. Respondents came
from three departments, with majority 52 percent from Nursing, 36.6 percent from
Support Service and 11.4 percent were from Allied Health. For the age, the majority of
the respondents’ age was between 21-30 years accoutered for 41.5 percent. Followed by
the age range of 31-40 years for 39 percent. It was also found that 13.8 percent and 4.9
percent were age range of 41-50 years and above 50 years respectively. For the age range
below 20 years, it was only 0.8 percent. In terms of educational level, most of the
respondents had SPM and Diploma qualifications with 34.1 percent and 39.8 percent

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respectively, followed by Degree holders with 11.4 percent. About 9.8 percent of
respondents had Post basic/Advance Diploma while 1.6 percent had Master Degree. The
remaining 3.3 percent comprised of other qualifications. The review result of years of
working experience displayed that majority of respondents had been in service for less
than 5 years, i.e. 38.2 percent. A figure of 23.6 and 22.8 percent were for those having been
worked for 5-9 years and 10-14 years respectively. About 9.8 percent of respondents been
working for 15-19 years and only 5.7 percent for those serving more than 20 years. On
their monthly salary, the highest frequency was for those earning from RM1,000-RM1,700
with 52 percent, while the lowest frequency was those earning RM3,001-RM4,000
represented by only 3.3 percent respondents. About 26 percent and 8.8 percent were for
those earning from RM1,701-RM2,300 and RM2,301-RM3,000 respectively. The
remaining 9.8 percent were for those earning more than RM4,001 monthly.
4.3 Descriptive Statistics
Table 3: Descriptive statistics for retention determinants

95% confidence interval for mean
Lower Upper
Dimension N Mean SD Min Max
bound bound
Job satisfaction 123 3.89 3.78 4.01 .650 2 5
Work environment 123 3.56 3.43 3.70 .756 1 5
Compensation & benefits 123 3.16 3.04 3.29 .714 1 5
Work-life balance 123 3.36 3.21 3.51 .824 1 5
Employee recognition 123 3.45 3.33 3.57 .691 2 5
Employee retention 123 3.67 3.53 3.81 .796 2 5
As shown in Table 3 above, the study identified job satisfaction as an important retention
determinant for healthcare workers (mean=3.89). This was followed by employee
retention and work environment with values for their means, respectively (mean = 3.67,
3.56). Employee recognition and work-life balance followed, with mean values of (mean
= 3.45, 3.36). Compensation and benefits can be said to be the least important retention
determinant for healthcare workers (mean = 3.16).
4.4 Pearson correlation

Table 4 illustrates the relationship between the variables studied measured by Pearson
product moment correlation coefficient. Notably, a correlation of 1.0 means that there is
a perfect relationship between the variables regardless of the direction of the relationship.
The closer the r value to 1.0, they’re more satisfied the employees are with the retention
determinants and the more likely they are to experience a higher level of retention. The r
value ranged from (0.498-0.733, p < .05) representing a moderate to a strong relationship
(Evans, 1996) and hence, the results show that the independent variables were
statistically significant correlated with employee retention. In details, hypotheses that
were accepted were: job satisfaction, r = .580, working environment, r = .560,
compensation and benefits, r = .521, work-life balance, r = .497 and employee recognition,

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r = .623. From Table 4, it is evident that employee recognition is most significant and
highly correlated to employee retention.
Table 4: Pearson correlation analysis between variables studied

Variable 1 2 3 4 5 6
R
1 1 .733 .580* .498* .566* .580*
2 .733* 1 .641* .600* .701* .560*
3 .580* .641* 1 .546* .622* .521*
4 .498* .600* .546* 1 .642* .497*
5 .566* .701* .622* .642* 1 .623*
6 .580* .560* .521* .497* .623* 1
Note: 1 = Job Satisfaction, 2 = Working Environment, 3 = Compensation & Benefits,
4 = Work Life Balance, 5 = Employee Recognition, 6 = Employee Retention
4.4 Multiple Regression Analysis

A multiple regression analysis was conducted to predict employee retention based on
retention determinants. A signification equation was determined F (21.062) = 36.651, p
<0.05, with R² value of 0.474. Table 5 illustrates the variance in the dependent variable
(employee retention) explained in the model as 47.4 percent. A significance value of 0.000
indicates there is a significant difference among the mean scores of the dependent
variable because the score is less than 0.05 (Pallant, 2007). The multiple regression
analysis relative contribution of each of the job satisfaction, work environment,
compensation and benefits, work-life balance and employee recognition to the variance
in the employee retention. The rule of thumb mentioned any t-value greater than +2 or
less than -2 is acceptable. The higher the t-value, the greater the confidence in the
coefficient as a predictor. This study highlights that job satisfaction and employee
recognition demonstrated to be significant to Employee Retention (Job satisfaction, β =
.361, t = 2.913, p <0.05 and Employee Recognition, β = .414, t = 3.416, p < 0.05), while other
variables (working environment, compensation and benefits and work-life balance) were
not significant (p > .05). The Standardized Coefficients (β) show that Employee
Recognition has the largest absolute value, 0.359, followed by job satisfaction, 0.295,
compensation and benefits, 0.093, work-life balance, 0.077 and working environment, = -
0.014. This suggests that Employee Recognition is the strongest predictor of employee
retention in hospitals. Hence, hypothesis 4 is rejected. Compensation and benefits offered
is most likely the strongest predictor of employee retention.
Table 5: Relatives Contribution of Job satisfaction, Working environment,

Compensation & benefits, Work life balance, Employee recognition
(independent variables) and Employee retention (dependent variable)
Unstandardized Standardized
Model Coefficients Coefficients t Sig.
B Std. Error Beta (β)
(Constant) .311 .344 .905 .367
1 Job satisfaction .361 .124 .295 2.913 .004*
Working environment -.015 .125 -.014 -.117 .907

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Compensation & benefits .104 .106 .093 .985 .327

Work life balance .074 .089 .077 .832 .407
Employee recognition .414 .121 .359 3.416 .001*
*significant level is at .05 (p < .05).
Moreover, in Table 6 of the model summary, the R-Squared (R²) represents the value of
0.688. The value explained that 69% of the variation in this model was able to be explained
by all the independent variables whereas the remaining 31% was unexplained. In this
study, it can be concluded that among five independent variables, employee recognition
played the most influential role in deriving employee retention during pandemic Covid-
19. This was supported based on the highest t-value and beta score as compared to other
independent variables used in this study.
Table 6: Model Summary of correlation between Job Satisfaction,

Work Environment, Compensation and Benefits, Work-life Balance and Employee
Recognition (independent variables) and Employee Retention (dependent variable)
Model R R² Adjusted R² Std. Error of the Estimate R² change F change
1 .688 a .474 .451 .590 .474 21.062
a. Predictors: (Constant), Job satisfaction, Working environment, Compensation & benefits, Work life
balance, Employee recognition
b. dependent variable: Employee Retention
4.5 Discussion
The main purpose of this study firstly is to determine which retention determinant best
predict employee retention in selected private hospitals in East Malaysia. Secondly, to
quantify the relationship among the variables used and measure the level of significance.
Notably, this study established that a relationship between the retention determinants
and employee retention does exist. The discussion which ensues provide further
overviews into the above and frequency analysis on how healthcare professionals
perceived the retention determinants and retention.
4.5.1 Perceived retention determinants of healthcare professionals

A. Job satisfaction
An average mean value of 3.89 (Maximum = 5) was obtained. This shows that healthcare
employees agree that they are satisfied with their current job even though they received
a great amount of pressure at work during the Covid-19 pandemic. With all kinds of
pressures, they have made the job good for acquiring new skills and abilities, getting
more involved in decision making and feeling great and encouraging for new ways of
doing things. According to Murray (2020), job satisfaction among healthcare workers is
important especially in nurses who rarely have high job satisfaction which triggers
intention to leave.

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B. Work environment
An average mean value of 3.56 (Maximum = 5) was obtained. This indicates that
employees in the hospital are excited to work in a fairly supportive environment.
According to Joseph et al. (2014), the work environment should provide a sense of
belonging. The organization needs to consider employee health by providing an
environment that is free from health hazards, offers a level of privacy, noise control and
also takes into account the individual needs of each employee. Findings revealed that the
relationship of healthcare employees with the management in the hospitals are good due
to transparency practiced in the hospitals they served and employees feel free to express
their opinions.
C. Compensation and Benefits

An average mean value of 3.16 (Maximum = 5) was obtained. Some healthcare employee
feels that they are least concerned about compensation and benefits compared to other
retention at the private hospital could provide them with much better pay, rewards and
benefits within the profession. Cited from Grace (2016) in her study found that benefits
offered by Geita District Hospital to keep staff staying with them are salary packages
which include several types of allowances. From this study, it’s revealed that employees
in the hospitals are prioritized they’re concerned about having a competitive healthcare
package and benefits from the management.
D. Work-life Balance
An average mean value of 3.36 (Maximum = 5) was obtained. This illustrates that
healthcare employees are concerned about their balance between work and personal
lives. Items such as flexible working hours, family responsibility and work autonomy are
special complementary added on employee’s workload in private healthcare which was
considered vital in providing them with a balanced lifestyle. As pointed out, the reasons
for many professional workers considered the importance of work-life balance in work
because it shows the ability of employees to handle their work and family responsibilities
as well as other activities in their lives (Parkes & Langford, 2008).
E. Employee Recognition
An average mean value of 3.45 (Maximum = 5) was obtained. The findings proved that
healthcare employees are very concerned about their professionalism. For instance, from
the participant’s perspective, nursing is one of the most stressful jobs because of working
and dealing with patients. Thought, stressors are common and unavoidable in the
healthcare workplace. Realizing the challenges, skills, knowledge and professional
performance delivered, therefore professional healthcare is expecting the management to
value and recognize their contribution at work. Asserted by Jackson et al. (2012),
rewarding of high performers by leaders encourages and uphold their performance
levels and hard work; recognition given towards any tasks may further motivate an
employee to double more efforts to accomplish the tasks.

Andrew Sija
4.5.2 Determinants and Employee Retention

Depicted from the results of Pearson Correlation Analysis suggested that employee
recognition is the most influential determinant correlated with employee retention
followed by job satisfaction, work environment, compensation and benefits and work-
life balance. We conducted a further analysis using Multiple Regression and the outcome
revealed that two independent variables were significant in this analysis which was
employee recognition and job satisfaction while work environment, compensation and
benefits and work-life balance variables were not significant. On the strongest
determinant of employee retention at this time, again the result from the multiple
regression depicted that employee recognition was the most dominant determinant
impacting employee retention at selected private healthcare in East Malaysia. The result
of this study was reliable as it is similar to the result found in the study conducted by
Subraminiam et al. (2019), they concluded that employee recognition had a significant
impact on employees' willingness to remain with their employer. The result was also in
line with the study done by Wong et al. (2020), they discovered that to lower the turnover
rate of nurses, it is important of having a good leadership strategy towards nurses by
recognizing their contribution as an organization's "asset" or valuables to improve their
satisfaction and well-being. On supporting this, we refer to the “Trendicators Best
Practice Report, 2020” on the employee recognition trends, the report on employee
preferences revealed that about 89% of employees say receiving recognition for
performance increases engagement, 85% say recognition makes them feel more valued
and 67% of employees believe that being recognized or praised during onboarding is
important. So, it is clearly understood that employee recognition plays a vital role in
improving employee retention, engagement and performance. However, while
employees believe recognition is crucial, there continues to be misalignment between
employee preferences and workplace realities. Even Maslow’s theory of needs pointed
out that each individual requires appreciation and a sense of acknowledging from peers,
colleagues or superiors and this could be the reason why employee recognition was the
strongest predictor of employee retention in private healthcare at this time. As such, this
study provides crucial insights into determinants that affect these healthcare employees’
retention and suggest a mechanism to improve their retention.
5. Conclusion and Recommendations
Finally, our study contributes to a better understanding of retaining healthcare

professionals in private healthcare institutions. We also concluded that the primary focus
of this study is on determinants that predict employee retention rather than identifying
employees who are likely to stay or leave. The implication of this study provided two
incredible findings which were on healthcare employee recognition and secondly on their
job satisfaction. Employee recognition is regarded as the strongest predictor for employee
retention among healthcare professionals. As we refer again to the “Trendicators Best
Practice Report, 2020” on the employee recognition trends, the report on what do
employees want to be recognized for, revealed that about 40% of employees say they

Andrew Sija
wanted “success”, followed by “knowledge or expertise” accounted for 24%, “Effort”

was 20% and for 16% for “living care values”. Based on this, a disparity exists between
what employees want to be recognized for and the prevalence of performance
recognition programs in healthcare institutions. On the second implication, the study
revealed the impact of job satisfaction on employee’s retention which was relevant if
measured by itself and it may be significant if other elements or variables used in this
study were not to be encountered altogether. This considered that the job satisfaction
needs and concerns are increasing for the healthcare employee in private healthcare at
the moment. Job satisfaction among employees such as nurses in private healthcare is one
of the most important factors in quitting their jobs which increase the need for more
nurses and subsequently, arguments the workload of current nurses, leading to their
dissatisfaction. All healthcare institutions are struggling to retain the scare skills of their
healthcare professionals. Inherent to this study is that retention determinants can predict
employee retention. It is essential that the managers of human resources or managers of
Nursing, Allied Health and Support Unit in the hospitals concerned are cognizant of
those retention determinants which can lead to retention of employees. Some brief
recommendations to the human resource unit include: enhancing employee recognition
program, promotion opportunities and knowledge development, good rapport and
leadership skills among the head of department, practice work-life balance with a flexible
schedule, adopting new analysis software to keep track of attrition and etc. For critical
departments like nursing, the nursing directors and managers need to determine the
effective factors on nurses’ job satisfaction and they need to control the factors and take
some measures to increase their satisfaction levels. Also, they need to consider the
managerial job and environmental factors in order to evaluate the effectiveness of their
measures periodically to improve job satisfaction. Therefore, the results of this study can
be very helpful in developing managerial programs in order to foster the critical
determinants affecting healthcare professionals’ job satisfaction and how it can be
promoted.
5.1 Future Research Direction

Notably, the findings of this study are limited only to selected private hospitals in East
Malaysia, thus it should not be generalized across all healthcare institutions (private and
public). Research in the future should aim to investigate the reasons for the healthcare
professional intention to quit and seek to assess the relationship of these determinants on
human resource policy and practice. It is also suggested that the sample be increased for
a higher survey response rate. In addition, a qualitative research approach is taken in
future in order to generalise actual feelings on retention and job satisfaction. Moreover, a
comparative study on private and public hospitals could also be conducted in future.
Conflict of Interest Statement

The author can assure, confidently express that no conflicts of interest possibly linked
with this research, and there has been no significant financial aid received for this study,

Andrew Sija
authorship and publication that could have influenced the study’s outcome. The author
affirms that this research is original and has not been published in the past or elsewhere.
About the Author

Dr. Andrew Sija is a lecturer at University of Technology Sarawak, Malaysia. He has more
than 20 years of experience in various sectors within the education and financial services
industry. He holds a Doctorate Degree in Business Administration, a Certified Trainer in
Business Accounting, PSMB (Malaysia) and a Certified Instructor on Accounting for
Hospitality Industry, AHLEi (USA). His research interest is in accounting, banking,
education and business management.
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Question 2

Unstandardized Coefficients Standardized Coefficients

i) The regression equation:

Model R R Square Adjusted R Square Std. Error of the Estimate Durbin-Watson

Unstandardized Standardized 90.0% Confidence

Selling Prices and Bedrooms (Scatter Plot 2)

Selling Prices and Square Footage

Selling Prices and Bedrooms

Selling Prices and Age (Years)

Selling Prices and Square Footage

Selling Price and Age (Years)

Selling Prices and Square Footage

Selling Prices and Bedrooms

Selling Prices and Age (Years)

AN ADOPTION OF FINTECH SERVICE IN MALAYSIA

Intention towards Adoption of FinTech

Perceived Ease of Use toward the Adoption of Fintech

Perceived Usefulness toward the Adoption of Fintech

Social Influence toward the Adoption of Fintech

Personal Innovativeness toward the Adoption of Fintech

Security Concern toward the Adoption of Fintech

Perceived Enjoyment toward the Adoption of Fintech

Figure 1: Conceptual Framework of the Study

Perceived Ease of Use H1

Research Design and Data Collection

Table 1: The Structure of Questionnaires, Cronbach’s Alpha and Sources

Xu, Li, Peng, Hsia, Huang, & Wu (2017)

Boyle & Ruppel (2006)

Gupta & Xu (2010)

Wang, Lin, Wang, Shih, & Wang (2018)

Venkatesh, Thong, & Xu (2012)

Table 2: Demographic Profiles of the Respondents

Reliability & Discriminant Analysis

Table 3: Reliability, Mean and Standard Deviation

Table 4: Correlation Coefficient of Independent Variables and Dependent Variable

Table 5: Regression Results of Independent Variables on Intention to Adopt Fintech

Intention to Adopt Fintech and Gender of Respondent

Table 6: Group Statistics and Constructs Samples Test of Gender

Intention to Adopt Fintech and Age of Respondent

Table 7: Group Statistics and Constructs Samples Test of Age

26 - 35 years old 99 5.453 0.993

Figure 2: Mean Plot of Intention to Adopt Fintech and Age

CONCLUSION AND DISCUSSION

Keng-Soon, William Choo

Hong-Leong, Julian Teh

DOI: 10.46827/ejhrms.v5i4.1220 Volume 5 │ Issue 4 │2022

JEL: E24; J24; I10

Copyright © The Author(s). All Rights Reserved 53

Keywords: employee retention, job satisfaction, working environment, compensation

European Journal of Human Resource Management Studies - Volume 5 │ Issue 4 │ 2022 54

1.1 Rationale for the Study

European Journal of Human Resource Management Studies - Volume 5 │ Issue 4 │ 2022 55

Table 1.1: Number of Resignations for the Year 2018 – 2020

Table 1.2: Number of In-Patient

Table 1.3: Overtime Cost

European Journal of Human Resource Management Studies - Volume 5 │ Issue 4 │ 2022 56

intimate to management, to investigate the cause before it becomes more serious

2.1 Employee Retention

2.2 Job Satisfaction

European Journal of Human Resource Management Studies - Volume 5 │ Issue 4 │ 2022 57

2.3 Working Environment

H2: Working environment shown positive and significant relationships influence

European Journal of Human Resource Management Studies - Volume 5 │ Issue 4 │ 2022 58