Retaining skilled workers through motivation: The Malaysian case

Skill drain is a loss of human capital, investment in education and training. This study examines if motivated, skilled workers at the firm level can retain skilled workers and mitigate the loss of human capital. A survey was conducted in Iskandar city to gather skilled workers’ feedback on their current working conditions in Malaysia. Completed responses were tested for data adequacy, reliability, factor analysis and multiple-regression analysis. The findings of this study suggest that skilled workers perceive instrumentality as their primary motivating factor, to be followed by expectancy and valence. Instrumentality in intrinsic and monetary rewards is vital in retaining skilled workers. The practical implication of this study suggests that monetary rewards and non-monetary recognition are effective in motivating and retaining skilled workers. Firms in other developing countries may consider implementing instrumental strategies in the workplace to retain skilled workers.