Organisation Justice Towards’ Employees Voluntary Turnover: A Perspective of SMEs in Malaysia

Abstract

Turnover of employees has gained the attention of organisations due to the impact of human resources on organisation performance and competitive advantage. This dilemma leads the management to struggle to find ways and retain employees. To attract, organisations use the "pull factors" to entice employees to perform better in the organisation. This study was conducted to investigate the relationship between the three dimensions of organisational justice: distributive, procedural and interactional justice towards voluntary turnover. This was an explanatory study that used a quantitative research design. Through a survey method, data was collected from a total of 115 respondents. The findings revealed that there was a significant relationship between employee turnover, distributive justice, procedural justice, and interactional justice. However, interactional justice had the strongest impact. This study also unearthed that attractive compensation is not the only method for the management to retain talent in organisations. Organisational justice plays an essential role in the retention of employees. These results will provide a better understanding of supervisors and human resource professionals with additional insights into the impact of organisational justice on employees' turnover. This study indicates that organisations' interactional justice practised is considered a central factor for employee retention. Although prior research has investigated a number of these issues, this study was the first to focus on employees in Small and Medium Enterprises in Malaysia.