research 11
research 11
research 11
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2024, Vol. 11, No. 1
Received: December 6, 2023 Accepted: January 2, 2024 Published: January 16, 2024
doi:10.5296/jebi.v11i1.21623 URL: https://doi.org/10.5296/ jebi.v11i1.21623
Abstract
In contemporary society, work occupies a significant portion of people's lives due to the
financial and economic imperatives of modern living. However, research has demonstrated
that job satisfaction cannot be achieved solely through financial incentives. Therefore, it is
crucial to comprehend the diverse factors that motivate individuals to work and to contribute
to overall job satisfaction. This study aims to examine the relationship between working
environment, salary, and job security in relation to job satisfaction, aiming to provide deeper
insight into the critical factors that influence employees’ satisfaction and consequently impact
their overall performance. In the scope of this research, the population to be investigated
encompasses the staff of Sarawak Digital Economy Corporation, positioned as a
government-linked enterprises in Sarawak region. The sample size comprises 107
participants among employees of Sarawak GLC (Government-Linked Companies). The
research instrument utilized for data collection was a questionnaire and the results were
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analyzed using the Statistical Package for Social Sciences (SPSS). The study reveals a
substantial influence of three pivotal factors- namely, the working environment, salary, and
job security significantly- on job satisfaction. These findings hold significant implications,
potentially serving as a valuable reference for understanding and insight into job satisfaction
within the broader context of Sarawak ‘s business ecosystem. Such insights are valuable for
academic research and business studies across the region.
Keywords: Salary, Job Security, Working Environment, Job Satisfaction
1. Introduction
Effectively managing personnel within today's organizations is both a formidable challenge
and an essential imperative. The workforce, as the cornerstone of a company's prosperity,
plays a pivotal role in shaping its success. Regardless of a company's size, geographical
location, sector, or primary industry, it wields substantial influence over the job satisfaction of
its employees. Satisfied employees exhibit a heightened commitment, enthusiasm, and a
natural inclination towards demonstrating loyalty, whether directly or indirectly, to their
employers. Such dedication and engagement among employees make a substantial
contribution to the company's overall productivity and long-term sustainability. Evidently, job
satisfaction may be defined as an individual's inclination to engage actively in their assigned
tasks, considering their relevance to their role and various job-specific attributes. The
duration an individual chooses to spend on their tasks and other related attributes can also be
indicative of satisfaction. Job satisfaction is contingent upon the extent to which a job fulfils
the needs and nurtures the sense of contentment essential for one's commitment and
enthusiasm towards their role. Therefore, it is crucial to understand the various factors that
motivate individuals to work and what contributes to job satisfaction. This research will
provide general overview of the study, as well as the idea that researchers have pursued, and
will help readers in comprehending the overall research background. In the year 2018,
Sarawak Government embarked on Digital Economy Initiative and created an agency,
Sarawak Digital Economy Corporation (SDEC) to spearhead the initiative. As a
government-linked company (GLC), SDEC is totally funded by the state government to run
all the projects and programs that are mandated by the Premier Office. The breadth of the
scope is from capacity building to all the way to telecommunication infrastructure
management. The most important information to have regarding an employee in an
organization is a validated measure of his/her level of job satisfaction. The study aims to
explore the connection between Herzberg's Two-Factor Theory, specifically focusing on the
hygiene factors encompassing working environment, salary, and job security, and their impact
on job satisfaction within the context of SDEC. By examining these factors, the research
endeavors to shed light on the dynamics of job satisfaction among employees in Sarawak,
Given the significant geographical and demographic distinctions of Sarawak, findings from
studies conducted on other factors in Peninsular Malaysia may not be directly applicable
(Liang et al.,2022; Zainuddin et al., 2021; Andrew et al., 2016; DOSM, 2010), particularly
within government-linked companies (GLCs), with the ultimate goal of enhancing the overall
job experience for this specific workforce.
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job or job-related experiences (Top & Ali, 2021). Clearly, the desire to undertake tasks that
are regarded as relevant to their work and to the many aspects of the job itself can be
interpreted as job satisfaction. The amount of time someone prefers to spend performing their
duties, among other things, can be referred to as satisfaction. As per Subagja & Safrianto
(2020), employees who experience job satisfaction tend to exhibit loyalty towards the
company and show active involvement in their work. This positive attitude fosters an
environment where they are motivated to continuously enhance their performance. The
exploration of job satisfaction holds significant appeal for both individuals employed within
organizations and researchers who delve into organizational studies; hence, it is imperative to
thoroughly examine this subject and pinpoint the subject that can effect on job satisfaction.
2.1 Relationship of Salary towards Employees’ Job Satisfaction
Salary stands as a pivotal determinant of work happiness and discontent, widely recognized
as the single most important factor for employees to boost productivity, attract new talent,
and reduce turnover rates. Job satisfaction is notably influenced by three key factors: the
potential for competitive pay and career advancement, a well-organized hierarchy, and the
overall working conditions. In a study conducted within the Malaysian insurance sector, Yee
(2015) highlighted the paramount importance of salary as a primary motivator for employee
satisfaction. This research involved 102 respondents from diverse insurance companies in
Alor Setar, Kedah, revealing that salary exerted the most substantial influence on job
satisfaction among employees. Additionally, Shah et al. (2017) identified a noteworthy
association between job satisfaction, income, and turnover intention among private secondary
school teachers in Rawalpindi and Islamabad. In a parallel context observed in Jakarta,
Indonesia, similar findings were evident, and Ramli (2019) specifically addressed this
phenomenon, unraveling the intricate interplay among compensation, job satisfaction, and
ensuing employee performance.
Furthermore, companies wield significant influence over their employees, and this influence
is reflected in how individuals perceive their work. Notably, Shah et al. (2015) found a
substantial link between job satisfaction, income, and the intention to leave among private
secondary school teachers in Rawalpindi and Islamabad. Masea (2016) emphasized the
positive impact of salary on job satisfaction among academic staff in South African higher
education institutions. Effective pay practices are pivotal for companies seeking to attract and
retain top-tier employees right from the job application stage. Conversely, employees must
consistently deliver high-performance levels to safeguard their employment. The interplay
between pay practices and job satisfaction is notable. Hsiao and Lin (2018) underscore the
crucial role of pay as a robust determinant of job satisfaction. Nuraya and Pratiwi (2017)
further emphasize the substantial impact of salary and motivation in fostering job satisfaction
A myriad of other studies, including those by Uddin et al. (2016), Liyana (2017), Jean et al.
(2017), Darma et al. (2017), Pepra (2018), Ramli (2018), and Khudhair et al. (2020), further
validate the critical role of compensation and salary in shaping job satisfaction and enhancing
employee performance across diverse industries and regions. Based on this understanding, we
propose the following hypothesis:
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H1: There is a significant relationship between salary and employees ‘job satisfaction.
2.2 Relationship Between Job Security and Employees’ Job Satisfaction
Job security plays a crucial role in employee productivity and job satisfaction. As highlighted
by Imam et al. (2019) when employees enjoy a sense of career stability, they can channel
their efforts into achieving their best performance. Job security pertains to an employee's
anticipations regarding the stability and durability of their position within an organization.
Jandaghi et al. (2011) defined job security as the sense of having a secure job, with the
assurance of its continuity in the future, coupled with the absence of threatening factors.In the
perspective of Hur (2022), when employees perceive that organizations and employers
prioritize and ensure job security, they respond with positive attitudes towards both their job
and the organization. He argued that organizational type serves as a crucial subgroup variable,
given the institutional differences between public and private organizations. Consequently,
the relationship between job security and work attitudes and behaviors may vary, depending
on whether the organization is public or private. In the same vein, in a study conducted in
Indonesia, Yulita et al. (2022) uncovered a direct link between job security and employee job
satisfaction. The establishment of positive superior-subordinate relationships, along with
ensuring job security, can foster a comfortable and satisfying work environment for
employees.
Abuhashesh et al. (2019) underscored the critical importance of analyzing job security for the
retention of talented personnel and the reduction of turnover rates within the Jordanian
industrial sector. Employees who feel assured about their job security are more inclined to
stay with the organization, set long-term career goals, and experience heightened job
satisfaction. Nemteanu et al. (2021) contended that job security is a crucial determinant of job
satisfaction, applicable not only to highly trained employees who theoretically could secure
alternative positions in case of job loss but also to those who do not fall into this category.
Conversely, those who perceive their job as precarious often contemplate seeking alternative
employment. Londa & Permatasari (2021) conducted a study in Indonesia, unveiling a direct
connection between job security and employee job satisfaction. Establishing robust
superior-subordinate relationships and ensuring job security can engender a comfortable and
satisfying work environment for employees, further enhancing their well-being and
performance.
Job security also acts as a motivator when employees can see a clear link between their
achievements and their future within the organization. organizations that fail to provide job
security may face challenges such as high turnover, absenteeism, low morale, and reduced
employee engagement. Based on the discussion, it can be concluded that there is a strong link
between job security and employees’ job satisfaction. Hence, it is hypothesized that:
H2: There is a significant relationship between job security and employees’ job satisfaction.
2.3 Relationship btween the Working Environment and Employees’ Job Satisfaction
The environment has a major impact on employee satisfaction. Establishing a conducive
working environment is a paramount concern for organizational functioning. Unfortunately,
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satisfaction.
3. Research Framework
This study is dedicated to investigating the potential influence and interrelationships between
three key aspects and their connection to job satisfaction, with the aim of establishing a
relationship between independent and dependent variables. The three aspects under scrutiny,
namely working environment, salary, and job security, are treated as independent variables,
while job satisfaction serves as the dependent variable. These independent variables are
interrelated and collectively exert an impact on the dependent variable. The conceptual
framework is presented in Table 3.1 below.
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there are 52 contract staff, 77 individuals at the executive level, and 3 employees classified as
non-executive level staff within SDEC. The data collection method involves distributing
self-administered online questionnaires to the respondents using Google Forms. To ensure the
validity of the measurement items, a pilot study was conducted by administering
questionnaires to a randomly selected group of employees. Data analysis for this research was
performed using SPSS version 27 software.
5. Result
The Statistical Package for Social Sciences (SPSS), Version 27, is used to handle and analyse
the data as part of the data analysis matrix. This study employed correlation-type statistics
since it was interesting in evaluating the relationship between working environment, salary
and job security and their influence on employees’ job satisfaction. Out of the 132
questionnaires distributed to our intended participants, we received a total of 107 complete
questionnaires. Interestingly, this study observed a higher level of engagement among male
participants in comparison to their female counterparts. Among the 107 respondents, the age
group between 26 to 34 was the most prominent, with 49 individuals, constituting
approximately 45.79 percent of the total sample. Furthermore, the majority of the respondents
consisting of respondents were degree holders. The reliability analysis was conducted to
assess the consistency of independent and dependent variables. Cronbach’s alpha coefficients
for the independent variables to be 0.952. Regarding the reliability analysis of the dependent
variable, the Cronbach's alpha coefficients were determined to 0.913 which were deemed to
be excellent. The correlation analysis examines the strength of the relationship between
independent variables for working environment, salary, and job security toward dependent
variables of job satisfaction. The result of correlation analysis show that salary is significantly
correlated with job satisfaction as the reading is (0.675**, p<0.01). This indicates that salary
has a strong linear relationship with job satisfaction. A strong relationship was also detected
between the working environment and job satisfaction because the result was (0.712**,
p<0.001). This has proven that working environment is an important determinant to job
satisfaction and suggested that job satisfaction influences the job satisfaction in employees of
GLC in Sarawak, Malaysia. Besides that, job security is an important determinate to job
satisfaction by looking at the result of (0.8797**, p<0.01). This shows that job satisfaction
has the strongest relationship with sales performance compared to other variables conducted
in this study.
Based on the three results presented, it is evident that Salary, Working Environment, and Job
Security demonstrate a significant correlation with job satisfaction among employees in
GLCs in Sarawak, Malaysia, as depicted in Table 4.1.
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Pearson
1 .675** .519** .727**
Correlation
Salary Sig.
<.001 <.001 <.001
(2-tailed)
n 107 107 107 107
Pearson
.675** 1 .712** .797**
Correlation
Job
Sig.
Satisfaction <.001 <.001 <.001
(2-tailed)
N 107 107 107 107
Pearson
.519** .712** 1 .680**
Correlation
Working
Sig.
Environment <.001 <.001 <.001
(2-tailed)
N 107 107 107 107
Pearson
.727** .797** .680** 1
Correlation
Job Security Sig.
<.001 <.001 <.001
(2-tailed
N 107 107 107 107
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Model Std.
B Error Beta t Sig.
(Constant) .676 .226 2.992 .003
Working Environment.306 .068 .308 4.230 <.001
1
Salary .140 .059 .186 2.384 .019
Job Security .411 .083 .452 4.979 <.001
Note. a. Dependent Variable: Job Satisfaction.
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6. Discussion
The results highlight a positive correlation between the Hygiene Factors, which encompass
the Working Environment, Salary, and Job Security, and Job Satisfaction. These findings
align with previous research, such as Raziq's study in 2015, which also emphasized the strong
positive correlation between the working environment and job satisfaction.
It is evident that employees place a high value on job security, as indicated by an impressive
correlation (r = .797) with a significant level (0.01). This aligns with the conclusions drawn
by Sri Wahyuni in 2020, emphasizing the positive and robust relationship between job
security and job satisfaction. Our study reaffirms this relationship among employees of
SDEC. In the context of Sarawak, job security exerts a particularly profound effect on job
satisfaction. This could be attributed to the limited job opportunities in Sarawak compared to
Peninsular Malaysia, evident in the disparity in GDP growth (Yeo & Park 2023) and the
region's high poverty rate. Consequently, job security is prioritized by Sarawakian employees.
Similar trends are observed in Peninsular Malaysia, as illustrated by Badrolhisam et al.
2019 study on employee career decision-making among government workers. Among the
three factors considered (salary and benefits, working environment, and job security), job
security emerges as the most influential factor in career decision-making. Therefore, job
security not only contributes to job satisfaction but also plays a pivotal role in shaping career
decisions.
7. Conclusion
This study has offered updated research in factors affecting job satisfaction in Malaysia. The
finding of this study managed to prove that working environment, salary and job security
impacted on job satisfaction amongst the employees of GLCs in Sarawak Malaysia.
Therefore, enhancing job satisfaction among employees in government-linked companies
(GLCs), such as the Sarawak Digital Economy Corporation (SDEC), is crucial for fostering a
more committed and motivated workforce. By prioritizing these factors, organizations can
create a positive work environment that encourages employees to be more dedicated,
productive, and aligned with the company's objectives. Consequently, this heightened job
satisfaction can lead to increased profitability and a stronger competitive position within the
market. As other companies take notice of the success achieved by GLCs like SDEC, they
may adopt similar strategies to enhance their own business operations, ultimately benefiting
both employees and employers in the long term.
The primary objective of this research is to gain a deeper understanding of the factors
influencing job satisfaction within the context of Government-Linked Companies (GLCs) in
Sarawak, Malaysia. This study examines three independent factors: working environment,
salary, and job security, in relation to the dependent variable, which is job satisfaction. The
insights and information collected from this study are intended to be considered not only by
the organization under examination but also by other companies interested in enhancing
employee morale and job satisfaction. The study's overarching goal is to assist GLCs in
enhancing employee satisfaction, with the expectation that this will lead to increased
productivity and overall performance. Additionally, this improvement can translate to a more
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favorable return on investment for the taxpayers who have contributed to the establishment of
these agencies in Sarawak. Moreover, this research makes a valuable contribution to the
existing body of knowledge on job satisfaction, with a particular focus on the unique
dynamics and factors influencing job satisfaction within Sarawak Digital Economy Berhad
and, more broadly, government-linked companies. The findings of this study can serve as a
point of reference for future research endeavors and provide a solid foundation for further
exploration of job satisfaction within the context of GLCs.
This research is not without limitations. Firstly, subsequent studies should prioritize a larger
sample size across diverse industry sectors. Secondly, future researchers may consider
hypothesizing about the impact of various factors, such as company culture, teamwork, and
employee training, to understand their differential effects. Thirdly, given that this research
was conducted in Sarawak, Malaysia, caution must be exercised in generalizing the results to
other countries. Fourthly, forthcoming research could delve into investigating moderator or
mediator variables and examining their roles in the relationship between hygiene factors and
job satisfaction. Therefore, this topic holds promise for future research endeavors.
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Journal of Entrepreneurship and Business Innovation
ISSN 2332-8851
2024, Vol. 11, No. 1
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Journal of Entrepreneurship and Business Innovation
ISSN 2332-8851
2024, Vol. 11, No. 1
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