Determinants of Employee Loyalty in Private Healthcare: A Case Study at KMI Kuala Terengganu Medical Centre, Malaysia.

Abstract

This study explores the critical issue of employee loyalty at KMI Kuala Terengganu Medical Centre in light of rising turnover rates, particularly among clinical staff. It investigates the influence of five key factors, employee benefits, employee empowerment, structural empowerment, psychological empowerment, and job satisfaction on employee commitment. Guided by Herzberg’s Two-Factor Theory and Job Enrichment Theory, the research adopts a quantitative approach using survey data from 210 employees. Employee benefits, psychological empowerment, and job satisfaction were found to have significant positive relationships with employee loyalty, indicating that these factors play a crucial role in fostering commitment among staff at KMI Kuala Terengganu Medical Centre. In contrast, employee empowerment and structural empowerment did not show a significant influence on employee loyalty, suggesting that merely providing authority or access to resources is insufficient without addressing deeper psychological needs and overall job satisfaction. These findings highlight the importance of focusing on intrinsic motivation and employee well-being to strengthen organizational loyalty.