ABSTRACT

High turnover in services sector occurs in outsourcing company that provides catering service to government hospital. There are various factors that contribute to the high turnover rate including low pay rate, working long hours, inadequate training provided and poor working environment. This paper examines the factors that contribute to high turnover rates. The samples for this study are the outsourcing catering workers in government hospital. The information required was gathered through self-administered and face to face questionnaire. Through frequencies, descriptive (mean score) and linear regression analysis, some useful insights on the issues investigated were obtained. Based on research findings, working environment is the strongest influence on retaining the workers, followed by compensation system.