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JOB SATISFACTION AMONG MALAYSIAN YOUTH WORKING IN THE OIL PALM

PLANTATION SECTOR: ANALYSIS OF ATTRACTION AND REPULSION FACTORS

Conference Paper · May 2016

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 Proceeding – 3rd Kuala Lumpur International Agriculture, Forestry and Plantation
May 21 - 22, 2016. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-13952-4-0

JOB SATISFACTION AMONG MALAYSIAN YOUTH WORKING IN THE OIL PALM PLANTATION
SECTOR: ANALYSIS OF ATTRACTION AND REPULSION FACTORS

Roslina Kamaruddina
a
School of Economic Finance and Banking,
Universiti Utara Malaysia

Mohd Amizib,
b
Universiti Malaysia Kelantan

Norehan Abdullaha,
a
School of Economic Finance and Banking,
Universiti Utara Malaysia

Jamal Alia
a
School of Economic Finance and Banking,
Universiti Utara Malaysia

Siti Aznor Ahmada

a
School of Economic Finance and Banking,
Universiti Utara Malaysia

ABSTRACT

Oil palm is labour intensive crops where the labour issue is one of the most intransigent problems facing the industry.
The negative perception towards this sector associated with the unattractive working environment which is commonly
refer to dark, dirty and dangerous have distress local youth to stay away from this occupation. Thus the objective of
this paper is to explore the level of job satisfaction among oil palm plantation workers in Malaysia and analysing the
factors contribute to their satisfaction level. The survey was conducted in 2013 through interviews from the selected
samples of oil palm plantation workers that aged ranging from 16 to 40 years old which was considered as youth
category and staying within the location 5 kilometres radius within the plantation area. The Structural Equation
Modelling is used to analyse the factors effecting job satisfaction among workers in the plantation sector. The study
found that the government and employer policies associated with plantation worker and economic profitability offered
in this sector were the most significant factors that positively contribute to the joy of working among them. While the
negative relationship between working environment and perception of social job status with job satisfaction proven that
these two factors were repulsion factors. Thus strengthening in policies and economic incentive, as well as re-branding
the working environment and social job status seen are the best way to raise the level of job satisfaction among the
plantation workers in Malaysia.

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INTRODUCTION

The agricultural sector is playing an increasingly important role in Malaysia’s economy, not only helping the country to
achieve food security for local consumption, but also generating strong levels of export earnings. The palm oil industry
leading the way here, whereas export earnings from palm oil and palm-based products totalled RM80.30billion in 2011,
contributed about 61.80% of Malaysian total export value (Ministry of plantation and Commodity, 2012). As of 2014,
Malaysia had 5.4million ha under cultivation for oil palm trees and the sector was providing employment for
approximately 450,000 upstream workers or plantation sector, with a further 290,000 employed in associated
downstream industries (MPOB, 2014).

Oil palm is labour intensive crops where the labour issue is one of the most intransigent problems facing the industry.
This is because agriculture was not viewed as an attractive alternative to other work sectors such as manufacturing,
private, and public sector employment. Most of the workers in plantation sector were getting older and efforts to recruit
local youths also failed as the younger generation seemed more attracted to urban employment even though net incomes
are lower and thus resulting in decreased productivity (Mohamed, 1992). The other worrying problem is the dramatic
increase reliance on foreign workers in upstream activities. In 2014, out of 450,000 plantation workers, 77.8% are
foreigners and the remaining are locals. Indonesian is the largest single nationality that represents foreign workers in the
plantation sector. Currently, Sabah provides employment to 150,800 foreign workers in the plantation sector. This is
followed by Peninsular Malaysia which provides employment for 119,800 foreign workers and Sarawak with 79,700
foreign workers (MPOB, 2014). Now, with the local youth negative perception on agriculture sector and Indonesia’s
economy booming and wages on the rise, Malaysia is struggling to attract new expatriate workers and retain those
already active in the sector.

Youths are the future of a country with their limitless energy and aspiration. Since currently there is job scarcity in other
more established fields such as government as well as the private sectors, the ability of agriculture sector particularly in
oil palm plantation to create an environment so that youth are willing to embark in this sector is grossly required. Oil
palm plantation companies have to counter this by enhancing the working welfare of workers in order to ensure their
job satisfaction in plantation environment. Employees that have a high job satisfaction care more about the quality of
their work and therefore are more committed to their organization (Scott, 2005). According to George and Jones (2008),
job satisfaction is “the collection of feelings and beliefs that people have about their current jobs. People’s level of job
satisfaction can range from extreme satisfaction to extreme dissatisfaction”. Others have defined job satisfaction as “a
positive feeling about a job resulting to an evaluation of its characteristics” (Robbins and Judge, 2009, p.83).

There is lack of study have been done on the aspect of plantation worker’s welfare with regards to their job satisfaction.
Most of the previous studies in the field of plantation sector in Malaysia particularly highlights on the environmental
impact of oil palm plantation (Germer & Sauerborn, 2008; Hansen, 2007; Chiew & Shimada, 2013), developments in
the Malaysian palm oil industry (Basiron, 2002), economic performance of palm oil plantation company (Ramasamy,
et.al., 2005), sustainable plantation and responsible farming practices (Shuit et.al., 2009, Basiron, 2007). Thus, this
study provides a better understanding of the factors that contribute to job satisfaction among plantation workers. Result
from this study also could provide some recommendations to help management in Plantations companies develop a
strategy to increase the level of employee satisfaction towards their job. This study is to convince the organization that
job satisfaction is very important among employees to enhance their performance. With the strategy recommended by
this study, employees will be getting the higher level of job satisfaction, increase their performance and feel happy to
work in plantation sector.

METHODOLOGY

This study is highly depends on the survey method to derive accurate information from respondents. The survey was
conducted in 2013 through interviews from the selected samples of palm oil plantation workers that aged ranging from
16 to 40 years old which was considered as youth category and staying within the location 5 kilometres radius within
the plantation area. In total 379 plantation workers from of Northern, East-Coast and Southern of peninsular Malaysia
and Sabah and Sarawak, were successfully interviewed to answer the questionnaire. All the data were coded directly on
to a questionnaire and then entered into a Statistical Package for Social Sciences (SPSS) software. In order to analyse
the factors effecting happiness of the workers working in the plantation sector by applying Structural Equation
Modelling this study also used AMOS version 16 software.

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May 21 - 22, 2016. Hotel Putra, Kuala Lumpur, Malaysia. ISBN 978-967-13952-4-0

Based on field study and literature review, hypothesized model is shown in Figure 1. This model assumes the
dimensions of job satisfaction of oil palm plantation workers will be influenced by economic profitability offered,
working environment factors, government or employer’s policy, social facilities provided by employer, and perception
of social job status toward this occupation. List of indicators for each dimension are presented in Table 1. Formation of
model is divided into two stages. The first stage is the validation of indicators for each dimension by using confirmatory
factor analysis and the second stage is to analyze the relationship between the dimensions by using structural equation
modeling.

Figure 1: Hypothesized model of factors influence the job satisfaction among oil palm plantation workers in Malaysia

0, 0, 0, 0, 0, 0, 0, 0, 0, 0,
e40 e41 e42 e43 e44 e45 e46 e47 e48 e49
1 1 1 1 1 1 1 1 1 1
C81 C82 C83 C84 C85 C86 C87 C88 C89 C90
1 0,
1 C60 e19
0 1 0,
0, 1 C61 e20
0, 1 HAPPINESS 1
e4 C45 eh 1 0,
C62 e21
0, 1 0, 0, 0,
e5 C46 1
ECONOMIC C63 e22
0, 1 SOC FACILITIES
1 1 0,
e6 C47
C65 e24
0, 1 0,
e8 C49 1
C66 e25
1 0,
0, 1 C67 e26
e9 C50
1 1 0,
0, 1 0, 0, 1 C68 e27
e10 C51
1 0,
ENVIRONMENT SOC STATUS
0, 1 C70 e29
e11 C52 1 0,
0,
C71 e30
0, 1 POLICY
e12 C53 1 0,
C72 e31
1

C74 C75 C76 C77 C78 C79 C80

1 1 1 1 1 1 1
0, 0, 0, 0, 0, 0, 0,
e33 e34 e35 e36 e37 e38 e39

Table 1: List of variables used in the model

Variable Description of indicators Symbol

Job satisfaction I feel happy work in the oil palm plantation sector C81
Working on the farm gives me satisfaction. C82
I will continue to work in oil palm plantation sector C83
I would invite and influence friends / family to work in the plantation C84
sector
I am willing to work overtime at the farm C85
I intend to encourage children to get involved in the plantation work C86
I will always make sure that all levels of society understand and respect
plantation work C87
I am willing to motivate youth to engage in plantation sector
I feel this is the only work that suitable with my soul C88
I feel incoherent if I’m outside the farm for long time. C89
C90
Economic profitability Education allowance for worker’s children could attract local people. C45
Salary payment on monthly basis could attract local people to work in
the plantation sector. C46
Providing incentives and basic needs could attract local people to work
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in the plantation sector C47

Working Environment
Social facilities
Social job status
Government/ employer
policy
Food allowance provided during working hours can attract local
workers C49
Work in the plantation is dangerous and risky. C50
Work in the plantation is dirty / messy and smelly C51
Work in the plantation is hard and onerous C52
Uncertain working day and hour due to weather condition C53
Availability of facilities listed below could attract local workers.
Computer and internet access
Up to date sports and recreational facilities should be extended to all C60
levels of employees C61
Availability of the night market / farmers market / grocery / mini
supermarkets near to plantation area C62
Multi-purpose hall facility in the estate’s housing area Conducive
mosque/place of worship C63
Free transportation service for children going to schools C65
Health clinic facilities C66
C67
Rebranding of the post’s name in plantation sector could improve the C68
social status of plantation workers
Up-grading the occupation to semi-skilled workers could attract locals C70
to work in the plantation sector
Re-structuring the working systems to be more modern could attract C71
local workers
Wearing a uniform can enhance the image of farm workers and so can C72
attract local workers
Trust Fund as preparation prior to retirement should be provided to C74
attract local workers
Limited prospects of career development is not able to attract local C75
workers.
Policy on recruitment of foreign workers to work in plantation sector C76
should be stopped to attract local workers
The increasing number of foreign workers in the plantation sector C77
reduce the interest of local workers to enter the plantation sector.
Availability of easier and cheaper government housing schemes (in the
form of housing loans) could attract local workers C78
The existing worker’s house provided by employers could attract local
workers.
The government should tighten the policy in hiring foreign workers by C79
hiring workers from one country only to reduce the negative impact.
C80

RESULTS

As mentioned in methodology section, the formation of model is divided into two stages. The first stage is the
validation of indicators for each dimension by using confirmatory factor analysis and the second stage is to analyze the
relationship between the dimensions by using structural equation modeling. Results of the confirmatory factor analysis
were summarized in Table 2. The fitness level of model is fit enough with the index of CFI, IFI and TLI more than 0.95
and factor loading value of indicators for each dimension is greater than 0.5. The value of Cronbach alpha for each
dimension also greater that 0.7 as suggested by most of the statistical books. Thus all indicators selected are well
represents each dimension listed in the Table.

Table 2. Results of the Confirmatory factor analysis model that shows indicators for each dimension

Indicators of dimension Coefficient S.E C.R Cronbach

value value alpha

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JOB SATISFACTION 0.909

I feel happy work in the oil palm plantation sector (C81) 0.717

Working on the farm gives me satisfaction (C82) 0.778 0.073 14.632

I will continue to work in oil palm plantation sector (C83) 0.808 0.077 15.209

I would invite and influence friends / family to work in the 0.829 0.076 15.606
plantation sector (C84)
I am willing to work overtime at the farm (C85) 0.772 0.076 14.521
I intend to encourage children to get involved in the 0.684 0.084 12.863
plantation work (C86)
I will always make sure that all levels of society understand 0.535 0.072 10.034
and respect plantation work (C87)
I am willing to motivate youth to engage in plantation sector 0.701 0.072 13.173
(C88)
I feel this is the only work that suitable with my soul (C89) 0.703 0.081 13.214
I feel incoherent if I’m outside the farm for long time (C90) 0.548 0.084 10.276
WORKING ENVIRONMENT 0.775
Work in the plantation is dangerous and risky (C50) 0.511

Work in the plantation is dirty / messy and smelly (C51) 0.808 0.186 9.550

Work in the plantation is hard and onerous (C52) 0.874 0.186 9.590
Uncertain working day and hour due to weather condition 0.554 0.145 7.895
(C53)
ECONOMIC PROFITABILITY 0.796
Education allowance for worker’s children could attract local 0.717 0.101 10.433
people (C45)
Salary payment on monthly basis could attract local people 0.713 0.090 10.401
to work in the plantation sector (C46)

Providing incentives and basic needs could attract local 0.808 0.105 11.092
people to work in the plantation sector (C47)
Food allowance provided during working hours can attract 0.603
local workers (C49)
SOCIAL FACILITIES 0.910
Computer and internet access facilities should be provided to 0.812
attract local workers (C60)
Up to date sports and recreational facilities should be 0.839 0.048 18.861
extended to all levels of employees (C61)
Availability of the night market / farmers market / grocery / 0.784 0.056 17.165
mini supermarkets near to plantation area could attract local
farms (C62)
Multi-purpose hall facility in the estate’s housing area could 0.726 0.049 15.514
attract local workers (C63)
Conducive mosque/place of worship (C65) 0.698 0.053 14.739
Free transportation service for children going to schools 0.754 0.049 16.302
(C66)
Health clinic facilities (C67) 0.774 0.046 16.883
SOCIAL JOB STATUS 0.751

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Rebranding of the post’s name in plantation sector could 0.621

improve the social status of plantation workers (C68)

Up-grading the occupation to semi-skilled workers could 0.766 0.099 11.176

attract locals to work in the plantation sector (C70)

Re-structuring the working systems to be more modern 0.806 0.092 11.434

could attract local workers (C71)
Wearing a uniform can enhance the image of farm workers 0.509 0.107 8.263
and so can attract local workers (C72)
GOVERNMENT/ EMPLOYER POLICY 0.820
Trust Fund as preparation prior to retirement should be 0.731 0.081 11.767
provided to attract local worker (C74)
Limited prospects of career development is not able to attract 0.506 0.082 8.656
local workers (C75)
Policy on recruitment of foreign workers to work in 0.516 0.102 8.803
plantation sector should be stopped to attract local workers
(C76)
The increasing number of foreign workers in the plantation 0.507 0.097 8.669
sector reduce the interest of local workers to enter the
plantation sector (C77)
Availability of easier and cheaper government housing 0.778 0.085 12.316
schemes (in the form of housing loans) could attract local
workers (C78)

The existing worker’s house provided by employers could 0.712 0.086 11.531
attract local workers (C79)
The government should tighten the policy in hiring foreign 0.644
workers by hiring workers from one country only to reduce
the negative impact (C80).
FIT MEASURES
CMIN/DF = 3.614 TLI = 0.962 RMSEA = 0.083
CFI = 0.967 IFI = 0.967

Table 3 shows the results of structural equation model for factors that influencing the job satisfaction of workers
working in plantation sector. The sign of standardized coefficient for predictors imply the way of influences. Positive
sign means the attraction factor and negative sign means the repulsion factor. Economic profitability and government
policies variables become an attraction factors with the coefficient values of 0.208 and 0.237, respectively. Economic
profitability is composed of monthly salary payment, other incentives and education allowance for worker’s children.
This findings proven that employees who receive these incentives would be more satisfied with their jobs or might feel
more empowered, therefore having a higher job satisfaction. Besides, government or employer’s policy of employee’s
welfare package such as housing scheme, schooling of their kids, retirement plan, healthcare services and limitation of
foreign workers intake also positively influence the plantation worker’s job satisfaction. Improvement in welfare
package is expected to boost the morale of plantation workers towards the job, which positively impact on their job
satisfaction (Okwoche et.al, 2015).

While working environment is the most important repulsion factor that contributes to the job satisfaction of worker in
the oil palm plantation sector with a standardized coefficient of -0.213. This is followed by social facilities provided (-
0.107) and social status (-0.107). However social facilities and social status is not significant in influencing the level of
job satisfaction among plantation workers. This is due to the distance of most of the selected FELDA is within 5km
radius from city so that they have an easy access to facilities provided at nearest town.

Table 3. Estimates of regression weights of independent variables influencing job satisfaction among plantation workers
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Independent variables Standardized Standard Critical Ratio Probability

Coefficient error value value
Economic Profitability 0.208 0.076 2.777 0.005
Working Environment -0.213 0.082 -3.460 0.001
Social facilities provided -0.107 0.071 -1.243 0.214
Perception of social job status -0.107 0.101 -1.222 0.221
Government/employer’s policies associated
0.237 0.112 2.265 0.023
with plantation workers

DISCUSSION

Working environment in the oil palm plantation that synonyms with the terms of ‘Dirty, Dangerous and Difficult (3D)’
is the most important factor that contributes to the reduction in job satisfaction among workers in the oil palm plantation
sector. However, this sector will still be an option if the wage offered is commensurate with the sweat and energy
disbursed. This study revealed that the economic profitability and employee’s welfare package offered by employers are
able to increase job satisfaction among plantation workers which it’s will retain them in the sector and could attract new
workers join the sector. For example, in the '80s many Malaysians are willing to work in 3D sector in Singapore sector,
especially in the construction sector due to relatively high wages.

Thus taking into account the experience, the 3D sector in this country could also engage local workers especially the
youth. The sector must be transformed through several improvements. The most significant aspect is the salary offered.
Wages or salaries must be competitive as compared with other economic sector and commensurate with the nature of
plantation work which is quite heavy, difficult, dangerous and challenging. In the current situation wage of RM800 or
RM900 is no longer appropriate. Taking into account the cost of living is rising every day, the rate of wages can be
categorized as very low for local workers. In the meantime employers should also be willing to provide other facilities
such as a comfortable place to stay, transportation facilities, retirement plan and other incentives if necessary. Moreover
to ensure the safety of plantation workers, the government should introduce a regulation on plantation safety, enforce
Good Plantation practices and raise awareness of occupational safety standards among plantation workers.

Improvements in the aspect of education and training for '3D' sector’s employment is also need to be considered by
government. Appropriate training in related fields can stimulate the interest of local youth to enter this sector. The
problem is not many employers are willing to do so because of the cost. Where possible employers try to minimize their
costs, therefore they prefer to hire foreign workers. In addition, this study also proved that social status on plantation
work is not significant in influencing the job satisfaction among plantation workers. This situation implies that public
perception about this job are not consistent with the perception of the people involved in the sector. Thus the public
perception regarding social status of the job in the agriculture sector as generally have to be altered. Dissemination of
accurate information related to the importance of plantation sector to Malaysian economic, the environment and the
benefits of working in the plantation sector must be expanded in order to educate and hence to attract the public
especially the youth to get involve in plantation sector. If this happens, the domestic unemployment rate could be
improved and outflow of funds to foreign countries could be curbed as well.

CONCLUSION

This study analysed the factors that contribute to job satisfaction among plantation workers in Malaysia by using
structural equation modelling method. Results have shown that economic profitability and employer/government
policies are positively influence the job satisfaction among workers, while working environment is influence
negatively. However social facilities and social status is insignificant in influencing the level of job satisfaction. A
satisfied employee is more likely to be creative, flexible, innovative, and loyal. The job satisfaction influences various
aspects of work such as efficiency, productivity, absenteeism, turns over the rates and intention to quit. Thus to retain
the existing employees and to attract the youth involve in plantation sector, wages or salaries and other incentives (such
as housing scheme, transportation, schooling for kids, retirement plan) must be competitive as compared with other
economic sector and commensurate with the nature of plantation work which is quite heavy, difficult, dangerous and
challenging. On the hand to ensure the safety of plantation workers, the government should introduce a regulation on
plantation safety, enforce Good Plantation practices and raise awareness of occupational safety standards among
plantation workers. Appropriate training and dissemination of accurate information about 3D sector can stimulate the

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interest of local youth to enter this sector, since currently there is job scarcity in other more established fields such as
government as well as the private sectors.

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