KCAInsuranceBerhad(KCA)isapubliclistedMalaysianproperty-casualtyinsurance

company.Fortheyear2021,KCArecordedanemployeeturnoverrateof21.5%ascomparedto its main competitor, SVP Bhd, which had an employee turnover rate of only 6%. The salaryandincentivesfortheemployeesofthetwoinsurancecompaniesaresimilar.Shahmi,thenewHuman Resource manager of KCA is seriously concerned about the relatively low employeeretention at the company. He strongly believes that this issue is associated with an elevatedlevel of employee dissatisfaction. He is keen to apply the Herzberg's two-factor theory tominimise the employees' dissatisfaction and ultimately increasing their satisfaction level andretentionrate.

1. DiscussTWO(2)reasonswhyahigh employeeturnoverrate isanissuetoKCA.

(10marks)

2.UsingHerzberg'stheoryofmotivation,suggesthowKCAcouldminimiseemployees'dissatisfaction, achieveemployees'satisfaction,andenhanceemployees'motivation.

(10marks)