Abstract:

Employee’s turnover has been of keen interest for both managers as well as researchers. There are substantial turnover studies for variety types of organization. In contrast, the discussion of turnover issue among direct selling’s distributor is limited especially in Asia Countries. Based on previous research, turnover rate in direct selling is reaching an alarming rate while it would yield negative perceptions among customer and also impact the size and continuity of revenue generation by an organization’s distributors. As 11th largest direct selling country in the worldwide, this is necessary to understand the direct distributor’s behavior towards turnover intention in Malaysia. Multilevel marketing is the most popular compensation plan compares to the rest in direct selling industry. This paper tends to narrow down the research scope by focusing direct selling organization which adopt multilevel compensation plan. Several critical determinants which theoretically and empirically tested in previous turnover studies will be discussed. Toward this end, a conceptual turnover model will be constructed to illustrate the relationship of determinants toward turnover intention.