Factors Affecting Employee Performance: A Case Study on Lynas, a Rare Earth Processing Company

Abstract

Good employee performance keeps an organisation strategically competitive, yet organisations must continually attract and retain suitable employees to sustain peak performance. Lynas, a multinational rare earth processing company listed on the S&P/ASX 200 and operating in Pahang, Malaysia, employs approximately 900 people and benchmarks its salary and benefits against the oil and gas industry. However, the relationship between job satisfaction, motivation, engagement, autonomy, and employee performance at Lynas had not previously been established. This study examined these relationships using a quantitative, descriptive research design. A stratified random sample of employees was surveyed using a structured questionnaire adapted from established instruments, yielding 61 usable responses from a target population of 879 employees. Data were analysed using Minitab statistical software, including descriptive statistics, Cronbach's alpha reliability testing, and regression-based hypothesis testing. Four of the five constructs demonstrated high internal consistency (Cronbach's alpha between 0.846 and 0.868), while motivation showed low but retained reliability (alpha of 0.304). All seven hypotheses were supported at the 95 percent confidence level, with employee engagement showing the strongest effect on employee performance (p = 0.000) and employee motivation the weakest among performance-related paths (p = 0.009). The findings confirm that job satisfaction, motivation, engagement, and autonomy each significantly and positively affect employee performance at Lynas, and that motivation, engagement, and autonomy each significantly affect job satisfaction. These results provide Lynas management with an empirical basis for refining human resource policy to strengthen retention and performance.