Research has shown consistently that there are different factors which predicts turnover, so this study investigates that what factors, cause employees to leave one organization and join another. Second, to find out the significant impact of each variable on turnover. It is hypothesized that human resource management practices are negatively correlated with employee turnover. In this study multiple regression analyses will be run to test a model that included the above mentioned independent variables as predictors of intent to quit in banking sector. Six banks and a total of 120 respondents from these organizations participated in the designed scale. Findings show that realistic job information, job analysis, work family balance, supervisor support, and compensation were negatively correlated with employee’s turnover.
The field of human resource management has gained attention of researchers in the recent years. This study broadly focuses on the impact of human resource (HR) practices on employees’ turnover. In addition to this, the study also focuses on various HR practices in the banking industry with respect to employees working for banks.
Commercial banks play a vital role in the economic activity of a country, as the state bank of Pakistan implements monetary policy with the help of commercial banks. As government of Pakistan is facilitating the investors in every sector due to which lot of multinational banks have encouraged investing in banking sector. The new multinational banks no doubt created lot of employment opportunities for the Pakistani youth but it also raised the phenomenon of employee turnover. Turnover has become a major concern for organizations especially in banks with employee shortages and competitive pressures making retention of key employees a strategic issue. There is no doubt retaining top talent is a high priority with the war for talent in today’s workplace and the changes in the larger business world, organizations have to do more than pay well.
As the paradigm of lifetime employment becomes unrealistic, the question who stays with you? has assumed great importance in organizations today. Simultaneously, there has been an increasing tendency to ‘buy in’ the talents of professionals with cross functional skills in order to create a competitive advantage. One visible effect of this has been a consistent rise in the pay packages of most organizations so as to attract and retain the most desirable employees. Such a trend over the last few years has resulted in an unstable labor market, especially for industries such as marketing, advertising, finance and software where the skills are by and large transferable, from one work environment to another (McEvoy et al., 1987).
The undesired loss of competent personnel is costly to an organization in both direct and indirect terms. Therefore Turnover reduction may be a goal for some employers to reduce replacement and training costs, increase...