Reasons of Employee Turnover in Banking Sector in Pakistan

Introduction

Employees are considered as the people who have the functions to control the outcome of one certain task. In a service industry, employees are expected to provide performance according to their roles. It is because; people or customers are the essential elements of the organization that has the ability to dictate the flow of their sales. However in banking sector, the scenario is different from the other industry because of the recognized continuous increase in employee turnover.

Background and Problem Statement

Many studies had been carried that composed of investigative property in terms of determining the factors that might affect the performance of the employees. It is important for the organization in global environment to have a competitive performance. Often, the performances are based on the abilities of the people to deliver the knowledge and skills. This same idea is true in banking sector, wherein the performances are the after sought contribution of the employees for the organization. The effectiveness of an employee is manifested in the performance of the organization. Due to this fact, the increase number of opportunities available makes an impact in employee turnover (Akhtar, 2006). The focus of the paper is to provide the reasons behind the employee turnover, especially among the banking sector in Pakistan.

Research Aim and Objectives

The main aim of the study is to identify the factors that contribute in the employee turnover in Pakistan, particularly in the banking sector. In order to answer the aim of the study, three objectives are needed to satisfy. First is to recognize the growing trend of employee turnover. Second is to investigate the environment of Pakistan’s banking sector. And third is to describe the perceptions of the employees as well as the bank managers regarding the turnover.

Literature Review

Various researches already crafted regarding to the job design, motivation and the associated factors, strategies to increasing the job performances, job satisfaction, employee involvement, and the effectiveness of training and development. All the studies are fashioned with the aim to either understand the employee’s nature of work or to create contribute towards the employees’ performance and competitiveness. There are several factors that play an important role to maintain the impact of globalization within the organization. The increase in employee turnover can be drawn from many disciplines. Banking sectors in Pakistan demonstrated that job design can have an effect on employee motivation that can increase the employee’s performance in their respective workplace. The job design and models are presented according to the banks’ goal in enhancing the efficiency and effectiveness to deliver the services. It is identified that job design creates an influence towards the performance of an employee because it can guide the behavior of an individual, and it can provide appropriate competitive actions towards the global competition (University of Central Punjab, 2009). On the other hand, it is believed that the employee participations can affect the job satisfaction. As inspired by the domino effect, if an employee achieved the satisfaction towards the work, they can gain the productivity and commitment to give the necessary performance – all for the advantage of the organization (Bhatti & Qureshi, 2007). For over the years, international organizations are attempting to decode the elements behind the job satisfaction and commitment which definitely adds value to people’s productivity. A wide array of industries, including the banking sectors, believed that the there is a positive relationship be between employee participation and the Job satisfaction and job satisfaction with employee productivity, commitment and turnover. Naturally, there is a long-term participation of employee to attend the demands of organizations and the organization, on the other hand, can be successful in the market. This also establishes the concept of organizational culture because of the influence of competitiveness because of the effects of the employees’ performances (Bukhari, 2008).

Methodology

The suggested method in the study is through the survey and interview. Because the study needs to understand the reason behind the employee turnover, the survey can be an effective tool to demonstrate the perceptions of the employee. There are 50 participants are bank’s employees who will represent the population of the employees. The questionnaires are according to the Likert Scale to gain the understanding the impact of the theories and practices applied in employees are effective to increase the level of participation and turnover. And on the second part, the interview is focused on the 5 management (including the managers, HR managers, supervisors) employees to give details regarding the applied strategies to increase the turnover of the employees.

References:

Akhtar, S., (2006) Shamshad Akhtar: Pakistan’s Capital Markets – Mobilizing for Growth [Online] Available at: http://www.bis.org/review/r070117g.pdf [Accessed 12 July 2010]

Bhatti, K.K., & Qureshi, T.M., (2007) Impact of Employee Participation on Job Satisfaction, Employee Commitment and Employee Productivity, International Review of Business Research Papers, 3(2) [Online] Available at: http://www.bizresearchpapers.com/Bhatti.pdf [Accessed 12 July 2010].

Bukhari, Z., (2008) Key Antecedents of Organizational Citizenship Behavior (OCB) in the Banking Sector of Pakistan, International Journal of Business and Management, 3(12) [Online] Available at: http://ccsenet.org/journal/index.php/ijbm/article/viewFile/712/684 [Accessed 12 July 2010]

University of Central Punjab (2009) Job Design with Respect to Employee Motivation & Job Performance (Pakistan’s Banking Industry) [Online] Available at: http://www.scribd.com/doc/18064754/Job-Design-wrt-Employee-Motivation-and-Job-Performance [Accessed 12 July 2010].