The Impact of Human Resource Management Practices on Employees Turnover in Banking Sector of Pakistan

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Abstract

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.

Introduction

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 sh...

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...fessionals: an exploratory study of employee turnover.

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Siebert, S., Zubanov, N., Chevalier, A., & Viitanen, T. (2006). Labour Turnover and Labour Productivity in a Retail Organization.

Smithers, A., & Robinson, P. (2003). Factors affecting teachers decisions to leave the profession: Department for Education and Skills.

Tanniru, M., & Taylor, S. (1981). Causes of turnover among data processing professionals—some preliminary findings.

Willem, A., Devos, A., & Buelens, M. (2007). Differences between Private and Public Sector Employees’ Psychological Contracts. Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium.

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