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Determinants of Employee Retention

In Banking Sector

Presented By

Irfan Amir Ali

08-0053

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The retention of employees has shown to be important for the

development and the accomplishment of the organizational goals

and objectives.

In today’s competitive scenario, Employee Retention becomes one ofthe major issue because people are the one who generates profits and

considered as the capital or asset of the organization.

 Retention of employees can be crucial source of competitive

advantage in any organization.

No business can enjoy and maintain the success until it deals with

employee retention problem efficiently and successfully.

INTRODUCTION

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The purpose of this study is to determine the factors that most

significantly influence employees decisions to remain employed at a

particular organization.

To analyze the impact of career development opportunities thatcontribute to the retention of employees.

To find out the impact of reward system on employee retention.

To ascertain the possible impact of working environment on retainingthe employees of the organization.

To determine the impact of supervisor support on employee retention.

RESEARCH OBJECTIES

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Independent variables Career Opportunities

Supervisor Support

Working Environment

Rewards

Dependent variables Employee Retention

ARIAB!ES

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THEORETICA! "RA#E$OR% 

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H1: Increased career opportunities results into higher employee

retention.

H2: Increased supervisor support results into higher employeeretention.

H3: Good working environment has positive significant impact on

employee retention.

H4: Increased rewards results into higher employee retention.

H&'OTHESIS

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Research Design The type of study will be quantitative descriptive research.

Population

 The population of my research is the employees of different banks in

Karachi. In which I have selected the top 4banks which include 3 localprivate banks, 1 government bank.

The banks which are used in conducting my research are as follows

Habib Bank limited

Muslim commercial bank

 Allied Bank limited National bank of Pakistan

Others banks

RESEARCH #ETHODO!O(&

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Sample Size

 The sample size of this study will be 180 employees from 4different banks in Karachi. The 40 samples will be allocated toeach banks. Sampling method would be the convenience

sampling.

Measurement/ Instrument Selection

 Primary data would be collected through questionnaires the data will beprovided by the employees of different banks in Karachi. While

Secondary data would be collected from different articles, research

papers, magazines and different sources on internet.

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Demographic Analysis

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Interpretation:The research survey was conducted from the employees of different in

Karachi from a sample of 180 respondents. The response percentage was

100%, in which 78.9% were males and 21.1% were females.

Gender

Frequency Percent Valid Percent

Cumulative

Percent

 Valid Male142 78.9 78.9 78.9

Female38 21.1 21.1 100.0

Total180 100.0 100.0

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  Interpretation:The majority of respondents of the surveybelonged to the age group 26-35 years which is 41.7%. The percentage

of respondent in this category 18-25 is about 8.9%, Next 34.4% of the

respondents were from 36-50 age bracket and the remaining 15% ofthe respondents belonged more than 50 years of age group.

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Interpretation:

The bar chart shows the breakup of the participants included in this

survey in terms of organization. The survey comprised of five different

banks in which 12.8% employees of MCB, 24.2% employees of ABL, 22.2%employees of each HBL and NBP and 18.3% employee’s of others banks

have participated in this research.

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Interpretation:

The bar chart shows the breakup of the participants included in this

survey in terms of designation. In this research 37.8 employee’s are on the

designation of manager and above, 46.1% employees are officer level which

is the highest percentage of all, 13.3 % employees are staff, and 2.8%

employees are on the other designations.

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Interpretation:The bar chart shows the breakup of the participants

included in this survey in terms of work experience. 5% were having less than

one year of experience.19.4 percent were having between 1 – 2 years ofexperience.23.9 percent employees were having 2-5 years of experience and

51.7 percent of people were having more than 5 years of experience in the

banking sector.

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Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Supervisors Support 179 1.00 5.00 3.5829 .64000

Career Opportunities 180 1.00 5.00 3.6833 .71232

Working Environment 180 1.00 5.00 3.4611 .79217

Rewards 180 1.00 5.00 3.4611 .79217

Retention 180 1.43 4.86 3.4524 .64075

 Valid N (list wise) 179

#ean Analysis of aria)les

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 Cross Ta)*lation Bet+een Banks An,

In,epen,ent -aria)les

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MCB HBL NBP ABL OTHERS Total3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

Supervisor Support

Super!"or Support

Cross Tabulation – Supervisor support and

Organizations

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Cross Tabulation – Career Opportunities and

Organizations

MCB HBL NBP ABL OTHERS

#

#.5

$

$.5

2

2.5

3

3.5

4

Career Opportunities

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MCB HBL NBP ABL OTHERS#

#.5

$

$.5

2

2.5

3

3.5

4

Working Environment

Mea%"

Cross Tabulation – Working Environment and

Organizations

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MCB HBL NBP ABL OTHERS#

#.5$

$.5

2

2.5

3

3.5

4

4.5

Rewards

Re&ar'"

Cross Tabulation – Rewards and Organizations

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 Correlation between independent and

dependent variables

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Interpretation:

The correlation is tested between the supervisor support and employee retention.

Table shows the positive correlation between supervisor support and employeeretention. The correlation between them is 0.332 which is low correlation. The

Correlation is significant at the 0.01, and the significant level or p-value of this

variable is less than 0.01 so it represents that the results are statistically

significant which indicates that supervisor support is essential for employee

retention.

H1: There is a significant relationship between supervisor

support and Employee retention/commitment

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Interpretation:

The correlation is tested between the Career opportunities and employee

retention. Table shows the positive correlation between Career opportunities

and employee retention. The correlation between them is 0.268 which is low

correlation. The Correlation is significant at the 0.01, and the significant levelor p-value of this variable is less than 0.01 so it represents that the results are

statistically significant, which indicates career opportunities result in to higher

employee retention.

H2: There is a significant relationship between Career

opportunities and Employee retention/commitment

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The correlation is tested between the working environment and employee retention.

Table shows the positive correlation between working environment and employee

retention, the relationship exists between two variables. The correlation between

them is 0.417 which is moderate correlation. The Correlation is significant at the

0.01, and the significant level or p-value of this variable is less than 0.01 so it

represents that the results are statistically significant, which indicates good working

environment has positive significant impact on employee retention.

H3: There is a significant relationship between Working

Environment and Employee retention/commitment

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Interpretation:The correlation is tested between the rewards and employee retention. Table shows the positive

correlation between Rewards and employee retention, there is a relationship exists between two

variables. The correlation between them is 0.417 which is moderate correlation and it is same asworking environment. The Correlation is significant at the 0.01, and the significant level or p-

value of this variable is less than 0.01 so it represents that the results are statistically

significant, which indicates rewards and benefits has positive significant impact on employee

retention.

H4: There is a significant relationship between Rewards and

Employee retention/commitment

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Regression Analysis

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 Interpretation:Now looking at the coefficient table, the p value of supervisor support is (0.000) is below

the 0.01 it means that the supervisor support is the significant variable in the model. According to beta, this means that 1% change in independent variable is estimated to

change 0.333% change in dependent variable. Supervisor support has a positive

relation with the dependent variable which is employee retention.

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Interpretation: Now looking at the coefficient table the ! "al#e of career o!!ort#nities

is $0%000& is below the 0%0' it means that the career o!!ort#nities is the significant

"ariable in the model% According to beta this means that '( change in inde!endent

"ariable is estimated to change 0%)*'( change in de!endent "ariable% +areer

o!!ort#nities ha"e a !ositi"e relation with the de!endent "ariable which is em!loyee

retention and has a !ositi"e im!act on commitment of em!loyees%

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Interpretation:Now looking at the coefficient table, the p value of workingenvironment is (0.000) is below the 0.01 it means that the working environment is the

significant variable in the model. According to beta, this means that 1% change in

independent variable is estimated to change 0.337% change in dependent variable.

working environment has a positive relation with the dependent variable which is

employee retention and it really contribute to retaining employees.

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Interpretation: Now looking at the coefficient table, the p value of Rewards is

(0.000) is below the 0.01 it means that the Rewards are significant variable in the

model. According to beta, this means that 1% change in independent variable is

estimated to change 0.337% change in dependent variable. A reward has a positiverelation with the dependent variable, which is employee retention and it really

contributed to retaining employees.

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Hypothesis Accepted/

Rejected

H1: Increased career opportunities results

into higher employee retention

 Accepted

H2: Increased supervisor support results

into higher employee retention.

 Accepted

H3: Good working environment has positive

significant impact on employee retention.

 Accepted

H4: Increased rewards results into higheremployee retention.

 Accepted

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The outcome of this study have clearly shown that the independent variables which arecareer opportunities, supervisor support, working environment, rewards and have a direct

and positive impact on the dependent variable that is employee retention.

Today it has become essential to have a committed, loyal and retained work force, as it is the

one whose loyalty can actually pay off in the long run to gain a competitive edge in the

business.

Therefore if the banking sector work on these determinants and apply them in the

organization it would definitely foster the employee retention and ultimately turn over will

be less.

Therefore if the banking sector work on these determinants and apply them in the

organization it would definitely foster the employee retention and ultimately turn over will

be less.

CONC!USION

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Exist interview system may be introduced which will help management inansweringthe question why employees leave them, and then work on those areas

which influence employees to leave their organization.

Organizations should identify those benefits which have more influence on

employee retention

 A training programs may be established as a regular practice for provision of

training and retraining (refreshment courses) opportunities for their employees.

 

This research reveals that employees feel to be retained in the organization where

the jobs and careers are very well defined.

RECO##ENDATIONS

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,hank yo#