Determinants of Employee Retention

In Banking Sector
Presented By
Irfan Amir Ali
08-0053

INTRODUCTION

The retention of employees has shown to be important for the

development and the accomplishment of the organizational goals
and objectives.
In todays competitive scenario, Employee Retention becomes one of
the 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.

RESEARCH OBJECTIVES

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 that
contribute 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 retaining
the employees of the organization.
To determine the impact of supervisor support on employee retention.

VARIABLES
Independent variables

Career Opportunities
Supervisor Support
Working Environment
Rewards

Dependent variables

Employee Retention

THEORETICAL FRAMEWORK

HYPOTHESIS

H1: Increased career opportunities results into higher employee

retention.
H2: Increased supervisor support results into higher employee
retention.
H3: Good working environment has positive significant impact on
employee retention.
H4: Increased rewards results into higher employee retention.

RESEARCH METHODOLOGY
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 local
private 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

Sample Size

The sample size of this study will be 180 employees from 4

different banks in Karachi. The 40 samples will be allocated to
each banks. Sampling method would be the convenience
sampling.
Measurement/ Instrument Selection
Primary data would be collected through questionnaires the data will be
provided 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.

Demographic Analysis

Gender

Frequency
Valid

Male
Female
Total

Percent

Valid Percent

Cumulative
Percent

142

78.9

78.9

78.9

38

21.1

21.1

100.0

180

100.0

100.0

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.

Interpretation: The majority of respondents of the survey

belonged 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% of
the respondents belonged more than 50 years of age group.

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% employees of others banks
have participated in this research.

Interpretation:
The bar chart shows the breakup of the participants included in this
survey in terms of designation. In this research 37.8 employees 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.

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 of
experience.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.

Mean Analysis of Variables

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

Cross Tabulation Between Banks And

Independent variables

Cross Tabulation Supervisor support and

Organizations
Supervisor Support
3.9
3.8
3.7
3.6
3.5
3.4
3.3
3.2

MCB

HBL

NBP

ABL

Supervisor Support

OTHERS

Total

Cross Tabulation Career Opportunities and

Organizations

Career Opportunities

3.5
3
2.5
2
1.5
1
0.5
0

MCB

HBL

NBP

ABL

OTHERS

Cross Tabulation Working Environment and

Organizations
Working Environment
4
3.5
3
2.5
Means

2
1.5
1
0.5
0

MCB

HBL

NBP

ABL

OTHERS

Cross Tabulation Rewards and Organizations

Rewards
4.5
4
3.5
3
Rewards

2.5
2
1.5
1
0.5
0

MCB

HBL

NBP

ABL

OTHERS

Correlation between independent and

dependent variables

H1: There is a significant relationship between supervisor

support and Employee retention/commitment

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

H2: There is a significant relationship between Career

opportunities and Employee retention/commitment

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 level
or 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.

H3: There is a significant relationship between Working

Environment and Employee retention/commitment

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.

H4: There is a significant relationship between Rewards and

Employee retention/commitment

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 as
working environment. The Correlation is significant at the 0.01, and the significant level or pvalue 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.

Regression Analysis

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.

Interpretation: Now looking at the coefficient table, the p value of career opportunities
is (0.000) is below the 0.01 it means that the career opportunities is the significant
variable in the model. According to beta, this means that 1% change in independent
variable is estimated to change 0.241% change in dependent variable. Career
opportunities have a positive relation with the dependent variable which is employee
retention and has a positive impact on commitment of employees.

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

environment 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.

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 positive
relation with the dependent variable, which is employee retention and it really
contributed to retaining employees.

Hypothesis

Accepted/
Rejected

H1: Increased career opportunities results

into higher employee retention
H2: Increased supervisor support results

Accepted

Accepted

into higher employee retention.

H3: Good working environment has positive

Accepted

significant impact on employee retention.

H4: Increased rewards results into higher
employee retention.

Accepted

CONCLUSION

The outcome of this study have clearly shown that the independent variables which are
career 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.

RECOMMENDATIONS

Exist interview system may be introduced which will help management in

answering the 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.

Thank you