Factors Effecting Employee Turnover In Banking Sector.docx

Factors Effecting Employee Turnover in Banking Sector

Anum Mushtaq 2012-ag-877 MBA(3.5)Human Resource management

Inst. of Business Management Sciences University of Agriculture Faisalabad

DECLARATION

I hereby declare that the submission of this research work, “The Impact of Employee Motivation on Organizational Performance: In Educational Sector of Faisalabad” is my work regarding (MBA), Master’s of Business Administration of Human Resource Management Specialization. Certified By: Student Name Anum Mushtaq

Supervisor Name Sir Mr. Muhammad Sarfraz

DEDICATION

I want to dedicate all this effort and work to the beneficent, the merciful, To Almighty Allah for HIS Marvelous grace unto me during the period of my studies and to all those who have always encouraged me and support me anyway.

ACKNOWLEDGEMENT

My Gratitude goes to the Almighty ALLAH and Hazrat Muhammad (PBUH), then my Mentor in all things who saw me through thick and thin and helped me, guide me in writing this work.

As Beneficiaries of his guidance, I am very thankful and highly appreciative for the contribution of my supervisor, Sir Mr. Muhammad Sarfraz a Lecturer of Institute of Business Management and science (IBMS) department at university of Agriculture Faisalabad. I owe this work to my mentor, my supervisor Sir Mr. Muhammad Sarfraz whose comments, guidance, directions, constructive criticism and encouragement gave me inspiration and zeal to complete the work. Last but not the least I also do appreciate his kindness, understanding, patience and support. Last but not the Least I would finally like thank all my teachers, lecturers, whose mentorship and guidance has been of immense help to me. And I also want to extent my gratitude and special thanks to all those who have helped me in distinct ways to make this effort a success.

Abstract

The normal saying that the devil you know is better than the angel you do not know suggest that it is better for organizations to continue working with their existing employees than to encourage labour turnover by employing new employees most of the time. This study is an attempt to investigate the factors of employees’ turnover in the banking sector of Faisalabad, Pakistan. Employee’s turnover is major and vital issue facing by the banking industry in Faisalabad because of the shortage of skilled employment, economic growth as whole and employee turnover. This study focuses on the primary data, which has been collected through closed ended questions with a five point Likert Scale. The study uses purposive sampling technique to capture the response of bankers. The collected data has been examined and evaluated through Statistical Package for Social Sciences (SPSS). The results of data have been critically examined through each and every angle and hence, we reached on the finding of the research. This study concluded that job stress, workplace environment and immediate boss have effect on employee turnover.

Keywords:

job stress, workplace environment, immediate boss, employee turnover, Banking sector.

Table of contents Title Page Declaration Dedication Acknowledgment Abstract Chapter no:1 Introduction Chapter no:2 Literature review 2.1 Job stress 2.2 Workplace environment 2.3 Immediate boss 2.4 Hypothesis

Chapter No: 3 Research Methodology 3.1 Introduction 3.2 Research Design 3.3 Sample and Sample Technique 3.4 Research Instrument for Data Collection 3.5 Methods of Data Collection

Chapter No: 4 Data Analysis and Interpretation 4.1 Data Analysis 4.2 Presentation and Data Interpretation 4.3 Descriptive Analysis of the Data 4.4 Demographic Characteristics of the Study 4.5 Finding and Discussion of Results 4.6 Frequency Table

Chapter No: 5 Recommendations and Conclusion 5.1 Recommendations 5.2 Conclusion

Chapter No: 6 References

Chapter No 1: INTRODUCTION

Human resource is considered to be the center of all development processes of economy. But todays competitive business scenario is deteriorating social conditions of human resources, hence causing employee turnover. According to Price (1977) employee turnover is the ratio of the number of organizational members who have left during the period being considered divided by the average number of people in that organization during the period. The “seeds” or initial causes of turnover, arising out of the frustration related to budget cutting, hiring freezes, layoffs, and lack of development funds and opportunities, are more likely to be sown at such times.(Sharmistha, 2010) High turnover rate is problematic and have a negative impact on an organizations performance. According to Kevin et al (2004), although there is no standard framework for understanding employee’s turnover process as whole, a wide range of factors have been found useful in interpreting employee turnover. Organizations spend a lot on there workforces in terms of orientation and training, developing, preserving them in their organization. Therefore, administration at all expenses must reduce worker’s turnover. Although, there is no ordinary context for understanding the personnel turnover procedure as whole, a wide array of aspects have been initiate useful in initiating employee turnover Kevin et al.(2004)

The role of human capital is considered as a source of success in the operation of business organization that has already been recognized by the business entities. The service quality is subject to employees’ behavior especially during the job and employees are assets for service sector’s companies. Through the proactive approach and positive polices competitive companies are always busy to retain their employees and achieve organizational objectives. The prime challenge for the banking sector of Pakistan became now the retention of an employee, while young, energetic and intelligent employees always ready to switch over whenever he or she dissatisfy with any reason in the job. Profit and goodwill is being generated through these employees, who are the backbone of business entity. Induction, orientation, socialization, training and developing, maintaining and retaining of an employee spend more capital by the organization for minimizing employees’ turnover rate and cost of selection and recruitment. Banks use diverse HR techniques and methods for retention. Although there are numerous researches have been done to identify the factors for employees’ retention in many other businesses and industries but in banking industry especially in Faisalabad is also required to identify these factors, whether they are influencing on employee retention or not. In this research, I chose some variables to check relationship among them. These variables are work place environment, job stress and immediate boss that are going to be checked with employee’s turnover. The longer period retention of any employee is a significant part for competitive advantage, since when an employee keep hold of for a longer period, it will increase the performance of the bank and also helpful in enhancing the bank’s productivity. Many variables are forced to the employees to decide whether they will retain in the current company or leave the company, such security of job, salary along with other benefits, development of career and on the job training and special reward / recognition for special performance as

businesses are become competitive so they want to retain their employees for longer period (Samuel & Chipunza, 2009). According to Kevin et al (2004), although there is no standard framework for understanding employee’s turnover process as whole, a wide range of factors have been found useful in interpreting employee turnover. Employee turnover is a term that is widely used by many human resource practitioners. It is true that many studies have been conducted on this topic but what must be noted here is that most of the researchers focus on the causes and as such little had been done on examining the sources of employee turnover, effects and various strategies that can be used by managers in various organizations in Pakistan to ensure that there is employee continuity in their organizations to enhance overall organizational performance. According to Price (1977) employee turnover is the ratio of the number of organizational members who have left during the period being considered divided by the average number of people in that organization during the period. This term is also often utilized in efforts to measure relationships of employees in an organization as they leave, regardless of the reason. Organizations all over the world including Banks in Pakistan invest a lot in their employees in terms of training, developing, maintaining and retaining. The suggestion is that job stress attitudes hazard to the health of employees and in the long run the productivity of the organizations as well as the existence of the organizations and considering the fact that banking atmosphere is uncovered to many work types as well as contact with different groups of people cumulate to inherent threat that can be considered as stressors. Hence, the study into the place of job strains in the workers turnover with orientation to the banking sector of the economy. The Bank formally started operation from September 16,1999 with the slogan of “A People’s Bank with a Mission” success Abbasi et al. (2000). Managers should control employee turnover for the benefit of the

organization success. The works on employee turnover is divided into three groupings: sources of employee turnover, effects of turnover. Majority of researchers that had donated to the study of stress were of the views that job stress was as effect of the interaction of workforces and the situation of work although views varies about the reasons and consequence however, it was established that stress is a function of individual physical characteristics and employed conditions and the strategies to reduce turnover (Jones and Bright, 2001). The differences in individual features such as personality and managing style are the most important causes in expecting whether definite job conditions will outcome in stress or not. In other words, what is stressful to one person may not be stressful to someone else. In the same vein, some managers accept that stressful operational conditions are the essential elements organizations must use to turn on burden on workers and set asides health concern to persist creative and cost-effective in today’s economy although studies related with this mind set and trust predictable undesirable outcome such as absenteeism, tardiness, objective to quit etc which cannot be creative or gainful in today’s economy. The suggestion is that job stress attitudes hazard to the health of employees and in the long run the productivity of the organizations as well as the existence of the organizations and considering the fact that banking atmosphere is uncovered to many work types as well as contact with different groups of people cumulate to inherent threat that can be considered as stressors. Hence, the study into the place of job strains in the workers turnover with orientation to the banking sector of the economy.

The Private and Commercial Organization of Overseas Pakistan Foundation does not have proper rules and regulation on job security. It mainly focuses on the proper utilization of the employee at the maximum level rather than facilitating and compensating the employee accordingly in terms of retirement benefits and job security. This will badly affect indirectly the organization objective because the well trained, expert and professional employee space is not immediately professional and well expert employees in the organization (Maslo, 1970; Herzberg, 1973) .

If organizations face such situation in the present knowledge economy when their employees leave them or try say good bye to them the management must address these factors on priority basis. It is one of the crucial problems of an organization (Armstrong, 2009; Reiss, 2008). This problem affects not only their recent recruitments of human resource but also relentlessly those loyal and experienced employees who have worked for the organization for many years (Branham, 2005; Katcher and Snyder, 2007; Somaya and Williamson, 2008). It can be desirable and undesirable. It is the intercompany flow of employees. Theories give more importance to individuals in organization. In many organizations, talents and creativities are shut up. These can energize the progress of the organization but when shut up it results in high turnover of employees (Fisher, 2000).

Chapter no 2 : LITERATURE REVIEW Turnover is defined simply as “the reverse position of an employee in organization”. Many scholars have defined it very cutely. Cotton and Tuttle (1986) referred to it as an individual’s estimated probability that they will stay with an employing organization. Tette and Meyer (1993) defined it as “Conscious willingness to seek for other alternatives in other organizations”. This is mentioned in the Attitude Behavior theory of Fishbein and Ajzen (1975). Price and Mueller (2001) also described that turnover intentions construct alternative in measuring actual turnover. Zeki, Engin & Selim (2012: 107) define human capital as the stockpile of employee knowledge, attitudes, abilities, technical skills, creativity and experience that exist within an organization at a given point in time. A key factor that affects the flow of human capital or talent through an organization is employee mobility. Human capital has more mobility than

any other asset (Ballester, Livnat & Sinha, 2002). An organization will only be able to sustain a competitive advantage if it manages employee mobility effectively. Job turnover of employees can play a crucial role in an organizations long term achievements and success because the more workers contend the more the low ratio of employees‟ turnover, which will in return yields to the organization. It drives the performance towards the targets of its firms and institutions. The vital quality of human resources services which they may render in future is typically polished by retaining the well experienced old employees. Employee’s satisfaction is interlinked with rewards of retirement benefits or life time benefits and job security. The topic employees turnover is widely studied with multiple perspectives and suggested various factors are the causes of turnover of an employee in an organization. Some factors are demographics and some are biographic e.g. financial rewards, work environment, promotion, feeling of employees self accomplishment and self_ recognition, over stress of employees etc. No one can deny the fact that demographic variables have constant positive or negative links with turnover ratio like tenure, educational level, age, etc. It was found that turnover and age, tenure and income level have negative relationships (Arnold and Feldman, 1982; Cotton and Tuttle, 1986; Gerhart, 1990; Mobley et al., 1979; Price and Mueller, 1986; Wai and Robinson, 1998; Weil and Kimball, 1995). While, education level has positive relationship with turnover (Berg, 1991; Cotton and Tuttle, 1986). Turnover of employees is one of the challenging issues of modern business because employee is the soul of an organization. With turnover of well trained employees the organization will die. Several organizations have faced this problem and maximum time of high management and directors is consumed over it in order to minimize it to some extent or reduce its negative and damaging impacts on organization. One of these factors is the person-environment fit which is the degree of relevancy between the organization and employees. It is concerned with the responsibilities of

Human resource management to see the compatibility of workforce and business organization (Hatton and Emerson, 1998; Kristof, 1996). In this modern world of technologies and entrepreneurship it is considered important and crucial to equip their employees with the latest trends in business. Turnover of employees is a serious controllable facet. It is natural that frequently employees want change of environment and seek new challenging job. To accommodate their employees with these facets economically is really difficult and to provide them on annual basis, but unavoidably they have to provide these for their survival. Every organization plans to have low turnover ratio and high productivity efficiently and effectively. It is proper to manage the turnover of employees by providing them fringe benefits in order to satisfy their needs at Government level and Nongovernment level because both sectors contribute to the economy of the country. This strategy is not successful because there are so many other factors which have a serious effect on turnover of employees like work place environment , job stress and immediate boss which are the research areas of this manuscript. Very few researchers have focused on these variables so far. While studying further we have come to know that there are still rooms for researches on this topic. An employee’s perception must be studied before his selection as some researchers revealed that employees‟ attitude and behavior show how much they will yield to the business firm and how much they will affect the work environment positively or negatively. When workers perceive the working environment to cordial and genial they will stay there for long time (Moorman, 1991). An employee’s perception must be studied before his selection as some researchers revealed that employees‟ attitude and behavior show how much they will yield to the business firm and how much they will affect the work environment positively or negatively. When workers perceive the working

environment to cordial and genial they will stay there for long time (Moorman, 1991). The key workers continuously energize the operations as time passes. It is an open fact that turnover severely hits many best qualities of an employee particularly the organizational commitment. When an employee feels discontentment definitely he will seek alternative job accordingly. The ratio of turnover also depends upon the attitude and emotion of employee. The feeling of job dissatisfaction has proved to be the one of vital causes of turnover of employee (Saifuddin et al., 2008). High turnover ratio brings both direct and indirect costs. As Staw (1980) found that expenditures of selection, recruitment of new employees, training and development are called direct costs. Human beings are not machines. They are social animals and by nature possess some needs for survival. .They have some loopholes and expectations. These needs and expectations are constant all the times. They change with the passage of time. Some time they become so serious and even overlap all other activities due to which an employee starts having negative thin-king. In such situation the management must provide an environment for exchanging thoughts with good wishes. The management must find out what their employees need now and also in future what will be their needs and expectation in order to remove the anxiety of all types and minimize them. Recently, it has been found that the decrease in job security is one of the other strong reasons and factors which can affect job security more. They are globalization, advancement in technology, demographic accelerations and the instability of govt. policies (Smith, 1999, p. 196-198).

These concerns motivate the employees to have good feeling and job security in time of financial crises particularly. Job security makes employees contribute a lot to the organization. Suppose if an organization expels an employee from his job then what will be its impact in the society? The answer is

simple. Definitely this employee will disturb the rhythm of peacefulness and stability of the society (Guzel, 2001, p. 19; Taşkent, 1992, p. 38). It means it has deprived a family from its income earning rights.

Voluntary turnover is initiated by an employee and involuntary turnover by an employer (Choi, Musibau, Khalil &Ebi, 2012). Involuntary turnover also result from uncontrollable factors such as death and ill health. Functional voluntary and involuntary turnover could benefit an organization. For example, according to Archer (2008), employee turnover at lower organizational levels could be beneficial to banks because advances in technology continue to reduce the need for lower level skills in the banking sector. On the other hand, the need for nonmanual, intermediate and high level skills as well as value-adding competencies such as autonomy and discretion are on the increase in the banking sector (Archer,2008). Therefore, both voluntary and involuntary turnover could be dysfunctional if the result is a loss of human capital (Campbell, Coff & Kryscynski, 2012). In addition, dysfunctional employee turnover in banks ‘leads to the loss of the tacit knowledge possessed by leavers’ (Amah, 2009: 24).

Another reason why employee turnover continues to be of key importance for organizations is that the movement of employees in and out of an organization has direct financial implications for the organization. Organizations have to make provision for separation and replacement costs (including staffing and training costs) when voluntary and/or involuntary employee turnover occur (Abbasi & Hollman, 2000; Griffith & Horn, 2001). In addition, research findings show that dysfunctional employee turnover, in particular voluntary turnover, impacts negatively on, among others, business performance and organizational effectiveness (Shaw, Gupta & Delery, 2005; Tariq, Ramzan & Riaz, 2013) as well as employee commitment and customer satisfaction (Sing & Loncar, 2010; Wang, Yang & Wang, 2012). It is therefore imperative to reduce turnover rates in order to reduce separation and replacement costs and to enhance employees’ loyalty

and commitment to an organization which in turn could lead to better organizational performance.

"Employee turnover is a percentage judgment of the number of employees a firm must exchange in assumed period of time to the ordinary number of total personnel (Agnes, 1999). A vast concern to most companies, employee turnover is expensive especially in lower disbursing job roles, for which the worker turnover level is highest (Samuel, 2012). Turnover denotes to the amount of effort of employees in and out of an organization, generally existing in terms of the turnover ratio (Chruden & Sherman, 1972). Mobley (1982) provided the sense of employee turnover as the discontinuance of association in an organization by the individual who expected financial compensation from the organization.

Employee turnover is dependent variable. Work environment, immediate boss and job stress are independent variables. These factors have serious effect on employee turnover. These factors force employees to move from the organization to another organization.

Work environment

Immediate boss

Employee turnover

Job stress

2.1 WORK ENVIRONMENT

If working situations are insufficient or the place of work have absence of important accommodations such as proper lighting, furniture, restrooms and other health and safety provisions, employees will not be willing to put up with the problem for long time.( SHAMSUZZOH & SUMON.anti) Organizational uncertainty has been shown to have a high degree of high turnover. Suggestions are that employees are more expected to stay when there is a expectable work environment and vice versa (Zuber, 2001). In organizations where there was a high level of ineffectiveness there was also a high level of staff turnover

(Alexander et al.,1994). For employer losing a particular key worker may reduce the like hood of plan achievement and financier assurance can be reducing in the company. Main causes of Turnover are Salaries Working environment and safety of job. Turnover mainly gets up from discontent from job place. In opposing employee also strapped to leave job due to the disappointment in their present workplace. (Shamsuzzoh&Sumon.anti).

2.2 JOB STRESS

Giga and Hoel in 2003 determined that high rates of mergers, acquisitions, increasing economic interdependence among countries due to globalization, technical development, and rearrangement have changed the organizational work over the last few eras have caused in time pressure, excessive work demand, role conflicts, ergonomic deficiencies and challenging customer relationship are causes of stress. Kahn et al. (1964) also consider stress as a conservation incentive to a person, or an oddity between individual and environment. The knowledge of job related stress (job stress), the series of reasons that lead to job related stress (stressors), lack of commitment in the organization; and job frustration make employees to quit Firth et al.(2004).

2.3 Immediate boss

If there is turnover in senior management or with your immediate boss, your work environment will change, your role may change, and your job may disappear altogether. How closely are your results tied to your boss and senior management? If there is change, do you have other supporters who can vouch for your performance? Do you have sources of information throughout your company who can tell you what’s going on in the event of a shake-up? How prepared are you if your job dramatically changes or disappears? What’s the one factor that most affects how satisfied, engaged, and committed you are at work? All of our research over the years points to one answer — and that’s the answer to the question: “Who is your immediate supervisor?”

Hypotheses: Keeping in view the importance of the variables and their integrative impact on the employee turnover, further venues for investigation can be explored because there is a room for it. Therefore, this research paper is extremely keen in answering the following hypotheses. H1: job stress has positive effect on the turnover of the employee. H2: work place environment effect negatively the employee turnover. H3: immediate boss can affect positively the Turnover of employee.

Chapter No: 3 Research Methodologies: 3.1 Introduction: In this section of research paper we will be able to write those methodologies that we have selected for conducting this research including, sample size, sample techniques, and the instruments and design that was selected for collecting the data

3.2 Research Design:

This study is quantitative based so the data collected for this research was the Questionnaires. Data was collected on the basis of those concepts that was defined in the research model mentioned above as well as hypotheses tested. Therefore this study is a descriptive study as this study because it adopted the use of questionnaires that was aimed at finding the impact of factors effecting employee turnover in banking sector.

3.3 Sample and Sampling Techniques: The Sample comprised of 170 (N) from the various Banks of Faisalabad including the Punjab Bank, Habib Bank limited, Muslim Commercial Bank, Allied Bank, United Bank Limited. The sampling technique that was used for the study was convenience sampling technique

The Sample was comprised from Banks of Faisalabad.

3.4 Research Instrument for Data Collection: To investigate factors effecting employee turnover in banking sector particularly in Banking sector survey method is applied in this study. The Questionnaires’ that were designed to investigate the study is comprised of two sections. First section of the questionnaires consists of personal information. The personal profile of the respondent in the questionnaire was including the age, gender, designation, working experience as well. The second section of the Questionnaire was relevant to the variables namely job stress, work place environment, immediate boss, employee turnover. The second section of the Questionnaire was measured through 5 point Likert scale. We selected the Banks including private and public for our study that was specifically for the Banking sector. The Questionnaires were distributed randomly among the respondents in the banking sector some selected Banks of Faisalabad. (The Punjab Bank, Habib Bank limited, Muslim Commercial Bank, Allied Bank, United Bank Limited, National Bank, Bank Alflah, Summit Bank). This current research aims to determine factors effecting employee turnover in banking sector of Faisalabad including both public and

private institutions. The population of the study comprises of the employees from the Banking sector in both public and private division. The reason of including this sector is its positive and prominent growth in recent years. Likert scale i.e. (Strongly Disagree, Disagree, Neutral, Agree, and Strongly Agree). The respondents were asked to indicate the extent to which they are Disagree/Agree with the various statements.

3.5 Methods of Data Collection:

The descriptive statistics such as frequencies, and percentages and graphs are used for the analysis of the research questions while the hypotheses testing were done through the Pearson correlation coefficients. The computer software that was used to run this data analysis was SPSS software (Statistical Package for Social Sciences). The hypothesis was tested at 0.000 of significance. At 5% Level of significance, reject the null hypotheses that was (The independent variables positively effect the dependent variable), with the probability estimated lower than 5% (0.000) and conclude that they are statistically significant. Otherwise we accept 0.000 probability estimate are above and conclude that there is no overall or whole statistically significance. The data was collected randomly through the Questionnaires and so the data that is used in this study is primary based. The Questionnaire was designed which was measured on the “Likert scale” .The Likert scale was used in this study that is “Strongly Disagree, Disagree, Neutral, Agree, Strongly Agree” The respondents were asked to select the appropriate options of this scale to measure the variables. And therefore, we accomplish the data from the respondents in order to measure our further data and variables.

Chapter No: 4 Data Analysis and Interpretation of Data:

4.1 Data Analysis: The process of evaluating data using analytical and logical reasoning to examine each component of the data provided. This form of analysis is just one of the many steps that must be completed when conducting a research project. Data from various sources is gathered (commonly through questionnaires), reviewed, and then analyzed to form some sort of finding or conclusion. The data in this research was consists of the three independent variables (job stress, workplace environment, immediate boss) that were selected as aspects of the employee turnover and the one dependent variable that was employee turnover. The Questionnaires were filled by the respondents and that was analyzed by the likert scale, and through SPSS software in order to determine the gender as well as to know the working experience of the employees. And the questions regarding both variables were also investigated in this section.

4.2 Presentation and Data Interpretation:

Data interpretation refers to the process of critiquing and determining the significance of important information, such as survey results, experimental findings, observations or narrative reports. Interpreting data is an important critical thinking skill that helps you comprehend graphs and tables. Researchers use a similar but more meticulous process to gather, analyze and interpret data. Experimental scientists base their interpretations largely on objective data and statistical calculations. Social scientists interpret the results of written reports that are rich in descriptive detail but may be devoid of mathematical calculations.

We have interpret the data on the basis of the questionnaires by dividing the sections as Section A: Personal information of the respondents that was included in this section by Age, Gender, and Working Experience means the Socio Demographic characteristics was included. Then we use the SPSS software in order to prove the answer statistically that contains Descriptive statistics, Correlation, regression and we have used this software for both our variables (independent and Dependent Variable) From the 170 Questionnaires that were distributed to 25 institutions of Faisalabad, a total of 170 completed and usable questionnaires fro Banks of this city including both public and private sector as well.

4.3 Reliability

Table no 1:

Reliability Statistics Cronbach's Alpha

N of Items

.608

18

To check the internal reliability of the instrument, Cronbach’s alpha was run. The value of Cronbach’s Alpha comes to 0.608 which is above the standard value proposed by (Nummally, 1978) of 0.60 this shows that our instrument is reliable and we can confidently apply different statistical tests and interpret the results with confidence.

4.3 Descriptive Analysis of the Data: In this section we will discuss the descriptive analysis that we have done. In the form of Socio demographic characteristics of the study including all the personal information regarding age, gender, working experience are included in this investigation to determine the outcomes from the study. We have used this sensory evaluation approach that use the descriptive panels in order to measure a descriptive sensory characteristics.

Table no 2: Descriptive Statistics N

Minimu Maximu m m Mean

Mean stress

170

3.33

5.00

4.5471 .42684

Mean environment

170

3.00

5.00

4.4868 .44544

Mean boss

170

3.25

5.00

4.5574 .34511

Mean turnover 170

4.00

5.00

4.5000 .38075

Valid (listwise)

N

170

Std. Deviation

As this table above shows that the descriptive analysis (N) represents the sample size that was N=170, in our Questionnaire we have used the mean job stress by giving the value in SPSS software. The Descriptive Statistics section gives the mean, standard deviation, and number of observations (N) for each of the variables that were specified.

4.4 Demographic Characteristics of the study: Demographic characteristics can refer to age, place of residence, religion, educational level and marital status. We have used demographic characteristics in our study including gender, age, designation but the respondents were just interested in the other demographic characteristic so we have choose age and gender, and working experience of the respondents. Table 1: Results from the analysis of the demographic characteristics of the respondents indicated that majority of the respondents were male suggesting that most of the employees selected for the analysis were male. Moreover, the respondents concentrated within the age bracket from 30 years to 45 years and above. Most of the respondents were the persons that were the employees of the Banks of Faisalabad including the Punjab Bank, Habib Bank limited, Muslim Commercial Bank, Allied Bank, United Bank Limited, Bank Alflah, Summit bank. The respondents are highly rated employees because most of them were highly qualified and are on a well reputed position in their institutions.

4.5 Findings and Discussion of Results: The impact of the employee turnover is mainly due to the aspects (job stress, workplace environment, immediate boss) that were involved in this study too. As given below the job stress, workplace environment, immediate boss. As all are independent variables as shown in the table:3 . It elaborates that the employee turnover is affected by both the independent variables (job stress, workplace environment, immediate boss) specific in the Banking sector of Faisalabad.

Table no 3: Coefficientsa Unstandardized Coefficients

Standardize d Coefficients

Model

B

Std. Error Beta

t

Sig.

1

(Constant)

3.037

.439

6.923

.000

meanstress

.408

.069

.457

5.929

.000

meanenviron -.163 ment

.067

-.191

-2.422 .017

meanboss

.080

.068

.936

.075

.351

Coefficientsa Unstandardized Coefficients

Standardize d Coefficients

Model

B

Std. Error Beta

t

Sig.

1

(Constant)

3.037

.439

6.923

.000

meanstress

.408

.069

.457

5.929

.000

meanenviron -.163 ment

.067

-.191

-2.422 .017

meanboss

.080

.068

.936

a. Dependent mean turnover

Table:4

.075 Variable:

.351

Descriptive Statistics N

Minimu Maximu m m Mean

170

3.33

5.00

4.5471 .42684

meanenviron 170 ment

3.00

5.00

4.4868 .44544

meanboss

170

3.25

5.00

4.5574 .34511

meanturnover 170

4.00

5.00

4.5000 .38075

meanstress

Valid (listwise)

N

Std. Deviation

170

The findings resulted from regression analysis with correlation coefficients , Rsquare

Correlations:

Table: 4 Correlation between the Dependent variable and Independent Variable

Correlations Meanstres meanenviro meanbos meanturno s nment s ver meanstress

Pearson Correlation

.409**

.141

.388**

.000

.067

.000

170

170

170

170

.409**

1

.250**

.013

.001

.866

1

Sig. (2-tailed) N meanenviron Pearson ment Correlation

meanboss

Sig. (2-tailed)

.000

N

170

170

170

170

Pearson Correlation

.141

.250**

1

.084

Sig. (2-tailed)

.067

.001

N

170

170

170

170

.388**

.013

.084

1

meanturnover Pearson Correlation

.274

Sig. (2-tailed)

.000

.866

.274

N

170

170

170

170

**. Correlation is significant at the 0.01 level (2-tailed).

Correlation is significant at the .388 Level (2 tailed) Correlation is significant at the .013 level (2 tailed) Pearson correlation was used to study the study variables. This helped the researchers to understand that whether the independent variables (job stress, workplace environment, immediate boss). The Correlations section gives the values of the specified correlation tests, in this case, Pearson's r. Each row of the table corresponds to one of the variables. Each column also corresponds to one of the variables.

In order to elaborate more statistically we have selected another tool of data analysis in order to check the acceptability of the study. The data analysis tool that we have selected in this study to determine the acceptability of the data is “Regression”.

Regression:

Known also as curve fitting or line fitting because a regression analysis equation can be used in fitting a curve or line to data points, in a manner such that the differences in the distances of data points from the curve or line are minimized. Relationships depicted in a regression analysis are, however, associative only, and

any cause-effect (causal) inference is purely subjective also called regression method or regression technique.

Model Summary Mod el R 1

.425a

Std. Error of R Adjusted R the Square Square Estimate .181

.166

.34774

a. Predictors: (Constant), meanboss, meanstress, meanenvironment

From the above model summary of regression you have seen that from the data of the respondents the R is .425 that means it is positively related to the employee turnover in educational sector. And so the R.Square is .188 this shows that independent variable has effect on the employee turnover. The predictors or the independent variable that was selected for the regression model summary is also elaborated above clearly.

ANOVAb Model 1

Sum of Squares Df

Mean Square

F

12.203 .000a

Regressio 4.427 n

3

1.476

Residual

20.073

166

.121

Total

24.500

169

a. Predictors: (Constant), meanenvironment

meanboss,

Sig.

meanstress,

b. Dependent Variable: meanturnover

The ANOVA table represents that if the significance level is less than 0.000 then it clearly shows that the independent variables positively impact on the employee turnover means that our study represents the accurate answer. So, we reject the null hypothesis because our answer represents that the independent variables have the impact on the dependent variable. A statistical analysis tool that separates the total variability found within a data set into two components: random and systematic factors. The random factors do not have any statistical influence on the given data set, while the systematic factors do. The ANOVA test is used to determine the impact independent variables have on the dependent variable in a regression analysis.

Coefficientsa Unstandardized Coefficients

Standardize d Coefficients

Model

B

Std. Error Beta

t

Sig.

1

(Constant)

3.037

.439

6.923

.000

meanstress

.408

.069

.457

5.929

.000

meanenviron -.163 ment

.067

-.191

-2.422 .017

meanboss

.080

.068

.936

a. Dependent meanturnover

.075

.351

Variable:

Here the job stress is .408 and workplace environment is .168 and immediate boss .075 As it is clear from the above table that the job stress variable with (B 0.408), and workplace environment with variable (B 0.168) and immediate boss with variable (B 0.075) have the most impact on the employee turnover in the Banking sector. The Findings resulted from the regression analysis with correlation coefficients (.013), R-square (0.181) and the level of significance (0.000).

The above table shows that as all the values are positive so it means that the independent variables have the positive impact on dependent variable.

Frequencies :

Gender

Valid Male

Frequenc Valid y Percent Percent

Cumulative Percent

137

80.6

80.6

80.6

Female 33

19.4

19.4

100.0

Total

100.0

100.0

170

Age Frequenc Valid y Percent Percent

Cumulative Percent

Valid 20-30

98

57.6

57.6

57.6

31-40

43

25.3

25.3

82.9

41-50

22

12.9

12.9

95.9

50 Above

7

4.1

4.1

Total

170

100.0

100.0

100.0

Chapter No 5: Recommendations and Conclusion

5.1 Recommendations: Questionnaire design and results depend on employees’ perception which has been implemented in order to analysis the effects of workplace environment towards to employees’ performance, Since there is no performance management measures in the bank, the real effects of workplace environment on employees performance(productivity) could not be measured systematically. In addition to this, 50 employees of the bank out of 300 who work in the same department have conducted to the survey. Survey results could be altering if the survey would conduct to the other department’s employees. Also, analysis could be extended by investigating the gender differences towards the effects of workplace environment and productivity survey. Results depict that employee turnover intentions are positively related with job stressor. With the increase in job stress employee turnover intentions increases. If organizations are willing to retain their intellectual capital they must reduce the job stressors which may cause the job stress and ultimately this leads to the employee turnover. Another major factor is workload which is positively related to the employee turnover intentions. A rational workload is win-win situation for

the organization, study provide the empirical evidence that employee thinks to leave the job when they are over burden. Similarly workplace environment is also a key factor to retain employees. Study proved that a good and health work environment will lead to the less employee turnover intentions. From the outcome of the research work, the following recommendations are made; 1. Bank management should understand that stressors in the banking environment is unique and different from other forms of stressors that may be available in business environment, therefore, efforts should be made by these management of banks to organize stress management to educate them about the danger and how to reduce the negative impact from time to time and the need to undergo routine medical check up.

2. The government regulations through the institutional policies and frameworks should be carefully examined and developed to reflect the prevailing economic situations in the country in other to facilitate investment in the banking sector without political prejudice of any kind. 3. Attention should be paid to the end result of job analysis which should be conducted thoroughly without sentiment or bias in order to ensure that the job characteristics and the individual characteristics are relatively matched with respect to the work environment. 4. There should be a pragmatic review of the human resources management policies as well as organizational policies to induce serene atmospheric conditions where no one is carrying out responsibilities in fear or operating under duress. i.e a family like work environment. 5. .Management of banks to institutionalize counselling unit for staff members whose major activity shall be to provide necessary assistance to staff members on work and domestic related matter.

5.2 Conclusion The research study shows that the job stress, workplace environment and immediate boss has effect on the employee turnover both in private and public institution. The results of correlation analysis in this study have demonstrated that the job stress, workplace environment and immediate boss has the positive effect on employee turnover in Banking sector. The findings highlighted three factors that lead to voluntary employee turnover in the target organization. The research contributes to a better understanding of factors that cause employee turnover in the sector in the region and show that employee turnover is a complex issue. It was on this basis, that the authors concluded that job stress, workplace environment and immediate boss are evident in the banking environment and the place of job stress in labor turnover is central and sensitive to all activities in the organization with all the implications discussed above.

Chapter no 6: References

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