8/17/2019 irfan 08-0053
1/34
Determinants of Employee Retention
In Banking Sector
Presented By
Irfan Amir Ali
08-0053
8/17/2019 irfan 08-0053
2/34
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
8/17/2019 irfan 08-0053
3/34
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
8/17/2019 irfan 08-0053
4/34
Independent variables Career Opportunities
Supervisor Support
Working Environment
Rewards
Dependent variables Employee Retention
ARIAB!ES
8/17/2019 irfan 08-0053
5/34
THEORETICA! "RA#E$OR%
8/17/2019 irfan 08-0053
6/34
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
8/17/2019 irfan 08-0053
7/34
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(&
8/17/2019 irfan 08-0053
8/34
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.
8/17/2019 irfan 08-0053
9/34
Demographic Analysis
8/17/2019 irfan 08-0053
10/34
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
8/17/2019 irfan 08-0053
11/34
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.
8/17/2019 irfan 08-0053
12/34
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.
8/17/2019 irfan 08-0053
13/34
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.
8/17/2019 irfan 08-0053
14/34
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.
8/17/2019 irfan 08-0053
15/34
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
8/17/2019 irfan 08-0053
16/34
Cross Ta)*lation Bet+een Banks An,
In,epen,ent -aria)les
8/17/2019 irfan 08-0053
17/34
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
8/17/2019 irfan 08-0053
18/34
Cross Tabulation – Career Opportunities and
Organizations
MCB HBL NBP ABL OTHERS
#
#.5
$
$.5
2
2.5
3
3.5
4
Career Opportunities
8/17/2019 irfan 08-0053
19/34
MCB HBL NBP ABL OTHERS#
#.5
$
$.5
2
2.5
3
3.5
4
Working Environment
Mea%"
Cross Tabulation – Working Environment and
Organizations
8/17/2019 irfan 08-0053
20/34
MCB HBL NBP ABL OTHERS#
#.5$
$.5
2
2.5
3
3.5
4
4.5
Rewards
Re&ar'"
Cross Tabulation – Rewards and Organizations
8/17/2019 irfan 08-0053
21/34
Correlation between independent and
dependent variables
8/17/2019 irfan 08-0053
22/34
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
8/17/2019 irfan 08-0053
23/34
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
8/17/2019 irfan 08-0053
24/34
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
8/17/2019 irfan 08-0053
25/34
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
8/17/2019 irfan 08-0053
26/34
Regression Analysis
8/17/2019 irfan 08-0053
27/34
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.
8/17/2019 irfan 08-0053
28/34
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%
8/17/2019 irfan 08-0053
29/34
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.
8/17/2019 irfan 08-0053
30/34
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.
8/17/2019 irfan 08-0053
31/34
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
8/17/2019 irfan 08-0053
32/34
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
8/17/2019 irfan 08-0053
33/34
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
8/17/2019 irfan 08-0053
34/34
,hank yo#