Factors Effecting Turnover ratio in Banking Industry
FINAL YEAR PROJECT
Topic: Factors effecting Turnover ratio in Banking Industry
SUBMITTED BYS.TAZMEEN ZAHRA SHIRAZIRegistration no.:
BBA-01-08-4115
SUPERVISORAIJAZ ALI
ContentsABSTRACT4Introduction:5Objective of Research5Scope of
Project:5Literature Review6List of Variables for
Research:15Research Model:16Population:17Size of
Population17Sampling Technique:17Justification:18Sample
Size:18Justification18Factor Analysis Model:18Complete Instrument
Questionnaire19Topic: Factors effecting turnover ratio of employees
in Banking Industry19Proof of
Validity:24RELIABILITY24Reliability25Scale:ALLVARIABLES26Reliability
Statistics27Process of Pilot Test:27Justification for Evaluation
technique:28Reason for using Factor Analysis28Banking Industry for
Research-Meezan Bank Limited:29Analysis of
Data:30FactorAnalysis:31Descriptive Statistics33Interpretation of
Result:35Correlation Matrixa36Interpretation of Result:38KMO and
Bartlett's Test38Interpretation of Result:38Component
Matrixa39Interpretation of Result:40Total Variance
Explained40Interpretation of Result:40Communalities41Interpretation
of Result:41Rotated Component Matrixa42Interpretation of
Result:43Interpretation:44Summarized List of Research Questionnaire
Response:44Key
Results:45Conclusions:46Recommendations:47References48
ABSTRACT
Experienced employees are asset of any organization. To retain
these workers employer & HR has to play key role in this
regard. High turnover rate has bad impact on company reputation
& performance. Competitive edge can be gain through reducing
turn over in company. High turnover is affecting all industries at
all level. Reducing high turnover results in highly motivated well
experienced & talented employee .Brief analysis of factors
which are affecting turnover is essential theme of this research
project. Particularly focusing on Banking Industry Meezan Bank,
State bank, UBL,NBP targeting total 250 respondents from these
banks.
KEY WORDSMonetary Benefits, Organizational culture , Employee
Interpersonal relationship, Job Stress, Work life balance, Internal
& external organizational factor, Job involvement, Career
growth, Recognition, Empowerment, Realistic job preview, Job
matching, Over reliance, Poor hiring practices, Employee resistance
towards organizational change.
Introduction:
There were several reasons in my mind while choosing this topic
for research purpose. In this current business environment high job
dissatisfaction is found in employees. Various factors would be
study through this research project.
Objective of Research: Identifying the main factors which are
more influencing over turnover ratio Impact of these factors on
turnover Employee turnover is controllable factor by managersScope
of Project:
Factor analysis for turnover ratio is beneficial for company
growth & long term goal achievement. Due to recession and job
dissatisfaction have strong influence on employee working
condition? In this research internal & external factors would
be study in comprehensive way. By the help of this research
analysis role of these factors we can reduce or eliminate the risk
of high turnover. According to current scenario job switching is
become burning issue for all industry level. Proper HR strategies
& policies can easily minimize this issue. High turnover
results in high Recruitment and selection cost to organization
which effect company budget & performance as well. For the sake
of company good will and long term goals and business objectives
achievement organization need experienced, talented, satisfied and
committed employees and its only comes through by reducing or
eliminating turn over ration in company.
Background of Research:
Employee turnover is the hottest and current issue that always
discusses by the government since we are confronted with the global
economic crisis on 2008. The crisis of economic is directly
affected to the corporation especially the production line and
manufacturing company. The unexpected crisis will arise the
employee turnover rate happened no matter for voluntary or
involuntary case and it achieved the highest rate within the past
20 years in Malaysia as well. Therefore, other than the efforts and
measurements had been taken by the government like donated
sustention fund to secondary industry, the efforts of employers is
vital to minimize the employee turnover.On the other hand, the
advance knowledge likes the significant of compensation and
benefits package toward the employee and the preference of
employees toward the different types of compensation and benefits
package are necessary to implant and infuse to the all the
employers in order to retain their quality workers. There are some
factors are directly influence to the employee turnover in the real
working environment. The employers will enjoy the benefits if they
manage to retain their employees or minimize the employee turnover
problem by implementing the felicitously compensation and benefits
package.
The higher employee turnover rate is considering the severely
problem to particular country because it is absolutely bring
negative effects in progressing development. The employee turnover
rate is definitely cannot be terminate but I sincerely wish that
this problem is able to fully minimize. I strongly believe that the
compensation and benefits ways might able to minimize the employee
turnover in the working place. Literature Review:Turnover in
companies varies from industry to industry its found that high
turnover is common in private sector as compare to public sector
Levels of turn over varies from region to another region.
(Shamsuzzoha & Hassan, 2006)Highest rates are usually found
where un-employment rate is low and alternative more attractive
opportunities are available. Employee turnover is in any
organization is a costly expense particularly in lower paying
positions in which employee turnover is high in this way major
factors are described as wages, company benefits, employee
attendance and job performance which plays vital role in employee
turnover. (Deepa & Stella, 2012)
At times turnover is positive for organization as it replaces
poor performer by more skilled similarly retired worker by new and
young blood. Turnover is costly for organization as it requires
different cost to take account such as admin and R&S. Increased
turnover surely effect high financial cost to organization it could
be in direct or indirect way. (Guma, 2011)Its important to reduce
turnover ratio into numbers as soon they have to realize actual
cost of turnover in company prospective. Cost impact certainly at
times results to become serious strategic issue for company.
Performance of companies has been seriously affected by high
turnover rate within the organization. (Guma, 2011)On the other
hand cost of covering during the period when there is vacancy or
position is existing. (Shamsuzzoha & Hassan, 2006) Training
cost for new employee also affected by turnover. Alternative jobs
usually pull them to quit from previous job employees are being
forced to quit job because of high level of dissatisfaction from
current workplace or personal issues related to their when someone
reorganize or shifted with their partner. Performance of
organization may also affect turnover. At times organization
seeming to be in an exceptional economic recession will surely
cause the presence of impeding organizational layoffs in company.
(Deepa & Stella, 2012)Sometimes its rare for workers to quit
jobs in which they are satisfied even higher salaries are offered
by other employers existing in Industry. (Shamsuzzoha & Hassan,
2006) Employees mostly in such circumstances believe that its right
time to seek another job. Organizational Culture has influence over
each employee. (Deepa & Stella, 2012) Lack of good relationship
with supervisor is basic reason for job switching. Consistently
increased turnover cause difficulty for company to survive in
industry. In broad labor market where growth or achievement of any
organization totally lies on workforce with technical skills,
recruiting fresh talent and retaining the required talent and
experienced workers can certainly decide the success or failure of
company. (Guma, 2011) Lack of training and development is an
important reason for quitting from current job. People used to give
priority for security of their jobs. Good environment and &
Culture of organization may reduce high turnover.
For employer losing a single key worker may decreases the like
hood of project success and investor confidence can be reduce in
the company? Main causes of Turnover are Salaries Working
environment and security of job. Turnover particularly arises from
unhappiness from job place. (Shamsuzzoha & Hassan,
2006)Availability of alternative job with higher paying was major
reason it comes only when economy is in better condition or when
economy is at boom. Similarly characteristics of jobs can also
effect turn over of company some jobs are intrinsically attractive
and some are extrinsically. Turnover has bad influence over
employee job satisfaction of existing or remaining employees
turnover is affected to those workers when they enforced to assume
the workload of leaving colleagues or communicating problems linked
with their leaving. (Guma, 2011) Rest of team member could be
diverted by their concern and especially why workers are switching
their jobs. Turnover has negative impact on image of organization
and surely result the adverse good will of company. (Guma, 2011)Job
attractiveness is affected by repetitiveness, challenges, danger
perceived importance and sense of accomplishment.. (Shamsuzzoha
& Hassan, 2006) Alternative job Opportunities, Lack of
interpersonal relations, Lack of training & Development,
Impressive salaries, Working environment, Bored job contents
High turnover linked in specific conditions with demographic
& biographical characteristics of workers. Personal factors is
also involved in turnover include individual personal & trait
based factor. In this way personal factor include things such as
change in family situation desire to learn and adapt new skills and
unsolicited job offer. (Shamsuzzoha & Hassan, 2006)
Particularly reward system is the strength of true deserving leader
of organization to extract a sense of commitment or loyalty on the
part of workers (Deepa & Stella, 2012) This practice will help
us in establishment of sense of sharing goals and accomplishment of
goals between team members on the other hand among rest of factors
will have impact in a way indices the high level of job
satisfaction as turnover intention and turnover rate of company.
(Deepa & Stella, 2012) Different people react differently in
particular situation according to their and personality.
Demographics, Personal traits. Employees shows expertise not
matched with job assigned to them could be reason of leaving.
(Shamsuzzoha & Hassan, 2006)Its too not easy for them whose
skills are being underutilized may become reason for discouraged or
taking the decision for quit the job. Documentation practice
usually waste HR people time and take owner precious time and
resources away from more productive and important responsibilities.
Interruption of social and communication network within
organization and outside organization. (Guma, 2011) On the other
hand sub standard equipment tools and facilities. If working place
lack basic facilities such as proper lightening, furniture
additional facility rest rooms and other essential health and
safety provisions then employee will definitely not be willing to
put up with inconvenience at workplace for long time or willing to
stay there for long time. (Shamsuzzoha & Hassan, 2006) Lack of
Job Matching, Lack of basic facilities or working environment Lack
of communication increase turnover employees mostly feel
comfortable as they have empowerment and delegation given by their
respective boss. Non involvement in decision making of
organizational goals may
Results in high turnover. Its observed that increased turnover
may arises poor and week HR policies ,lacking recruiting and super
visionary procedures , poor grievances practices and lack of
motivation. (Dwomoh & Korankye, 2012) Similarly frequently
increased turnover result lots of customer complaints due to hiring
new employee in the organization. (Dwomoh & Korankye, 2012) Job
Insecurity, Lack of empowerment & delegation.Exit problem of
employee and particular issues are also directly linked with
turnover on office multiple organization spent appropriate time and
resources for addressing basic issues of leaving workers from
organization. (Guma, 2011)Lack of opportunity for advancement or
growth is another major reason for leaving. If the job is
particularly dead-end proposition it should be communicated or
acknowledged to employee before hiring which result in not to give
the wrong impression about the job which is offered to new
employee. (Shamsuzzoha & Hassan, 2006)
Most of these costs could be attributed to mistake, errors and
poor performance/service. On the other hand extended probation
period may increase job insecurity as employees realize that they
are not protected as for as their jobs concern easily motivate them
to quit as any other permanent job comes in their way. (Dwomoh
& Korankye, 2012)
Job contents should be communicated precisely particularly
avoiding fake hopes for growing/promotion on working at current
job. Feeling for not appreciated is major reason in job switching
as employee commonly want you do good job it shows that they
certainly want to be appreciated and recognized for their
outstanding performance among other staff. (Shamsuzzoha &
Hassan, 2006)Turnover of operational managers considered as very
serious threat by providing external customer service by delivering
product. Lack of technical skills related to specific field
especially in most competent knowledge (Guma, 2011)
Expertise specifically knowledge industries is critical for
owner (Guma, 2011)
At times most trained and key employee need feedback that what
he or she is doing right once in completion of each task given by
their boss. (Shamsuzzoha & Hassan, 2006)Lack of career growth,
Lack of Recognition/Appreciation
Key words for this research are Labor turnover, Customer
complaints, Performance banking industry (Dwomoh & Korankye,
2012)
Lack of supervision or training playing vital role in turnover
employees need continues guidance and direction in achievement of
organizational goals/task which is assigned by boss. (Shamsuzzoha
& Hassan, 2006) Organizational change and employee response
towards adoption also effect increased turnover. (Holtom &
Mitchell, 2008)
New worker may need extra help in learning new and unfamiliar
innovative job assignments. Increased absenteeism rate in training
sessions could be the reason of workforce to fall behind their
actual level of output and at times feels that they are incapable
of performing or lacking essential abilities to perform.
(Shamsuzzoha & Hassan, 2006)Some employees respond in work
irritation and turnover intention. Stress may cause lower job
satisfaction lower organization commitment and more withdrawal
behaviors. (Holtom & Mitchell, 2008)Unequal or sub standard
wages structure in companies playing important role in increased
turnover rate biasness or low pay is major cause of disappointment
and can results to some employees decide to leave. (Shamsuzzoha
& Hassan, 2006)Individual differences are directly involved in
job switching. in this way personality may be operating directly on
whether one leaves his or her job. (Dwomoh & Korankye,
2012)
Similarly new talent of company may surprise that why the next
person to him is getting higher salary as compare to him for what
is supposed to be the same work. Turnover is directly related to
productivity of organization. (Shamsuzzoha & Hassan, 2006)
Biasness/ Unequal or sub standard in pay structure. Expansion of
previous work or job enlargement could be reason of frustration of
employer towards additional task. (Holtom & Mitchell, 2008)
Individual differences, Job Stress
Employees are found as major contributor to organization
competitive edge/advantage. (Dwomoh & Korankye, 2012) Boring
job content has influence on increased turnover. Un realistic
expectations comes through lack of knowledge that may candidates
has about the job at the time they got a offer. (Deepa &
Stella, 2012) Similarly job stress and organizational change
related attitudes plays vital role in turnover. (Dwomoh &
Korankye, 2012) Administrative problem is also a core issue usually
for most of organizations to build an admin department is not only
a problem for employer but also effect HR in documentation of this
company issues .Particularly includes time spent over confronting
and communicating turnover related issues. (Guma, 2011)
Banking industry is an important economy is considered as
crucial and as such poor performance of industry can have very bad
impact on the economy as a whole. lots of cost implications to the
industry involved init including training cost, cost linked with
exist interview cost of replacement of new employees and cost of
gossip of turnover which include employees saying bad words or
negative things about the company can not be ignored. (Dwomoh &
Korankye, 2012)
Sometimes Unrealistic expectation is usually not realized soon
and when it realized by new employee get disappointed or
discouraged and decides to leave the job. (Deepa & Stella,
2012) Organizational culture, Un-realistic ExpectationsA small
number of employees find the need to engage in legal system,
leaving the organization immediately, with challenging of facing
& even superior problem. Even though employee quit voluntary
can cost the company time and money (Guma, 2011) Turnover has
impact on direct cost of compnay (Morrell & Wikinson, 2001)
Replacement ,Termination ,Recruitment & Selection ,Temporary
Staff and Managemant staff (Morrell & Wikinson, 2001)
In this study researcher explained about the main reasons for
leaving any organization Promotion outside the organization Better
Opportunity. (Loquercio, 2006) Lack of development or career growth
Lack of Scale revising (Loquercio, 2006) and at times change of
career (Loquercio, 2006) Diversification of occupationIndirect cost
of company is also affected through turnover(low motivation, Job
Unsecurity,Expense over learning, Service and product quality
improvement) loss of capital in terms of budget. (Morrell &
Wikinson, 2001)
Mostly multiple companies have informal network disrupt the
communication channel and socialization patterns at times serious`s
to the good maintenance of team work and productive work
environment of company. (Guma, 2011) Factors which are directly
affecting employee turn over are given here Job dissatisfaction,
Labour market variable, Level of commitment, equity of owner,
psychological contract.This research based over the turnover cause
by organizational change. (Morrell & Wikinson, 2001)Similarly
organizational change results in job switching by employees.
(Morrell & Wikinson, 2001) Organizational change/Advancement in
technology
Mostly once an image has been built on the performance of
organization in particular industry its impossible to change
particularly in recruiting channels of industry .it also influence
over productivity loss and workflow interruption. (Guma, 2011)
Employee turnover plays very critical role in firm performance.
(Harris, Tang, & Tseng, 2003) On the other hand when economy is
at boom people are more likely to switch job due to availability of
better opportunity. (Harris, Tang, & Tseng, 2003) Job
dissatisfaction, lack of organizational commitment and low job
involvement increase turnover in company. (Harris, Tang, &
Tseng, 2003)
Poor hiring practices plays vital role in high turnover in any
company. (Morrell & Wikinson, 2001) Lack of objective data
related to Job description has influence over turnover. (Morrell
& Wikinson, 2001) Over reliance on recruiting manager or HR
manager in Recruitment & selection process of company.(Morrell
& Wikinson, 2001)Over reliance Turnover arises by two external
factor labor shortage and employee bad attitude. (Khatri, Budhwar,
& Fern, 1999) Demographical variable age gender ease of
movement and job hopping uncontrollable factor and Job satisfaction
and organizational commitment controllable factor also involved in
raises of this issue. (Khatri, Budhwar, & Fern, 1999)
When any worker quit job could result in critical issue in
working on specific software incompletion of any task from any
project. (Guma, 2011) ) High turnover causes financial and
institutional memory loss to the company. (Jing, Ru, & Woon,
2012)Usually particular products have to suffer only because of job
quit by technical and experienced employee.. Sometimes its really
hard for employer to arrange replacement of these workers in short
span of time. (Guma, 2011)
In this way Pay, training, team work, performance appraisal of
employee can be taken as independent variable in contributing in
high turnover in organization. (Jing, Ru, & Woon, 2012)On the
other hand in turnover situation worker creates a huge productivity
gap. This factor is not only include problem for specific job done
by worker in switching job but also for rest of members and other
on the same team within particular workflow. (Guma, 2011)
Performance of organization
Service quality of company is truly affected by gradually
increased turnover rate. Particularly facilitating excellent
service to specified external and internal customers of
organization. (Guma, 2011) People may leave due to better monetary
rewards and career development opportunities. (Jing, Ru, &
Woon, 2012) High turnover has very bad impact on the quality of
customer service (Guma, 2011)Turnover could be reason of high cost
spend over termination, advertisement, R&S Process and rehiring
in organization. (Jing, Ru, & Woon, 2012)Turnover could be
source of driver to company renewal. Although increased turnover is
expensive, similarly low turnover in organization can be cost
saving. (Benedict & Josiah, 2011)Turnover could bring loss in
growth of business opportunities similarly gradually increased
turnover may cause lack of technical and experienced employees in
completion of project it also effect over existing workers as
unprepared to take right advantage of latest business advantages.
(Guma, 2011)
In organization labour turnover affects both employee and
company (Benedict & Josiah, 2011). Sometimes Turnover can
enable any company to eliminate poor performances, unmotivated
workers and people who are hard to get along with the company for
long term commitments and goal achievements. (Benedict &
Josiah, 2011
On progress projects will surely delayed as no availabilty of
key performer in the organizatiion. (Guma, 2011) Few reasons for
job switching are directly linked with the workplace of
organization. Lack of control over ones work results in immediately
departure of employee. (Lochhead & Stephen, 2004)Competent ones
with lower remuneration could replace company workers with higher
remuneration vary from position to position. (Benedict &
Josiah, 2011) Companies mostly can undergo particular form of
restructuring, merger of specific positions, which can improve
bottom line of organization. (Benedict & Josiah, 2011)Major
factors which contribute in gradually increased turnover arises
through de moralized. (Lochhead & Stephen, 2004) Labor turnover
badly affects both workers & organization In new organization
new employees have to learn latest job specific expertise and
different career development prospects.similarly cost of hiring and
new employees is also effected by this factor. (Benedict &
Josiah, 2011)HR Practices Pay, Training and other incentives are
negative relationship with turn over as its increase employees
motivation level and retain them for long time.(Lazear 1986;
Madrian, 1994; Gruber & Madrian, 1994). Cost, disrupt
organization plan, ongoing projects cause Untold difficulty to
organization but at times there are few benefits to it.(Benedict
& Josiah, 2011 )
Most of the times these advantages are usually replacement of
Separated employees with new ones who could bring Experiences,
Knowledge, Practice and Skill to organization.. (Benedict &
Josiah, 2011)
Sometimes it shows lack of consistency and focus of employee
over its professionalism. (Lochhead & Stephen, 2004)Boring job
assignments at times can create sense of feeling bored or
unchallenged by repetitive tasks. Additional tasks and job
enlargement may has adverse effect over employee contribution in
company growth.(Lochhead & Stephen,2004)
Training easily communicates about job roles and decreases job
stress. Organizations having proper Training programs have very low
in voluntary turn over rates. (Bawa & Jantan, 2005)
Lack of job insecurity is very common factor in increasing turn
over rate in industry. On the other hand more generous compensation
pay structure offered by any other company can motivate employee to
leave his existing organization. (Lochhead & Stephen, 2004)
Most of the researcher found that Voluntary Turn over based on the
reason for being dissatisfied from current job and other attractive
opportunities are available to them also said that Compensation and
job security are importanat factors in turn over. (Bawa &
Jantan, 2005)More benefits and incentives based job offer may have
influence on employee decision to quit. (Lochhead & Stephen,
2004)
Selective staffing practices are directly related to total
turnover in feedback and monitoring worker performance application
of performance appraisal through which check in balance of employee
performance & contribution to organizational growth can be
observed (Bawa & Jantan, 2005)
According to researcher they have to learn about their job
specification skills and numbers of career prospects.organizations
certainly face the the loss of job specification of any profession,
skills in production of product in company and large sum high will
be use in process of hiring & training new employees. (Benedict
& Josiah, 2011)Involuntary turn over depends on Recruitment
& selection process and performance appraisal of organization.
In this way staffing process of organization play vital role
criteria for selection of employees and how much selected an
organization can be in turn over process (Bawa & Jantan,
2005)
On the other hand new workers are mostly well educated with high
motivation and ability to handle and resolve technical issues in
more efficient and highn level of enthusiam in working
environment.In every single company workforce is essential part in
running of a business and existing in industry because without them
the business would be definitely unsuccessful as result of labor
high turnover in organization (Benedict & Josiah, 2011)List of
Variables for Research:
1. Alternative job opportunity2. Lack of good interpersonal
relationship3. Lack of training & development4. Monetary
Benefits5. Working Environment 6. Bored job contents7.
Demographics8. Personal traits9. Lack of job matching10. Lack of
recognition11. Un realistic expectation12. Performance of
organization13. Job Insecurity14. Lack of empowerment/delegation15.
Work life balance16. Organizational Change/ advancement in
technology 17. Over reliance
Research Model:Alternative Job Opportunity
Lack of good interpersonal skills
Demographics
Lack of Training & Development
Personal Traits
TurnoverMonetary BenefitsLack of job Matching
Working EnvironmentLack of Recognition
Bored Job ContentsUn realistic expectations
Job Insecurity
Job Stress
Organizational Change
Population:In this project I would be focusing on all HR
professionals working in banking industry.
Size of Population:I would approach four major Commercial and
Government Banks1. State Bank2. National Bank3. Meezan Bank
Limited4. United Bank LimitedSampling Technique:Factor analysis
model Principle components analysis .Data collection purpose I will
choose Non probability Convenience SamplingJustification:This
research is covering almost all dimensions targeting the major
reasons of high turnover for this purpose brief study is required
from multiple banks. Structured interviews with HR Managers and
Directors and Voice president is the basic source for collecting
data and analysis the impact of each factor.In this research total
numbers of factors or variables are 17 and I will go for factor
analysis modelPrinciple Components Analysis: Sampling technique
where total numbers of variance in the data is considered.
Similarly diagonal of the correlation matrix consists of unities
and full variance is brought into factor matrix. PCA is usually
recommended when main focus is to determine the minimum numbers of
factors that results maximum variance in the total data for use in
subsequent multivariate analysis,
Convenience sampling is least time consuming and inexpensive
sampling technique where we can have large number of data taken
from respondents for conducting this research. These techniques
will attempts to take a sample of convenient elements selection of
respondent would be depend upon my approach to people working in HR
field in particularly in banks.Sample Size: Total numbers of
respondents = 250
Justification:Reason for such large sample size is only to
conduct more brief and detailed research over the selected
variables taken from large number of research studies its really
essential to check their role and influence over the dependant
variable TurnoverFactor Analysis Model:
ProblemTopic: Factors effecting employee turnover in banking
industry
Correlation MatrixTotal Question =17 V1 to
V17Respondants=100Factors=Independent Total Numbers of Factors
=17Rotate the Factors
Calculating Factor ScoreInterpret FactorsDetermine the Model
Fit
Complete Instrument Questionnaire
Topic: Factors effecting turnover ratio of employees in Banking
Industry
Rating Key -Highly Agreed (5) Agreed (4) Neutral (3) Disagree
(2) Highly Disagree (1)
Please circle your responses to the following questions:
Q.01. Availability of better job opportunities is mostly
responsible for high turnover in any organization? 5 4 3 2 1
Q.02. Employee interpersonal relationships with boss directly
linked with turnover decision?Organization? 5 4 3 2 1
Q.03. Lack of job instruction training has impact on turnover
intention in company? 5 4 3 2 1 Q.04. Unavailability of good/
learning environment is responsible for high turnover? 5 4 3 2
1
Q.05. Lack of interesting tasks given by boss has direct
influence over turnover? 5 4 3 2 1 Q.06 Bored job contents
practiced by since many years which have impact on turnover ratio
in companies? 5 4 3 2 1
Q.07. Personal traits /individual differences mostly vary from
person to person have influence in turnover decision? 5 4 3 2
1Q.08. Lack of proper job matching of employees is basic reason in
job switching? 5 4 3 2 1Q.09.Employees is concerned about their
career growth. Similarly limitations in career development
increased turnover in company? 5 4 3 2 1Q.10. Lack of
recognition/proper reward system is directly linked high turnover?
5 4 3 2 1Q.11. Employee resistance towards organizational change
results in increased turnover in organization? 5 4 3 2 1 Q.12.
Organizational culture is one of major reason for job switching of
employees in any particular company? 5 4 3 2 1
Q.13. Unrealistic expectations from company management results
in increased turnover intention of employees? 5 4 3 2 1
Q.14. Organizational growth and stability has direct impact on
high turnover? 5 4 3 2 1 Q.15. Job insecurity of employees
motivates them to leave from current work place? 5 4 3 2 1
Q.16. High turnover is usually common in those companies where
lack of empowerment & delegation is found between management
and employees? 5 4 3 2 1
Q.17 over reliance on employees results in high turnover in
companies? 5 4 3 2 145Factors Effecting Turnover ratio in Banking
Industry
Prepared By: S.Tazmeen Zahra ShiraziPage 45Note for Rationale of
each Component:
Each question based on single variable which I have extracted
from literature review. Scale rating is used to answer these
questions and for each question criteria is defined to all
questions.Proof of
Validity:DATASETNAMEDataSet0WINDOW=FRONT.RELIABILITY/VARIABLES=Q.01Q.02Q.04Q.06Q.07Q.08Q.10Q.11Q.12Q.13Q.14Q.15Q.17Q.18Q.19Q.20Q.21/SCALE('ALLVARIABLES')ALL/MODEL=ALPHA.
Reliability
Notes
Output Created12-Nov-2012 19:38:46
Comments
InputDataC:\Documents and Settings\lab1\My
Documents\Downloads\Questionnaire Input.sav
Active DatasetDataSet1
Filter
Weight
Split File
N of Rows in Working Data File16
Matrix InputC:\Documents and Settings\lab1\My
Documents\Downloads\Questionnaire Input.sav
Missing Value HandlingDefinition of MissingUser-defined missing
values are treated as missing.
Cases UsedStatistics are based on all cases with valid data for
all variables in the procedure.
SyntaxRELIABILITY /VARIABLES=Q.01 Q.02 Q.04 Q.06 Q.07 Q.08 Q.10
Q.11 Q.12 Q.13 Q.14 Q.15 Q.17 Q.18 Q.19 Q.20 Q.21 /SCALE('ALL
VARIABLES') ALL /MODEL=ALPHA.
ResourcesProcessor Time00:00:00.000
Elapsed Time00:00:00.000
[DataSet1]C:\DocumentsandSettings\lab1\MyDocuments\Downloads\QuestionnaireInput.sav
Scale:ALLVARIABLES
Case Processing Summary
N%
CasesValid531.2
Excludeda1168.8
Total16100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's AlphaN of Items
.82217
Process of Pilot Test:
First of all I convert this questionnaire into online
questionnaire on Gmail account. After sign in Gmail go to more
option then choose even more as window open select docs create form
on your choice. After completion of questionnaire I sent this to
selected people. Pilot test have to apply on 5 % of sample size as
my sample size is 250 so I apply this test over the answers of
these 13 respondents.
Now I got the result here have to apply pilot test by the help
of SPSS. In this stage I have to make file on SPSS by clearly
adding label and key rating scale for all labels (Variables) after
completion the format of SPSS Data file simply add the data for 5 %
of sample size. For analysis purpose go to the Analyze option Chose
scale in this option select reliability analysis and insert all the
labels (variables). Within few seconds I got the result.
Cronbach s Value = 0.70
Questionnaire value on 5 % of sample size= 0.822
According to the analysis the alpha value should be equal or
greater than 0.70As more Alpha value we get it show that our
questionnaire is quite reliable and valid for conducting this
research.
Justification for Evaluation technique:This technique is also
called as data reduction technique. My aim was to aggregate the
information is given in large number data is conclude in a very
comprehensive (small) value. Its just like multiple regression
analysis technique in which each variable of research is
represented as a linear combination taking all factors
together.Reason for using Factor AnalysisBasically factor analysis
is used to analyze groups of correlated variables expressing one or
more common domains. On the other hand in factor analysis I choose
Principal components analysis which is used to find optimal ways of
combining variables into a small number of subsets answering
research objectives. My total numbers of variables are 17 and on
these variables I want to analyze correlation between all of them.
Similarly my aim of research study is to identifying more
influencing factor over dependent variable Principle component
approach is mostly useful in those scenario where the
dimensionality of given data and its structural composition are not
clearly well defined. Here I will preferably using Exploratory
factor analysis in which there are particularly no guiding
hypotheses research will be based on when the question is
particularly what are the underlying factors. In this technique
factors mainly in factor analysis are conceptualized as "real
world" entities. Similarly principal components analysis in which
each component is simply geometrical abstractions that may not map
easily onto real world phenomena. Another major reason for using
Principle component analysis is all of the observed variance each
factor is analyzed on the other hand in simple factor analysis it
is only the specific shared variances that is analyzed.
Banking Industry for Research-Meezan Bank Limited:Meezan Bank
Limited is a publicly listed bank and first incorporated on January
27, 1997. Operations were started as an investment bank in August,
1997. Similarly In January, 2002 in an historic initiative and
achievement for Meezan Bank was that they granted the Nations first
full-fledged commercial banking license in Pakistan dedicated to
Islamic Banking, by the State Bank of Pakistan. Meezan Bank is
today at a noteworthy point all along the evolution of Islamic
Banking in Pakistan. On the other hand banking sector is viewing a
significant paradigm shift away from previous established means of
business; its catering to an increasingly astute and challenging
financial customer according to new trend who is also becoming
keenly well acknowledged and aware of Islamic Banking. Meezan Bank
is accountable to take the critical responsibility of leading the
way forward in developing a stable and vibrant Islamic Banking
system which replete with dynamic and cutting-edge products and
services of other competitors surviving in banking industry. Vision
of Meezan bank is to launch Islamic banking as banking of preferred
choice to facilitate the complete implementation of an equitable
economic system which is responsible for strong foundation to
building a fair society for mankind Similarly Mission statement is
based on vast and long term relationship building statement which
is To be a leading Islamic bank, which offering a one-stop store
for new value additional products and services to our all customers
particularly within the bounds of Shariah, aslo optimizing the
stakeholders worth through a company culture focusing on knowledge,
equality, owner for individual enterprise and performance all over
the country
Analysis of Data:
Sample Size:250Dependent Variable= TurnoverIndependent
Variables: Job Opportunity , Interpersonal skills , Interesting
tasks , Bored Job Contents ,Proper Job Match, Career growth , Lack
of recognition, Employee resistance, Organizational culture,
Unrealistic expectations , Lack of Empowerment , Over Reliance
Basically I have performed all relevant tests for principle
component analysis. I perform all tests on total 12 variables which
are more linked with dependent variable and excluded 5 variables
which are least related to dependent variable.
Main tests results and interpretation of sample size will be
focusing these areas
1. Descriptive studies (Mean, Standard deviation)2. Correlation
matrix3. KMO and Bartlett's Test4. Chi- square test5. Component
Matrix6. Total Variance7. Communalities8. Rotated Component
Matrix
FactorAnalysis:
Notes
Output Created02-Dec-2012 14:15:05
Comments
InputDataC:\Documents and Settings\lab1.KIETC.000\Desktop\FYP
D4.Shirazi.sav
Active DatasetDataSet1
Filter
Weight
Split File
N of Rows in Working Data File250
Missing Value HandlingDefinition of MissingMISSING=EXCLUDE:
User-defined missing values are treated as missing.
Cases UsedLISTWISE: Statistics are based on cases with no
missing values for any variable used.
SyntaxFACTOR /VARIABLES Q.01 Q.02 Q.05 Q.06 Q.08 Q.09 Q.10 Q.11
Q.12 Q.13 Q.16 Q.17 /MISSING LISTWISE /ANALYSIS Q.01 Q.02 Q.05 Q.06
Q.08 Q.09 Q.10 Q.11 Q.12 Q.13 Q.16 Q.17 /PRINT UNIVARIATE
CORRELATION SIG DET KMO EXTRACTION ROTATION FSCORE /FORMAT SORT
/PLOT EIGEN ROTATION /CRITERIA MINEIGEN(1) ITERATE(250) /EXTRACTION
PC /CRITERIA ITERATE(25) /ROTATION VARIMAX /SAVE REG(ALL)
/METHOD=CORRELATION.
ResourcesProcessor Time00:00:01.656
Elapsed Time00:00:01.907
Maximum Memory Required19992 (19.523K) bytes
Variables CreatedFAC1_1Component score 1
FAC2_1Component score 2
FAC3_1Component score 3
FAC4_1Component score 4
FAC5_1Component score 5
[DataSet1]C:\DocumentsandSettings\lab1.KIETC.000\Desktop\FYPD4.Shirazi.sav
Descriptive Statistics
MeanStd. DeviationAnalysis N
Job Opportunity3.301.361250
Interpersonal skills3.271.433250
Interesting tasks3.541.429250
Bored Job Contents3.211.480250
Proper Job Match2.931.443250
Career growth3.201.385250
Lack of recognition3.431.361250
Employee resistance3.321.429250
Organizational culture2.961.394250
Unrealistic expectations3.331.304250
Lack of Empowerment3.501.330250
Over Reliance3.101.400250
Interpretation of Result:As per the definition of mean its a set
of or average of total data of respondents similarly it is
calculated by adding up each and every single number in the set,
and dividing this sum by the total number of entries available in
data. According to the result derived from statistics descriptive
On the basis of 250 respondents data it show that job opportunity
interpersonal skills, Interesting task, Bored job contents, Career
growth lack of recognition and employee resistance is comparatively
high over other remaining factors and they have much high influence
over other out of 250 respondents most of people agreed on the high
influence of these variables over dependent variable turnover
Similarly standard deviationrepresents at which extent
diffusion" exists from the average mean or expected value of the
research data. According to this data result Interpersonal skills,
Interesting task, Bored job contents, Employee resistance ,proper
Job Match , Over Reliance have more variation and data points of
these factors are extend over a large range of values from
data.
Correlation Matrixa
Job OpportunityInterpersonal skillsInteresting tasksBored Job
ContentsProper Job MatchCareer growthLack of recognitionEmployee
resistanceOrganizational cultureUnrealistic expectationsLack of
EmpowermentOver Reliance
CorrelationJob
Opportunity1.000-.003.125-.073.134.218-.102-.276.055.049-.081.018
Interpersonal
skills-.0031.000-.271.019.138-.051.045.034-.061.032.118-.041
Interesting
tasks.125-.2711.000-.034.030.026-.165-.074.114.016.016.024
Bored Job
Contents-.073.019-.0341.000-.081-.053-.067.069-.109.183.200.058
Proper Job
Match.134.138.030-.0811.000.029-.160-.185.184.030-.006.019
Career
growth.218-.051.026-.053.0291.000.110-.227.010.033-.068-.055
Lack of
recognition-.102.045-.165-.067-.160.1101.000.198-.044-.074.092-.058
Employee
resistance-.276.034-.074.069-.185-.227.1981.000-.110.168.052-.050
Organizational
culture.055-.061.114-.109.184.010-.044-.1101.000-.037-.022.278
Unrealistic
expectations.049.032.016.183.030.033-.074.168-.0371.000.064-.011
Lack of
Empowerment-.081.118.016.200-.006-.068.092.052-.022.0641.000.112
Over
Reliance.018-.041.024.058.019-.055-.058-.050.278-.011.1121.000
Sig. (1-tailed)Job
Opportunity.482.025.124.017.000.055.000.193.219.100.386
Interpersonal
skills.482.000.382.015.212.237.297.168.309.032.260
Interesting
tasks.025.000.297.316.342.004.123.036.399.401.351
Bored Job
Contents.124.382.297.100.201.147.140.043.002.001.180
Proper Job Match.017.015.316.100.323.006.002.002.319.460.380
Career growth.000.212.342.201.323.041.000.435.303.141.192
Lack of
recognition.055.237.004.147.006.041.001.245.121.074.182
Employee
resistance.000.297.123.140.002.000.001.041.004.205.217
Organizational
culture.193.168.036.043.002.435.245.041.281.366.000
Unrealistic
expectations.219.309.399.002.319.303.121.004.281.155.432
Lack of
Empowerment.100.032.401.001.460.141.074.205.366.155.038
Over Reliance.386.260.351.180.380.192.182.217.000.432.038
a. Determinant = .446
Interpretation of Result: According to basic definition the
Matrix is based on the correlation coefficient, of given data range
of co relation matrix is between 1.0 and -1.0 Similarly for the
positive linear relationship among two variables the correlation
will be 1.0. If there is a perfect negative linear relationship
between the two holdings, the correlation coefficient is -1.0. A
correlation coefficient of zero identifies that there is no linear
relationship between the multiple funds. In this result we can see
that combination of positive and negative correlation between all
variables of 250 respondents. KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy..533
Bartlett's Test of SphericityApprox. Chi-Square196.928
Df66
Sig..000
Interpretation of Result:KMO test is most important test perform
to check significance of variables that we are considering in 250
respondents this test is performed when correlation between pairs
of variables simply can not explained by other variables most
desirable value for significance of KMO test is always greater then
0.5 and our value is 0.533 which shows high significance level of
this test and data. On the other hand in Bartlett's Test of
Sphericity show that out of 250 respondents 197 chi square value
representing the data validity and actual result.
Component Matrixa
Component
12345
Employee resistance-.661.093-.210-.050-.091
Job Opportunity.569-.109.214.321.172
Over Reliance.178.571-.048-.385.329
Bored Job Contents-.304.471.100.443.157
Lack of Empowerment-.270.459.226.025.405
Interpersonal skills-.220-.017.772-.148-.126
Interesting tasks.390.238-.519.248-.010
Proper Job Match.433.175.483-.107-.289
Unrealistic expectations-.148.334.150.555.010
Organizational culture.432.364-.052-.488.154
Lack of recognition-.383-.368.014-.266.582
Career growth.352-.377.146.290.568
Extraction Method: Principal Component Analysis.
a. 5 components extracted.
Interpretation of Result:According to result of all independent
variables are highly negative which shows they are not inter
related to each other and imperfect for each other. Each Variable
is different from other variable and strong variability found
between them
Total Variance Explained
ComponentExtraction Sums of Squared LoadingsRotation Sums of
Squared Loadings
Total% of VarianceCumulative %Total% of VarianceCumulative %
11.82515.20615.2061.53212.76912.769
21.38911.57226.7781.35811.31324.082
31.29910.82437.6011.34011.16735.249
41.24810.39848.0001.33711.13846.387
51.1209.33057.3291.31310.94257.329
Extraction Method: Principal Component Analysis.
Interpretation of Result:According to this data all factors
having perfectly positive percentage of variance which explains
that all factors having high variability among them.
Communalities
Extraction
Job Opportunity.515
Interpersonal skills.682
Interesting tasks.539
Bored Job Contents.545
Proper Job Match.547
Career growth.694
Lack of recognition.693
Employee resistance.501
Organizational culture.584
Unrealistic expectations.464
Lack of Empowerment.500
Over Reliance.616
Extraction Method: Principal Component Analysis.
Interpretation of Result:For the analysis of communalities out
of 12 variables only 4 factors have perfectly positive values which
means that Interpersonal skills, Career Growth, Lack of recognition
and Over reliance are basically main variables which have more
influence over dependent variable and they are more affecting
Turnover as compare other considerable set of variables.Rotated
Component Matrixa
Component
12345
Career growth.749.018-.089-.045.351
Job Opportunity.692.039-.021-.062-.172
Employee resistance-.623.178-.150.007.243
Bored Job Contents-.091.732-.002-.025.002
Unrealistic expectations.051.640-.164-.032-.156
Lack of Empowerment-.060.539.348.191.219
Over Reliance-.039.119.772-.067.023
Organizational culture.086-.204.714-.076-.136
Interpersonal skills-.001.097-.031.812-.114
Interesting tasks.122.062.114-.680-.213
Lack of recognition-.009-.109.030.209.798
Proper Job Match.258-.082.202.343-.561
Extraction Method: Principal Component Analysis. Rotation
Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
Interpretation of Result:
This result highlights that high value of those factors which
are more dominating over dependent variable.
Interpretation:This graph shows the relative importance of each
factor Similarly dotted sharp drops in all variables indicates that
these all variables are ignorable and no relationship is found
between them.Summarized List of Research Questionnaire
Response:
As per result of applied test each variable is having strong
variability job opportunity interpersonal skills, Interesting task,
Bored job contents, Career growth lack of recognition and employee
resistance is comparatively high over other remaining factors and
they have much high influence over other out of 250 respondents
most of people agreed on the high influence of these variables over
dependent variable turnoverStandard deviationrepresents at which
extent diffusion" exists from the average mean or expected value of
the research data. According to this data result Interpersonal
skills, Interesting task, Bored job contents, Employee resistance
,proper Job Match , Over Reliance have more variation and data
points of these factors are extend over a large range of values
from data Each factor have influence over dependent variable some
have higher and and rest of have minor influence on turnover. Out
of 12 variables only 4 factors have perfectly positive values which
means that Interpersonal skills, Career Growth, Lack of recognition
and Over reliance are basically main variables which more influence
over dependent variable and they are more affecting Turnover as
compare other considerable set of variables. Research model is
significant as per KMO test value on the basis of 250 respondents.
Online questionnaire were filled by 250 corporate people.Research
question was focusing on the empirical study over the derived
factors which are directly influencing turnover ratio and which
factor is high impact on dependent variable?
Key Results:Research main results representing the answers of
research questions.1. Pilot test on questionnaire which used to
identifies the reliability of research question. Significant value
should be 0.7 or greater than 0.7 similarly our value is 0.822
which shows that research instrument is highly reliable and valid
and significant for research objective.2. All variables are have
high variability and negative correlation among them3. KMO Test
significant value should equal to 0.5 and our value is 0.533 which
shows high significance of this test and proved that model is fit
for research purpose.4. Bartlett's Test of Sphericity value show
that out of 250 respondents 197 chi square value representing the
data validity and actual result.5. Communalities analysis out of 12
variables only 4 factors have perfectly positive values which means
that Interpersonal skills, Career Growth, Lack of recognition and
Over reliance are basically main variables which more influence
over dependent variable and they are more affecting Turnover as
compare other considerable set of variables.6. Total variance
having perfectly positive percentage of variance which explains
that all factors having high variability is consistently changes
which explain sum of square loaded in sample size.
Conclusions: Research model is focusing 12 independent variables
which are extracted from literature review and having influence on
dependent variable1. Job Opportunity2. Interpersonal skills3.
Interesting tasks4. Bored Job Contents5. Proper Job Match6. Career
growth7. Lack of recognition8. Employee resistance9. Organizational
culture10. Unrealistic expectations11. Lack of Empowerment12. Over
Reliance
Research objective and question is clearly answered by the
result obtained from the test we applied on it. Out of 12 variables
only 4 factors have perfectly positive values which means that 1.
Interpersonal skills, 2. Career Growth, 3. Lack of recognition 4.
Over relianceElaborate that these are main factors which have more
influence over dependent variable and they are more affecting
Turnover as compare other considerable set of variables.It shows
that organization have to consider these factors to reduce their
turnover ratio and this issue is easy to eliminate if we consider
these factors which have strong influence over turnover decisions
of employees. This research result clearly shows that turnover is
controllable factor by management because all those factors which
are more influencing on turnover mostly depend upon the management
decisions.
Recommendations:
Research question has been answered by results arrived from the
test performed on it.
Research question has been answered by results arrived from the
test performed on it. In Banking industry there should be more
interactive sessions should be conducted department wise focusing
on assigning tasks and goals on quarterly basis. Communication gap
between employees and their bosses should be reduced as it will
increase their level of motivation Management should conduct a
coaching sessions to improve and enhance employees capabilities.
Management should play a vital role in employee individual career
growth and development by providing more learning opportunity and
assigning them by according to their interest and skills..
Management should take serious steps for appreciation of employees
on their outstanding performance for achieving those assigned task
by their managers. Intrinsic rewards usually worked as back bone to
retain well experienced and well qualified employees. Management
has to improve their Performance Management system to recognize
best performer of their company. Extrinsic reward system helps to
attract new employees and increases level of motivation of new
employees as they are fresh graduates and they are more concerned
money and other incentives. Management should not be having over
expectations from employees for achievement of task assigned to
them as every individual capability varies from other individual.
References
(A.C. Benedict, april 15, 2012)(Muhammad Aminu Bawa, July
2005)(GUMA, JANUARY 2011)(Dr. Gabriel Dwomoh, 2012)(BROOKS C.
HOLTOM)(lochead, april 2004)(wilson)(Loquercio, January 2006)(AHM
Shamsuzzoha)(DEEPA & STELLA, July 2012,)(NARESH KHATRI)(Mark N.
Harris, September 2003)(CHEN BIG JING, MAY 2012)