Understanding the insight of the variables may help the company in reducing the employees’ turnover cost. Regardless of the type of organization, turnover is disruptive and harmful to the organization. This is because organizations rely so heavily on human factor (Stohr, Self, & Lovrich, 1992). Recruitment, testing, selection and training of new staff are expensive (Kiekbusch, Price, & Theis, 2003).
Employees quit the organization will disrupts the social networks and contacts that staff members develop over time with other employees (Mitchell, Mackenzie, Styve, & Gover, 2000). Employee morale can be impacted by turnover (Byrd, Cochran, Silverman, & Blount, 2000; Stohr, Self, & Lovrich, 1992). Operational functions are disrupted due to insufficient staffing which typically leads to overworking of the staff that remains.
It is expected that the result of this study will help corporate management of the banks, particularly human resources practitioners to have a clear understanding on the reasons of employee quit in the banks and this will help them to design the strategies to minimize employee turnover.
It is also expected that the result of this study will be useful to academicians in understanding various trends concerning employee turnover. That means it will add their knowledge by identifying the causes of employee turnover and further studies on various measures that can be taken on how to minimize the problem of employee turnover. Furthermore, it is expected that the results of this study will be useful to policy makers in understanding factors that enhance the trends concerning employee turnover so that effective policies and regulations can be endorsed to facilitate the retention process in the banking industry.
The employee turnover in the banking assistance grade in Sri Lanka has been a threat to the banking industry plus employers and graduates who are freshly employed after the graduations from colleges and universities. The tremendous increase of employee turnover in the banking industry, particularly in recent times, brings an attention on the understanding about its critical causes. Commercial Bank of Ceylon (CBC) headquarters being an area of this study has taken purposive initiatives in retaining its employees. For instance, it has established medical insurance to a staff member one spouse and a maximum of four beneficiaries /dependents. It also established retirement benefits whereby all eligible employees are member of PPF. The bank contributes 15% and an employee contributes 5% of their gross emoluments to the fund. Moreover training programs (in-house and external) are continually being developed to ensure employees are adequately trained at all levels. There is Human Resources awards, a good performer award and contribution of certain percent to employee motor vehicle insurance (CBC Annual Financial Statement, 2015). In spite of these entire initiatives, still employee turnover is at rampant. Therefore this study was driven by these factors to find out the causes for employee turnover despite all the benefits they receive.
The environment and the business world are rapidly changing almost constantly and for a business to survive and thrive to reach their maximum potential, implementing change throughout their operations is vital and essential. Although change is a long process and takes time to implement it correctly, it will not succeed without the help of the organizations employees. There are numerous variables that must be taken into account when introducing change into an area or several areas of the organization, and understand and identifying these variables will make the transition easier to accomplish. Workers attitudes towards their organization can be a result of many different aspects but this case refers to organizational change through redundancy.
1.3 Problem Statement
Generally, the nature of work in banks is very busy and demanding. The bank’s structure is hierarchical, bureaucratic and heavily regulated. For branch outlet, the normal working hours is from 9.00am to 5.15pm. However, in most circumstances, employees are required to work for longer hours such as to facilitate the loading and unloading of ATMs, Cash Deposit Machines (“CDM”) and Cheque Deposit Machine (“CQM”) during public holidays.
The working environment of the employees in branch outlet deals with volume of customers in the day to day banking. There are high and continuous interactions with customers. Employees who stay longer in the organization will build up good relationship with the customers in the long run. They are well versed with the product knowledge, experience in handling customers and understand the customers’ need. Thus, frequent turnover will somehow causes uneasiness to the customers and disruption of services.
According to an discussion with senior manager of the Commercial Bank of Ceylon quoted that the performance of the Sri Lankan banking industry is likely to be moderate next year in line with the economy (“Banking sector performance”, 2016). With the moderate performance outlook of the banking industry, the likelihood of getting good promotion and incremental in salary could be beyond reach. Could it be the small salary, the long working hours, highly risk coupled with the current economic epidemic that triggered intention to quit? There is a crucial need to have more comprehensive studies on the factors that influence the intention to quit among bank employees. The results of this study will give a new perspective to the findings of the previous studies on the issue of intention to quit of the bank employees. The main purpose of this research is to explore the factors influence the intention to quit among bank employees in Sri Lanka.