Factors influence on employee turnover in private sector banks: special reference to Chilaw division

Abstract

Employee turnover is one of the major problem for the success of the financial organization and it obstacle the growth and achievement of goals. This research assessed the factors influence on employee turnover in private sector banks in Chilaw Division. The main objective of this research was to identify the influencing factors on employee turnover in private banks in Chilaw Division. The specific objectives of this research were to investigate the impact of employee turnover, examine the relationship between factors and explore the strategies to retain the employees in the banks. The target population of this research was all employees in the private sector banks in Chilaw, there are 11 banks with 143 employees. Entire population was used for the research. Both primary and secondary data were used for gathering related information. Primary data was collected through interview and questionnaire which designed with Likert scale questions and secondary data was collected from reports of Divisional Secretariat and banks. Collected data analyzed by using MS Excel and Statistical Package for Social Sciences (SPSS), using reliability test, principal component analysis, t-test (independent sample test and ANOVA) and descriptive method. The finding of this research revealed that, salary and benefits, working environment, job satisfaction, distance to work and turnover intention were major factors for intention to leave the bank. As well as, employee turnover creates some negative impacts in the banks. Further, there did not any employees of the banks face frictional unemployment during their working period of life. According to the findings of the research there were some recommendations provided to retain the employees such as, provide reasonable salary, create friendly environment, identify the causes for leaving the banks and provide proper solution, proper training and guidance.