A STUDY ON EMPLOYEE TURNOVER OF ABC BANK IN SRI LANKA

Acknowledgement

I would like to express my deep gratitude to Mr.           , my research supervisor, for his patient guidance, enthusiastic encouragement and useful critiques and advices of this research work. I would also like to thank to       for his advice and assistance in keeping my progress on schedule as my course coordinator.

Deepest gratitude is also due to the teaching faculty of        . Without whose knowledge and guidance this course would not have been successful.

Finally I would like to thank all who support immensely to make this project a success.

Abstract

Today many organizations all around the world agree with the fact 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.

Companies spend large amount of money to recruit and train employees in order to get their service to the organization. When there is a high employee turnover, the organizations often face the problems to achieve expected return on investments in terms of acquiring human resources.

The research was done to examine and identify the reasons for high employee turnover at sales department of ABC Bank in Sri Lanka by analyzing the intentions of existing employees to leave the company. Two main sources of data namely primary and secondary were used in the study. The primary data refers to the interviews and questionnaire survey conducted with the selected employees of the sales department in the ABC Bank. The secondary data was collected through journals, text books and annual reports of ABC Bank.

The study concluded by illustrating the reasons for the employee turnover and recommending measures to keep their existing employees at the sales department.

 

Keywords Human resource practices, Sales staff turnover intention, Influence,

Table of Contents

Chapter one – Introduction 1

1.1 Background of the study 1

1.2 Research problem / issue 1

1.3 Objectives/ purpose of the study 2

1.4 Significance of the study 2

1.5 Design of the study 3

1.6 Conceptual Framework 3

1.7 Sampling 4

1.8 Data collection and Data analysis 5

1.9 Organization of the study 5

Chapter Two – Over view of the company/ organization 7

2.1 Brief history 7

2.2 Nature of the organization/competition 7

2.3 Product lines 8

2.3.1 Banking Services 8

2.3.2 Retail Banking and Wealth Management 9

2.4 Business volume/employees 9

Chapter Three – Review of Literature 11

3.1 Employee Turnover 11

Chapter Four – Analysis and Findings 13

4.1 Research Instrument 13

4.2 Procedure for data collection and analysis 13

4.3 Presentation of results 13

4.3.1 Realistic of job review 13

4.3.2 Supervisor Support 15

4.3.3 Remuneration 16

4.3.4 Customer Verbal Aggression 17

4.3.5 Work Family Life 19

4.3.6 Demographic Factors 20

Chapter Five 22

Conclusions, Limitations, Recommendations 22

5.1 Conclusions 22

5.2 Limitations 23

5.3 Recommendations 23

References 24

Appendixes 25

Table of Figure

  1. Conceptual Framework………………………………………………………………4

4.3.1 Realistic of job review……………………………………………………………15

4.3.2 Supervisor Support……………………………………………………………….17

4.3.3 Remuneration…………………………………………………………………….18

4.3.4 Customer verbal aggression……………………………………………………..19

4.3.5 Work family balance………………………………………………………..……20

4.3.6 Distribution of respondents by age………………………………………………20

Chapter one

Introduction

1.1 Background of the study

Human resource is the heart of every business since it plays a major role in the success of any business. Retaining the existing employees of the company once they are trained and motivated to play certain task challenge the most companies in the world. Therefore employee turnover has become a word that is widely used by many human resource practitioners. The importance of the employees of an organization further has been highlighted by the fact that most employers still suggest that it is better for them to work with their existing employees than to encourage labor turnover by recruiting new employees.

Employee turnover is the ratio of 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 (Price, 1977). Organizations all over the world invest more time and money for employees from the point they are recruited to the position they start their work. At ABC bank in the sales department, employees are given one month training on product knowledge, communication skills, soft skills, grooming and handling different type of customers at various situations. Even if the bank has provided all relevant facilities for the employees there is a high employee turnover rate particularly in the sales department. The study broadly focuses on identifying the reasons for the employee turnover and what mostly impact to the employee turnover of sales department.

Research problem / issue

ABC bank spends enormous amount of money for recruiting and training employees however making the return of those investments has become a question mark since the company has high employee leaving rate. Therefore the statement of the problem is why there is high employee turnover in sales department at ABC bank and what mostly affect to the intention of the existing employees to leave the organization.

Objectives/ purpose of the study

The purpose of the study is to identify the reasons for the high employee turnover in the sales department and what mostly impact to the intention of the sales staff to leave the Bank. Reasons for the employee turnover are varied from the organization to organization. And also the impact of each factors and reasons are different and depend on various factors. Therefore it required analyzing those factors separately and what mostly impact to the employees’ intention towards leaving the organization in the times to come.

Significance of the study

With the increase in competition in Sri Lanka’s banking industry, if ABC has high employee turnover, the company will lose its competitive advantages. Rivals are unable to copy the skills and knowledge of the employees which differentiate from the competitors. They do this by recruiting those employees once they left their company. When companies employ new people due to the existing employee leaving, it takes a considerable time for them to understand the task of the job and to develop necessary skills and knowledge required by the job. When the employee is in the process of learning, the works provided by them are not up to the company’s standards and it will not meet the customer’s expectation as well. This will result in losing customers, increasing customer dissatisfaction and customer complaints and delaying the process.

One of the simplest but highly impacting negative effects of turnover is decreased performance in the work place which de motivates the existing employees when they are engaging in their tasks. Companies with high employee turnover struggle to complete all necessary daily functions due to the fact that the required number of employees are not available. Company has to figure out how to deal with the unfulfilled work load which arises daily basis. High costs which are related with the processes of recruiting new staffs and unfulfilled works is another negative aspect of the high employee turnover. It is said that it can cost about one-half of an unskilled worker’s salary to replace a lost employee. Replacing a technically skilled employee or a high level manager can cost as much as three to five times the annual salary. And apart from the training costs of new employees the company has to incur costs of completing exit interviews and making new openings for the vacant jobs. Further the employees of the organization do not stay for a long period in the same place and the knowledge and the skills about the job is very less since they have not done the job in the organization a long period in order to have a full understanding about the nature of the job. Therefore this study examines the reasons for the employee turnover and what impact most among those reasons and that will help to the management to take necessary measures to keep their existing employees within the company.

Design of the study

A questionnaire is distributed among thirty (40) employees in the sales department. Questionnaire is consist of the areas such as employee work family balance, supervisor support, customer verbal aggression, realistic of job review, and salary expectation whether they are happy with the current salary or expecting more. Five questions were asked to test realistic of job review, six questions to test remuneration, seven questions to test supervisor support, six questions to test customer verbal aggression and work family balance. Questions regarding the personal details include work experience, age, sex and education level.

Conceptual Framework

After analyzing the relevant literature, researcher was able to identify factors which have made the employee turnover and how those factors affected to the employee turnover of those organizations.

Therefore to make easier the process of understanding following conceptual framework is developed for this research. Below mentioned frame work shows that there are five factors that affect the employee turnover and those factors are work family balance, supervisor support, customer verbal aggression, realistic of job review and remuneration. The five factors are identified as the independent variables and the employee turnover at sales department of ABC bank as the dependent variable.

Realistic of job review
Supervisor support
Employee turnover intention at sales department of ABC Bank
Remuneration

 

Customer verbal aggression
Work family balance

Figure 1.0 – Conceptual framework

Sampling

Forty employees are selected as the sample of the survey and questionnaires are distributed among those employees. Employees are selected from the sales department.

Forty (40) personal banking advisors are selected for the questionnaire survey. Simple Random Sampling (SRS) method is used to select the sample from the population. Personal banking advisors are mainly engaging in bringing the potential customers to the bank and satisfying their needs once those are identified properly. They directly deal with the customers as front liners. They are working under the contract basis.

Data collection and Data analysis

Questions are designed in a five point Likert scale to measure the results of the survey. Five (5) for strongly agree, four (4) for agree, three (3) for neutral, two (2) for disagree and one (1) for strongly disagree is given to measure the results. The main advantages of this method are it is possible to get information from a large number of respondents since it is easy to distribute among the target audience rather than conducting interviews individual basis. And also when the population is too large, a selected sample can be considered for the data collection. Further respondent can take enough time to answer and consider questions especially so not when face to face. Data were collected from the primary data source which is the questionnaire survey and the secondary data source.

Organization of the study

The first chapter mainly explains what the research is about. It includes the background of the study, research problem, objective of the study, significance of the study, design of the study, sampling and the data collection and data analysis.

Brief history about ABC Bank is explained in the beginning of the second chapter and the nature of the organization and the business the company engages in is clarified in this chapter. Further the nature of the customers and competition is explained in the second part of this chapter. Nature of the products and the services offered by the bank to various customer segments and categories, how differentiate the range of products to various type of customers are also explained in the second chapter. Business volume and the employees of ABC are explained at the end of the second chapter.

The previous works that has been done by the key industry personnel related to the employee turnover intention is analyzed in the third chapter and the related terms are explained using definitions.

The conceptual framework which clarifies the reasons for the employee turnover intention is graphically presented and the independent and dependent variables of the study are identified and explain in the fourth chapter. Further the findings of the research and the variables are analyzed and tested using statistical tools in order to come to conclusions.

After analyzing the collected data, the conclusion of the study is explained in this chapter. The limitations which are unable to cover through the study are highlighted and relevant measures that ABC can apply are explained in detail in this chapter.

Chapter Two

Over view of the company/ organization

Brief history

ABC Bank which was founded in 1865 to finance trade between Asia and the West, today is one of the largest financial organizations locates in 75 countries and regions. It operates through four global businesses which are Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, Global Private Banking in over 6300 offices by 254000 employees. One of the strategic Priorities of ABC Bank is to be the world’s leading and most respected international bank. ABC achieves this by focusing on the needs of its customers and societies it serve, thereby delivering long- term sustainable value to all its stakeholders. In May 2013, ABC announced a set of three interconnected and equally weighted priorities for 2014 to 2016 to help to deliver their strategy. Those are to grow the business and dividends, implement global standards and streamline processes and procedures.

ABC established in 1892 in Sri Lanka just 27 years after its first office was established in Hong Kong . In 1882 ABC appointed agents in Sri Lanka during the 1884 coffee crisis where all coffee plantations were destroyed by a disease. Then ABC had understood the need of an international cooperate bank in Sri Lanka. From that day itself bank has improved upon the quality of the service offered by the bank to the local customers by creating new avenue for the tradition of loyalty and support.

Nature of the organization/competition

ABC bank purpose is to be where the growth is, connecting customers to opportunities, enabling businesses to thrive and economies to prosper, and ultimately helping people to fulfill their hopes and realize their ambitions. By understanding customer needs which is changed time to time ABC always make sure to provide a customer service which is unique and fast than its competitors. Identifying few different segments where the company’s rivals have not tapped and accessed so far. The Advance and Premiere clearly supported the customers of the bank to experience an unprecedented service compared to its competitors.

When the competition of the ABC bank is analyzed, range of commercial banks in Sri Lanka which include Sampath Bank, Commercial Bank, Hatton National Bank (HNB) and Standard Charted Bank are among the key rivals of ABC. Those rivals offer a tuff competition in terms of lending and borrowing products at ABC. Personal loans, car loans and credit cards are offered by the rival banks by reducing their margin in order to enter and catch a large market share. ABC always tries to get the advantages by continuing the competitive advantages of having a superior customer service which is unparalleled to its competitors.

Product lines

Products of ABC consist of business accounts, loans and finance, trade and supply chain, cash management and securities services. Bank operates those services locally as well as internationally. The services often come as tailor made services which suits customer expectations separately. The product and services of the bank mostly focus not only on the individual customers but the key cooperate of the country as well.

Banking Services

ABC bank provides large number of financial support for multinational and domestic companies which are based in internationally and locally. This has further strengthened by the bank’s capability of lending local and foreign currency. And also ABC is pioneered in working capital and trade financing for companies in Sri Lanka as well as around the world.

Furthermore ABC provides custody and clearing services where the customers and buyers have to exchange money with other countries and when the customers have to make payments through foreign currencies to other countries. ABC treasury department also plays a key role in providing financial assistance for companies like Aitken Spence and Brandix Lanka Ltd.

Retail Banking and Wealth Management

Advance proposition is one of the key value products in the personal banking sector of ABC bank. This provides customer faster access and the services whenever the customer wants it. Secure internet and phone banking enable customers to make their transactions at any time of the Day or night. And also customers will also enjoy a range of benefits such as 24/7 dedicated Advanced customer call center, fee-free Automatic Teller Machine (ATM) access and free Short Message Services (SMS) alerts. A team of financial exports have been assigned to assist the customers when they require special assistance for their transactions. Customers are provided preferential interest rates on credit card and personal loan schemes and rewards based on customer preferences.

A dedicated relationship manager is assigned for each and every customer to provide more customize service and functional instruction to manage customer’s finance for the Premier acquisition. And also customer can always discuss about the level of service they are getting from the bank with the support of relationship manager.

The bank has also created children’s savings account, E saver accounts to cater different market segments where needs are different. ABC has also launched personal installment loans, home loans, car loans and Personal and Exclusive Revolving Credit (PERC) to upgrade the diverse lifestyles. Further it has the largest number of market share in terms of the credit card market.

Business volume/employees

 

ABC is one of the largest financial service organizations in the world. In Sri Lanka it operates with 14 branches and 10 Automated Teller Machines (ATM). One thousand seven hundreds (1700) are working in the ABC bank in Sri Lanka. When candidates are recruited to ABC bank, they have to go through an assessment center where the candidates are assessed to determine their suitability for specific type of the employment. When the sales department is concerned all personal banking advisors and senior personal banking advisors are recruited on two years contract basis. Once a candidate selected for the job, he is given a one month training period which includes the organizations values, product knowledge and the knowledge related to all the process of the bank.

Chapter Three

Review of Literature

Employee Turnover

Employee turnover is a much studied phenomenon (Shaw et al., 1998, p. 511). Even though there are quite number of significant research about the area, there is still confusion as to what factors exactly cause employees to leave their organizations. This has made much confused since those reasons are different from the organization to organization. Among those factors are the external factors (the labour market); institutional factors (such as physical working conditions, pay, job skill, supervision and so on); employee personal characteristics (such as intelligence and aptitude, personal history, sex, interests, age, length of service and so on) and employee’s reaction to his/her job (including aspects such as job satisfaction, job involvement and job expectations) (Knowles, 1964).

Li and Zhou (2013) found that the customer verbal aggression significantly predicted employee turnover intention. Second, that employees’ emotional exhaustion fully mediated the relationship between customer verbal aggression and employee turnover intention. Third, the correlation between customer verbal aggression and employee emotional exhaustion was found to be weaker for teams with higher levels of emotional POS (perceived organizational support), but not weaker for those with higher levels of instrumental POS.

When providing the information at the job interview, individuals who displayed a higher tendency to leave their jobs were those who perceived that the job previews that they received during the interview process were not realistic (Pitt and Ramaseshan, 1995).

Employees who perceive high levels of Perceived Supervisory Support (PSS) but report low levels of Perceived Organizational Support (POS) will also report high levels of turnover intentions compared to employees who perceive low PSS and low POS. For increasing POS to be successful, managers must strive to find out the way to increase their social support, and then tailor support accordingly. Managers may benefit from considering cultural values during the support process. Furthermore organizations may develop different support policies for employees (Tuzun and Kalemci, 2012).

Employees’ work attitudes and other outcomes were predicted to a statistically significant degree by dimensional, perceptual characterizations of the influence tactics used by their supervisors. In culminating multiple regression analyses, respectfulness was associated with supervisor commitment, turnover intention, and emotional distress; directness was associated with organizational commitment. Additional analyses indicated that other dimensions of meaning also were associated with outcomes (Michela, 2008).

Collecting empirical data from firms in different regions of China, it was found that a leadership style, i.e. leader-member exchange (LMX), can have a significant effect on employee turnover. Moreover, the effect of LMX can be moderated by the C-HRM-oriented HRM (C-HRM) approach. The paper concludes with a discussion of the implications of the findings to academic researchers and practitioners. There exist both the direct effect and interactive effect of LMX on employees’ organization identity, which in turn affects their turnover. Moreover, collectivism-oriented HRM (C-HRM) moderates the relationship between LMX and employees’ organization identity. Other conditions being equal, the higher the C-HRM, the stronger is the positive relationship between LMX and organization identity (Zhiqiang et al.2013).

There are indications that employees’ perceived service quality has a direct negative effect on employees’ turnover intentions. The effect of empowerment, coaching, and role clarity on turnover intention appears to be mediated through employees’ perceived service quality. ( Slatten, 2012)

Chapter Four

Analysis and Findings

4.1 Research Instrument

The main research instrument for this study is the questionnaire survey which was developed by the researcher. A total of thirty three (33) questions were distributed among forty respondents to gather the data. The instructions for the questionnaire were equally explained each other.

4.2 Procedure for data collection and analysis

 

Two research assistants were employed to collect the questionnaire survey papers after they are answered in order to ensure the high response rate and the proper administration. All the distributed applications were collected and it represented a response rate of 100% for the analysis. Simple statistic techniques such as bar charts, frequency table and percentages were used in the analysis of data.

4.3 Presentation of results

Frequencies and percentages table were used to present the data of the questionnaire survey. Bar charts were used to show employees responses for the questions under each category. Vertical axis of the each bar chart represents the number of employees as a percentage and the horizontal axis represent the questions under each category. Different colours of bars show the scale of different responses.

4.3.1 Realistic of job review

The job description is the document which defines the relationship between the employer and the employee. When a candidate is given a full review about the job that he is going to work, it helps him to understand the nature of the job and mainly the tasks and duties which are expected to be performed by the employee. Having a clear understanding about the job before the candidate is recruited always supports him to understand further whether he takes the job or not. Figure 4.3.1 shows the employee’s agreement on the realistic of the job review before they are recruited. Five questions were asked from the employees and following results were able to gather after evaluating the questionnaire papers.

Figure 4.3.1: Realistic of job review. Source – Survey data

As the first question (Question No .01) employees were asked that they have been provide relevant information about the job before they are being employed. Majority of the employees have answered that they are strongly agree with the statement and the percentage of that is 75% which is more than the half of the sample. And very less number of employees has answered the question negatively.

The accuracy and the relevancy of information provided at the interview about the job were asked as the second question (Question No .02) of the survey. More than 85% of employees have said that the information provided at the interview was accurate and relevant to their job.

Further 87% of the employees answered that they are agreed with the fact that they were communicated about the tasks of the job before they are recruited (Question No .03). And also 87% of the employees said that they had informed about the positive and negative aspects of the job (Question No .04). The final question was asked to examine the employee’s understanding about the expectation of the job. Sixty two percent of the employees strongly agreed with the statement and 27% of the employees said they are agreeing with the statement. According to the figure 4.3.1 more than 85% of the employees are positively agree with the company practice of providing job review before they are being employed. This further elaborate that the realistic of the job review does not affect to their intention to leave the organization.

4.3.2 Supervisor Support

Seven questions were asked to examine how employees see the supervisor support and how it affects to the intentions of employees to leave the organization. Supervisor support has been evaluated from the level of support they give to their employees and to the level of motivation given to employees by supervisors. The question number six was asked to check the availability of the supervisor whenever the employee wants assistance. The employees highly agree with fact that supervisor is usually available (Question No. 06) when he needs assistance which is 75% employees are strongly agree while 20% of employees are agree with the fact.

The immediate supervisor’s efforts to understand employee’s view point and the time he takes to discuss projects or problems with employees (Question No. 07) are evaluated, more than 95% of the employees has positively responded that they are agree with the statements. And also training, feedbacks to improve performance and clear job description provided by the supervisor (Question No. 09, 10 & 11) are considered majority of the employees are happy with the supervisor’s effort. When employees are asked about the supervisors efforts on creating a vision and strategies for them (Question No. 08) 85% of employees has answered that they are strongly agree

Figure 4.3.2: Supervisor support. Source – Survey data

with the statement. And also 94% of the employees agreed that the immediate supervisor tolerate minor mistakes (Question No. 12) done by the staff.

 

4.3.3 Remuneration

Employee remuneration is defined as the reward or compensation given to employees for their work performance. Remuneration increase motivation and morale to be engaged in a task. Definite gaining of the task helps someone to do a particular task without diverting the focus of that person.

The following figure 4.3.3 shows how the employees of ABC bank consider about their pay scales. Questions were asked to examine the employee’s understanding about the pay policy, criteria used to decide pay and the competitor’s paying for the same job in the market. Further the incentive framework and how it is calculated is also examined at the end of the questionnaire.

Figure 4.3.3: Remuneration. Source – Survey data

When employees are asked whether they are happy with the number of increments in their pay (Question No. 13), 74% of employees mentioned that they are strongly agree with the fact and 19% of employees said they are agree. The percentage of the employees who answered negatively to the question was 3% and 2%.

Employee’s understanding about the company’s pay policy and criteria used to decide the pay, (Question No. 14) was relatively in a high level that 60% and 73% of employees said they are strongly agree with the statement. And also employees are getting an equal salary when compare to its competitors (Question No. 16). Further more than 70% of employees believe that the incentive framework is effective (Question No. 17) and 72% of the employees strongly agree with the fact that if they achieve sales target they can earn more money (Question No. 18).

4.3.4 Customer Verbal Aggression

When customers are argon and unethical in some instances, this impact to the employee’s performance of the daily functions and sometimes this leads to relationship conflict with co workers and job neglect. When a sales staff goes through a bad experience with his customer, that impact to the emotional level when he deals with another customer. The figure 4.3.4 shows how ABC bank’s employees feel about the company’s efforts on managing customer verbal aggression.

Figure 4.3.4: Customer verbal aggression. Source – Survey data

When the other employees’ efforts of identifying and understanding their customer’s needs are considered (Question No. 19) 80% of employees strongly agree with the statement. 95% of the employees agree with the overall department responding to the customer requests promptly (Question No. 20). And also more than 85% of the employees believe that the company creates an environment to handle difficult customers effectively in terms of providing courteous service for the customers and management’s attentive participation for handling difficult customers (Question No. 21).when the overall department’s quality of the customer service is concerned 97% of employees agree with the statement (Question No. 22). Further 96% of employees agree with the existing complaint handling system and majority of the employees have a clear idea about the system (Question No. 23). 94% of the employees agree with the support given by the management in terms of handling difficult customers (Question No. 24).

4.3.5 Work Family Life

Work family balance plays a key role in the success of the work life as well as the personal life. Having the right balance of these two makes a person to perform his best at his work life and personal life. When the person has a good personal life, that results in his or work life and vice versa. Figure 4.3.4 shows how employees of ABC bank respond to the company’s policy in terms of supporting to have the balance between the work life and personal life.

Figure 4.3.5: Work family balance. Source – Survey data

According to the above figure employees’ responses are different than the previous questions. When they asked about the number vacations that the company provide for them, the majority of the employees disagree with the statement and it says that available number of vacation is not sufficient for 95% of the employees (Question No. 26). When the company’s sick leave policy is considered 97% of the employees are not satisfied (Question No. 27). And also employees’ ability to apply for a leave in an emergency is very limited. 90% of the employees strongly disagree with this statement (Question No. 28).

However when the company’s health care paid is considered, even if the number of employees who are disagree is higher, there are considerable amount of employees who are agree with the company’s policy (Question No. 29). Further majority of the employees which is 96% are not happy with the company’s support in terms of higher studies (Question No. 30). When the overall responses are considered, majority of the employees are not happy with the company’s acts on employee work family balance.

4.3.6 Demographic Factors

The distribution of the respondents by age range shows that 70% of the employees are of age range between 20 and 24 years. Under 20 years, there are 5% of the employees. And also there are 15% employees between the age 24 and 28.

Figure 4.3.6 Age distribution of respondents Source – Survey data

Also the distribution of number of years in the present company 85% employees is less than one year in the company. Again the distribution of respondents by gender is considered 90% of the employees are male.

Chapter Five

Conclusions, Limitations, Recommendations

5.1 Conclusions

According to the research findings it is clear that employees of the ABC bank are satisfied with the company’s practices in terms of providing relevant and correct information about the job before they are being employed, supervisor support, remuneration and company’s support on handling aggressive customers.

When the company’s human resource practices on providing accurate and relevant information before the employees are recruited is considered it is in a greater level since more than 85% of the employees agree with the company’s efforts (Figure 4.3.1). This shows that there is no greater impact on employees’ intention to leave the organization due to the fact that the information provided at the interview before they are being employed are not accurate and relevant.

As shown in the figure 4.3.2 it is clear that the employees of the ABC bank are highly satisfied with the support given by their supervisors. The immediate supervisor’s efforts on giving feedback and providing relevant training, and availability of supervisors when the employees need assistance are at a very high level. More than 85% of employees are happy with the overall supervisor support for the employees’ day to day operations.

When the remuneration paid by the company is considered, according to figure 4.3.3 it is clear that there are 90% of employees who agree and strongly agree with the statement. This shows that there is no possibility for employees to leave the company based on the company’s remuneration policy. And also when the impact of customer verbal aggression on employees’ intention to leave the company is considered, there is no sufficient evidence to see that there is an impact on employees’ intention to leave the organization due to this reason. As shown in the figure 4.3.4 it is clear that majority of the employees which is more than 85% are satisfied with the company’s efforts on handling the difficult customers and managing customer verbal aggression.

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However the results of the questionnaire survey shows that the employees are not satisfied with the company’s policies in terms of employee’s work life balance. Provided support on leave allocation and higher studies are not at a satisfactory level of the employees. As shown in the figure 4.3.5, it is clear that majority of the employees are disagree and dissatisfied with the company’s acts on various aspects on employee work life balance. The bank does not provide sufficient holidays for the employees. And also employees’ ability to take leave in an emergency is very limited. Further according to the figure 4.3.5 97% of employees disagree with the company’s sick leave policy. Therefore according to theses information as shown in the figure 4.3.5 there is clear evidence that the company’s policy in terms of employees’ work life balance has a clear impact for the employees’ intention to leave the organization.

5.2 Limitations

One of the key limitations of the study is different perception among the employees and they react to same manager in different ways. And also when dealing with the customers there is considerable amount of impact from the employee’s personal characteristics and attitudes.

5.3 Recommendations

High employee turnover impacts mostly to the company’s bottom line. When there is a high employee turnover company has to often develop strategies to attract new people. Finding and replacing new employee costs twice an employee’s salary. And also when the company has a high employee turnover it makes a huge impact to the existing employees of the organization.

One of the most prominent way of reducing employee turnover is hiring the right people from the start and carefully evaluate the candidate to ensure that they have the right skills as well as whether they fit well with the job and the company culture.

When the ABC bank is considered, employees’ work life balance has made a huge impact to the remaining employees of their intention to leave the organization. Majority of the employees are not satisfied with the company’s leave policy and their ability to manage the personal life with the work life is very limited.

Therefore ABC bank has to change the company’s acts on managing the employees work life balance. Company’s leave policy should be changed and manage with the country’s labor laws and regulations and the competitors packages. And also bank can introduce programs to connect with their family members in order to reduce the gap between the family and employees. Further the benefit given by the bank for the employee needs to be increased.

Good working relationship among the employees needs to be developed by the management in order to reduce the intention of the remaining employees of leaving the organization. And also employees’ perception of the high employee turnover needs to be changed by implanting the changes and making aware the employees continuously. Further the employee’s capacity of taking leave in an emergency needs to be more flexible since the employees’ ability to apply for that kind of leave is very limited.

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References

Tuzun, I.K. and Kalemci, R.A. (2012),”Organizational and supervisory support in relation to employee turnover intentions”, Journal of Managerial Psychology, Vol. 27 No.5, pp. 518 – 534

Michela, J.L. (2008),”Understanding employees’ reactions to supervisors’ influence behaviors”, International Journal of Organizational Analysis, Vol. 15 No 4, pp. 322 – 340.

Knowles, M. C. (1964), “Personal and Job Factors Affecting Labour Turnover”, Personnel Practice Bulletin, Vol. 20, pp.25-37.

O’Halloran, P.L. (2012),”Performance pay and employee turnover”, Journal of Economic Studies, Vol. 39 No. 6, pp. 653 – 674.

Pitt, L. F. and Ramaseshan, B. (1995), “Realistic job information and sales force turnover: an investigative study”. Journal of Managerial Psychology, Vol.10 No. 5.

Price, J.L. (1977), The study of turnover, Iowa, Iowa state university press, (Chapter 2 & 4)

Shaw, J.D., Delery, J.E., Jenkins, G.D. and Gupta, N. (1998), “An organisation-level analysis of voluntary and involuntary turnover”, Academy of Management Review, Vol. 41 No. 5.

Li, X. and Zhou, E. (2013), “Influence of customer verbal aggression on employee turnover intention”, Management Decision, Vol. 51 No. 4.

Fang, Z.L.Z.C.J.L.S.S.Y. (2013),”Leadership style and employee turnover intentions: a social identity perspective”, Career Development International, Vol. 18 No. 3, pp. 305 – 324.

Slatten, T. (2011), “Service quality and turnover intentions as perceived by employees”, Personnel Review, Vol. 40 Iss 2.

Appendixes

ABC Bank’s Employee Turnover Questionnaire Survey

ABC Bank’s Employee Turnover Questionnaire Survey

10/10/2015

Dear Participant:

My name is Chamara Premathilake and I am a student at University of Colombo. The research is done to examine the reasons for the sales staff’s intention of leaving the organization and what mostly affect to the employee turnover of ABC bank. This is my final project of the Post graduate Diploma in Business Management at the Faculty of Graduate Studies.

The following questionnaire includes thirty three (33) questions and will require approximately forty (40) minutes to complete. Please make sure not to mention your name in order to ensure that all the information to keep confidential. Please answer all the questions as honestly as possible and return it once you complete.

Finally I would like to thank all of you for taking time to assist me in doing this research and the data provided by you, will be useful to achieve the objectives of the research.

Sincerely,

Chamara Premathilake

Faculty of Graduate Studies

University of Colombo

ABC Bank’s Employee Turnover Questionnaire Survey

When responding to questions, you are asked to indicate your level of agreement with the given statement ranging five point scales starting from strongly agree to strongly disagree and in the middle neither agree or disagree. Once you decide your answer please tick the relevant box.

  1. During the interview and the recruitment process I was provided relevant information about the job before being employed.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. The information provided at the interview was accurate and relevant to my job.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. I was told the tasks and duties of the job before I was recruited.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. I was told all positive and negative aspects about the job before being employed.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. I have a clear idea about the expectations of the job after recruitment process is finished.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. My immediate supervisor is usually available.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. My immediate supervisor tries to understand my point of view when he or she discusses problems or projects with me.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. My immediate supervisor creates a vision and strategy for my area.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. I receive coaching and training from my immediate supervisor

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. My immediate supervisor gives me feedback that helps me improve my performance.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. Management has given me a clear job description.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. The management tolerates minor mistakes.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. I am happy with the number of increments in the pay.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. I have a clear understanding of the company’s pay policy.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. I understand the criteria used to decide my pay.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. The pay I am getting from the bank is about equal to others companies in the industry.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. I am happy with the incentive framework and how it is calculated.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. If I achieved sales target I can earn more money.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. Employees of the department listen attentively to identify and understand client concerns.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. My department responds promptly to client requests, despite a busy workload.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. My work group consistently provides courteous service even when the client is unreasonable.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. Overall, I am satisfied with the quality of the client service provided by my department.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. The bank has a clearly defined complaint handling system.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. Management is attentively participate to handle the difficult customers and very supportive for the staff.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. Benefits available are appropriate for my needs and those of my Family.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. Number of vacation is sufficient.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. Sick leave policy is satisfactory.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. I am able to apply and take leave in an emergency.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. Amount of health care paid is Sufficient.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. The organization supports me in terms of my higher studies providing required leave and subscriptions.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

  1. What is your age?

Under 20 …………

20 to 24……………

24 to 28……………

28 to 32……………

32 to 36……………

36 to 40……………

40 to 44…………….

  1. How long have you worked for the present company?

Less than one year ……………………………

One year to less than two years …………………

Two years to less than three years …………..

Three years to less than four years ……….…

Four years to less than five years ……………

Five years to less than six years………………

  1. What is your gender?

Male……………………………………………

Female…………………………………………

Thank you for your contribution on my educational endeavor!