EMPLOYEE TURNOVER AND ORGANISATIONAL PERFORMANCE IN THE BANKING SECTOR: EVIDENCE FROM AN EMERGING ECONOMY

Ebrahim Mollik, Faisal Majeed, Syeda Fatima Hussain, Zia Rasheed, Muhammad Shoaib, Tracy Mncube

Abstract


Employee turnover remains a significant challenge in the banking sector, with serious implications for organisational performance, service quality, and workforce stability, particularly in emerging economies where labour market uncertainty and talent shortages intensify turnover risks. This study examines the determinants of employee turnover intention and its impact on organisational performance in the banking sector of an emerging economy. Using a quantitative, cross-sectional research design, data were collected from 101 banking employees through a structured questionnaire and analysed using SPSS. Descriptive statistics, reliability testing, correlation analysis, and multiple regression analysis were employed to test the proposed relationships. The findings indicate that job satisfaction and organisational commitment are significant predictors of employee turnover intention, with higher levels of satisfaction and commitment associated with lower intention to leave. The results further demonstrate that employee turnover intention has a strong and statistically significant negative effect on organisational performance, suggesting that workforce instability undermines productivity and service quality. In addition, the findings reveal that retention strategies play an important organisational response role, with increased turnover impact leading to stronger implementation of retention initiatives. This study contributes empirical evidence from an under-researched emerging economy context and highlights the importance of strategic human resource practices aimed at enhancing employee satisfaction, commitment, and retention to sustain organisational performance in the banking sector.

 

JEL: G21, M12, J28

 

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Keywords


employee turnover; organisational performance; job satisfaction; organisational commitment; banking sector

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References


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DOI: http://dx.doi.org/10.46827/ejefr.v10i1.2138

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