employee retention in public sector banks
TRANSCRIPT
AVS COLLEGE OF ARTS AND SCIENCE – INTERNATIONAL CONFERENCE ON RECENT TRENDS IN COMMERCE AND BUSINESS MANAGEMENT ON 26TH JULY 2013
Title of the paper - EMPLOYEE RETENTION IN PUBLIC SECTOR BANKS – A STUDY WITH REFERENCE TO CHENNAI CITY
Author 1 - V.CHITRA, PhD Research Scholar
Author 2 - DR. R. SHANTHI, ASSISTANT PROFESSOR
Institution - University of Madras
Address for communication - Department of Commerce, University of madras, __________________________________ Chepauk, Chennai – 600 005.
Contact No - 7708134018
e-mail – id - [email protected], [email protected],
EMPLOYEE RETENTION IN PUBLIC SECTOR BANKS (A STUDY WITH REFERENCE TO CHENNAI CITY)
V. CHITRA *& Dr. R. Shanthi **
Abstract
Employees are a valuable asset to any organization. It is essential to protect this vital resource
as talented and motivated employees play a crucial role in overall growth and success of the
organization. Retention of key employees is critical to the long-term health and success of
any organization Focusing on employee retention techniques can positively impact the
organization as it increases employee productivity, performance, quality of work, profits, and
reduces turnover and absenteeism. Employee retention is a process in which the employees
are encouraged to remain with the organization for the maximum period of time or until the
completion of the project. Effectively creating an engaging environment, recognizing good
performance, giving benefits and rewards, promoting mutual respect are some of the ways for
effective employee retention. This research paper focuses on the RETENTION
STRATEGIES FOLLOWED IN THE PUBLIC SECTOR BANKS. The aim of this study is
to find out the retention strategies followed by the banks to retain their experienced and
valuable employees (with Chennai city). Here the manager employee relationship, Employee
growth, Compensation, Perceived organizational support and work environment were taken
as the dimensions of retention strategies. The influence of retention strategy Dimensions on
employee’s intention to leave their job is considered as an important factor in this research
Convenient sampling methods was adopted to collect data from employees working in public
sector banks. Cronbach’s alpha shows the reliability as .895. Factor analysis, Regression and
ANOVA were performed to analysis the data. The result revealed that a cordial relationship
between Retention strategies towards employees intention to leave their job. This leads to
better employee – manager relationship in public sector banks.
Keywords: Psychological contract, Employee Involvement, Organizational Support.
* Ph.D Research Scholar, Department of Commerce, University of Madras, Chennai,[email protected]
** Assistant Professor, Department of Commerce, University of Madras, Chennai, [email protected]
EMPLOYEE RETENTION IN PUBLIC SECTOR BANKS (A STUDY WITH REFERENCE TO CHENNAI CITY)
V. CHITRA *& Dr. R. Shanthi **
Introduction
Employees are a valuable asset to any organization. It is essential to protect this vital resource
as talented and motivated employees play a crucial role in overall growth and success of the
organization. Retention of key employees is critical to the long-term health and success of
any organization Focusing on employee retention techniques can positively impact the
organization as it increases employee productivity, performance, quality of work, profits, and
reduces turnover and absenteeism. Employee retention is a process in which the employees
are encouraged to remain with the organization for the maximum period of time or until the
completion of the project. Effectively creating an engaging environment, recognizing good
performance, giving benefits and rewards, promoting mutual respect are some of the ways for
effective employee retention.
Employee retention is beneficial for the organization as well as the employee. Employee
retention matters as organizational issues such as training time and investment; lost
knowledge; insecure employees and a costly candidate search are involved. Hence failing to
retain a key employee is a costly proposition for an organization. Various estimates suggest
that losing a middle manager in most organizations costs up to five times of his salary. It is a
known fact that retaining your best employees ensures customer satisfaction, increased
product sales, satisfied colleagues and reporting staff, effective succession planning and
deeply imbedded organizational knowledge and learning.
Review of literature
Kate Hutchings, Helen De Cieri and Tracey Shea in their study Employee Attraction and
Retention in the Australian Resources Sector the result suggest that This paper presents
findings from a survey conducted in the Australian resources sector in 2009 exploring human
resource (HR) managers‟ perceptions of how their organizational practices and external
* Ph.D Research Scholar, Department of Commerce, University of Madras, Chennai,[email protected]
** Assistant Professor, Department of Commerce, University of Madras, Chennai, [email protected]
contextual changes in industrial relations legislation present challenges for the sector and
influence attraction and retention of highly skilled employees. The research makes an
important contribution to the literature on good employment/high involvement work practices
by investigating organizational practices within the politico-legislative context of this
economically significant sector. Our findings indicate that organisations have implemented a
range of „good‟ employment practices, while dealing with concerns about skills shortages,
employee turnover, an aging workforce, and changes in legislation. We identify a need for
employers to give greater attention to diversity and work-life balance issues. Further, there is
a need for strategies to increase the attractiveness of work in remote locationsi.
Eric Ng Chee Hong, Lam Zheng Hao, Ramesh Kumar, Charles Ramendran and Vimala
Kadiresan in their study An Effectiveness of Human Resource Management Practices on
Employee Retention in Institute of Higher learning: - A Regression Analysis they found by
using a multiple regression analysis, it is found that, training and development, appraisal
system compensation are significant to employee retention except employee empowerment.
Base on the results, training, compensation and appraisal is a fundamental consideration for
University of Y lecturers’ retention decision; while empowerment is less fundamental to
lecturers’ consideration as this can be attributed to the Asian culture characteristic of higher
authority conformityii.
Vaishali Chhabra in her study Current Trends In Employee Retention Strategies this paper
puts forward the various initiatives taken by the business for retaining their talented
employees and also discusses the benefits of these perks both from the viewpoint of
employee as well as employeriii.
Raymond Loi, Ngo Hang-yue and Sharon Foley in their study Linking employees’ justice
perceptions to organizational commitment and intention to leave: The mediating role of
perceived organizational support they finally concluded that both procedural and distributive
justice contributed to the development of POS, and POS mediated their effects on
organizational commitment and intention to leave. As expected, organizational commitment
was negatively related to intention to leave. Additional analyses revealed that these
relationships held for both partners and non-partners in law firmsiv.
Lona Mody, Douglas K. Miller, Joanne M. McGloin, M Div, Marcie Freeman, Edward R.
Marcantonio, Jay Magaziner, and Stephanie Studenski, in their study Recruitment and
Retention of Older Adults in Aging Research they concludes that recruitment and retention
techniques and strategies to address concerns and overcome barriers to older adult
participation in clinical research. Key approaches include early in-depth planning;
minimizing exclusion criteria; securing cooperation from all interested parties; using advisory
boards, timely screening, identification, and approach of eligible patients; carefully reviewing
the benefit: risk ratio to be sure it is appropriate; and employing strategies to ensure
successful retention across the continuum of care. Targeting specific strategies to the
condition, site, and population of interest and anticipating potential problems and promptly
employing pre developed contingency plans are keys to effective recruitment and retentionv.
Need for the study:
This study is an attempt to provide the subjective experience of the employment relationship
through Psychological contract fulfillment in order to explain the individual-level
explanations to link between employer and employee and also this study helps the employer
to understand the employee’s level of commitment. This study further helps in indentifying
the key drivers for retaining the employees
Objective of the study:
To find out the dimensions of retention strategy followed in public sector banks.
To identify key dimension influencing the retention strategies followed in public
sector banks.
To examine the perception of employees based on their demographic profile.
Limitations of the study:
Any research study can be restricted in scope by certain interest limitations that are
participated by the choice of the research design, sampling procedure and respondent
selection. This study has the following limitation.
Even though the survey was conducted among the sample of 250 employees, the
research may not reflect the real opinion of the entire population.
The research was conducted among Accountant, officers and clerical staff it cannot be
generalized.
Since study was conducted among employees working in leading public sector banks
and it may not be suitable for other public and private sector bank employees
Methodology
Methodology is a systematic way to solve the research problem. This study was mixed
methodology that is both qualitative and quantitative. For Quantitative data was collected
using questionnaire and it was measured through Likert five point scale. For qualitative data
respondent were asked to share their views and suggestions based on open ended question.
Research settings
Research design is the plan and structure of investigation in order to obtain answers to the
research questions. The present study is explorative in nature. Exploratory research is
undertaken to explore an area where researcher has little knowledge or to investigate the
possibilities of undertaking a particular research study. In this study exploration is to discover
retention strategies followed by the bank management to retain their employees.
Samples
Sample size for this study is Two hundred and fifty. The convenient sampling was adopted to
collect the data. Data were collected in the form of structured questionnaires and through
direct Interview method in the selected branches in Chennai city
Questionnaire
Employee’s retention strategy and its relationship with Human Resource practices variable
were measured by adopting various scale Rousseau’s Psychological contract inventory scale
was adopted to measure the employee - manager relationship, Edward Lawler scale was
adopted to measure the Compensation of employees, Allen & Mayer commitment scale was
adopted to measure the intention of employees to quit their job, Eisternberg’s Perceived
organizational support scale was used to measure the performance support received by
employees from their managers, Warr & Wall High order need scale was adopted to measure
the need of employee development
The questionnaire is specifically designed to Retention of Public sector bank Employees. For
these Retention strategies is divided into 6 groups Relationship, Growth, Work environment,
Perceived organizational support, Compensation and their intention to quit their job.
The Questionnaire was divided in to TWO parts
PART: A- Questionnaire contained 32 items measuring the Retention strategies. The items
under each group were measured by using 5 Point Likert scale.
PART: B - Questionnaire includes question about personal and organizational details such as
Age, Gender, Marital status, Income and Experiences.
DATA ANALYSIS
Table – 1 Gender
GENDER
Frequenc
y
Percent Valid Percent Cumulative
Percent
Valid
MALE 116 46.4 46.4 46.4
FEMALE 134 53.6 53.6 100.0
Total 250 100.0 100.0
*SOURCES: Primary Data
Data were collected from 250 respondents and their Gender composition is presented in the
above table
Table – 2 Marital Status
MARITAL STATUS
Frequenc
y
Percent Valid Percent Cumulative
Percent
Valid
MARRIED 198 79.2 79.2 79.2
UNMARRIED 52 20.8 20.8 100.0
Total 250 100.0 100.0*SOURCES: Primary Data
Data were collected from 250 respondents and their Marital status is presented in the above
table
Table –3 Level of Education
QUALIFICATION
Frequency Percent Valid Percent Cumulative
Percent
Valid
S.S.L.C 4 1.6 1.6 1.6
GRADUATE 144 57.6 57.6 59.2
POST
GRADUATE88 35.2 35.2 94.4
OTHERS 14 5.6 5.6 100.0
Total 250 100.0 100.0*SOURCES: Primary Data
Data were collected from 250 respondents and their Level of education is presented in the
above table
Table – 4 Age
AGE(IN YEARS)
Frequency Percent Valid Percent Cumulative
Percent
Valid
BELOW
25YRS23 9.2 9.2 9.2
25-30YRS 57 22.8 22.8 32.0
30-35YRS 21 8.4 8.4 40.4
35-40YRS 16 6.4 6.4 46.8
40-45YRS 17 6.8 6.8 53.6
45-50YRS 38 15.2 15.2 68.8
ABOVE
50YRS78 31.2 31.2 100.0
Total 250 100.0 100.0*SOURCES: Primary Data
Data were collected from 250 respondents and their Age composition is presented in the
above table
Table – 5 Salary
SALARY(IN RUPEES)
Frequency Percent Valid Percent Cumulative
Percent
Valid
UPTO 1,00,000 2 .8 .8 .8
1,00,000-2,00,000 39 15.6 15.6 16.4
2,00,000-3,00,000 41 16.4 16.4 32.8
3,00,000-4,00,000 36 14.4 14.4 47.2
4,00,000-5,00,000 49 19.6 19.6 66.8
5,00,000-6,00,000 46 18.4 18.4 85.2
6,00,000-7,00,000 30 12.0 12.0 97.2
7,00,000-8,00,000 6 2.4 2.4 99.6
ABOVE 8,00,000 1 .4 .4 100.0
Total 250 100.0 100.0*SOURCES: Primary Data
Data were collected from 250 respondents and their Salary composition is presented in the
above table
Table – 6 Experience
WORK EXPERIENCE (IN YRS)
Frequency Percent Valid Percent Cumulative
Percent
Valid LESSTHAN
5YRS46 18.4 18.4 18.4
5-10YRS 40 16.0 16.0 34.4
10-15YRS 26 10.4 10.4 44.8
15-20YRS 17 6.8 6.8 51.6
20-25YRS 17 6.8 6.8 58.4
25-30YRS 51 20.4 20.4 78.8
30-35YRS 49 19.6 19.6 98.4
35-40YRS 4 1.6 1.6 100.0
Total 250 100.0 100.0
*SOURCES: Primary Data
Data were collected from 250 respondents and their Experience composition is presented in
the above table
KMO and BARTLETT'S TEST
Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy/Bartlett's Test of Sphericity
Prior to the extraction of the factors, several tests should be used to assess the suitability of
the respondent data for factor analysis. These tests include Kaiser-Meyer-Olkin (KMO)
Measure of Sampling Adequacy, and Bartlett's Test of Sphericity.
Table – 7 KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .857
Bartlett's Test of Sphericity
Approx. Chi-Square 2781.482
df 351
Sig. .000
The Kaiser-Meyer-Olkin Measure of Sampling Adequacy is a statistics that indicates the
proportion of variance in variable that might be caused by underlying factors. High values
(close to 1.0) generally indicate that a factor analysis may be useful with data. If the value is
less than 0.50, the result of the factor analysis probably won't be very useful. In this study, the
value of Kaiser-Meyer-Olkin Measure of Sampling Adequacy is 0.857. Bartlett's tests the
hypothesis that correlation matrix is an identity matrix, which would indicate that variables
are unrelated and therefore unsuitable for structure detection. A small value (less than 0.05)
of the significance level indicates that a factor analysis may be useful with data.
FACTOR ANALYSIS
Factor analysis is one used to analyze the inter relationships between independent variables
with metric data. The analysis summarizes a majority of the information in the data set in
terms of relatively a few new categories- known as factors. The main applications of factor
analytic techniques are: (1) to reduce the number of variables and (2) to detect structure in the
relationships between variables, that is to classify variables. The present study uses the factor
analysis to analyze the statement responses in the questionnaire and the results were
presentedvi.
Table – 8 Total Variance Explained
Compo
nent
Initial Eigenvalues Extraction Sums of
Squared Loadings
Rotation Sums of Squared
Loadings
Total % of
Variance
Cumula
tive %
Total % of
Variance
Cumula
tive %
Total % of
Variance
Cumulative
%
1 7.876 29.170 29.170 7.876 29.170 29.170 4.020 14.890 14.890
2 2.218 8.213 37.383 2.218 8.213 37.383 2.698 9.992 24.882
3 1.926 7.133 44.517 1.926 7.133 44.517 2.612 9.675 34.556
4 1.440 5.332 49.849 1.440 5.332 49.849 2.314 8.569 43.125
5 1.335 4.945 54.794 1.335 4.945 54.794 2.125 7.870 50.995
6 1.151 4.262 59.056 1.151 4.262 59.056 1.805 6.685 57.681
7 1.069 3.958 63.014 1.069 3.958 63.014 1.440 5.334 63.014
8 .923 3.417 66.431
9 .833 3.084 69.515
10 .762 2.820 72.335
11 .730 2.702 75.037
12 .689 2.553 77.590
13 .647 2.397 79.988
14 .608 2.253 82.241
15 .600 2.224 84.465
16 .525 1.946 86.411
17 .508 1.882 88.293
18 .479 1.773 90.066
19 .422 1.565 91.631
20 .387 1.434 93.064
21 .373 1.380 94.445
22 .322 1.192 95.637
23 .315 1.168 96.805
24 .268 .993 97.798
25 .229 .847 98.646
26 .200 .739 99.385
27 .166 .615 100.000
Extraction Method: Principal Component Analysis.
Rotated Component Matrix:
Perhaps the most important tool in interpreting factors in factor rotation. The term rotation
means the reference axes of the factors are turned about the origin until some other position
has been reached. Factor rotation assists in the interpretation of the factors by simplifying the
structure through maximizing the significant loadings of a variable on a single factor.
The goal of rotational strategies is to obtain a clear pattern of loadings, that is, factors that are
somehow clearly marked by high loadings for some variables and low loadings for others.
This general pattern is also sometimes referred to as simple structure. Typical rotational
strategies are varimax, quartimax, and equamaxvii
Table – 10 Rotated Component Matrixa
Component
1 2 3 4 5 6 7
I feel appreciated by management .734 .183 .214 .124 .026 .122 .150
My bank really cares about my well being. .687 .080 .028 .062 .317 .347 .023
I am satisfied with recognition received for doing a good job .682 .047 .304 .232 .004 .104 .120
My bank strongly considers my goals and values. .665 .215 .116 -.001 .203 .355 .013
I am satisfied with the rate of pay received for job .650 -.050 .110 .125 -.073 .021 .153
I would be very happy to spend the rest of my career with this Bank. .546 .001 .134 .312 .090 .157 -.122
Help is available from my manager when I have a problem. .528 .359 .142 .172 .369 .096 .086
My manager would forgive an honest mistake on my part. .502 .253 .023 .133 .499 -.185 .097
My manager is very much committed to his/her employees .279 .796 .088 .117 -.062 .100 -.080
Overall, I’m very much committed to my manager .004 .762 .092 .136 .076 -.025 .116
My manager will in live up his/her promises as made to his/her
employees.338 .706 -.014 .077 -.021 .003 -.138
In general, I will live up my promises made to my manager. -.166 .693 .108 .132 .142 .117 .127
I am Extending my range of abilities. .134 .139 .785 .164 .115 .195 -.063
My work in this bank is challenging. .190 .113 .746 .077 .099 .027 -.089
I am having enough opportunity to learn new things .265 .045 .744 .200 .277 .039 .037
I am having enough opportunity to make my own decisions .358 .056 .522 -.009 .336 .413 .017
I have enough responsibility to do my work. .091 .151 .050 .715 .260 -.045 .028
I feel satisfied while getting recognition to my work. .118 .149 .196 .693 .162 .081 .080
I’m happy with my fellow workers .168 .034 .067 .674 -.230 .189 .016
I am satisfied with my immediate boss .302 .231 .136 .637 .168 .065 -.056
If I achieve something that will have personally value .046 -.084 .262 .053 .649 .105 .021
My manager is willing to help me if I need a special favor. .281 .250 .114 .154 .604 .046 -.107
I am using my maximum skills to achieve my task. -.089 -.037 .381 .144 .551 .350 .043
I’m satisfied with the physical work conditions .211 .077 .035 .147 .065 .769 .096
I have freedom to choose your own method of working .253 .060 .265 .075 .076 .647 -.028
If I gave an opportunity, my bank would take advantage of me. .162 .005 .024 -.069 -.164 -.073 .811
My bank shows very little concern for me. .109 .056 -.140 .140 .200 .172 .766
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 9 iterations.
Table – 11 Reliability Statistics
Cronbach's Alpha N of Items
.895 27
The rotated component matrix table shows the loadings of each item on each factor after
rotation. The rotated component factor has grouped the 27 statements into seven factors and
on the basis of loading of the statements they are given names and explained below. The
cronbach’s alpha Reliability statistics found out 89.5% of the data were reliable.
Factor-1 Employee Engagement
I feel appreciated by management
My bank really cares about my well being.
I am satisfied with recognition received for doing a good job
My bank strongly considers my goals and values.
I am satisfied with the rate of pay received for job
I would be very happy to spend the rest of my career with this Bank.
Help is available from my manager when I have a problem.
My manager would forgive an honest mistake on my part.
An engaged employee is a person who is enthusiastic about their work. Improving employee
engagement directly impacts measurable business outcomes. Employees who are committed
to success, emotionally attached, and socially involved with a company demonstrate qualities
that business manager’s thirst to have. Engaged employees are more productive at work, take
less sick days and exhibit other favorable behavior, promote the business to others and show
their happiness to customers.
Factor - 2 Employers - Employees Relationship
My manager is very much committed to his/her employees
Overall, I’m very much committed to my manager
My manager will in live up his/her promises as made to his/her employees
In general, I will live up my promises made to my manager.
Healthy relationship reduces the conflict among employees and also makes them to feel as
though they belong to the same family. This is essential for team work. Team work and
inclusive culture can help the organization resolve issues. Good relationship between
managers/employees helps in building loyalty and trust and thereby driving customer
satisfaction. Strong relationship among manager and employee makes them to think positive
about their work place. Friendly approach between them helps in building the progressive
organization.
Factor - 3 Employee Developmental factor
I am Extending my range of abilities.
My work in this bank is challenging.
I am having enough opportunity to learn new things
I am having enough opportunity to make my own decisions
The primary challenge of an every organization is to give growth opportunity to their
employees, for developing effective career development opportunity is successfully
transitioning from traditional, hierarchical management principles to self-directed work
teams, autonomy and information sharing.
Factor – 4 Satisfaction factor
I have enough responsibility to do my work.
I feel satisfied while getting recognition to my work.
I’m happy with my fellow workers
I am satisfied with my immediate boss
A person’s job, like a person’s business, is a highly valued possession that pervasively affects
the lives of the employee and his or her family. With stakeholders everywhere, the
relationship is laden with moral responsibilities. This includes but goes beyond a duty to treat
employees respectfully, to pay them fairly and provide good working conditions. An ethical
employer does not think of employees only as a means to an end. Employees must be treated
as a major stakeholder group. Ethical employers consciously and consistently treat the
promotion and protection of the well-being of employees as an important business obligation
and objective.
Factor – 5 Performance Support
If I achieve something that will have personally value
My manager is willing to help me if I need a special favor.
I am using my maximum skills to achieve my task.
Performance is largely associated to how the surrounding is established. A serene work
environment with all the basic needs help people perform at higher levels. An organization
that gives importance to well being is found to be placed in a better position than organization
who only focus on business and not the well being aspect. Well being faction creates a
wonderful work environment that results in people owing what they do and perform beyond
ones potential.
Factor – 6 Environmental factor
I’m satisfied with the physical work conditions
I have freedom to choose your own method of working
Environmental factor plays a vital role in employee’s work force and productivity. A number
of physical facilities and psychological factors that are considered pertinent for enhancing
productivity are currently employee expectation. A number of related/job employment
policies such as job orientation for new staff, opportunity for staff training and development,
promotion, job security etc are presently perceived as unfavourable to workers and therefore
have negative impact for productivity.
Factor – 7 Intention to quit
If I gave an opportunity, my bank would take advantage of me.
My bank shows very little concern for me.
No employee quits the company. It is the experience with their peers or their immediate
manager’s calls for that change. It is often seen that poor decision making or lack of concern
shown triggers this reaction from the employee. It is important as
managers/employers/organization to ensure that the pulse of the employee is often gauged to
determine their engagement level and take appropriate action as a measure to avoid attrition.
Action delayed is action denied is attrition confirmed.
Regression Analysis:
Multiple regression analysis was conducted to examine the relationship between the
Retention strategy and Intention to Quit. For this purpose Retention strategy dimension
considered as predictor and Intention to quit as criterion variable.
Table – 12 Model Summary
Model R R
Square
Adjusted R
Square
Std. Error of
the Estimate
Change Statistics
R Square
Change
F Change df1 df2 Sig. F
Change
1 .444a .197 .181 .46911 .197 11.987 5 244 .000
a. Predictors: (Constant), Work environment, Relationship, Reward, Growth, O.S
The above table shows the model summary of Retention strategy (Predictor) and it explains
the 19.7% of Intention to quit (R2 = 0.197, F = 11.987, p < 0.01)
Table – 13 Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig. 95.0% Confidence
Interval for B
B Std. Error Beta Lower
Bound
Upper
Bound
1 (Constant) 1.730 .263 6.584 .000 1.212 2.247
Growth .060 .064 .065 .930 .353 -.067 .187
Compensation .146 .049 .220 2.952 .003 .048 .243
iReferences
1. ? Kate Hutchings, Helen De Cieri and Tracey Shea (2009), Employee Attraction and Retention in the Australian Resources Sector, Australian Research Council Linkage grant in partnership with Chalco (China Aluminum Corporation).
ii Eric Ng Chee Hong, Lam Zheng Hao, Ramesh Kumar, Charles Ramendran and Vimala Kadiresan (2012), An Effectiveness of Human Resource Management Practices on Employee Retention in Institute of Higher learning: - A Regression International Journal of Business Research and Management (IJBRM), Volume (3) : Issue (2) : 2012
iii Vaishali Chhabra, Current Trends In Employee Retention Strategies, International Journal of New Practices in Management and Engineering: Vol: 4 Issue: 1
iv Raymond Loi, Ngo Hang-yue and Sharon Foley, (2006), Linking employees’ justice perceptions to organizational commitment and intention to leave: The mediating role of perceived organizational support, Journal of Occupational and Organizational Psychology, 79, 101–120
v Lona Mody, Douglas K. Miller, Joanne M. McGloin, M Div, Marcie Freeman, Edward R. Marcantonio, Jay Magaziner, and Stephanie Studenski, (2008) Recruitment and Retention of Older Adults in Aging Research, J Am Geriatr Soc, 56(12): 2340–2348.
vi Marketing research, C.N.SONTAKKI, Himalaya publishing house2006,pp.201
vii Multi variate data analysis,Hair,Black,Babin,Anderson,Tatham,PEARSON Education, sixth edition 2009, p. No.187-188.
8. Personnel Management- C.B. Mamoria and S.V. Gankar
9. Human Resource Management- VSP Rao.
10. Human Resource Management- G.S. Sudha
11. Terry Irwin (2011) Retention of employees, TCii strategic and management consultants
Organizational
Support.109 .067 .124 1.627 .105 -.023 .242
Relationship -.009 .047 -.012 -.188 .851 -.101 .083
Work
environment.151 .078 .146 1.937 .054 -.003 .304
a. Dependent Variable: Intention to quit
The above table explains the coefficient and correlation of independent variables
(Dimensions of Retention strategy) with intention to quit as the dependent variable. Retention
strategy as predictor variable in which intention to quit was explained by Reward (β = 0.220,
t = 2.952, p < 0.01)
Occupational well-being (x) is predictor then dependent variable job satisfaction (y)
Y= 1.730+0.060x1+ 0.146x2 + 1.09x3 - 0.009x4+ 0.151x5
x1= Growth, x2 = Compensation x3= Organizational Support, x4= Relationship, x5 = Work
environment.
The minimum value in this case 2.6101 and maximum value is 4.0154. It shows employees
who ever attain the minimum value feel that they were moderately receiving compensation
for their work and also feel that they have little support and freedom to choose their own
method of working and those who ever attain maximum value feel that they receive adequate
compensation for their work and also that they have Full support and freedom to choose their
own method of working in turns makes employee to feel them satisfied with their work.
Hence, there is a strong positive relationship between the Retention strategy and Intention to
Quit. Therefore, it statistically proved that there is a very strong positive relationship between
the Retention strategy and Intention to quit.
ANOVA
Output – 1
Ho There will not be significant differences in the intention of public sector bank employees
to quit their job based on their Level of experience
H1 There will be significant differences in the intention of public sector bank employees to
quit their job based on their Level of experience
Table-14 Test of Homogeneity of Variances
Do you have any idea to switch over your job?
Levene Statistic df1 df2 Sig.
9.291 7 242 .000
The above table shows that the second assumption (the groups have approximately equal
variance on the dependent variable). Levene's Test of significant value is .000 this value is
less than 0.05 the two variances are significantly different that is, the two variances are not
equal.
Table- 15 ANOVA
Do you have any idea to switch over your job?
Sum of
Squares
df Mean Square F Sig.
Between Groups 3.424 7 .489 2.723 .010
Within Groups 43.476 242 .180
Total 46.900 249
The above table shows the output of the ANOVA analysis whether Intention to quit and work
experience statistically significant difference between group means. It shows that the
significance level is 0.010 which is below 0.05. and, therefore, there is a statistically
significant difference in the mean of Intention to quit and experience of employees working
in public sector banks.
Conclusion
Working in a public sector bank was a dream and probably the most sought after job an
individual would desire just about 2 or 3 decades ago. The biggest and the single most factors
were around security. And this was the biggest factor that was promoting the want for
working in the bank. Though the job security factor remains the same, the banks more often
than not have not changed their strategy and feel this is suffice to retain employees. The
reality is that modern employee demands more than just job security for them the stay
committed. The bank has the responsibility to create a work environment which helps foster
the ability and desire of employees to act in empowered ways.
Healthy employee relations also discourage conflicts and fights among individuals. People
tend to adjust more and stop finding faults in each other. Individuals don’t waste their time in
meaningless conflicts and disputes, rather concentrate on their work and strive hard to
perform better. They start treating each other as friends and try their level best to compromise
and make everyone happy.