Determinants of Employee Turnover Intention and Its Impact on Employee Performance of Private Commercial Banks in Bangladesh

Abstract

Employee turnover is now a matter of importance for any type of organization. Each and every industry is facing this problem frequently and baking organization is one of them. It is important for organizations to estimate and understand the general turnover rates among the employees. Employee turnover is known to be real behavior, and this actual behaviorism affected by the intent of employee turnover. Organizations therefore need to identify the causes of the intention of employee turnover and its costs and consequences for organizations. The existing study expects to discover the relationship between determinants of employee turnover intention such as training and development, promotion opportunity, co-worker support, performance feedback, role-overload and how employee turnover intention has an impact on employee performance (In-role and Extra-role Performance) in the PCBs of Bangladesh After a comprehensive literature review the current study is able to acknowledge a reasonable gap which is considered as a contribution of this study. Accordingly the research will contribute to how training and development, promotion opportunities, supports for co-workers, performance feedback and task overload completely decide the nature of employee turnover. This study also intended to provide an understanding of how these determinants of employee turnover intention impact employee performance and their progress in Bangladesh's private commercial banking sector and its in-role and extra-role performances. Therefore, it is regarded as a relationship from the identification of determinants of employee turnover intention to its effect on employee performance as a whole and is the main contribution of this research study. Hereafter, the entire relationship between determinants of employee turnover intention and employee performance through Structural Equation Modeling (SEM) is also considered as the contribution of this study to understanding the relationship between variables that signifies the structural relationships between constructs using Smart PLS-2.0. The population of this study is embraced by all the line managers working in the registered private commercial banks in Dhaka and Chittagong division, Bangladesh. This study was carried out in a cross-sectional and correlational method, using questionnaire survey methods to collect data. In the present study, judgmental sampling techniques were applying which is considered as a component of purposive sampling of non-probability sampling design due to the shortage of comprehensive list of line managers. With a response of 38.75%, a total of 310 accessible questionnaires were identified. Partial Least Square (PLS) second-generation structural equation modeling (SEM) technology was used to check the hypothesized relationship of this analysis. The current study incorporated the perceptions of line managers of Private Commercial Banks (PCBs) in Bangladesh lying on the relationship among training and development, promotion opportunity, co-worker support, performance feedback, role-overload and employee turnover intention and how it affects employee performance both in-role and extra-role performance in their respective organizations. The analysis part of this report shows the outcomes of the study and results of hypothesis test. Descriptive statistics has also been used to analyze the respondent’s characteristics. The measurement model has been examined in the current state, to evaluate the goodness of each construct’s measurement. In the second phase of this study the structural model was measured, including hypothesis testing, determining the coefficient of R2 and path. In this study, a total of four hypotheses were supported and the results of all the analysis after the data were reflected. The results of this study revealed that some HRM dimensions such as promotion opportunity, co-worker support, and role overload have a significant influence on the intention of employee turnover. In addition, the other part of this study focused on the impact on employee performance (In-role and Extra-role performance) derived from turnover intention of employees’, and the outcomes revealed that there is a remarkable relationship between in-role performance and employee turnover intention. Lastly, the current study offers various implications and recommendations to accessible PCB employees, particularly line managers, owners and leaders intending to progress their efforts in reducing employees’ turnover intention as well as improving employee performance.