You are on page 1of 29

Internship Report

ON
Identifications of Employee Turnover in Janata Bank Ltd:
An Empirical Study

1
Internship Report
On
Identifications of Employee Turnover in Janata Bank Ltd: An Empirical Study

Supervised By:

Dr. Sabnam Jahan


Associate Professor
Department of Management

Prepared By

Md.Nazrul Islam
Stream: Human Resource Management
Batch # 18th; Section: B
ID # 226
Department of Management
University of Dhaka

Date of submission: 20.08.2017

2
Table of Contents

Sl. No. Description Page


Title Fly 01
Title Page 02
Letter of Transmittal 05
Acknowledgement 06
Executive Summary 07
Chapter 1: Introduction
1.1 Background of the Study 08
1.2 Statement of the research Problem 08
1.3 Objectives of the Study 08
1.4 Limitation of the study 09
Chapter 2:Literature Review
2.1 Employee Turnover and Retention: Conceptual 10
Framework

2.2 Factors Affecting Employee Turnover 11


2.3 Factors affecting Employee Retention 12
2.4 Summary of the literature review 12
Chapter-3: Methodology
3.1 Sources of data 13
3.2 Methods of data collection 13
3.3 Sampling design 14
3.4 Data analysis method 14
Chapter-4: Organization Profile
4.1 Organization vision 15
4.2 Organization mission 15
4.3 JBL in the banking sector of Bangladesh 15
4.4 Present branches 16

3
4.5 Brand of Janata Bank Ltd. 17
4.6 Products and Services 17
4.7 Brief overview of Janata Bank Ltd. 18
4.8 Financial structure of Janata Bank Ltd 18
4.9 Earnings of Janata Bank Ltd 18
4.10 Share value details of Janata Bank Ltd. 18
Chapter-5: Analysis and Findings of the study
5.1 Findings related to Employee Turnover of JBL 19

5.2 Findings related to Employee Retention of JBL 23


5.3 Summary of findings 24
Chapter-6: Recommendation and Conclusion
7.1 Recommendations 25
7.2 Conclusion 26
Bibliography 27
Reference 29

4
Letter of Transmittal

August 20, 2017


Dr.Sabnam Jahan
Associate Professor
Department of Management
University of Dhaka.

Subject: Submission of Internship Report on “Identifications of Employee Turnover”.

Dear Madam,

I have the great pleasure to submit the internship report titled “Identifications of Employee
Turnover in Janata Bank Ltd” I have conducted my internship program in HRM Division of
Janata Bank Ltd. with your kind supervision. I have worked in Staffing and Resource Planning
unit of Human Resource Department.

Being as a student of Masters of Business Administration (MBA) major in Human Resource


Management, it is a privileged to attend in the internship course and preparing a report under
your supervision and guidance.

I will be highly appreciated if you kindly accept the report. Your positive action regarding this
matter would be very much helpful for my academic career. If you need any further clarification
or information in interpreting this analysis, I will be glad to answer your queries.

Sincerely Yours,

Md.Nazrul Islam

Stream: Human Resource Management


ID# 226
Section: “B”
MBA 18th Batch
Department of Management
University of Dhaka.

5
Acknowledgement

First of all, I express my deep gratitude to almighty Allah for his infinite grace that allowed me
to complete this report. I feel satisfied and glad that I have completed this study within specific
duration. This internship report might never have been completed without the necessary practical
knowledge, assistance of many books, articles, websites, and primary data. It enhanced my
knowledge on human resource management.

I would like to express my gratitude to my teacher and supervisor Dr.Sabnam Jahan, professor
Department of Management, University, Dhaka for her supervision, moral support, valuable
instructions and helpful advice in preparing this report.

6
Executive Summary

Employee turnover is a contemporary issue. Many organizations are now facing the problem of
employee turnover. Janata Bank Ltd. is not exceptional to that. Problematic employee turnover
rates have continued to plague this company. From a very practical standpoint, minimizing the
turnover of skilled employees is crucial in reducing the escalating costs associated with replacing
the exiting employees.

There are two major reasons why turnover is a central issue in the field of HRM across the globe.
First, turnover is related to low organizational knowledge, low employee morale, low customer
satisfaction, high selection costs, and high training costs. Research has also shown that high
employee turnover is related to lower organization performance.

Unnecessary employee turnover costs an organization needless expense. Replacements and


training expenses have a direct impact on organizational costs, productivity and performance,
and as such, an increasing number of organizations are now recognizing employee retention as a
key strategic issue.

Factors which are related with Employee Turnover in Janata Bank Ltd are employee’s intent to
leave, Job dissatisfaction, Poor employee training, Lack of Advancement, Lack of respect, Lack
of Responsibility and Opportunity to move elsewhere.

There are negative consequences of employee turnover as it increases cost. There is also a direct
relationship of employee turnover and productivity.

There is several ways out to reduce employee turnover. Training interview, personality training,
nurturance training are several ways to reduce employee turnover in Janata Bank Ltd.

Employee retention of Janata Bank Ltd. can be fixed by providing monetary items such as
income, bonus and other benefits like vacation and various facilities.

In a nut shell, employee turnover in Janata Bank Ltd. can be solved by ensuring the above
mentioned criteria and facilitating the necessary benefits and opportunity to retain the employee.

7
Chapter 01:
Introduction
1.1 Background of the Study
Employee turnover is a part of normal business activity; employees come and go as their life
situations change. Employers realize this and, indeed, firms typically have entire departments
devoted to the management of human resources in order to make the transition as painless as
possible for both management and employee and to minimize the associated hiring and training
costs.
Some causes of employee turnover are job-related factors that are somewhat within the direct
control of the employer. Examples of such factors would be dissatisfaction with working
conditions, supervising conflicts, scheduling conflicts or salary discrepancies.
In contrast, non-job-related causes of employee turnover are generally out of the employer’s
control. Non job-related causes of employee turnover are those things in the employee’s personal
life that impact their performance in the workplace. Examples of these would be relocation,
family problems and chemical abuse. Although these causes are not directly within the
employer’s control, some organizations have sponsored responsive programs for the non-job-
related category such as employee assistance programs and stress management training that
better prepared employees to deal with personal issues that impact their work performance.

1.2 Statement of the Problem

Employee turnover is a contemporary issue. Many organizations are now facing the problem of
employee turnover. Janata Bank Ltd. is not exceptional to that. This research examined the
causes of employee turnover in Janata Bank Ltd and the way of retention of the employee.

1.3 Objectives of the Study


Problematic employee turnover rates have continued to plague this company. From a very
practical standpoint, minimizing the turnover of skilled employees is crucial in reducing the
escalating costs associated with replacing the exiting employees.

8
The objectives for this study are to:
1. Main objectives:
 To identify the causes of employee turnover and retention of Janata Bank Ltd.
2. Others objectives:
 To show that there is a relationship between organization culture, pay scale, evaluation
by fair standard and tension is directly or indirectly related with employee turnover.
 To know the organizational culture that effect on employee turnover.
 To find out possible opportunities for the employer to decrease future employee turnover
within the organization.
 To determine the pay scale and employee satisfaction that prevails in market.
 To identify the employee mental level satisfaction and tension that causes employee
turnover.
 To understand how organization gives benefit to employee and how they evaluate
employee performance.

1.4 Limitations of the Study

Nothing is beyond limitations. Everywhere and in every task there must have some sort of
limitations. For conducting this report different type of constraints were raised. Those create
hindrance at the time of preparing an efficient and creative report. Moreover, the short period of
internee is not enough to understand all the activities of a bank and how they handle their
clients'. But I tried my level best to overcome the limitation. Following are the Limitations:

1. It was one of the most important factors to collect data. A longer time period would have
ensured a much better result for the study findings'.

2. It is too much difficult to comment & suggest based on only the annual report and
information supplied by the organization'

3. There is a chance of having some mistake in the report through best effort has been
applied to avoid any kind of mistake.

4. In many cases, up to date information is not published'

5. To protect the organizational loss in regard of maintaining confidentiality, some parts of


the report are not in depth.

6. The limitedness of the resource of the bank also stands as a limitation in preparing the
report.

9
Chapter 02:
Literature Review
Employee turnover has become an important area of research from both a theoretical and
practical standpoint. It is important from a theoretical perspective, in understanding how the
underlying causes of turnover can provide insights into how to control the phenomenon.
However, from a practical standpoint, learning how to minimize the turnover of skilled
employees is crucial in reducing employee replacement costs. (Also, decreasing employee
turnover keeps knowledgeable and experienced employees working in the organization.
A large portion of the employee turnover problems that we have seen in the recent past can be
directly linked to the fact that jobs were plentiful and employees were scarce, considering overall
unemployment was at or near a 30-year low.
In this chapter the researcher reviewed a variety of published literature dealing with employee
turnover in general and some more specific to employee turnover in Janata Bank Ltd.

2.1 Employee Turnover and Retention: Conceptual Framework

Employee turnover, as defined by Hom and Griffeth (1994), is ‘voluntary terminations of


members from organizations’. Loquercio et al. (2006) observed that staff turnover is the
proportion of staff leaving in a given time period but prior to the anticipated end of their contract.

According to Singh et al. (1994), staff turnover is the rate of change in the working staffs of a
concern during a defined period. Ivancevich and Glueck (1989) opine that staff turnover is the
net result of the exit of some employees and entrance of others to the organization. Kossen
(1991) defined turnover as the amount of movement in and out (of employees) in an
organization.

Employee turnover is the rotation of workers around the labor market, between firms, jobs and
occupations, and between the states of employment and unemployment (Abassi & Hollman,
2000). Staff turnover that can occur in any organization might be either voluntary or involuntary.
Voluntary turnover refers to termination initiated by employees while involuntary turnover is the
one in which employee has no choice in the termination as it might be due to long term sickness,
death, moving overseas, or employer-initiated termination. (Heneman,1998).

Turnover is referred as an individual’s estimated probability that they will stay or not stay in an
employing organization (Cotton & Tuttle, 1986). A number of terms 16 have been used for
employee turnover, such as quits, attrition, exits, mobility, migration or succession (Morrell et.
al, 2004).

10
Though there are many causes for staff turnover in an organization, all of those do not have
negative impact on well-being of an organization. Organizations should differentiate between
voluntary and involuntary turnover and take actions on the one under their control.

2.2 Factors Affecting Employee Turnover


There are two major reasons why turnover is a central issue in the field of HRM across the globe.
First, turnover is related to low organizational knowledge, low employee morale, low customer
satisfaction, high selection costs, and high training costs. Research has also shown that high
employee turnover is related to lower organization performance; Huselid, 1995; Phillips, 1996).

Second, the decision to turnover is often the final outcome of an individual’s experiences in an
organization (Hom & Griffeth,1995). Accordingly, many studies have used turnover as a
criterion to evaluate the effectiveness of various organizational processes, such as selection
(Barrick & Zimmerman, 2005; Meglino et al., 2000), training (Glance et al., 1993) and coaching/
mentoring (Lankau & Scandura, 2002; Luthans & Peterson, 2003; Payne & Huffman, 2005).

Thus, understanding the factors that influence turnover gives organizations the opportunity to
reduce selection and training costs, increase employee morale and customer satisfaction, and
enhance organizational productivity.

Third reason is that human resources are the backbone of an organization (Gerhart & Milkovich
1990, Pfeffer 1998). Moreover, the continuing prosperity of a firm is likely to be enhanced by
employees who hold attitudes, value and expectations that are closely aligned with the corporate
vision (Borman & Motwidlo, 1993; Cable & Parsons, 2001; Feldman, 2003; Spector, 1997).

It implies that hiring capable people is an attractive point of departure in the process, but
building and sustaining a committed workforce is more likely to be facilitated by the
employment of sophisticated HRM infrastructure (Schuler & Jackson 1987,Beechler et al.,
1993).

In order to explain the reasons behind voluntary resignation, Arthur (2001) gives a list that
includes:
Incompatibility with corporate values
Feelings of not being appreciated or valued
Not feeling part of the company
Not knowing how one is doing for lack of feedback
Inadequate supervision
Lack of opportunity for growth
Lack of training
Unequal salaries and benefits
Lack of flexible work schedules
Unsatisfactory relationships at work
Too much work and not enough staff
Inadequate or substandard equipment, tools, or facilities

11
2.3 Factors affecting Employee Retention

Unnecessary employee turnover costs an organization needless expense (Buck & Watson, 2002).
Replacements and training expenses have a direct impact on organizational costs, productivity
and performance, and as such, an increasing number of organizations are now recognizing
employee retention as a key strategic issue (Glen, 2006).

The main purpose of retention is to prevent the loss of competent employees from the
organization as this could have adverse effect on productivity and service delivery (Samuel &
Chipunza, 2009).

Retention activities may be defined as a sum of all those activities aimed at increasing
organizational commitment of employees, giving them an overall ambitious and myriad of
opportunities where they can grow by outperforming others (Bogdanowicz & Bailey, 2002).

Given the development of new managerial approaches to retention, labor market dynamism, and
evolution in research methodology and technology, it is not surprising that turnover continues to
be a vibrant field of research despite more than 1500 academic studies addressing the topic.

From a managerial perspective, the attraction and retention of high-quality employees is more
important today than ever before. A number of trends (e.g., globalization, increase in knowledge
work, accelerating rate of technological advancement) make it vital that firms acquire and retain
human capital.

While there are important differences across countries, analysis of the costs of turnover as well
as labor shortages in critical industries across the globe have emphasized the importance of
retaining key employees for organizational success (Hinkin & Tracey, 2000).

2.4 Summary of the Literature Review

Employee turnover is may be voluntary or involuntary terminations of members from


organizations. Staff turnover is the proportion of staff leaving in a given time period but prior to
the anticipated end of their contract. Employee turnover is the rotation of workers around the
labor market, between firms, jobs and occupations, and between the states of employment and
unemployment. Unnecessary employee turnover costs an organization needless expense. The
main purpose of retention is to prevent the loss of competent employees from the organization.
Retention activities may be defined as a sum of all those activities aimed at increasing
organizational commitment of employees.

12
Chapter 03:
Methodology

Research type
There are mainly two types of researches. These include qualitative research and quantitative
research. Qualitative research is the one that defines research objectives and findings in
elaborative forms and in details. On the opposite, quantitative research is that one which defines
objectives and results of the study through empirical assessments using numerical measurement
and analysis approaches. Both types of researches are very much useful and important in
defining problems and possible solutions. However, this study is basically a qualitative
research type. But several mathematical and analytical figures such as descriptive statistics are
used for the purpose of making this theoretical study a successful one.

TYPES OF DATA
Data can be classified into two broad categories. They include mainly,
1. Primary Data
2. Secondary Data

Primary Data
Primary data are data that are collected for the first time and they are not available to external
users. Primary data in an organization are collected and presented for use by the internal
authority. Here, primary data are collected from the internal sources of the bank. These are not
easily available outside the firm. These primary data are collected from internal financial record,
organizational culture, observation of office meeting of employees and conducting interviews
regarding several phenomenons through as well as contacting personnel and customers.

Sources of Primary data:


The primary data that are used in this report are collected from the following sources,
1. Survey
2. Observation
3. Interview
Survey: Another important source of primary data in this report is sample survey. A sample
survey is simply a survey that is conducted over the expected correspondence to get a proper idea
about a thing or an object. The conducted survey for this report consists of the following
elements.
Population size: Population represents the total number of elements under a survey. The
population size of this report stands for almost 9500. Among the total population, 25 are
employees and the remaining are the customers of the Hatkhola branch of Janata Bank limited.
13
Sample size: Sample represents a representative portion of the total population. This study is
based on the 25 sample that have been taken from the whole population. Among the total sample,
5 are executives, 15 are officers and 5 are other staffs.

Sr. No. Type of the respondents No. of the Percentage


respondent
1 executives 5 20%

2 officers 15 60%

3 Other staffs 5 20%

Total= 25 100%

Sampling method: To make the study precise and accurate, Random sampling is applied. In
random sampling, samples are selected randomly and each element of the population has an
equal chance to be selected. In most of the cases, a random sampling procedure serves the best
purpose of a study.
Pattern of questionnaire: In preparing the questionnaire, likert scale method is used.
Time and Place of Survey: The survey has been conducted for two - three days during the office
hour over the employees and customers. The background of the survey is the Hatkhola branch of
Janata Bank Limited. This branch is located at Hatkhola, tikatuli in Dhaka.
Observation: As a means of collecting primary, observation plays an important role. It is in fact a system
of collecting data about any object or thing by viewing and watching events that are happening in the
field. Here, the researchers do not talk with others but drew a conclusion regarding a specific issue
through only watching. To develop this report, observation has been taken into consideration.

Interview: Only some managerial officers, staffs and customers have been interviewed to get some sort
of primary data regarding management procedures of Janata Bank Limited. Here, the interview has been
in fact a form of oral interview and communication.

Secondary Data

Secondary data, on the contrary to primary data, can be defined all those data and information that are
already published and available for open use. Secondary data usually refer to edited and already published
data in several books, magazines, company’s special supplement, several web sites, annual financial
reports. Secondary data are easy to obtain and they are less expensive.

Sources of Secondary Data: These secondary sources of data may include

 Annual Reports of Janata Bank Limited of the year 2014, 2015 and 2016.

 The basic information about Janata Bank Limited has been taken from its website.
 Several websites, blogs and web journal.

14
Chapter 04:
Organizational Profile
Introduction of Janata Bank Ltd:

Janata Bank Limited (JB) is the second largest commercial bank in terms of net worth with 850
branches and fully owned by Government of Bangladesh. The mission of the bank is to actively
participate in the socio-economic development of the nation by operating a commercially sound
banking organization.
Immediately after the independence of Bangladesh in 1971, the erstwhile United Bank Limited
and Union Bank Limited were nationalized and renamed as Janata Bank. Janata Bank is a state
owned commercial bank which was incorporated as a Public Limited Company on 21 May 2007
as per Companies Act 1994 and took over the business of the then Janata Bank with all of its
assets, liabilities, right, power, privilege and obligation on a going concern basis through a
vendor agreement signed between the People’s Republic of Bangladesh and Janata Bank Limited
on 15 November 2007 with a retrospective effect from 1 July 2007.
All of its operational activities are governed by the Bank Companies Act 1991. The Bank
provides all kinds of commercial banking services to its customers including accepting deposits,
extending loan & advances, discounting & purchasing bills, remittance, money transfer, foreign
exchange transaction, guarantee, commitments etc. The principal activities of its subsidiary are
to carry on the remittance of hard-earned foreign currency to Bangladesh. Janata Bank Ltd. has a
plan to switch over to a multi-disciplinary financial institution by conducting Merchant Banking
business and Islamic Banking operation.

4.1 Organization Vision


To become the effective largest commercial bank in Bangladesh to support socio-economic
development of the country and to be a leading bank in South Asia.

4.2 Organization Mission


Janata Bank Limited will be an effective commercial bank by maintaining a stable growth
strategy, delivering high quality financial products, providing excellent customer service through
an experienced management team and ensuring good corporate governance in every step of
banking network.

4.3 JBL in the banking sector of Bangladesh:


The objective of JBL is to become the largest commercial bank in Bangladesh by playing
significant roles in the banking sector as well as, in the National economy. In 2014, JBL held
7.60 percent of total deposit and 6.05 percent of total loans and advances of the country’s
banking sector.

15
Subsidiary Organizations
JBL has three subsidiary organizations which are as follows:
A. Janata Capital and Investment Limited
B. Janata Exchange Company SRL, Italy
C. Janata Exchange Company Inc. (JECI), USA

4.4 PRESENT BRANCHES:


The branches of the Bank cover all the important trading and commercial centers in Bangladesh.
At present it has 850 branches including 181 online braches in Bangladesh. All branches are
equipped with on-line facilities.

Branch Network
A. National
Branching network of JBL is governed by its orientation about both business and economic
development of the country. Accordingly both important urban centres as well as remote rural
areas of the country have been brought under the network. With the addition of four overseas
branches, total number of branches increased to 904 in 2014, which are categorized as follows:
The native branches controlled by 11 divisional offices and 47 area offices, are scattered across
all administrative divisions of the country. Besides, the bank has two very important branches
called the Local Office and Janata Bhaban Corporate Branch in the capital city and four overseas
branches located in the UAE. The banking division-wise number of branches is shown in the
table below.
B. International
In order to bring the hard earned money of the expatriate Bangladeshis into the country quickly
and safely through proper banking channel, the bank has four overseas branches which are
located at Abu Dhabi, Dubai, Sharjah, and Al-Ain of United Arab Emirates. These branches
provide direct banking services to the expatriate Bangladeshis. In addition to these, there are two
exchange houses, one with two overseas branches in Italy, and the other with a corporate office-1
and four branches in the USA. Besides, the bank has extended customer services through 1,172
foreign correspondents belonging to 84 countries all over the world..

Training and Development


In order to spur speed of automation and online banking activities, JBL is extra careful about
computer training of all bank personnel. In 2014, 3,168 bank personnel have been trained in T-24
online core banking software, JB remittance payment system, and JB banking software by
Information Technology System Department and Information Technology Department
(Operation). In addition, for performing general banking activities 8,620 and 81 personnel have
been trained locally and from abroad respectively in 2014. The following table represents the
summary of training activity

16
4.5 Brand of Janata Bank Ltd.:
o Easy access to customers
o Quality and responsive staff
o Service with competitive cost
o Business diversification
o Professionalism
o High impact CSR
o No hidden cost

4.6 Product and Services: There are many state owned and private commercial bank in
Bangladesh. Among all JBL is the second largest state owned commercial bank. JBL provide
both corporate and retail banking services with a strong focus on socio economic development of
the country. The bank typically provides short term working capital loan and limited long term
credit exposure. Moreover, JBL offers micro enterprise and special credit as well as rural
banking. Under corporate banking services, JBL provides trade finance, consumer finance,
project finance, syndicate finance. On the other hand, various deposit scheme and remittance
facilities are delivered through retail banking.

 Deposits 2. Financial Services (Foreign


1. Current & Call Deposits Remittance)
2. Savings Bank Deposits 3. Other Financial Services
3. Monthly Scheme Deposits 4. Utility Services
4. Term Deposits 5. ATM Service
5. Special Notice Deposit 6. Welfare Service
7. Service to the Government
8. Other Service
9. Customer Care
 Loans & Advances
1. Term Loan
2. Small and Medium Enterprise
Loan  Web based Spot cash
3. Continuous Loan 1. Speedy Remittance Cell
4. Rural & Agro Credit 2. Western Union
5. Poverty Alleviation Program 3. IME
6. Micro & Cottage industries loan 4. Placid N.K. Corporation
7. Specialized Loan Program 5. X-Press Money
8. Import & Export Finance 6. NBL Quick-Pay
9. Letter of Credit 7. Prabhu Group Inc.
10. Letter of Guarantee 8. Trans Fast Remtt
11. Other Credit Program 9. Ria Financial service
10. Marchentrade
11. EZ Remtt.
12. CBL Money Transfer
 Services 13. Cash X-Press
1. Financial Services (Inland 14. Samba Financial Group
Remittance) 15. MoneyGram

17
4.7 Brief Overview of the Janata Bank Ltd.

1. Formation of Janata Bank: Immediately after the independence of


Bangladesh in 1971, the erstwhile United
Bank Limited and Union Bank Limited were
Nationalized and renamed as Janata Bank.

2. Date of Incorporation as PLC: 21, 2007

3. Authorized Capital: Tk. 20,000 million (as on 31.12.09)

4. Pre-IPO Paid up Capital: Tk. 5,000 million (as on 31.12.09)

5. No. of Branches: 850

4.8 Financial structure of Janata Bank ltd.

Authorized Capital: Tk. 20,000 million


Pre- IPO paid-up Capital: Tk. 5,000 million
IPO size: Tk. 10,000 million
Face Value: Tk. 100.00
Offer Price: Tk. 1000.00 (including a premium of Tk. 900)
Nature of Business: Commercial Banking

4.9 Earnings of Janata Bank

Net interest income : Tk. 3,646.71 million and Tk. 4,490.98 million
for the year ended on 31.12.08 and 31.12.09
respectively.
Profit/(Loss) after tax : Tk. 9,968.18 million, Tk. 1,094.44 million,
Retained Earnings : Tk. 3,252.47 million as on 31.12.09.
Total Liabilities : Tk. 279,802.41 million as on 31.12.09.

4.10 Share value details of Janata Bank

Tk. 341.83 as on 31.12.09


NAV per share
EPS (As per prospectus) Tk. 100.62 as on 31.12.09
EPS (restated) Tk. 78.02 (considering bonus & rights issue)

18
Chapter 05:
Analysis and findings of the study

5.1 Findings related to Employee Turnover in Janata Bank Ltd.:


Factors Leading to Turnover
Controlling employee turnover can constitute a complex and challenging task for both the
workplace and administrators. Managers may have difficulty understanding and or accepting
employee turnover within their organization, due to a myopic perspective of the situation.
However, identifying the underlying causes, quantifying the problem, and identifying possible
solutions to high employee turnover can prove to be valuable information for managers who
wish to make a difference.

Numerous researchers have tried to identify the various contributing factors to employee
turnover in the workplace in addition to the causes of turnover and dissatisfaction. Traditional
theories have focused on how employees make their decision to leave the workplace. Within
these studies, several of the following factors have continued to surface in relation to turnover,
showing that there are leading underlying factors that exist in causing the actual act of turnover.

Factors showing the reason of Employee Turnover

No. Factors
1. Intent to leave
2. Job Satisfaction
3. Job Dissatisfaction
4. Poor Employee Training
5. Lack of Advancement
6. Lack of Respect
7. Lack of Responsibility
8. Opportunity to Move

Table 1 showing Job Turnover is mainly caused by Job Dissatisfaction

Type of No. of Mean Standard Deviation


respondents Respondents
Executives 5 3.800 1.304
Officers 15 3.333 1.175
Other staff 5 4.000 1.000
Total 25 3.560 1.158

19
Table 1 shows opinion of employee towards the job dissatisfaction of the govt. bank specially in
this branch on the basis of their post. Job dissatisfaction is an important factor causing turnover
among employee. However, among employee of different posts, the effect of these factors seems
to vary. The overall mean score (3.560) reveals that employee think that the job dissatisfaction in
the govt. bank specially in the branch the work in is the main reason. The executives mostly
think that their working conditions are not up to the mark. They believe that job satisfaction is
prime reason of their leaving the job.

Mean value
6
4
2
0
Executives Officers Others Total

Table 2: Poor Employee Training is a cause of Job Turnover

Type of No. of Mean Standard Deviation


respondents Respondents
Executives 5 2.400 1.140
Officers 15 3.200 0.941
Other staffs 5 3.400 1.140
Total 25 3.080 1.038

Table 2 shows Poor employee training is one of the prime reason of employee turnover
in Janata Bank Ltd. Employee turnover rate increase from executives to other staffs due
to lack of training facility. Employees find it tough and uncomfortable to face new and
challenging work.

Mean value

0
Executives Officers Others Total

20
Table 3 Intent to leave a cause of Turnover

Type of No. of Respondents Mean Standard Deviation


respondents
Executives 5 3.200 1.483
Officers 15 3.200 0.941
staffs 5 3.400 1.342
Total 25 3.240 1.091
Table 3 shows employees intent to leave the organization. In the survey, I find that among 5
executives the mean rate is 3.2 where the Officers is 3.2 and other staffs is 3.4. The total Mean
rate of the turnover among the employee is 3.2. The reason of their turnover is lack of
challenging work and failure to prove their worth in the bank.

3.6 Mean value


3.4

3.2

3
Executives officers Others Total

Table 4 Lack of Advancement force employee to leave the job

Type of respondents No. of Respondents Mean Standard Deviation


Executives 5 4.4 0.548
Officers 15 2.267 0.594
Other staffs 5 3.800 1.304
Total 25 3.00 1.190

Table 4 shows that employee turnover is higher in the executives level but it reduces
significantly in the officer level and stays in a upper level in the staffs level. The total Mean rate
of turnover due to Lack of Advancement is 3.00. The standard deviation is also lower for this
particular purpose.

Mean value
5

0
Executives Officers Others Total

21
Table 5 Lack of Respect motivate them to quit the job

Type of respondents No. of Respondents Mean Standard Deviation


Executives 5 2.200 0.837
Officers 15 1.800 0.862
Other staffs 5 2.000 0.707
Total 25 1.920 0.812

Table 5 shows that employee turnover due to Lack of Respect in the working place. In the govt.
institution, it is on the lower ebb. The turnover rate for executives for this purpose is 2.2 where
officers are 1.8 and 2.0 for the other staffs. Standard Deviation is also not very much from the
Mean.

Mean value
2.5
2
1.5
1
0.5
0
Executives Officers Others Total

Table 6 Lack of Responsibility demotivate the employee

Type of respondents No. of Respondents Mean Standard Deviation


Executives 5 3.600 1.140

Officers 15 3.467 0.834

Other staffs 5 3.400 1.140


Total 25 3.480 0.918

Table 6 represents employee turnover due to lack of responsibility. The table depicts that
employer turnover is quite significant in Janata Bank Ltd. Due to lack of responsibility
employee tends to quite the job and the standard deviation of employee varies on the position of
the post they belong. The total Mean rate of turnover for this reason is 3.48.

22
Mean value
5

0
Executives Officers Others Total

Table 7 Opportunity to move influence them to leave the job

Type of respondents No. of Respondents Mean Standard Deviation


Executives 5 3.600 1.140
Officers 15 3.600 0.910
Other staffs 5 3.800 0.837
Total 25 3.646 0.907

Table 7 shows that Opportunity to move for a better job or facilty is a notable factor for the
employee to leave the job. Higher salary, Better working condition motivates employee to leave
the job. The Mean rate from Executives to Other staffs for this purpose doesn’t vary too much. It
is 3.6 for the Executives and Officers and 3.8 for the Other staffs holding a total of 3.6 for the
overall employee.

Mean value
5
4
3
2
1
0
Executives Officers Others Total

5.2 Findings related to Employee Retention of Janata Bank Ltd.:


Janata Bank Ltd. finds that employee turnover is reduced when they address issues that affect
overall company morale. By offering employees benefits such as reasonable flexibility with
work and family balance, performance reviews, and performance based incentives, along with
traditional benefits such as paid holidays or sick days, companies are better able to manage their
employee turnover rates. The measures the company will take to retain its employees depend on

23
employee replacement costs, but also on overall company performance. It is relatively rare for
people to leave jobs in which they are happy, even when offered higher pay elsewhere. Most
staff has a preference for stability of job. Company may reduce the employee turnover by
facilitating money item and communication item.
Factors related in Reducing Employee Turnover

No. Factors Sub-factors


1. Job Related Dissatisfaction with working conditions
Supervising conflicts
Salary discrepancies
2. Non Job Related Relocation
Family problems
3. Lack of fit within the organization

5.3 Summary of findings:


Employee Turnover of Janata Bank Ltd. is relatively low comparing to the private organization
exist in our country because of the extra facility and opportunity of govt. job. However, there are
a few reasons that cause turnover.
In this study, employee turnover and retention policy is determined considering various factors
of Janata Bank Ltd. Turnover mainly causes due to intend to leave, job satisfaction, job
dissatisfaction, availability of better opportunity, poor employee training opportunity, lack of
advancement, income, Lack of respect, opportunity to move are these reasons.
There are negative consequences of employee turnover as it increases cost. There is also a direct
relationship of employee turnover and productivity.
There is several ways out to reduce employee turnover. Training interview, personality training,
nurturance training are several ways to reduce employee turnover in Janata Bank Ltd.
Employee retention of Janata Bank Ltd. can be fixed by providing monetary items such as
income, bonus and other benefits like vacation and various facilities.
In a nut shell, employee turnover in Janata Bank Ltd. can be solved by ensuring the above
mentioned criteria and facilitating the necessary benefits and opportunity to retain the employee.

24
Chapter 06:
Recommendations
On the basis of findings and conclusions of the study, the following recommendations may be
appropriate for the bank to reduce employee turnover up to a certain level. These
recommendations may also help increase the performance of the female workers. They are given
below-

 Identifying the reason to leave the organization by taking opinion from different level of
employee and efforts to minimize it as an expectable level.
 Reducing employee job dissatisfaction by determining the factors which are responsible
for the Job dissatisfaction.
 Increasing employee facilities such as salary range, increment, transportation facility,
Bonus, and other facilities to keep pace with the changing world.
 Executives and officers need to involve more in decision making, and contribute more to
develop the Bank’s policy and principle.
 Efficient training facility need to maintain to increase the productivity of the employee
and to bring the best out of them and make them competitive with the competitive world.
 Proper Advancement of the employee should be assured by the Bank so that employee
can get remuneration on the basis of their performance.
 Ensuring Respect and honor to all level of employee to maintain their value and position
in the Bank to keep their heads high.
 Employee should be given the opportunity to move according to the quality and
efficiency they pose.
 Dissatisfaction with working condition, supervising conflict, salary discrepancies,
Relocation problems need to be reduced to a minimum level.
 The factors such as Money items, Bonus, vacation and other facilities need to be met to
get the maximum employee satisfaction and get the best out of them to work in.

25
Conclusion

Employee Turnover is a common phenomenon in the private Limited Company. It is now going
pace with pace, not as like private limited company, for the government organization as well.
Janata Bank Limited is also facing some of problem to a very little extent. However, the
Management needs to address the issue to increase employee productivity and efficiency to get
the best of them.

Janata Bank Ltd. has a slow turnover rate. Being a government institution, it is one of the
lucrative jobs that the employee is looking for as it provides various facilities to its employee
according to the government policy on the perspective of Bangladesh.

Nonetheless, there is some tendency to leave the job for various purposes and Janata Bank Ltd is
to prepare a strategy to retain that employee by eliminating the problems they are facing. Job
dissatisfaction, Poor working condition, minimum salary increment, lack of scope to show
creativity, role ambiguity, lack of participation in decision making, inappropriate leadership
style, lack of social support, poor working relationship and technology changes is the prime
reason for the employee to leave the job.

The respondents were asked to give reasons why they were leaving or want to leave the
organization. Of the 50 interview questionnaires, 8 different reasons for leaving were offered by
the respondents who answered this question. The reasons given were then analyzed to determine
whether the specific reasons differed based on the gender, employment status or length of
employment of the exiting employee.

The prime cause for leaving the Bank is Job related reason (50%) among them twenty (40%) of
the employees indicated they were leaving because they found a better job, 18% left because of
no career growth. Left without Notice accounted for 4 (8%) of the reasons given for leaving.
Finally, the individual reasons for leaving or want to leave were collapsed into six categories
based on similarities found among the 3 reasons given. The six categories included: 1) job-
related, 2) non job-related, 3) left without notice, Job-related reasons for leaving included the
employees expressed dissatisfaction with working in the organization, dissatisfaction with
his/her salary and having obtained better employment in other organization. Non job-related
reasons included the need to relocate distant from the present job site, poor health and marriage.

26
Bibliography

Appendix

 Survey questionnaire
A QUESTIONNAIRE ON “Employee Turnover” in JANATA BANK LIMITED

Dear Respondent,

As a part of academic research, I am a student of University of Dhaka, am conducting a survey on “Employee


Turnover and Retention” in Janata Bank Limited. I need your kind support to fill this questionnaire for my
research. Responses to this questionnaire will be used to prepare “The Analysis and Findings” part of an
internship report. I ensure that your personal details will be held confidential and your participation is
expected. For any further contact, you can communicate with me at Nazrulslm01@yahoo.com. Thank you for
your cooperation.

Questions Strongly Disagree Neutral Agree Strongly


Disagree Agree

1 2 3 4 5

1. Job Turnover is mainly caused by Job


Dissatisfaction

2. Job satisfaction may be a cause of Job


Turnover

3. Poor Employee Training is a cause of Job


Turnover

4. Lack of Advancement force employee to


leave the job
5. Lack of Respect motivate them to quit
the job
6. Lack of Responsibility demotivate the
employee

7. Opportunity to move influence them to


leave the job
27
Give some suggestions regarding how the bank can reduce its employee turnover rate and
improve retention policy based operations in a more effective way.

………………………………………………………………………………………………………

………………………………………………………………………………………………………
………………………………………………………………………………………………………

Signature of the respondent

Calculations

Statistics
Variable N N* Mean SE Mean StDev Minimum Q1 Median Q3 Maximum
C1 5 0 3.200 0.663 1.483 1.000 2.000 3.000 4.500 5.000

Statistics
Variable N N* Mean SE Mean StDev Minimum Q1 Median Q3 Maximum
C2 15 0 3.200 0.243 0.941 1.000 3.000 3.000 4.000 5.000

Statistics
Variable N N* Mean SE Mean StDev Minimum Q1 Median Q3 Maximum

C3 5 0 3.400 0.600 1.342 2.000 2.000 4.000 4.500 5.000


Statistics
Variable N N* Mean SE Mean StDev Minimum Q1 Median Q3 Maximum
C1 25 0 3.240 0.218 1.091 1.000 3.000 3.000 4.000 5.000

Statistics
Variable N N* Mean SE Mean StDev Minimum Q1 Median Q3 Maximum
C1 5 0 4.400 0.245 0.548 4.000 4.000 4.000 5.000 5.000

28
Reference
Employee Turnover in banking sector: Empirical evidence IOSR Journal of Humanities and Social Science
(IOSR-JHSS) Volume 11, Issue 5 (May. - Jun. 2013), PP 57-61 e-ISSN: 2279-0837, p-ISSN: 2279-0845.

Ongori, H. (2007); A Review of the Literature on Employee Turnover, African Journal of


Business Management pp. 049-054, June 2007 [2]. Banerjee

Abassi SM, Hollman KW (2000). "Turnover: the real bottom line", Public Personnel
Management, 2 (3):333-342.

Badawy MK (1988). "What we’ve learned about managing human resources in R&D in the last
fifty years", Res. Technol.Manage. 31 (5): pp.19-35.

Academic Training & Research Division Report of Janata Bank Ltd.

Janata Bank Ltd. General Banking Policy Book

Janata Bank Ltd. Human Resources Management Policy guideline

Janata Bank Ltd. Salary File of June, 2014

Latest employee list of Janata Bank Ltd.

Annual Reports of Janata Bank Ltd.– 2012, 2013, 2014 & Half yearly report 2015

Annual reports of Janata Bank Limited (2010-2014).

Bangladesh Bank monthly bulleting at banking business in Bangladesh.

en.banglapedia.org/index.php?title=Janata_Bank_Limited

www.bangladesh-bank.org

www.google.com

www.janatabank-bd.com/

www.riamoneytransfer.com/

www.thefinancialexpress-bd.com

www.westernunion.com

www.wikipedia.org

29