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Factors Effecting Employee Turnover in Banking Sector

Anum Mushtaq
MBA(3.5)Human Resource management

Inst. of Business Management Sciences

University of Agriculture Faisalabad

I hereby declare that the submission of this research work, “The Impact
of Employee Motivation on Organizational Performance: In Educational
Sector of Faisalabad” is my work regarding (MBA), Master’s of
Business Administration of Human Resource Management
Certified By:
Student Name
Anum Mushtaq Supervisor Name
Sir Mr. Muhammad Sarfraz

I want to dedicate all this effort and work to the beneficent, the merciful,
To Almighty Allah for HIS Marvelous grace unto me during the period
of my studies and to all those who have always encouraged me and
support me anyway.

My Gratitude goes to the Almighty ALLAH and Hazrat Muhammad (PBUH), then
my Mentor in all things who saw me through thick and thin and helped me, guide
me in writing this work.

As Beneficiaries of his guidance, I am very thankful and highly appreciative for

the contribution of my supervisor, Sir Mr. Muhammad Sarfraz a Lecturer of
Institute of Business Management and science (IBMS) department at university of
Agriculture Faisalabad.

I owe this work to my mentor, my supervisor Sir Mr. Muhammad Sarfraz whose
comments, guidance, directions, constructive criticism and encouragement gave
me inspiration and zeal to complete the work. Last but not the least I also do
appreciate his kindness, understanding, patience and support.

Last but not the Least I would finally like thank all my teachers, lecturers, whose
mentorship and guidance has been of immense help to me. And I also want to
extent my gratitude and special thanks to all those who have helped me in distinct
ways to make this effort a success.

The normal saying that the devil you know is better than the angel you
do not know suggest 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. This study is an
attempt to investigate the factors of employees’ turnover in the banking
sector of Faisalabad, Pakistan. Employee’s turnover is major and vital
issue facing by the banking industry in Faisalabad because of the
shortage of skilled employment, economic growth as whole and
employee turnover.
This study focuses on the primary data, which has been collected
through closed ended questions with a five point Likert Scale. The study
uses purposive sampling technique to capture the response of bankers.
The collected data has been examined and evaluated through Statistical
Package for Social Sciences (SPSS). The results of data have been
critically examined through each and every angle and hence, we
reached on the finding of the research. This study concluded that job
stress, workplace environment and immediate boss have effect on
employee turnover.

Keywords: job stress, workplace environment, immediate boss, employee

turnover, Banking sector.
Table of contents
Title Page
Chapter no:1 Introduction
Chapter no:2 Literature review
2.1 Job stress
2.2 Workplace environment
2.3 Immediate boss
2.4 Hypothesis
Chapter No: 3 Research Methodology
3.1 Introduction
3.2 Research Design
3.3 Sample and Sample Technique
3.4 Research Instrument for Data Collection
3.5 Methods of Data Collection
Chapter No: 4 Data Analysis and Interpretation
4.1 Data Analysis
4.2 Presentation and Data Interpretation
4.3 Descriptive Analysis of the Data
4.4 Demographic Characteristics of the Study
4.5 Finding and Discussion of Results
4.6 Frequency Table

Chapter No: 5 Recommendations and Conclusion

5.1 Recommendations
5.2 Conclusion

Chapter No: 6 References


Human resource is considered to be the center of all development processes

of economy. But todays competitive business scenario is deteriorating social
conditions of human resources, hence causing employee turnover.
According to Price (1977) employee turnover is the ratio of the 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. The “seeds” or initial causes of turnover, arising out of the
frustration related to budget cutting, hiring freezes, layoffs, and lack of
development funds and opportunities, are more likely to be sown at such
times.(Sharmistha, 2010) High turnover rate is problematic and have a
negative impact on an organizations performance.

According to Kevin et al (2004), although there is no standard framework

for understanding employee’s turnover process as whole, a wide range of
factors have been found useful in interpreting employee turnover.
Organizations spend a lot on there workforces in terms of orientation and
training, developing, preserving them in their organization. Therefore,
administration at all expenses must reduce worker’s turnover. Although,
there is no ordinary context for understanding the personnel turnover
procedure as whole, a wide array of aspects have been initiate useful in
initiating employee turnover Kevin et al.(2004)
The role of human capital is considered as a source of success in the
operation of business organization that has already been recognized by the
business entities. The service quality is subject to employees’ behavior
especially during the job and employees are assets for service sector’s
companies. Through the proactive approach and positive polices competitive
companies are always busy to retain their employees and achieve
organizational objectives.

The prime challenge for the banking sector of Pakistan became now the
retention of an employee, while young, energetic and intelligent employees
always ready to switch over whenever he or she dissatisfy with any reason in
the job. Profit and goodwill is being generated through these employees,
who are the backbone of business entity. Induction, orientation,
socialization, training and developing, maintaining and retaining of an
employee spend more capital by the organization for minimizing employees’
turnover rate and cost of selection and recruitment. Banks use diverse HR
techniques and methods for retention.

Although there are numerous researches have been done to identify the
factors for employees’ retention in many other businesses and industries but
in banking industry especially in Faisalabad is also required to identify these
factors, whether they are influencing on employee retention or not. In this
research, I chose some variables to check relationship among them. These
variables are work place environment, job stress and immediate boss that are
going to be checked with employee’s turnover. The longer period retention
of any employee is a significant part for competitive advantage, since when
an employee keep hold of for a longer period, it will increase the
performance of the bank and also helpful in enhancing the bank’s

Many variables are forced to the employees to decide whether they will
retain in the current company or leave the company, such security of job,
salary along with other benefits, development of career and on the job
training and special reward / recognition for special performance as
businesses are become competitive so they want to retain their employees
for longer period (Samuel & Chipunza, 2009).

According to Kevin et al (2004), although there is no standard framework

for understanding employee’s turnover process as whole, a wide range of
factors have been found useful in interpreting employee turnover.

Employee turnover is a term that is widely used by many human resource

practitioners. It is true that many studies have been conducted on this topic
but what must be noted here is that most of the researchers focus on the
causes and as such little had been done on examining the sources of
employee turnover, effects and various strategies that can be used by
managers in various organizations in Pakistan to ensure that there is
employee continuity in their organizations to enhance overall organizational

According to Price (1977) employee turnover is the ratio of the 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. This term is also often utilized in efforts to measure relationships of
employees in an organization as they leave, regardless of the reason.
Organizations all over the world including Banks in Pakistan invest a lot in
their employees in terms of training, developing, maintaining and retaining.

The suggestion is that job stress attitudes hazard to the health of employees
and in the long run the productivity of the organizations as well as the
existence of the organizations and considering the fact that banking
atmosphere is uncovered to many work types as well as contact with
different groups of people cumulate to inherent threat that can be considered
as stressors. Hence, the study into the place of job strains in the workers
turnover with orientation to the banking sector of the economy.

The Bank formally started operation from September 16,1999 with the
slogan of “A People’s Bank with a Mission” success Abbasi et al. (2000).
Managers should control employee turnover for the benefit of the
organization success. The works on employee turnover is divided into three
groupings: sources of employee turnover, effects of turnover. Majority of
researchers that had donated to the study of stress were of the views that job
stress was as effect of the interaction of workforces and the situation of work
although views varies about the reasons and consequence however, it was
established that stress is a function of individual physical characteristics and
employed conditions and the strategies to reduce turnover (Jones and Bright,
2001). The differences in individual features such as personality and
managing style are the most important causes in expecting whether definite
job conditions will outcome in stress or not. In other words, what is stressful
to one person may not be stressful to someone else. In the same vein, some
managers accept that stressful operational conditions are the essential
elements organizations must use to turn on burden on workers and set asides
health concern to persist creative and cost-effective in today’s economy
although studies related with this mind set and trust predictable undesirable
outcome such as absenteeism, tardiness, objective to quit etc which cannot
be creative or gainful in today’s economy. The suggestion is that job stress
attitudes hazard to the health of employees and in the long run the
productivity of the organizations as well as the existence of the organizations
and considering the fact that banking atmosphere is uncovered to many work
types as well as contact with different groups of people cumulate to inherent
threat that can be considered as stressors. Hence, the study into the place of
job strains in the workers turnover with orientation to the banking sector of
the economy.

The Private and Commercial Organization of Overseas Pakistan Foundation

does not have proper rules and regulation on job security. It mainly focuses
on the proper utilization of the employee at the maximum level rather than
facilitating and compensating the employee accordingly in terms of
retirement benefits and job security. This will badly affect indirectly the
organization objective because the well trained, expert and professional
employee space is not immediately professional and well expert employees
in the organization (Maslo, 1970; Herzberg, 1973) .
If organizations face such situation in the present knowledge economy when
their employees leave them or try say good bye to them the management
must address these factors on priority basis. It is one of the crucial problems
of an organization (Armstrong, 2009; Reiss, 2008). This problem affects not
only their recent recruitments of human resource but also relentlessly those
loyal and experienced employees who have worked for the organization for
many years (Branham, 2005; Katcher and Snyder, 2007; Somaya and
Williamson, 2008). It can be desirable and undesirable. It is the inter-
company flow of employees.
Theories give more importance to individuals in organization. In many
organizations, talents and creativities are shut up. These can energize the
progress of the organization but when shut up it results in high turnover of
employees (Fisher, 2000).


Turnover is defined simply as “the reverse position of an employee in

organization”. Many scholars have defined it very cutely. Cotton and Tuttle
(1986) referred to it as an individual’s estimated probability that they will
stay with an employing organization. Tette and Meyer (1993) defined it as
“Conscious willingness to seek for other alternatives in other organizations”.
This is mentioned in the Attitude Behavior theory of Fishbein and Ajzen
(1975). Price and Mueller (2001) also described that turnover intentions
construct alternative in measuring actual turnover.

Zeki, Engin & Selim (2012: 107) define human capital as the stockpile of
employee knowledge, attitudes, abilities, technical skills, creativity and
experience that exist within an organization at a given point in time. A key
factor that affects the flow of human capital or talent through an
organization is employee mobility. Human capital has more mobility than
any other asset (Ballester, Livnat & Sinha, 2002). An organization will only
be able to sustain a competitive advantage if it manages employee mobility

Job turnover of employees can play a crucial role in an organizations long

term achievements and success because the more workers contend the more
the low ratio of employees‟ turnover, which will in return yields to the
organization. It drives the performance towards the targets of its firms and
institutions. The vital quality of human resources services which they may
render in future is typically polished by retaining the well experienced old
employees. Employee’s satisfaction is interlinked with rewards of retirement
benefits or life time benefits and job security.

The topic employees turnover is widely studied with multiple perspectives

and suggested various factors are the causes of turnover of an employee in
an organization. Some factors are demographics and some are biographic
e.g. financial rewards, work environment, promotion, feeling of employees
self accomplishment and self_ recognition, over stress of employees etc. No
one can deny the fact that demographic variables have constant positive or
negative links with turnover ratio like tenure, educational level, age, etc. It
was found that turnover and age, tenure and income level have negative
relationships (Arnold and Feldman, 1982; Cotton and Tuttle, 1986; Gerhart,
1990; Mobley et al., 1979; Price and Mueller, 1986; Wai and Robinson,
1998; Weil and Kimball, 1995). While, education level has positive
relationship with turnover (Berg, 1991; Cotton and Tuttle, 1986).

Turnover of employees is one of the challenging issues of modern business

because employee is the soul of an organization. With turnover of well
trained employees the organization will die. Several organizations have
faced this problem and maximum time of high management and directors is
consumed over it in order to minimize it to some extent or reduce its
negative and damaging impacts on organization. One of these factors is the
person-environment fit which is the degree of relevancy between the
organization and employees. It is concerned with the responsibilities of
Human resource management to see the compatibility of workforce and
business organization (Hatton and Emerson, 1998; Kristof, 1996).

In this modern world of technologies and entrepreneurship it is considered

important and crucial to equip their employees with the latest trends in
business. Turnover of employees is a serious controllable facet. It is natural
that frequently employees want change of environment and seek new
challenging job. To accommodate their employees with these facets
economically is really difficult and to provide them on annual basis, but
unavoidably they have to provide these for their survival. Every organization
plans to have low turnover ratio and high productivity efficiently and

It is proper to manage the turnover of employees by providing them fringe

benefits in order to satisfy their needs at Government level and Non-
government level because both sectors contribute to the economy of the
country. This strategy is not successful because there are so many other
factors which have a serious effect on turnover of employees like work
place environment , job stress and immediate boss which are the research
areas of this manuscript. Very few researchers have focused on these
variables so far. While studying further we have come to know that there are
still rooms for researches on this topic.

An employee’s perception must be studied before his selection as some

researchers revealed that employees‟ attitude and behavior show how much
they will yield to the business firm and how much they will affect the work
environment positively or negatively. When workers perceive the working
environment to cordial and genial they will stay there for long time
(Moorman, 1991).

An employee’s perception must be studied before his selection as some

researchers revealed that employees‟ attitude and behavior show how much
they will yield to the business firm and how much they will affect the work
environment positively or negatively. When workers perceive the working
environment to cordial and genial they will stay there for long time
(Moorman, 1991).

The key workers continuously energize the operations as time passes. It is

an open fact that turnover severely hits many best qualities of an employee
particularly the organizational commitment. When an employee feels
discontentment definitely he will seek alternative job accordingly. The ratio
of turnover also depends upon the attitude and emotion of employee. The
feeling of job dissatisfaction has proved to be the one of vital causes of
turnover of employee (Saifuddin et al., 2008).

High turnover ratio brings both direct and indirect costs. As Staw (1980)
found that expenditures of selection, recruitment of new employees, training
and development are called direct costs.

Human beings are not machines. They are social animals and by nature
possess some needs for survival. .They have some loopholes and
expectations. These needs and expectations are constant all the times. They
change with the passage of time. Some time they become so serious and
even overlap all other activities due to which an employee starts having
negative thin-king. In such situation the management must provide an
environment for exchanging thoughts with good wishes. The management
must find out what their employees need now and also in future what will be
their needs and expectation in order to remove the anxiety of all types and
minimize them. Recently, it has been found that the decrease in job security
is one of the other strong reasons and factors which can affect job security
more. They are globalization, advancement in technology, demographic
accelerations and the instability of govt. policies (Smith, 1999, p. 196-198).

These concerns motivate the employees to have good feeling and job
security in time of financial crises particularly. Job security makes employees
contribute a lot to the organization. Suppose if an organization expels an
employee from his job then what will be its impact in the society? The answer is
simple. Definitely this employee will disturb the rhythm of peacefulness and
stability of the society (Guzel, 2001, p. 19; Taşkent, 1992, p. 38). It means it has
deprived a family from its income earning rights.

Voluntary turnover is initiated by an employee and involuntary turnover by an

employer (Choi, Musibau, Khalil &Ebi, 2012). Involuntary turnover also result from
uncontrollable factors such as death and ill health. Functional voluntary and

involuntary turnover could benefit an organization. For example, according to

Archer (2008), employee turnover at lower organizational levels could be
beneficial to banks because advances in technology continue to reduce the need
for lower level skills in the banking sector. On the other hand, the need for non-
manual, intermediate and high level skills as well as value-adding competencies
such as autonomy and discretion are on the increase in the banking sector
(Archer,2008). Therefore, both voluntary and involuntary turnover could be
dysfunctional if the result is a loss of human capital (Campbell, Coff & Kryscynski,
2012). In addition, dysfunctional employee turnover in banks ‘leads to the loss of
the tacit knowledge possessed by leavers’ (Amah, 2009: 24).

Another reason why employee turnover continues to be of key importance for

organizations is that the movement of employees in and out of an organization
has direct financial implications for the organization. Organizations have to make
provision for separation and replacement costs (including staffing and training
costs) when voluntary and/or involuntary employee turnover occur (Abbasi &
Hollman, 2000; Griffith & Horn, 2001). In addition, research findings show that
dysfunctional employee turnover, in particular voluntary turnover, impacts
negatively on, among others, business performance and organizational
effectiveness (Shaw, Gupta & Delery, 2005; Tariq, Ramzan & Riaz, 2013) as well as
employee commitment and customer satisfaction (Sing & Loncar, 2010; Wang,
Yang & Wang, 2012). It is therefore imperative to reduce turnover rates in order
to reduce separation and replacement costs and to enhance employees’ loyalty
and commitment to an organization which in turn could lead to better
organizational performance.

"Employee turnover is a percentage judgment of the number of employees a firm

must exchange in assumed period of time to the ordinary number of total
personnel (Agnes, 1999). A vast concern to most companies, employee turnover is
expensive especially in lower disbursing job roles, for which the worker turnover
level is highest (Samuel, 2012). Turnover denotes to the amount of effort of
employees in and out of an organization, generally existing in terms of the
turnover ratio (Chruden & Sherman, 1972). Mobley (1982) provided the sense of
employee turnover as the discontinuance of association in an organization by the
individual who expected financial compensation from the organization.

Employee turnover is dependent variable. Work environment, immediate boss

and job stress are independent variables. These factors have serious effect on
employee turnover. These factors force employees to move from the organization
to another organization.

Immediate Employee
boss turnover

Job stress


If working situations are insufficient or the place of work have absence of

important accommodations such as proper lighting, furniture, restrooms and
other health and safety provisions, employees will not be willing to put up with
the problem for long time.( SHAMSUZZOH & SUMON.anti) Organizational
uncertainty has been shown to have a high degree of high turnover. Suggestions
are that employees are more expected to stay when there is a expectable work
environment and vice versa (Zuber, 2001). In organizations where there was a
high level of ineffectiveness there was also a high level of staff turnover
(Alexander et al.,1994). For employer losing a particular key worker may reduce
the like hood of plan achievement and financier assurance can be reducing in the
company. Main causes of Turnover are Salaries Working environment and safety
of job. Turnover mainly gets up from discontent from job place. In opposing
employee also strapped to leave job due to the disappointment in their present
workplace. (Shamsuzzoh&Sumon.anti).


Giga and Hoel in 2003 determined that high rates of mergers, acquisitions,
increasing economic interdependence among countries due to globalization,
technical development, and rearrangement have changed the organizational work
over the last few eras have caused in time pressure, excessive work demand, role
conflicts, ergonomic deficiencies and challenging customer relationship are causes
of stress. Kahn et al. (1964) also consider stress as a conservation incentive to a
person, or an oddity between individual and environment. The knowledge of job
related stress (job stress), the series of reasons that lead to job related stress
(stressors), lack of commitment in the organization; and job frustration make
employees to quit Firth et al.(2004).

2.3 Immediate boss

If there is turnover in senior management or with your immediate boss, your
work environment will change, your role may change, and your job may disappear

How closely are your results tied to your boss and senior management? If there is
change, do you have other supporters who can vouch for your performance? Do
you have sources of information throughout your company who can tell you
what’s going on in the event of a shake-up? How prepared are you if your job
dramatically changes or disappears?

What’s the one factor that most affects how satisfied, engaged, and committed
you are at work? All of our research over the years points to one answer — and
that’s the answer to the question: “Who is your immediate supervisor?”


Keeping in view the importance of the variables and their integrative impact on
the employee turnover, further venues for investigation can be explored because
there is a room for it. Therefore, this research paper is extremely keen in
answering the following hypotheses.

H1: job stress has positive effect on the turnover of the employee.

H2: work place environment effect negatively the employee turnover.

H3: immediate boss can affect positively the Turnover of employee.

Chapter No: 3 Research Methodologies:

3.1 Introduction:
In this section of research paper we will be able to write those methodologies
that we have selected for conducting this research including, sample size, sample
techniques, and the instruments and design that was selected for collecting the

3.2 Research Design:

This study is quantitative based so the data collected for this research was the
Questionnaires. Data was collected on the basis of those concepts that was
defined in the research model mentioned above as well as hypotheses tested.
Therefore this study is a descriptive study as this study because it adopted the use
of questionnaires that was aimed at finding the impact of factors effecting
employee turnover in banking sector.
3.3 Sample and Sampling Techniques:
The Sample comprised of 170 (N) from the various Banks of Faisalabad including
the Punjab Bank, Habib Bank limited, Muslim Commercial Bank, Allied Bank,
United Bank Limited.

The sampling technique that was used for the study was convenience sampling

The Sample was comprised from Banks of Faisalabad.

3.4 Research Instrument for Data Collection:

To investigate factors effecting employee turnover in banking sector particularly

in Banking sector survey method is applied in this study. The Questionnaires’ that
were designed to investigate the study is comprised of two sections. First section
of the questionnaires consists of personal information. The personal profile of the
respondent in the questionnaire was including the age, gender, designation,
working experience as well. The second section of the Questionnaire was relevant
to the variables namely job stress, work place environment, immediate boss,
employee turnover. The second section of the Questionnaire was measured
through 5 point Likert scale. We selected the Banks including private and public
for our study that was specifically for the Banking sector. The Questionnaires
were distributed randomly among the respondents in the banking sector some
selected Banks of Faisalabad. (The Punjab Bank, Habib Bank limited, Muslim
Commercial Bank, Allied Bank, United Bank Limited, National Bank, Bank Alflah,
Summit Bank). This current research aims to determine factors effecting
employee turnover in banking sector of Faisalabad including both public and
private institutions. The population of the study comprises of the employees from
the Banking sector in both public and private division. The reason of including this
sector is its positive and prominent growth in recent years.

Likert scale i.e. (Strongly Disagree, Disagree, Neutral, Agree, and Strongly Agree).
The respondents were asked to indicate the extent to which they are
Disagree/Agree with the various statements.

3.5 Methods of Data Collection:

The descriptive statistics such as frequencies, and percentages and graphs are
used for the analysis of the research questions while the hypotheses testing were
done through the Pearson correlation coefficients. The computer software that
was used to run this data analysis was SPSS software (Statistical Package for Social
Sciences). The hypothesis was tested at 0.000 of significance. At 5% Level of
significance, reject the null hypotheses that was (The independent variables
positively effect the dependent variable), with the probability estimated lower
than 5% (0.000) and conclude that they are statistically significant. Otherwise we
accept 0.000 probability estimate are above and conclude that there is no overall
or whole statistically significance.

The data was collected randomly through the Questionnaires and so the data that
is used in this study is primary based. The Questionnaire was designed which was
measured on the “Likert scale” .The Likert scale was used in this study that is
“Strongly Disagree, Disagree, Neutral, Agree, Strongly Agree”

The respondents were asked to select the appropriate options of this scale to
measure the variables. And therefore, we accomplish the data from the
respondents in order to measure our further data and variables.
Chapter No: 4 Data Analysis and Interpretation of Data:

4.1 Data Analysis:

The process of evaluating data using analytical and logical reasoning to examine
each component of the data provided. This form of analysis is just one of the
many steps that must be completed when conducting a research project. Data
from various sources is gathered (commonly through questionnaires), reviewed,
and then analyzed to form some sort of finding or conclusion. The data in this
research was consists of the three independent variables (job stress, workplace
environment, immediate boss) that were selected as aspects of the employee
turnover and the one dependent variable that was employee turnover. The
Questionnaires were filled by the respondents and that was analyzed by the likert
scale, and through SPSS software in order to determine the gender as well as to
know the working experience of the employees. And the questions regarding both
variables were also investigated in this section.

4.2 Presentation and Data Interpretation:

Data interpretation refers to the process of critiquing and determining the

significance of important information, such as survey results, experimental
findings, observations or narrative reports. Interpreting data is an important
critical thinking skill that helps you comprehend graphs and tables. Researchers
use a similar but more meticulous process to gather, analyze and interpret data.
Experimental scientists base their interpretations largely on objective data and
statistical calculations. Social scientists interpret the results of written reports
that are rich in descriptive detail but may be devoid of mathematical calculations.
We have interpret the data on the basis of the questionnaires by dividing the
sections as Section A: Personal information of the respondents that was included
in this section by Age, Gender, and Working Experience means the Socio
Demographic characteristics was included. Then we use the SPSS software in
order to prove the answer statistically that contains Descriptive statistics,
Correlation, regression and we have used this software for both our variables
(independent and Dependent Variable)

From the 170 Questionnaires that were distributed to 25 institutions of

Faisalabad, a total of 170 completed and usable questionnaires fro Banks of this
city including both public and private sector as well.

4.3 Reliability

Table no 1:

Reliability Statistics

Cronbach's Alpha N of Items

.608 18

To check the internal reliability of the instrument, Cronbach’s alpha was run. The
value of Cronbach’s Alpha comes to 0.608 which is above the standard value
proposed by (Nummally, 1978) of 0.60 this shows that our instrument is reliable
and we can confidently apply different statistical tests and interpret the results
with confidence.
4.3 Descriptive Analysis of the Data:
In this section we will discuss the descriptive analysis that we have done. In the
form of Socio demographic characteristics of the study including all the personal
information regarding age, gender, working experience are included in this
investigation to determine the outcomes from the study.

We have used this sensory evaluation approach that use the descriptive panels in
order to measure a descriptive sensory characteristics.

Table no 2:

Descriptive Statistics

Minimu Maximu Std.

N m m Mean Deviation

Mean stress 170 3.33 5.00 4.5471 .42684

170 3.00 5.00 4.4868 .44544

Mean boss 170 3.25 5.00 4.5574 .34511

Mean turnover 170 4.00 5.00 4.5000 .38075

Valid N
As this table above shows that the descriptive analysis (N) represents the sample
size that was N=170, in our Questionnaire we have used the mean job stress by
giving the value in SPSS software. The Descriptive Statistics section gives the
mean, standard deviation, and number of observations (N) for each of the
variables that were specified.

4.4 Demographic Characteristics of the study:

Demographic characteristics can refer to age, place of residence, religion,
educational level and marital status. We have used demographic characteristics in
our study including gender, age, designation but the respondents were just
interested in the other demographic characteristic so we have choose age and
gender, and working experience of the respondents.

Table 1: Results from the analysis of the demographic characteristics of the

respondents indicated that majority of the respondents were male suggesting
that most of the employees selected for the analysis were male. Moreover, the
respondents concentrated within the age bracket from 30 years to 45 years and
above. Most of the respondents were the persons that were the employees of the
Banks of Faisalabad including the Punjab Bank, Habib Bank limited, Muslim
Commercial Bank, Allied Bank, United Bank Limited, Bank Alflah, Summit bank.
The respondents are highly rated employees because most of them were highly
qualified and are on a well reputed position in their institutions.
4.5 Findings and Discussion of Results:
The impact of the employee turnover is mainly due to the aspects (job stress,
workplace environment, immediate boss) that were involved in this study too. As
given below the job stress, workplace environment, immediate boss. As all are
independent variables as shown in the table:3 . It elaborates that the employee
turnover is affected by both the independent variables (job stress, workplace
environment, immediate boss) specific in the Banking sector of Faisalabad.

Table no 3:


Unstandardized d
Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 3.037 .439 6.923 .000

meanstress .408 .069 .457 5.929 .000

-.163 .067 -.191 -2.422 .017

meanboss .075 .080 .068 .936 .351


Unstandardized d
Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 3.037 .439 6.923 .000

meanstress .408 .069 .457 5.929 .000

-.163 .067 -.191 -2.422 .017

meanboss .075 .080 .068 .936 .351

a. Dependent Variable:
mean turnover

Descriptive Statistics

Minimu Maximu Std.

N m m Mean Deviation

meanstress 170 3.33 5.00 4.5471 .42684

170 3.00 5.00 4.4868 .44544

meanboss 170 3.25 5.00 4.5574 .34511

meanturnover 170 4.00 5.00 4.5000 .38075

Valid N

The findings resulted from regression analysis with correlation coefficients , R-


Table: 4 Correlation between the Dependent variable
and Independent Variable


Meanstres meanenviro meanbos meanturno

s nment s ver

meanstress Pearson
1 .409** .141 .388**

Sig. (2-tailed) .000 .067 .000

N 170 170 170 170

meanenviron Pearson
.409** 1 .250** .013
ment Correlation

Sig. (2-tailed) .000 .001 .866

N 170 170 170 170

meanboss Pearson
.141 .250** 1 .084

Sig. (2-tailed) .067 .001 .274

N 170 170 170 170

meanturnover Pearson
.388** .013 .084 1
Sig. (2-tailed) .000 .866 .274

N 170 170 170 170

**. Correlation is significant at the 0.01 level (2-tailed).

Correlation is significant at the .388 Level (2 tailed)

Correlation is significant at the .013 level (2 tailed)

Pearson correlation was used to study the study variables. This helped the
researchers to understand that whether the independent variables (job stress,
workplace environment, immediate boss).

The Correlations section gives the values of the specified correlation tests, in this
case, Pearson's r. Each row of the table corresponds to one of the variables. Each
column also corresponds to one of the variables.

In order to elaborate more statistically we have selected another tool of data

analysis in order to check the acceptability of the study. The data analysis tool
that we have selected in this study to determine the acceptability of the data is


Known also as curve fitting or line fitting because a regression analysis equation
can be used in fitting a curve or line to data points, in a manner such that the
differences in the distances of data points from the curve or line are minimized.
Relationships depicted in a regression analysis are, however, associative only, and
any cause-effect (causal) inference is purely subjective also called regression
method or regression technique.

Model Summary

Std. Error of
Mod R Adjusted R the
el R Square Square Estimate

1 .425a .181 .166 .34774

a. Predictors: (Constant), meanboss, meanstress,


From the above model summary of regression you have seen that from the data
of the respondents the R is .425 that means it is positively related to the
employee turnover in educational sector. And so the R.Square is .188 this shows
that independent variable has effect on the employee turnover. The predictors or
the independent variable that was selected for the regression model summary is
also elaborated above clearly.

Sum of Mean
Model Squares Df Square F Sig.

1 Regressio
4.427 3 1.476 12.203 .000a

Residual 20.073 166 .121

Total 24.500 169

a. Predictors: (Constant), meanboss, meanstress,


b. Dependent Variable: meanturnover

The ANOVA table represents that if the significance level is less than 0.000 then it
clearly shows that the independent variables positively impact on the employee
turnover means that our study represents the accurate answer. So, we reject the
null hypothesis because our answer represents that the independent variables
have the impact on the dependent variable. A statistical analysis tool that
separates the total variability found within a data set into two components:
random and systematic factors. The random factors do not have any statistical
influence on the given data set, while the systematic factors do. The ANOVA test
is used to determine the impact independent variables have on the dependent
variable in a regression analysis.

Unstandardized d
Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 3.037 .439 6.923 .000

meanstress .408 .069 .457 5.929 .000

-.163 .067 -.191 -2.422 .017

meanboss .075 .080 .068 .936 .351

a. Dependent Variable:

Here the job stress is .408 and workplace environment is .168 and immediate
boss .075

As it is clear from the above table that the job stress variable with (B 0.408), and
workplace environment with variable (B 0.168) and immediate boss with variable
(B 0.075) have the most impact on the employee turnover in the Banking sector.

The Findings resulted from the regression analysis with correlation coefficients
(.013), R-square (0.181) and the level of significance (0.000).

The above table shows that as all the values are positive so it means that the
independent variables have the positive impact on dependent variable.
Frequencies :


Frequenc Valid Cumulative

y Percent Percent Percent

Valid Male 137 80.6 80.6 80.6

Female 33 19.4 19.4 100.0

Total 170 100.0 100.0


Frequenc Valid Cumulative

y Percent Percent Percent

Valid 20-30 98 57.6 57.6 57.6

31-40 43 25.3 25.3 82.9

41-50 22 12.9 12.9 95.9

7 4.1 4.1 100.0

Total 170 100.0 100.0

Chapter No 5: Recommendations and Conclusion

5.1 Recommendations:

Questionnaire design and results depend on employees’ perception which has

been implemented in order to analysis the effects of workplace environment
towards to employees’ performance, Since there is no performance management
measures in the bank, the real effects of workplace environment on employees
performance(productivity) could not be measured systematically. In addition to
this, 50 employees of the bank out of 300 who work in the same department have
conducted to the survey. Survey results could be altering if the survey would
conduct to the other department’s employees. Also, analysis could be extended
by investigating the gender differences towards the effects of workplace
environment and productivity survey.

Results depict that employee turnover intentions are positively related with job
stressor. With the increase in job stress employee turnover intentions increases. If
organizations are willing to retain their intellectual capital they must reduce the
job stressors which may cause the job stress and ultimately this leads to the
employee turnover. Another major factor is workload which is positively related
to the employee turnover intentions. A rational workload is win-win situation for
the organization, study provide the empirical evidence that employee thinks to
leave the job when they are over burden. Similarly workplace environment is also
a key factor to retain employees. Study proved that a good and health work
environment will lead to the less employee turnover intentions.

From the outcome of the research work, the following recommendations are

1. Bank management should understand that stressors in the banking

environment is unique and different from other forms of stressors that may
be available in business environment, therefore, efforts should be made by
these management of banks to organize stress management to educate
them about the danger and how to reduce the negative impact from time
to time and the need to undergo routine medical check up.

2. The government regulations through the institutional policies and

frameworks should be carefully examined and developed to reflect the
prevailing economic situations in the country in other to facilitate
investment in the banking sector without political prejudice of any kind.

3. Attention should be paid to the end result of job analysis which should be
conducted thoroughly without sentiment or bias in order to ensure that the
job characteristics and the individual characteristics are relatively matched
with respect to the work environment.

4. There should be a pragmatic review of the human resources management

policies as well as organizational policies to induce serene atmospheric
conditions where no one is carrying out responsibilities in fear or operating
under duress. i.e a family like work environment.

5. .Management of banks to institutionalize counselling unit for staff

members whose major activity shall be to provide necessary assistance to
staff members on work and domestic related matter.
5.2 Conclusion

The research study shows that the job stress, workplace environment and
immediate boss has effect on the employee turnover both in private and public
institution. The results of correlation analysis in this study have demonstrated
that the job stress, workplace environment and immediate boss has the positive
effect on employee turnover in Banking sector.

The findings highlighted three factors that lead to voluntary employee turnover in
the target organization. The research contributes to a better understanding of
factors that cause employee turnover in the sector in the region and show that
employee turnover is a complex issue. It was on this basis, that the authors
concluded that job stress, workplace environment and immediate boss are
evident in the banking environment and the place of job stress in labor turnover is
central and sensitive to all activities in the organization with all the implications
discussed above.

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