Factors Influencing Employee Retention: A Karachi Based Comparative Study on IT and Banking Industry

Shahtaj Yousuf, Danish Ahmed Siddqui

Abstract


The purpose of this study is to explain the factors that help in retaining employees in IT and banking industry. These factors include performance appraisals, training and development and workplace environment. It is important to learn how different organizations use these variables as tools to keep their employees satisfied and preserved. In order to carry out this research, a count of 120 questionnaires were distributed among the respective officials in various IT companies and banks. SPSS software was used to analyse the received data to find the relationship between employee retention and these three factors. The study explains that some variables such as performance appraisal, training and development and work environment largely affect the rate of employee retention. Results showed that performance appraisal has a significantly more impact on the retention rate of the employees working in IT sector whereas in banking sector training and development has more influence on retention rate. And through conducting a survey from employees working in these sectors, it is verified that banking and IT industries are also focusing on employee retention management. The academic implication of this research is that academicians should introduce the separate course of employee retention or retention management for the students of HR major as this area is gaining attention of not only researchers, but also of corporate world practitioners. And the practical implication of this research includes the importance of employee retention in the local and global competitive market. The practitioners must understand the worth of retention factors so that they can compete nationally and globally by effectively implementing them in retention strategies. They must work out for their employees as employees are the organization’s prior customers and satisfied employees can satisfy the organization’s customers.


Full Text:

PDF

References


Authority, B. (2009). Competitive strategies for a world class workforce. Retrieved March, 14, 2014.

Bharwani, S., & Butt, N. (2012). Challenges for the global hospitality industry: an HR perspective. Worldwide Hospitality and Tourism Themes, 4(2), 150-162. https://doi.org/10.1108/17554211211217325

Brown, M., Hyatt, D., & Benson, J. (2010). Consequences of the performance appraisal experience. Personnel review, 39(3), 375-396. https://doi.org/10.1108/00483481011030557

Christensen, H. J., & Rog, E. (2008). Talent management: A strategy for improving employee recruitment, retention and engagement within hospitality organizations. International Journal of Contemporary Hospitality Management, 20(7), 743-757. https://doi.org/10.1108/09596110810899086

Das, B. L., & Baruah, M. (2013). Employee retention: A review of literature. Journal of Business and Management, 14(2), 8-16.

De Vos, A., & Meganck, A. (2008). What HR managers do versus what employees value: Exploring both parties' views on retention management from a psychological contract perspective. Personnel review, 38(1), 45-60. https://doi.org/10.1108/00483480910920705

Deery, M. (2008). Talent management, work-life balance and retention strategies. International Journal of Contemporary Hospitality Management, 20(7), 792-806. https://doi.org/10.1108/09596110810897619

Essays, U. (November 2013). A definition of employee retention. from https://www.ukessays.com/essays/management/a-definition-of-employee-retention-management-essay.php?vref=1

Eyster, L., Johnson, R. W., & Toder, E. (2008). Current strategies to employ and retain older workers: Urban Institute.

Government, W. P. f. W. S. (2015). Employee Retention.

Gruman, J. A., & Saks, A. M. (2011). Performance management and employee engagement. Human Resource Management Review, 21(2), 123-136. https://doi.org/10.1016/j.hrmr.2010.09.004

Hong, E. N. C., Hao, L. Z., Kumar, R., Ramendran, C., & Kadiresan, V. (2012). An effectiveness of human resource management practices on employee retention in institute of higher learning: A regression analysis. International journal of business research and management, 3(2), 60-79.

Katavich, K. M. (2013). The importance of employee satisfaction with performance appraisal systems: a thesis presented in partial fulfilment of the requirements for the degree of Master of Arts in Psychology at Massey University, Albany, New Zealand. Massey University.

Kossivi, B., Xu, M., & Kalgora, B. (2016). Study on determining factors of employee retention. Open Journal of Social Sciences, 4(05), 261. https://doi.org/10.4236/jss.2016.45029

Lam, C. L., Law, S. F., Loo, Y. J., Ng, W. Y., & Ooi, S. L. (2015). A study on factors affecting employee retention in nursing industry at Klang Valley. UTAR.

Loan‐Clarke, J., Arnold, J., Coombs, C., Hartley, R., & Bosley, S. (2010). Retention, turnover and return–a longitudinal study of allied health professionals in Britain. Human Resource Management Journal, 20(4), 391-406. https://doi.org/10.1111/j.1748-8583.2010.00140.x

Mabuza, P. F., & Proches, C. N. G. (2014). Retaining core, critical & scarce skills in the energy industry. THE INDIAN JOURNAL OF INDUSTRIAL RELATIONS, 635-648.

Naeem, H., & Saif, M. I. (2010). Employee empowerment and customer satisfaction: Empirical evidence from the banking sector of Pakistan. African Journal of Business Management, 4(10), 2028-2031.

Nyanjom, C. R. (2013). Factors influencing employee retention in the state corporations in Kenya. unpublished thesis Nairobi: University of Nairobi.

Padmanathan, P., & Newell, J. N. (2012). Retention factors affecting migrant psychiatrists from low-and middle-income countries. International Psychiatry, 9(1), 13-15.

Salie, S., & Schlechter, A. (2012). A formative evaluation of a staff reward and recognition programme. SA Journal of Human Resource Management, 10(3), 11. https://doi.org/10.4102/sajhrm.v10i3.422

Samuel, M. O., & Chipunza, C. (2009). Employee retention and turnover: Using motivational variables as a panacea. African Journal of Business Management, 3(9), 410-415.

Sinha, C., & Sinha, R. (2012). Factors affecting employee retention: A comparative analysis of two organizations from heavy engineering industry. European Journal of Business and Management, 4(3), 145-162.

Tiwari, I. (2015). An analysis of the factors affecting employee retention and turnover in the Irish hospitality Industry. Dublin, National College of Ireland.

Torrington, D., & Taylor, S. (2009). Fundamentals of human resource management: managing people at work: Pearson Education.

Yazinski, S. (2009). Strategies for retaining employees and minimizing turnover. Retrieved from York, NY.

Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2013). Business research methods: Cengage Learning.

Zin, S. M., Ahmad, N., Ngah, N. E. B., Ismail, R. B., Ibrahim, N. B., & Abdullah, I. H. T. B. (2012). Motivation model for employee retention: Applicability to HRM practices in Malaysian SME sector. Canadian Social Science, 8(5), 8-12.




DOI: https://doi.org/10.5296/ijhrs.v9i1.14111

Copyright (c) 2018 Shahtaj Yousuf, Danish Ahmed Siddqui

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

International Journal of Human Resource Studies  ISSN 2162-3058

Email: ijhrs@macrothink.org

Copyright © Macrothink Institute  

To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.

------------------------------------------------------------------------------------------------------------------------------------------------------