EMPLOYEE’S JOB TURNOVER IN BANKING SECTOR AND ITS IMPACT ON SOCIETY AND POLICY FORMULATION

The aim of study is to carry out an analysis of determinants of employee’s job turnover in banking sector. Further possible impacts on society and policy formulation are discussed at the end. Empiric witness has been evaluated across three major determinants i.e., job involvement, organizational culture and compensation with employee’s job turnover. For analysis, the data was collected through a questionnaire from a sample of 200 bank employees (male n = 119 and female n = 81) out of the population of 2600 employees of three most of the banks of Pakistan as Habib Bank Limited, Allied Bank Limited and Askari Bank Limited. The classification has been done on the basis of the financial worth of the banks and the number of employees. The results confirm that the selected factors do have an impact on employee job turnover but other factors do matter. Out of these three factors job involvement had a negative impact on employee retention whereas the organizational culture and compensation had positive impacts on the turnover of employees. The study is beneficial for employees and banks simultaneously. Policy implications are discussed in this paper.


Introduction Background
Banking sector plays an important role in developing economies. Banks facilitate their customers by providing innovative financial products, quality services and help economy to run smoothly by providing financial assistance to enterprises and individuals. The continued quality services are hampered when frequent interference occurs from management side. These HR practices not only harm operations of banks but also their good-will. Bank operations and their goal attainment are dependent on the efficiency of 46 Employee's job turnover in Banking sector and its impact on Society and Policy formulation employees working there. Employees around the globe are optimistic regarding their career and try to improve with every passing day by switching from one organization to other (Weigold, et al., 2013). At the same time organizations try their best to retain valuable employees for continued successful operations and invest heavily on training and development to achieve sustainable and competitive edge (Kariuki, 2015).
It is noted that banks in Pakistan and Asian region are faced with high employee's job turnover (Mumtaz, R., & Hasan, 2018). There are several factors which leads to employee's job turnover such as lack of job involvement, strict organization culture and inadequate compensation which have great impact on overall outcome. Employee's job turnover refers to job switching due to some problem that exist in organization which compel employees to leave their job (Price, 1977). It is also seen that this has become a major threat that banking sector is currently facing. Employee's job turnover not only causes a great loss to the organization, but also causes deterioration to human capital, time, dexterity and experience.
Current aggressive environment does not allow enterprise to tolerate such loss ensuing into collapse in coping up the competitors. It is the substandard administration and managerial systematic system which results into employee's job (Deery & Shaw, 1999), and successful rewards and appreciation, lesser is the employee's job turnover rate. Organizational back-up, supportive culture and just behavior bring you a motivated and reliable workforce ensuing in to improved productivity and high earnings.
Sometimes, if correct person is not chosen for the correct job, then trends of job of employee's turnover more and more, so it is vital to have thorough profile of a human resource that is being hired (Boles, Ross & Johnson, 1995). In competitive world, people want to establish their skills on all those conventional lines, making employees to work on demanding assignments that make them to stay for extended period. This requires development of appropriate policy for employees to stay in an organization for appropriate number of hours. The purpose of retention policy generally ensures that all procedures and policies are carried out in fair, equitable and transparent manner to attract and retain banks workforce. Based on the variables examined, the purpose of employee's retention policy is to provide framework for retention of employees in banking sector. It will be proposed that the policy formulation should be made at top level and should be implemented fairly and consistency.

Problem Statement
In the industry of banking system, the top rankings of banks are to create more revenue and profit to achieve competitive edge over others and to improve customer satisfaction which ultimately increase employee's workload (Pahi, Hamid & Khalid, 2016).
Heavy workload reduces motivation and forces employees to leave one bank to other. Frequent employees' job turnover hampers operations especially in banking sector which are customer oriented. Without having a strong customer base banks cannot ensure their survival. That is why, HR department and the management always strive to achieve ISSN (P): 2788-4821 & ISSN (O): 2788-483X Volume 1, Issue 2, Page 45-61, December 31, 2020 lower attrition rate. The stress of work can be an explicit problem in the fields of customer oriented as employees often experience conflicting demands from management and customers which creates dissonance (Hussain, Saeed, Ibrahim, & Iqbal, 2018).
Harvard Business Review emphasized identification of major factors influencing banking sector. The focus of this research is to examine factors leading to employee's job turnover in banking sector (selected banks) of Pakistan. Further policy recommendations are suggested at the end of the study.

Motivation of the study
Employees job turnover in an organization is not only problem for developed nations but also for developing nations. Earlier focus of researchers was western part of the world only to examine this issue (Trevor, Gerhart, & Boudreau, 1997;Thatcher, Stepina, & Boyle, 2002;Spragins, 1992). Hofstede (2010) illustrated that various factors effect differently on organizational functioning and they have different tendencies and magnitudes. He encouraged to test the linkages of the variable in different cultures.
Since long in international literature turnover is focused. However, in the history of Pakistani context, there is a less quantity of research on the subject especially for banking sector which mostly rely on skilled labor and there exist tough competition to survive. This study contributes towards local context, as it will help in highlighting the reality and open doors for new research areas on employee turnover in banks.
Employee's turnover remained an important issue for researchers and practitioners throughout the organizational development era (Mumtaz, & Hasan, 2018). Majority of the studies viewed job dis-satisfaction as a core factor for employees to leave the organizations (Spector, 1994;Nazim, 2008;Kanwal, & Majid, 2013), thus leaving space to investigate other factors responsible like work involvement, compensation and organizational culture.

Scope of the study
The current study has focus on examining the factors having influence on employees' job turnover intentions working in the selected banks for policy formulation. For recording diverse opinions, male and female employees were selected and the factors like employee's job involvement, compensation and organizational culture were considered for examination. The banks selected for the study were Habib Bank Limited, Allied Bank Limited and Askari bank Limited operating in the Islamabad/Rawalpindi region.

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Employee's job turnover in Banking sector and its impact on Society and Policy formulation

Employee's Job Turnover
Employee job turnover is seen as people leaving a company during specific period of time upon their will and not layoff, put out to posture, voluntary retirement on completion of service (Kim, Tam, Kim, & Rhee, 2017). Employee's job turnover results in heavy costs for new induction like organizations have to carry out all possible functions necessary to complete induction process which in fact a costly affair. That is the reason organizations try their best to reduce turnover rates. In banking sector job switchers experience controlled autonomy, reliance, barriers to professional growth and prolonged working hours (Buchbinder, Wilson, Melick, & Powe, 1999).
People focus on the understanding of causes and consequences of job holders for job turnover in many professions is paramount important. There is involvement of costs in those job holders who want great turnover which can be extremely high both for the employer and the employee (Mumtaz & Hasan, 2018). For job holders it includes selection and cost of training for new hired employees, productivity losses and the demoralization of the remaining employees (Malek, Kline, & DiPietro, 2018).
Employee turnover has multi-fold problems. On one side it disrupts operations of the banks and on the other hand it effects the psychological states of remaining employees (Warden, Han, & Nzawou, 2018). Further it hampers team work due to employee's job turnover in an organization (Trequattrini, Massaro, Lardo, & Cuozzo, 2018). The shift of tacit knowledge also threatens the organizations especially where the organization is dealing in financial resources (Nathan, 2008).
Mostly employees job turnover is seen negative, however it may not be true all the times. Employees job turnover can be fruitful for the organizations in terms of replacing non-performers (Kim, Tam, Kim, & Rhee, 2017). In other words, organizational consequences of turnover are dependent on who leaves and who stays (Ghosh, Satyawadi, Joshi, & Shadman, 2013).
Controlling turnover problem requires smooth and sustained policy formulation by the organizations (Griffeth & Hom 2001;D'Amato & Herzfeldt, 2016). There may be several components in policy formulation that work for retaining employees but the current study has focused on three factors such as the job involvement, compensation and the organizational culture.

Job Involvement and Employee Turnover
Job involvement is a psychological/emotional level to which employees involve themselves in job from merely punching in, performing tasks and punching out. If jobs are high and the involvement of employees in jobs are higher, then there are lower rates of job's will which will slow the rate of employee's job turnover in the organization (Aydogdu & Asikgil, 2011). Job involvement ensures person-job fit and is positively linked to employee's job retention (Blau & Bual, 1989). ISSN Zopiatis, Constanti, & Theocharous, (2014) proposed a mechanism that compelled employees to leave the organization. They viewed job involvement as a necessary component to generate employees job satisfaction. The relevant work assigned and adequate amount of responsibility makes them involved in their work and ensures person-job fit. On the other hand, mis-fit between job and a person causes dissatisfaction which force employees to leave organizations, especially in labor intensive organizations like banks.
Optimum performance can be ensured through adopting effective HR practices and making people satisfied out of their work activates (Ramalho Luz, Luiz de Paula, & de Oliveira, 2018). Job involvement brings team effectiveness that is a necessary component for doing job in banks and vice versa (Paul, Bamel, & Stokes, 2018).
It is noted that if the worker is happy than productive worker then banks can ensure employees retention by avoiding such practices that have negative effects on the employees like assigning them irrelevant work that reduces job involvement (Marchington, Goodman, Wilkinson, & Ackers, 1991;Jayawardhena, & Foley, 2000;Dufwenberg, 2015).
In banks employee's involvement in work is hampered due to several factors which leads development of turnover intentions such as work environment, work related stress, relationships at workplace, restricted growth opportunities (Shukla, & Sinha, 2013) and so on. The studies reported earlier supported development of the argument that employee's involvement in relevant work-related activities restrict employees to leave the banks.

Compensation and Turnover
Compensation is the total return by organization to its member in return for an effort done by employees. Fluctuations in compensation compel employees to look for an alternative job (Santhanam, Dyaram, & Ziegler, 2017). Paying an adequate amount ensures reduction in employee's job turnover rates (Clotfelter, Glennladd & Vigdor, 2007). Compensation has an immense impact on employees of banking sector to stay for extended time (Murnane & Olsen, 1990). In banking sector, the major causes of employee's job turnover is insufficient compensation (Hiukin &Tracey, 2000).
The employment of worker is at low wage position and also has low limits of benefits then there is little incentive for employee to stay in the job position which he acquires with hard work and facing hurdles but at the same time similar job with even a slightly higher rate of pay is offered. Low paid job experience higher job turnover, they 50 Employee's job turnover in Banking sector and its impact on Society and Policy formulation tend to cost companies less per replacement employee than do higher paying job roles (Rizwan, Arshad, Munir, Iqbal, & Hussain, 2014).
Employees whose performance is best but are paid less than the market may feel undervalued in their current companies will switch to other company that will pay them what their worth is (Kanwal & Majid, 2013), thus provoking turnover intentions among employees. Sgobbi (2015) argued that employees left organization due to a lot of reasons especially economic reason. The most common reason for employee's job turnover is salary because employees are usually in search of jobs that pay well (Sattar & Ahmed, 2014).
Pay constraints also provide ground for decreased motivation to perform thus serving as catalyst to developing turnover thinking (Shukla & Sinha, 2013) because of inequalities or substandard wage structures (Santhanam, Dyaram, & Ziegler, 2017). On the other hand, low pay structure also motivates employees to contribute more towards banks and get higher positions for better benefits. This help banks to achieve their targets through employees working at low possible salaries (Shukla, & Sinha, 2013;Kariuki, 2015). Inconsistencies in the arguments developed by the researchers provides grounds to examine whether compensations issues are always positively related to turnover or otherwise by developing a hypothesis for this study.

Organizational Culture and Turnover Intentions
Culture plays important role in every business organization and turnover of intentions. Culture is a very popular phenomena among researchers and practitioners Peters & Robert (2006) argued that organizational culture can be used to achieve high level of effectiveness at individual and organizational levels. There are some patterns of establishment of employees who set their patterns of behavior which help them to interact with world and it also help them to define their positions. Similarly, Trice & Beyer (1993) elaborated the same concept. They said these patterns, behaviors and beliefs are associated with specific myths, rituals and symbols. After combining all these factors, organizational culture is formed.
Culture is important element in the life of everyone because it is something that exist within each individual and it is learnt through knowledge of senses and informal acknowledgment (Martin & Siehl, 1983). In order to carry employees and organizational values together it requires a "fit" which will help to construct a dedicated relation between organization and employee. Better the fit results in lesser employee's job turnover.
There are some supportive organizations which have cultural influence on employee's behavior at workplace (Schein, 2010). Some perceptions about culture are that gather employee at one platform which they had seen heard, and get experience from them within organization where they work. Social interaction is a door of culture which plays important role in spreading cultural trends in organization and it is also a social phenomenon not a natural result of technical characteristics of organization ad capacity, output or mechanism. The cultures that are strong are those where the norms, values and beliefs are extensively communicated and zealously applied (Frost et al., 1985). ISSN  Cheema & Abbas (2017) examined the linkage between organizational culture and bank's performance and found positive evidence. They recommended to examine the effects of culture on individuals, as individuals are the means to achieve the ends. For consistency in organizations there must be satisfied, motivated and performance with less stress workforce To have a satisfied, motivated, less stressed performing workforce and also there is consistency among amongst its structure, system, people, culture and good fit with the strategy (Klein, 2011).
Human resource management has an effect on augments employee's knowledge, skill and ability, empower and increase employee motivation. Due to human resource management, there is in turn with implications on increased employee's job satisfaction, reduced employee turnover, increased productivity and overall improvement in organizational performance (Santhanam, Dyaram, & Ziegler, 2017).

Development of Hypotheses
One of the most significant causes of employee's job turnover in banking sector is lack of job involvement and commitment. Higher the job commitment, lower would be the rate of employee's job turnover (Aydogdu & Asikgil, 2011;Zopiatis, Constanti, & Theocharous, 2014). Moreover the relevant jobs are welcomed by the employees and they take keen interest in performing those jobs and vice versa (Paul, Bamel, & Stokes, 2018). People involved in relevant jobs are found satisfied and good performers than others (Scott, Bishop, & Chen, 2003), thus it is hypothesized that; H1: Job involvement is inversely related to the rate of employee's job turnover. Employee's job turnover in Banking sector and its impact on Society and Policy formulation Well paid employees tend to have potential to remain committed to their jobs (Goñi-Legaz, & Ollo-López, 2017). It confirms the premise that "happy worker is a productive worker and happy workers have the tendency not to leave their jobs easily (Dufwenberg, 2015). Not only high compensation is required to retain the employees but also the fairness is required (Santhanam, Dyaram, & Ziegler, 2017)). Compensation has great impact on bankers to stay for longer period of time (Murnane & Olsen, 1990), thus it is hypothesized that; H2: Compensation is inversely proportionate to employee's job turnover In order to fetch employee and organizational values collectively it requires a "fit" or the right engagement. It will help to build relationship between organization and employee. Better the fit, lesser would be the employee's job turnover. Employees working under autonomous administration tend to show a lower rate of employee's job turnover (Adebayo & Ogunsina, 2011). So, the hypothesis developed is; H3: Organizational culture is inversely related to employee's job turnover

Research Design used
The study aims at examining the factors influencing turnover intentions of employees for which individual responses were required. The cross-sectional design was used which was appropriate for the study. The cross-sectional design allows the researcher to collect responses in one shot (Saunders, Lewis, & Thornhill, 2007).

Population and Sampling
Bank employees working in Habib Bank Limited, Allied Bank Limited and Askari Bank Limited were considered for the current study. Out of the population 200 employees were sampled and their responses were recorded. The closed ended questionnaire was considered an appropriate means of collecting data. The details are provided in the next sub-section.

Data Collection Instrument
Primary data was collected for the reason that it provides up to date information. The adopted questionnaires were used to collect data from bank employees from Rawalpindi and Islamabad regions. These regions were selected for the reason that banks operating in this region experience intense competition and retaining employees become utmost important for the banks. Job involvement questionnaire was adopted form (Kanungo, 1982), compensation from (Ibrahim & Boerhaneoddin, 2010) and organizational culture form (Cameron, & Quinn, 1999) and employee turnover from (Crossley, Grauer, Lin, & Stanton, 2002). The reliability analysis shows that the questionnaires were reliable/consistent enough to use for the study. Table 1   As a rule of thumb, the value of Cronbach's Alpha must be greater than 0.7, which is evident in the table 1. The questionnaires were distributed by making personal visits to the banks and their branches. The permission from the branch managers was requested before distributing the questionnaires among employees.

Descriptive Statistics
The descriptive statistics are presented for the sample selected for the study. Table 2 shows the descriptive information; Where mean represents average, standard deviation how it deviates from means and N indicates total number of questionnaires. The standard deviation value means it can either deviate from mean values of variables upwards or downwards

Correlation analysis
Correlation is a statistical method through which relationship is analyzed between two or more variables. With the help of statistical data significant relation between variables is measured. The correlation coefficient (r) shows the strength of the relationship. The value of 'r' near to zero shows weak relationship and closer to 1 shows stronger relationship. Table 3 indicates the r and significance of the relationships.

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Employee's job turnover in Banking sector and its impact on Society and Policy formulation Firstly, the correlation between job involvement and turnover is analyzed (r = -0.141*). The steric mark indicates the significance level of the relationship. Secondly, the relationship between culture and turnover is examined (r = .347**) which indicates a strong significant relationship. Thirdly, the relationship between compensation and turnover is measured (r =0.453**) which also indicates a strong relationship. It is found that job involvement has partial significant relationship whereas turnover and compensation have a strong significant relationship.

Regression analysis
Regression analysis helps in examining the effect of independent variables on the dependent variable. Employee's job turnover is dependent variable and culture, compensation, and job involvement are of independent nature. Coefficient of determination (R 2 ), beta values, t-statistics and significance (p-values) are presented below; The value of "t" statistics must be greater than 2 for being significant impact. is not a powerful factor effecting employee turnover in the banking sector and remains a poor justification for leaving a job. Further the fitness level of the selected model predicted value of "F" that is greater than 2.0 showing model fitness along with significance value less than 0.05. The value of R square is 0.072 which means that all independent variables have 7.2 percent impact on employee turnover of banking sector. This also suggest that there can be several other factors that have impact on employee turnover except for the selected ones.

Discussion
The study aimed at examining the factors effecting employee job turnover in banking sector. The factors are selected for policy formulation of sustained human resources and retaining them for longer period of time. For this purpose, three hypotheses were developed for which the discussion is presented below; Discussion for Hypothesis 1: Job involvement negatively effects employee 's job turnover.
The results of current study revealed that a negative effect of job involvement on employee 's job turnover. It means that people have much involvement in work and they do not consider it as a reason for leaving their job. This H1 is not accepted. The results show that higher job involvement persists in the banks that make stay in the banks. Employees find it convenient and they remain happy in the organization due to job involvement.
In other words highly involved employees have less tendency to quit their jobs (Kanungo, 1982;Marchington, Goodman, Wilkinson, & Ackers, 1991). The results of this study are consistent with the earlier studies that have reported that employees who are doing their job with attention and commitment are less like to leave. They find their job meaningful and try to learn more. They are the good performers (Paul, Bamel, & Stokes, 2018). They tend to develop strength by performing the assign duties. The bank employees are found happy in terms of having adequate work that keeps them engaged throughout the day and this prevents them to look for some other job (Scott, Bishop, & Chen, 2003;Smith, 2018). This may be due to the fact that the responses of entry level employees are 56 Employee's job turnover in Banking sector and its impact on Society and Policy formulation recorded and they want to get involved in their work responsibilities that are assigned to them.

Discussion for Hypothesis 2: Compensation has positive effect on employee 's job turnover.
The results revealed a positive and significant effect of compensation practices on employee's job turnover. This means that banks have adopted inadequate compensation practices that are becoming a cause of dissatisfaction (Ibrahim, & Boerhaneoddin, 2010) for the employees and they are leaving the banks (Iqbal, Ehsan, Rizwan, & Noreen, 2014). According to this hypothesis when banking sector will compensate their employee than employee's job turnover ratio will be less and wise versa. This resulted in acceptance of H2.
When employees are not taken care of by the organization, they tend to develop bad tendencies towards their organizations (Kariuki, 2015). The banking sector of Pakistan is characterized with heavy workloads and long working hours (Malek, Kline, & DiPietro, 2018) that might develop a sense of being less paid that harms the comfort zone of the employees (Cheema, & Abbas, 2017) and they develop a sense of leaving the banks.
The adequate compensation is grounded on the equity theory where employees try to compare their salaries with the people working around them and this either make them either satisfied form their work or dissatisfied (Mumtaz, & Hasan, 2018). The dissatisfied employees continuously look for other avenues for betterment in their quality of life (Ibrahim, & Boerhaneoddin, 2010).

Discussion for Hypothesis 3: Organizational culture is inversely related to employee's job turnover
The results of the study revealed that an organizational culture is a significant cause for making decision to leave their job (Cameron, & Quinn, 1999;Cheema, & Abbas, 2017). The results are consistent with earlier studies (Trice, & Beyer, 1993;Millett, 2000;Goñi-Legaz, & Ollo-López, 2017). Every organization has different culture and at-times employees find it difficult to adopt the new culture and they tend to quit their jobs (Klein, 2011). Therefore, H3 is accepted. The supportive cultures compel their employees to stay in the organization and vice versa (Goñi-Legaz, & Ollo-López, 2017).

Conclusion
The purpose of this research was to examine the factors making employees to leave their banks, explicitly Askari Bank Limited, Habib Bank Limited and Allied Bank Limited. Three factors selected were employee job involvement, compensation and culture of banks. It is revealed that job involvement does not predict employee turnover whereas the compensation practices and culture were the predictors of employee turnover in banks.
It is concluded that if top management of banks want to retain their employees for sustainable functioning, they have to improve their compensation practices, besides ISSN (P): 2788-4821 & ISSN (O): 2788-483X Volume 1, Issue 2, Page 45-61, December 31, 2020 making people involved in work, at all levels of management such as the top level, the middle level of management and the first-line level. Similarly, it is concluded that culture has to be developed and taught to the people working in banks for retaining employees.

Recommendations for Policy Formulation
It is necessary for the banks to re-consider policy making for their human resources -HR. For managing turnover problem sound HR management practices are required for sustained and longer period of time and are based on equality. This makes banks stronger entities and people will try to remain there for longer period of times by developing organizational identities.
Further compensation for different positions of banks should be fixed for all banks so that employees should not consider moving from one bank to the other, also known as "relevant competitive remuneration packages". This will somehow discourage employees to move from bank to bank and hampering the operations of the previous bank. At the same time managers making policies will be strengthened to develop policies for once and handling the HR matters will become easy for the banks.
Another policy matter that arises out of findings of this study is to retain employees by introducing a mechanism of exit employees' interview by banks management. This can be supported with legal document to be signed at the time of leaving regarding not to share this information with any other individual or organization. A heavy fine to be impose by any breach of such commitment.
The results of this study states that people are not happy with the work environment so as a policy matter it should be made necessary for the banks to maintain a comfortable environment so that employees should not think of leaving the banks unnecessarily. At the time of joining employees should be offered to fill a bond for not leaving the banks before five years period of time for ensuring consistency in operations of a bank.
Forming a formal (standardized culture) and HR practices for dealing with employees and their promotion will also bring equity and fairness in the affairs and will help in building employee-employer trust that further help in retaining employees for longer period of times.
The policy formulation should be grounded upon the theme of "war for talent", where in the organizations are looking for retaining the talent for developing competitive edge. To avoid job monotonous the banks can adopt the policy of job rotation to equip employees with diverse skills and to change their similar nature of work.

Limitations and Future Directions for Research
The study is limited to considering three independent variables having effect on the dependent variable that restricts the scope of the study. The other factors like employee-employer trust, job and life satisfaction, and conflicts arising at workplace may also be considered for future examinations.