AVS COLLEGE OF ARTS AND SCIENCE – INTERNATIONAL CONFERENCE ON RECENT TRENDS IN COMMERCE AND BUSINESS MANAGEMENT ON 26TH JULY 2013

Title of the paper - EMPLOYEE RETENTION IN PUBLIC SECTOR BANKS – A STUDY WITH REFERENCE TO CHENNAI CITY

Author 1 - V.CHITRA, PhD Research Scholar

Author 2 - DR. R. SHANTHI, ASSISTANT PROFESSOR

Institution - University of Madras

Address for communication - Department of Commerce, University of madras, __________________________________ Chepauk, Chennai – 600 005.

Contact No - 7708134018

e-mail – id - veecee83@gmail.com, rshanthicommerce@gmail.com,

EMPLOYEE RETENTION IN PUBLIC SECTOR BANKS (A STUDY WITH REFERENCE TO CHENNAI CITY)

V. CHITRA *& Dr. R. Shanthi **

Abstract

Employees are a valuable asset to any organization. It is essential to protect this vital resource

as talented and motivated employees play a crucial role in overall growth and success of the

organization. Retention of key employees is critical to the long-term health and success of

any organization Focusing on employee retention techniques can positively impact the

organization as it increases employee productivity, performance, quality of work, profits, and

reduces turnover and absenteeism. Employee retention is a process in which the employees

are encouraged to remain with the organization for the maximum period of time or until the

completion of the project. Effectively creating an engaging environment, recognizing good

performance, giving benefits and rewards, promoting mutual respect are some of the ways for

effective employee retention. This research paper focuses on the RETENTION

STRATEGIES FOLLOWED IN THE PUBLIC SECTOR BANKS. The aim of this study is

to find out the retention strategies followed by the banks to retain their experienced and

valuable employees (with Chennai city). Here the manager employee relationship, Employee

growth, Compensation, Perceived organizational support and work environment were taken

as the dimensions of retention strategies. The influence of retention strategy Dimensions on

employee’s intention to leave their job is considered as an important factor in this research

Convenient sampling methods was adopted to collect data from employees working in public

sector banks. Cronbach’s alpha shows the reliability as .895. Factor analysis, Regression and

ANOVA were performed to analysis the data. The result revealed that a cordial relationship

between Retention strategies towards employees intention to leave their job. This leads to

better employee – manager relationship in public sector banks.

Keywords: Psychological contract, Employee Involvement, Organizational Support.

* Ph.D Research Scholar, Department of Commerce, University of Madras, Chennai,veecee83@gmail.com

** Assistant Professor, Department of Commerce, University of Madras, Chennai, rshanthicommerce@gmail.com

EMPLOYEE RETENTION IN PUBLIC SECTOR BANKS (A STUDY WITH REFERENCE TO CHENNAI CITY)

V. CHITRA *& Dr. R. Shanthi **

Introduction

Employees are a valuable asset to any organization. It is essential to protect this vital resource

as talented and motivated employees play a crucial role in overall growth and success of the

organization. Retention of key employees is critical to the long-term health and success of

any organization Focusing on employee retention techniques can positively impact the

organization as it increases employee productivity, performance, quality of work, profits, and

reduces turnover and absenteeism. Employee retention is a process in which the employees

are encouraged to remain with the organization for the maximum period of time or until the

completion of the project. Effectively creating an engaging environment, recognizing good

performance, giving benefits and rewards, promoting mutual respect are some of the ways for

effective employee retention.

Employee retention is beneficial for the organization as well as the employee. Employee

retention matters as organizational issues such as training time and investment; lost

knowledge; insecure employees and a costly candidate search are involved. Hence failing to

retain a key employee is a costly proposition for an organization. Various estimates suggest

that losing a middle manager in most organizations costs up to five times of his salary. It is a

known fact that retaining your best employees ensures customer satisfaction, increased

product sales, satisfied colleagues and reporting staff, effective succession planning and

deeply imbedded organizational knowledge and learning.

Review of literature

Kate Hutchings, Helen De Cieri and Tracey Shea in their study Employee Attraction and

Retention in the Australian Resources Sector the result suggest that This paper presents

findings from a survey conducted in the Australian resources sector in 2009 exploring human

resource (HR) managers‟ perceptions of how their organizational practices and external

* Ph.D Research Scholar, Department of Commerce, University of Madras, Chennai,veecee83@gmail.com

** Assistant Professor, Department of Commerce, University of Madras, Chennai, rshanthicommerce@gmail.com

contextual changes in industrial relations legislation present challenges for the sector and

influence attraction and retention of highly skilled employees. The research makes an

important contribution to the literature on good employment/high involvement work practices

by investigating organizational practices within the politico-legislative context of this

economically significant sector. Our findings indicate that organisations have implemented a

range of „good‟ employment practices, while dealing with concerns about skills shortages,

employee turnover, an aging workforce, and changes in legislation. We identify a need for

employers to give greater attention to diversity and work-life balance issues. Further, there is

a need for strategies to increase the attractiveness of work in remote locationsi.

Eric Ng Chee Hong, Lam Zheng Hao, Ramesh Kumar, Charles Ramendran and Vimala

Kadiresan in their study An Effectiveness of Human Resource Management Practices on

Employee Retention in Institute of Higher learning: - A Regression Analysis they found by

using a multiple regression analysis, it is found that, training and development, appraisal

system compensation are significant to employee retention except employee empowerment.

Base on the results, training, compensation and appraisal is a fundamental consideration for

University of Y lecturers’ retention decision; while empowerment is less fundamental to

lecturers’ consideration as this can be attributed to the Asian culture characteristic of higher

authority conformityii.

Vaishali Chhabra in her study Current Trends In Employee Retention Strategies this paper

puts forward the various initiatives taken by the business for retaining their talented

employees and also discusses the benefits of these perks both from the viewpoint of

employee as well as employeriii.

Raymond Loi, Ngo Hang-yue and Sharon Foley in their study Linking employees’ justice

perceptions to organizational commitment and intention to leave: The mediating role of

perceived organizational support they finally concluded that both procedural and distributive

justice contributed to the development of POS, and POS mediated their effects on

organizational commitment and intention to leave. As expected, organizational commitment

was negatively related to intention to leave. Additional analyses revealed that these

relationships held for both partners and non-partners in law firmsiv.

Lona Mody, Douglas K. Miller, Joanne M. McGloin, M Div, Marcie Freeman, Edward R.

Marcantonio, Jay Magaziner, and Stephanie Studenski, in their study Recruitment and

Retention of Older Adults in Aging Research they concludes that recruitment and retention

techniques and strategies to address concerns and overcome barriers to older adult

participation in clinical research. Key approaches include early in-depth planning;

minimizing exclusion criteria; securing cooperation from all interested parties; using advisory

boards, timely screening, identification, and approach of eligible patients; carefully reviewing

the benefit: risk ratio to be sure it is appropriate; and employing strategies to ensure

successful retention across the continuum of care. Targeting specific strategies to the

condition, site, and population of interest and anticipating potential problems and promptly

employing pre developed contingency plans are keys to effective recruitment and retentionv.

Need for the study:

This study is an attempt to provide the subjective experience of the employment relationship

through Psychological contract fulfillment in order to explain the individual-level

explanations to link between employer and employee and also this study helps the employer

to understand the employee’s level of commitment. This study further helps in indentifying

the key drivers for retaining the employees

Objective of the study:

To find out the dimensions of retention strategy followed in public sector banks.

To identify key dimension influencing the retention strategies followed in public

sector banks.

To examine the perception of employees based on their demographic profile.

Limitations of the study:

Any research study can be restricted in scope by certain interest limitations that are

participated by the choice of the research design, sampling procedure and respondent

selection. This study has the following limitation.

Even though the survey was conducted among the sample of 250 employees, the

research may not reflect the real opinion of the entire population.

The research was conducted among Accountant, officers and clerical staff it cannot be

generalized.

Since study was conducted among employees working in leading public sector banks

and it may not be suitable for other public and private sector bank employees

Methodology

Methodology is a systematic way to solve the research problem. This study was mixed

methodology that is both qualitative and quantitative. For Quantitative data was collected

using questionnaire and it was measured through Likert five point scale. For qualitative data

respondent were asked to share their views and suggestions based on open ended question.

Research settings

Research design is the plan and structure of investigation in order to obtain answers to the

research questions. The present study is explorative in nature. Exploratory research is

undertaken to explore an area where researcher has little knowledge or to investigate the

possibilities of undertaking a particular research study. In this study exploration is to discover

retention strategies followed by the bank management to retain their employees.

Samples

Sample size for this study is Two hundred and fifty. The convenient sampling was adopted to

collect the data. Data were collected in the form of structured questionnaires and through

direct Interview method in the selected branches in Chennai city

Questionnaire

Employee’s retention strategy and its relationship with Human Resource practices variable

were measured by adopting various scale Rousseau’s Psychological contract inventory scale

was adopted to measure the employee - manager relationship, Edward Lawler scale was

adopted to measure the Compensation of employees, Allen & Mayer commitment scale was

adopted to measure the intention of employees to quit their job, Eisternberg’s Perceived

organizational support scale was used to measure the performance support received by

employees from their managers, Warr & Wall High order need scale was adopted to measure

the need of employee development

The questionnaire is specifically designed to Retention of Public sector bank Employees. For

these Retention strategies is divided into 6 groups Relationship, Growth, Work environment,

Perceived organizational support, Compensation and their intention to quit their job.

The Questionnaire was divided in to TWO parts

PART: A- Questionnaire contained 32 items measuring the Retention strategies. The items

under each group were measured by using 5 Point Likert scale.

PART: B - Questionnaire includes question about personal and organizational details such as

Age, Gender, Marital status, Income and Experiences.

DATA ANALYSIS

Table – 1 Gender

GENDER

Frequenc

y

Percent Valid Percent Cumulative

Percent

Valid

MALE 116 46.4 46.4 46.4

FEMALE 134 53.6 53.6 100.0

Total 250 100.0 100.0

*SOURCES: Primary Data

Data were collected from 250 respondents and their Gender composition is presented in the

above table

Table – 2 Marital Status

MARITAL STATUS

Frequenc

y

Percent Valid Percent Cumulative

Percent

Valid

MARRIED 198 79.2 79.2 79.2

UNMARRIED 52 20.8 20.8 100.0

Total 250 100.0 100.0*SOURCES: Primary Data

Data were collected from 250 respondents and their Marital status is presented in the above

table

Table –3 Level of Education

QUALIFICATION

Frequency Percent Valid Percent Cumulative

Percent

Valid

S.S.L.C 4 1.6 1.6 1.6

GRADUATE 144 57.6 57.6 59.2

POST

GRADUATE88 35.2 35.2 94.4

OTHERS 14 5.6 5.6 100.0

Total 250 100.0 100.0*SOURCES: Primary Data

Data were collected from 250 respondents and their Level of education is presented in the

above table

Table – 4 Age

AGE(IN YEARS)

Frequency Percent Valid Percent Cumulative

Percent

Valid

BELOW

25YRS23 9.2 9.2 9.2

25-30YRS 57 22.8 22.8 32.0

30-35YRS 21 8.4 8.4 40.4

35-40YRS 16 6.4 6.4 46.8

40-45YRS 17 6.8 6.8 53.6

45-50YRS 38 15.2 15.2 68.8

ABOVE

50YRS78 31.2 31.2 100.0

Total 250 100.0 100.0*SOURCES: Primary Data

Data were collected from 250 respondents and their Age composition is presented in the

above table

Table – 5 Salary

SALARY(IN RUPEES)

Frequency Percent Valid Percent Cumulative

Percent

Valid

UPTO 1,00,000 2 .8 .8 .8

1,00,000-2,00,000 39 15.6 15.6 16.4

2,00,000-3,00,000 41 16.4 16.4 32.8

3,00,000-4,00,000 36 14.4 14.4 47.2

4,00,000-5,00,000 49 19.6 19.6 66.8

5,00,000-6,00,000 46 18.4 18.4 85.2

6,00,000-7,00,000 30 12.0 12.0 97.2

7,00,000-8,00,000 6 2.4 2.4 99.6

ABOVE 8,00,000 1 .4 .4 100.0

Total 250 100.0 100.0*SOURCES: Primary Data

Data were collected from 250 respondents and their Salary composition is presented in the

above table

Table – 6 Experience

WORK EXPERIENCE (IN YRS)

Frequency Percent Valid Percent Cumulative

Percent

Valid LESSTHAN

5YRS46 18.4 18.4 18.4

5-10YRS 40 16.0 16.0 34.4

10-15YRS 26 10.4 10.4 44.8

15-20YRS 17 6.8 6.8 51.6

20-25YRS 17 6.8 6.8 58.4

25-30YRS 51 20.4 20.4 78.8

30-35YRS 49 19.6 19.6 98.4

35-40YRS 4 1.6 1.6 100.0

Total 250 100.0 100.0

*SOURCES: Primary Data

Data were collected from 250 respondents and their Experience composition is presented in

the above table

KMO and BARTLETT'S TEST

Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy/Bartlett's Test of Sphericity

Prior to the extraction of the factors, several tests should be used to assess the suitability of

the respondent data for factor analysis. These tests include Kaiser-Meyer-Olkin (KMO)

Measure of Sampling Adequacy, and Bartlett's Test of Sphericity.

Table – 7 KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .857

Bartlett's Test of Sphericity

Approx. Chi-Square 2781.482

df 351

Sig. .000

The Kaiser-Meyer-Olkin Measure of Sampling Adequacy is a statistics that indicates the

proportion of variance in variable that might be caused by underlying factors. High values

(close to 1.0) generally indicate that a factor analysis may be useful with data. If the value is

less than 0.50, the result of the factor analysis probably won't be very useful. In this study, the

value of Kaiser-Meyer-Olkin Measure of Sampling Adequacy is 0.857. Bartlett's tests the

hypothesis that correlation matrix is an identity matrix, which would indicate that variables

are unrelated and therefore unsuitable for structure detection. A small value (less than 0.05)

of the significance level indicates that a factor analysis may be useful with data.

FACTOR ANALYSIS

Factor analysis is one used to analyze the inter relationships between independent variables

with metric data. The analysis summarizes a majority of the information in the data set in

terms of relatively a few new categories- known as factors. The main applications of factor

analytic techniques are: (1) to reduce the number of variables and (2) to detect structure in the

relationships between variables, that is to classify variables. The present study uses the factor

analysis to analyze the statement responses in the questionnaire and the results were

presentedvi.

Table – 8 Total Variance Explained

Compo

nent

Initial Eigenvalues Extraction Sums of

Squared Loadings

Rotation Sums of Squared

Loadings

Total % of

Variance

Cumula

tive %

Total % of

Variance

Cumula

tive %

Total % of

Variance

Cumulative

%

1 7.876 29.170 29.170 7.876 29.170 29.170 4.020 14.890 14.890

2 2.218 8.213 37.383 2.218 8.213 37.383 2.698 9.992 24.882

3 1.926 7.133 44.517 1.926 7.133 44.517 2.612 9.675 34.556

4 1.440 5.332 49.849 1.440 5.332 49.849 2.314 8.569 43.125

5 1.335 4.945 54.794 1.335 4.945 54.794 2.125 7.870 50.995

6 1.151 4.262 59.056 1.151 4.262 59.056 1.805 6.685 57.681

7 1.069 3.958 63.014 1.069 3.958 63.014 1.440 5.334 63.014

8 .923 3.417 66.431

9 .833 3.084 69.515

10 .762 2.820 72.335

11 .730 2.702 75.037

12 .689 2.553 77.590

13 .647 2.397 79.988

14 .608 2.253 82.241

15 .600 2.224 84.465

16 .525 1.946 86.411

17 .508 1.882 88.293

18 .479 1.773 90.066

19 .422 1.565 91.631

20 .387 1.434 93.064

21 .373 1.380 94.445

22 .322 1.192 95.637

23 .315 1.168 96.805

24 .268 .993 97.798

25 .229 .847 98.646

26 .200 .739 99.385

27 .166 .615 100.000

Extraction Method: Principal Component Analysis.

Rotated Component Matrix:

Perhaps the most important tool in interpreting factors in factor rotation. The term rotation

means the reference axes of the factors are turned about the origin until some other position

has been reached. Factor rotation assists in the interpretation of the factors by simplifying the

structure through maximizing the significant loadings of a variable on a single factor.

The goal of rotational strategies is to obtain a clear pattern of loadings, that is, factors that are

somehow clearly marked by high loadings for some variables and low loadings for others.

This general pattern is also sometimes referred to as simple structure. Typical rotational

strategies are varimax, quartimax, and equamaxvii

Table – 10 Rotated Component Matrixa

Component

1 2 3 4 5 6 7

I feel appreciated by management .734 .183 .214 .124 .026 .122 .150

My bank really cares about my well being. .687 .080 .028 .062 .317 .347 .023

I am satisfied with recognition received for doing a good job .682 .047 .304 .232 .004 .104 .120

My bank strongly considers my goals and values. .665 .215 .116 -.001 .203 .355 .013

I am satisfied with the rate of pay received for job .650 -.050 .110 .125 -.073 .021 .153

I would be very happy to spend the rest of my career with this Bank. .546 .001 .134 .312 .090 .157 -.122

Help is available from my manager when I have a problem. .528 .359 .142 .172 .369 .096 .086

My manager would forgive an honest mistake on my part. .502 .253 .023 .133 .499 -.185 .097

My manager is very much committed to his/her employees .279 .796 .088 .117 -.062 .100 -.080

Overall, I’m very much committed to my manager .004 .762 .092 .136 .076 -.025 .116

My manager will in live up his/her promises as made to his/her

employees.338 .706 -.014 .077 -.021 .003 -.138

In general, I will live up my promises made to my manager. -.166 .693 .108 .132 .142 .117 .127

I am Extending my range of abilities. .134 .139 .785 .164 .115 .195 -.063

My work in this bank is challenging. .190 .113 .746 .077 .099 .027 -.089

I am having enough opportunity to learn new things .265 .045 .744 .200 .277 .039 .037

I am having enough opportunity to make my own decisions .358 .056 .522 -.009 .336 .413 .017

I have enough responsibility to do my work. .091 .151 .050 .715 .260 -.045 .028

I feel satisfied while getting recognition to my work. .118 .149 .196 .693 .162 .081 .080

I’m happy with my fellow workers .168 .034 .067 .674 -.230 .189 .016

I am satisfied with my immediate boss .302 .231 .136 .637 .168 .065 -.056

If I achieve something that will have personally value .046 -.084 .262 .053 .649 .105 .021

My manager is willing to help me if I need a special favor. .281 .250 .114 .154 .604 .046 -.107

I am using my maximum skills to achieve my task. -.089 -.037 .381 .144 .551 .350 .043

I’m satisfied with the physical work conditions .211 .077 .035 .147 .065 .769 .096

I have freedom to choose your own method of working .253 .060 .265 .075 .076 .647 -.028

If I gave an opportunity, my bank would take advantage of me. .162 .005 .024 -.069 -.164 -.073 .811

My bank shows very little concern for me. .109 .056 -.140 .140 .200 .172 .766

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 9 iterations.

Table – 11 Reliability Statistics

Cronbach's Alpha N of Items

.895 27

The rotated component matrix table shows the loadings of each item on each factor after

rotation. The rotated component factor has grouped the 27 statements into seven factors and

on the basis of loading of the statements they are given names and explained below. The

cronbach’s alpha Reliability statistics found out 89.5% of the data were reliable.

Factor-1 Employee Engagement

I feel appreciated by management

My bank really cares about my well being.

I am satisfied with recognition received for doing a good job

My bank strongly considers my goals and values.

I am satisfied with the rate of pay received for job

I would be very happy to spend the rest of my career with this Bank.

Help is available from my manager when I have a problem.

My manager would forgive an honest mistake on my part.

An engaged employee is a person who is enthusiastic about their work. Improving employee

engagement directly impacts measurable business outcomes. Employees who are committed

to success, emotionally attached, and socially involved with a company demonstrate qualities

that business manager’s thirst to have. Engaged employees are more productive at work, take

less sick days and exhibit other favorable behavior, promote the business to others and show

their happiness to customers.

Factor - 2 Employers - Employees Relationship

My manager is very much committed to his/her employees

Overall, I’m very much committed to my manager

My manager will in live up his/her promises as made to his/her employees

In general, I will live up my promises made to my manager.

Healthy relationship reduces the conflict among employees and also makes them to feel as

though they belong to the same family. This is essential for team work. Team work and

inclusive culture can help the organization resolve issues. Good relationship between

managers/employees helps in building loyalty and trust and thereby driving customer

satisfaction. Strong relationship among manager and employee makes them to think positive

about their work place. Friendly approach between them helps in building the progressive

organization.

Factor - 3 Employee Developmental factor

I am Extending my range of abilities.

My work in this bank is challenging.

I am having enough opportunity to learn new things

I am having enough opportunity to make my own decisions

The primary challenge of an every organization is to give growth opportunity to their

employees, for developing effective career development opportunity is successfully

transitioning from traditional, hierarchical management principles to self-directed work

teams, autonomy and information sharing.

Factor – 4 Satisfaction factor

I have enough responsibility to do my work.

I feel satisfied while getting recognition to my work.

I’m happy with my fellow workers

I am satisfied with my immediate boss

A person’s job, like a person’s business, is a highly valued possession that pervasively affects

the lives of the employee and his or her family. With stakeholders everywhere, the

relationship is laden with moral responsibilities. This includes but goes beyond a duty to treat

employees respectfully, to pay them fairly and provide good working conditions. An ethical

employer does not think of employees only as a means to an end. Employees must be treated

as a major stakeholder group. Ethical employers consciously and consistently treat the

promotion and protection of the well-being of employees as an important business obligation

and objective.

Factor – 5 Performance Support

If I achieve something that will have personally value

My manager is willing to help me if I need a special favor.

I am using my maximum skills to achieve my task.

Performance is largely associated to how the surrounding is established. A serene work

environment with all the basic needs help people perform at higher levels. An organization

that gives importance to well being is found to be placed in a better position than organization

who only focus on business and not the well being aspect. Well being faction creates a

wonderful work environment that results in people owing what they do and perform beyond

ones potential.

Factor – 6 Environmental factor

I’m satisfied with the physical work conditions

I have freedom to choose your own method of working

Environmental factor plays a vital role in employee’s work force and productivity. A number

of physical facilities and psychological factors that are considered pertinent for enhancing

productivity are currently employee expectation. A number of related/job employment

policies such as job orientation for new staff, opportunity for staff training and development,

promotion, job security etc are presently perceived as unfavourable to workers and therefore

have negative impact for productivity.

Factor – 7 Intention to quit

If I gave an opportunity, my bank would take advantage of me.

My bank shows very little concern for me.

No employee quits the company. It is the experience with their peers or their immediate

manager’s calls for that change. It is often seen that poor decision making or lack of concern

shown triggers this reaction from the employee. It is important as

managers/employers/organization to ensure that the pulse of the employee is often gauged to

determine their engagement level and take appropriate action as a measure to avoid attrition.

Action delayed is action denied is attrition confirmed.

Regression Analysis:

Multiple regression analysis was conducted to examine the relationship between the

Retention strategy and Intention to Quit. For this purpose Retention strategy dimension

considered as predictor and Intention to quit as criterion variable.

Table – 12 Model Summary

Model R R

Square

Adjusted R

Square

Std. Error of

the Estimate

Change Statistics

R Square

Change

F Change df1 df2 Sig. F

Change

1 .444a .197 .181 .46911 .197 11.987 5 244 .000

a. Predictors: (Constant), Work environment, Relationship, Reward, Growth, O.S

The above table shows the model summary of Retention strategy (Predictor) and it explains

the 19.7% of Intention to quit (R2 = 0.197, F = 11.987, p < 0.01)

Table – 13 Coefficientsa

Model Unstandardized

Coefficients

Standardized

Coefficients

t Sig. 95.0% Confidence

Interval for B

B Std. Error Beta Lower

Bound

Upper

Bound

1 (Constant) 1.730 .263 6.584 .000 1.212 2.247

Growth .060 .064 .065 .930 .353 -.067 .187

Compensation .146 .049 .220 2.952 .003 .048 .243

iReferences

1. ? Kate Hutchings, Helen De Cieri and Tracey Shea (2009), Employee Attraction and Retention in the Australian Resources Sector, Australian Research Council Linkage grant in partnership with Chalco (China Aluminum Corporation).

ii Eric Ng Chee Hong, Lam Zheng Hao, Ramesh Kumar, Charles Ramendran and Vimala Kadiresan (2012), An Effectiveness of Human Resource Management Practices on Employee Retention in Institute of Higher learning: - A Regression International Journal of Business Research and Management (IJBRM), Volume (3) : Issue (2) : 2012

iii Vaishali Chhabra, Current Trends In Employee Retention Strategies, International Journal of New Practices in Management and Engineering: Vol: 4 Issue: 1

iv Raymond Loi, Ngo Hang-yue and Sharon Foley, (2006), Linking employees’ justice perceptions to organizational commitment and intention to leave: The mediating role of perceived organizational support, Journal of Occupational and Organizational Psychology, 79, 101–120

v Lona Mody, Douglas K. Miller, Joanne M. McGloin, M Div, Marcie Freeman, Edward R. Marcantonio, Jay Magaziner, and Stephanie Studenski, (2008) Recruitment and Retention of Older Adults in Aging Research, J Am Geriatr Soc, 56(12): 2340–2348.

vi Marketing research, C.N.SONTAKKI, Himalaya publishing house2006,pp.201

vii Multi variate data analysis,Hair,Black,Babin,Anderson,Tatham,PEARSON Education, sixth edition 2009, p. No.187-188.

8. Personnel Management- C.B. Mamoria and S.V. Gankar

9. Human Resource Management- VSP Rao.

10. Human Resource Management- G.S. Sudha

11. Terry Irwin (2011) Retention of employees, TCii strategic and management consultants

Organizational

Support.109 .067 .124 1.627 .105 -.023 .242

Relationship -.009 .047 -.012 -.188 .851 -.101 .083

Work

environment.151 .078 .146 1.937 .054 -.003 .304

a. Dependent Variable: Intention to quit

The above table explains the coefficient and correlation of independent variables

(Dimensions of Retention strategy) with intention to quit as the dependent variable. Retention

strategy as predictor variable in which intention to quit was explained by Reward (β = 0.220,

t = 2.952, p < 0.01)

Occupational well-being (x) is predictor then dependent variable job satisfaction (y)

Y= 1.730+0.060x1+ 0.146x2 + 1.09x3 - 0.009x4+ 0.151x5

x1= Growth, x2 = Compensation x3= Organizational Support, x4= Relationship, x5 = Work

environment.

The minimum value in this case 2.6101 and maximum value is 4.0154. It shows employees

who ever attain the minimum value feel that they were moderately receiving compensation

for their work and also feel that they have little support and freedom to choose their own

method of working and those who ever attain maximum value feel that they receive adequate

compensation for their work and also that they have Full support and freedom to choose their

own method of working in turns makes employee to feel them satisfied with their work.

Hence, there is a strong positive relationship between the Retention strategy and Intention to

Quit. Therefore, it statistically proved that there is a very strong positive relationship between

the Retention strategy and Intention to quit.

ANOVA

Output – 1

Ho There will not be significant differences in the intention of public sector bank employees

to quit their job based on their Level of experience

H1 There will be significant differences in the intention of public sector bank employees to

quit their job based on their Level of experience

Table-14 Test of Homogeneity of Variances

Do you have any idea to switch over your job?

Levene Statistic df1 df2 Sig.

9.291 7 242 .000

The above table shows that the second assumption (the groups have approximately equal

variance on the dependent variable). Levene's Test of significant value is .000 this value is

less than 0.05 the two variances are significantly different that is, the two variances are not

equal.

Table- 15 ANOVA

Do you have any idea to switch over your job?

Sum of

Squares

df Mean Square F Sig.

Between Groups 3.424 7 .489 2.723 .010

Within Groups 43.476 242 .180

Total 46.900 249

The above table shows the output of the ANOVA analysis whether Intention to quit and work

experience statistically significant difference between group means. It shows that the

significance level is 0.010 which is below 0.05. and, therefore, there is a statistically

significant difference in the mean of Intention to quit and experience of employees working

in public sector banks.

Conclusion

Working in a public sector bank was a dream and probably the most sought after job an

individual would desire just about 2 or 3 decades ago. The biggest and the single most factors

were around security. And this was the biggest factor that was promoting the want for

working in the bank. Though the job security factor remains the same, the banks more often

than not have not changed their strategy and feel this is suffice to retain employees. The

reality is that modern employee demands more than just job security for them the stay

committed. The bank has the responsibility to create a work environment which helps foster

the ability and desire of employees to act in empowered ways.

Healthy employee relations also discourage conflicts and fights among individuals. People

tend to adjust more and stop finding faults in each other. Individuals don’t waste their time in

meaningless conflicts and disputes, rather concentrate on their work and strive hard to

perform better. They start treating each other as friends and try their level best to compromise

and make everyone happy.