IMPACT OF EMPLOYEES’ TURNOVER ON ORGANIZATIONAL PERFORMANCE IN BANKING SECTOR OF KARACHI, PAKISTAN

Abstract

Purpose: One of the major challenges currently being faced by the private banking sector of Karachi, Pakistan is employee turnover. This study attempts to find out the impact of employee turnover on the organizational performance of the private banking sector of Karachi, Pakistan. This study also analyses factors that are responsible for the increased rate of employee turnover. In order to achieve this aim, the data was collected from the branch officers working in the private banking sector ofKarachi, Pakistan. Methodology/Sample: A total of 219 questionnaires were filled during the study. The data was collected keeping into consideration features such as gender, age, and duration ofthe job. Factors involved in this study are economic and psychological factors. The data collection method used in this research includes both secondary and primary data. For primary data, structured questionnaires are formulated to get information from the respondents. The Smart PLS systematic computer software was used to generate accurate results regarding the data collected. Findings: The findings suggest that employee turnover has a strong and negative impact on organizational performance in the private banking sector of Karachi, Pakistan. Limitations: This study was conducted during Covid Pandemic which is one of the biggest limitations faced during the study, therefore data was collected online using google form only, thus limiting the number of respondents. The second limitation faced during the research was lack of time thus data was collected from 219 respondents only. Recommendations: The recommendation highlighted was that the private banks of Karachi, Pakistan should provide advancement opportunities to employees and employees must be appreciated when they achieve their organizational goals.