IMPACT OF RETENTION STRATEGY ON EMPLOYEE TURNOVER : A Case of Bank Al-Habib Limited

Abstract

The aim behind this study is to find the significant relationship between Retention Strategies (Compensation, Career Development-Succession Progression, Work-Life Balance, and Terminal & Other Benefits) and Employee Turnover, focusing in the case of Bank Al-Habib Limited (BAHL).

Research Methodology: This study is largely comprises the primary data & least secondary data, based on quantitative as well as qualitative analysis. Questionnaires have been filled by the employee from each level of BAHL. Total population was 100 out of which 80 sample were picked. The responses have been shown graphically and with diagrams. To quantify the responses, statistical tools have been used including Reliability Test, Descriptive Analysis, Frequency Distribution and Correlation Testing with SPSS version 22.0. Interview had also been conducted with the manager of BAHL. The secondary data has picked from BAHL‟s websites and Internet.

Findings: Cronbach‟s Alpha is applied to assess the reliability and consistency of the responses of questionnaire which is almost 72% (reliable). Descriptive Statistic and Frequency Distribution run to examine the demographic segment. Correlation Test applied to test the significance of relationship between dependent and independent variables. Two-Tailed Pearson Correlation was applied on five hypotheses out which four null hypotheses are rejected (Retention Strategy, Compensation, Career Development-Succession Progression, Work-Life Balance) and one accepted (Terminal & Other Benefits). Practical Implications: This research study will greatly help in those organizations where employee turnover (ETO) is in increasing trend or high. This study emphasis on employee retention problem in banking sector of Pakistan (Karachi) from the perspectives of BAHL, hence this will help other Banks also to implement these strategies in order to reduce the employee turnover (ETO).