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Introduction
The role played by employees in an organization cannot be ignored as employees are the
backbone of any business’s success. In today’s competitive environment employees are known
to be the vital asset in any organization as they are the ones who actually cause the organization
to lead or to fail. When people are leaving an organization it means there is something wrong and
finding those problems should be preferred. According to (Fursso 2015) “Employee turnover is
one of the most studied and important issues to organizations, and one that needs special
attention”.
There are two main categories of turnover one is voluntary and the other one is involuntary
turnover. Organization has to bear a cost for both voluntary and involuntary turnover. Whether
the turnover is voluntary or involuntary organizations has to bear following costs as recruiting,
hiring, training, retaining, loss of productivity during replacement search, loss of high performers
and disruption of social and communication structures of organizations.
Problem statement
High turnover rate can cause human resource manager to be focused towards the dilemma. When
a problem is identified then comes the time to find the reasons behind it so it can be sorted out.
These problem solution relationship gets more important when it comes to researches and
investigations.
The problems with labor turnover is that it is time consuming, expensive, loss of productivity,
loss of experienced and trained staff members, decreased performance, and so on. These are the
things which are to be sorted as soon as acknowledged otherwise can cause the business to fail in
the market. This result in the management question
Management Question: Why is there an increasing labor turnover intention and how it can be
reduced?
Brief variables' definitions
For our research purpose we would like to find the relation between perceived learning culture
and perceived organizational support on employee turnover in the banking sector of Pakistan.
This would give us an idea how to motivate employees to stay within the organization which
would not only save recruitment cost but would strengthen employee employer relationship to
working a more positive way for the betterment of the industry. Here we take perceived learning Page | 3
culture as the environment of the banking sector assumed by the employee whether it teaches
new things to the employee or not. Secondly, perceived organizational support is how employee
think the banks behave when they need their support to put forward their ideas and protect their
rights. So we ultimately reach our research question, which is:
What is the role of perceived learning culture and perceived organizational support on employee
turnover in the banking sector of Pakistan?
H1: Perceived Organizational Learning negatively and indirectly effect Turnover Intention
Perceived organizational support is how employee think the banks behave when they need their
support to put forward their ideas and protect their rights. We have hypothesized that increasing
POS can reduce Turnover Intentions.
H2: Perceived Organizational Support negatively and indirectly effect Turnover Intention
Perceived learning culture as the environment of the banking sector assumed by the employee
whether it teaches new things to the employee or not. Also, enhanced POL can reduce Turnover
Intention.
Data Collection and Sampling Procedure
To test our designed hypothesis we used the field survey approach to collect data. The employees
of various banks were randomly approached. The survey was conducted while the Bankers were
on duty this helped in generating a more accurate response as they were on duty and were able to
reflect to the questionnaire. Data was collected in the capital city of Punjab, Lahore. Many
people turn faces to Lahore to find themselves living, many of these people are working as Page | 5
bankers in various banks of Lahore City. This further helped us through generate response that
would vary according to the respondent Further the sampling technique used was area clustering.
We selected the four of the main areas in Lahore based on the concentration of banks. The Areas
selected were Thokar Niaz Baig, Faisal Town, Ichra and Bahria Town. The banks in the territory
of these area were surveyed. All the four members were allotted on of the four areas. Each
member surveyed almost every bank in the area and collected data from banks that allowed the
data collection process to take place. The data collection process started on 16 th April 2018 and
all the required data was collected till 22 nd April 2018.
A sampling restriction was set to collect data from bankers operating at different levels for fair
representation of responses. A preliminary research was conducted to find about the schedules
and working conditions of employees. We were not willing to collect data at a time when the
bankers were busy various transactions. For more insight we conducted a sample survey on one
bank at the time before lunch break and observed that 1 out of the five respondent filled the
questionnaire after reading it. The other respondents due to work load kept the questionnaire for
too long moreover returned the questionnaire with little to no response. Our group decided to
collect data at times when the respondents were under less control of work. This helped us with
collecting data that was submitted after reading and understanding our designed survey.
A total of 280 questionnaires were distributed and out of which 250 valid responses were
collected. All the questionnaires that followed a pattern or those which were not complete were
excluded for analysis purpose.
61.6% of the respondents were male and 38.4% of the data was collected from female
respondents. The age group of 31-40 years contained the major portion of respondents. 35.6% of
the respondents were 21-30 years old, while 46.8% were 31-40 years old also 16.4% of the
response came from respondents lying in the age group of 41-50 years. Only 1.2% of the
respondents were 51 and above years old, these were the respondents that enjoyed higher ranks.
Data Analysis Technique
All the Multi-Items constructs were based on Five Points Likert Scale to measure our variables
namely Perceived Organizational Support (POS), Perceived Organizational Learning (POL) and
Turnover Intention (TI). The constructs of POS were measured following the research proposal
of (Eisenberger, et al. 1986) , whereas the items to measure POL were adopted from (Joo and Page | 6
Lim 2009) and the items for the construct TI were adopted from the research of (Yucel 2012).
POS and POL both had 6 constructs each and TI had 5 constructs.
To further measure various constructs two software were used, SPSS and PLS. PLS was used to
develop the model and to study various concepts taught in class. Whereas SPSS was used to
study demographic results and for data entry purpose and to calculated the Eigen value with the
respective % explained
Table 2: Factor Analysis
The components in our study were divided into 3 major constructs including 17 different
questions which had 8 reverse and 9 direct questions. These questions were selected to make sure
that the respondents read the questionnaire instead of randomly responding. Further using PLS
and SPSS we calculated the item loading and their construct variance explained by selecting the
maximum Eigen values. These values were then compressed in Table 1 which tells that most of
the values of item loadings were more than the minimum threshold of 0.30 as stated by Hair et
al., 2010. However, 4 out of 17 questions have an item loading less than 0.3 which include POL
6 (Use leaders who model and support learning at the individual, team and organization level),
POS 2 (The organization fails to appreciate any extra effort from me), POS 6 (If given the
opportunity the organization would take advantage of me) and T1 (Each day of work seems like
it will never end). These variables caused the % of variance explained of Perceived
organizational learning, perceived organizational support and turnover intention to be 55.179%, Page | 8
38.343% and 40.228% respectively.
Table 3: Factor Analysis Updated
After dropping the stated variables with lower item loading we found that are data not only
turned to be more reliable but the % of variance explained of every construct increased above the
minimum recommended value of 50 per cent (Merenda 1997)
Findings
Table 4: Loading of items, Composite reliability, AVE etc.
Construct reliability is explained in table 3 which tells about the quality of the model. We know
that for each construct composite reliability is preferred to be above 0.6 (Bagozzi and Yi 1988),
from this limitation we get to acknowledge that are construct of Perceived Organizational
Learning, Perceived Organizational Support and Turnover Intention is reliable with CR of 0.864,
0.768 and 0.690 respectively. This tells that the quality of the construct is acceptable and relevant
questions are a part of the relevant construct.
Finally, the discriminant validity was checked by way given by (Fornell and Larcker 1981) each
AVE be greater than the highest correlation between that construct and any other variable in the
model. This is proved in Table 3 which means that all three construct are different from each
other and are fulfilling the criteria of discriminant validity.
Hypothesis Testing
H1: Perceived Organizational Learning negatively and indirectly effect Turnover Intention
H2: Perceived Organizational Support negatively and indirectly effect Turnover Intention
Page | 11
Table 6: Hypothesis
PLS software was used to apply the Bootstrapping Approach. The results of hypothesis testing
and p-values are shown in Table – V. The hypothesis is accepted if its t-value is greater than 2.58
and p-value is less than 0.01. It is clear that there was a negative and indirect relationship
between POL and TI (β = -0.153, t-value = 2.551, p-value = 0.011). Thus improvement in POL
can reduce TI. These findings support H1.
Also there was a negative and indirect relationship between POS and TI (β = -0.436, t-value =
6.326, p-value = 0.000). Thus improvement in POS can reduce TI. These findings support H2.
Conclusion
After conducting research and finding views of different employees of banks we acknowledged
that perceived organizational learning and perceived organizational support has significant effect
on turnover intention. So to retain employees in banking sector the employer must make sure that
they are supporting their employees with the problem they face as well as decision making.
Furthermore the employees should be given training which would enhance their learning as well
as productivity. These things would help banks to have more satisfied and motivated employees
who will give higher returns to the banking sector. Apart from this we would recommend that
banks should have seminars to make should they are providing employees with the latest updates
in the banking sectors.
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