Factors affecting employee’s turnover in the banking sector: Evidence from- small domestic licensed commercial banks in Sri Lanka

This study aims to measure the relationship between staff promotion and remuneration package and employees’ turnover of small domestic banks in Sri Lanka.  The objectives of the study are; identifying the factors affecting the employee’s turnover; assessing the relationship between staff promotion and remuneration package on employee’s turnover and assessing the relationship between job satisfaction and employee’s turnover of the small domestic banks in Sri Lanka. Two methods were used to measure the influence of variables; one method assessed the relationship between the staff promotion, remuneration package and employee’s turnover. The second method measured the relationship between job satisfaction which considered as mediating variable and employee turnover. Data were analyzed using descriptive and inferential (correlation, multiple regression analysis) statistics. Three hundred middle to senior level staff were selected through sampling method from small domestic banks in Sri Lanka. Questionnaires were administered to gather data and 283 questionnaires were received. This study shows that only two factors i.e staff promotion and remuneration package influence on employee’s turnover in this sector.  The study shows that there is a negative relationship between staff promotion, remuneration package, and the employees turnover in the small domestic banks in Sri Lanka.  Further, the study shows that there is a negative relationship between job satisfaction which is used as mediating variable and employee turnover in this sector. Existence of negative relationship between staff promotion, remuneration package, job satisfaction and employee turnover from the banking sector will give signal for the authorities of regulators to consider that if the satisfaction due to staff promotion and remuneration package, then there is a possibility of leaving from small domestic banks and join large banks.