A Mediating Role of Relational Psychological Contract on the Relationship Between Work Place Spirituality and Employee Turnover Intention in Nigeria Banks

Oyekunle Oyelakin

doi:10.11648/j.ajap.20170604.15

Abstract

The study examined the effect of workplace spirituality (meaningful work, inner life and community) on employee turnover intention in Nigeria banks mediated by relational psychological contract. Data were collected from a sample of 357 employees in 21 Deposit Money Banks located in Kaduna State. Structural Equation Model was used to explore the effect. Findings revealed that meaningful work has positive, significant effect on employee turnover intention while inner life and community were found to have insignificant effect on employee turnover intention. Relational psychological contract was found to have fully mediating effect between workplace spirituality (inner life, meaningful work and community) and employee turnover intention. The most explanatory variable of the study is the relationship that exists between meaningful work and relational psychological contract. The study recommends that management of Banks should attach more importance to meaningful work and relational psychological contract of employees to reduce employee turnover intention.

Highlights

Human resources are one of the most important resources in Nigeria Banks and a major capital an organization cannot do without
Considering the competitive nature in Nigeria Banking Sector, human capital gives competitive advantage to an organization, which necessitates the need and importance to retain valuable and productive employees. [2] argued that spiritual dimension of employee should be incorporated into the current motivational paradigm in order to understand the problems of underperformance and ineffectiveness which may lead to turnover intention
The results show that transactional and the relational psychological contract has a significant impact on turnover intention while organizational commitment plays a fully mediating role in the relationship between transactional psychological contract and turnover intention, and plays a partial mediating role in the relationship between relational psychological contract and turnover intention

Summary

Introduction

Human resources are one of the most important resources in Nigeria Banks and a major capital an organization cannot do without. Considering the competitive nature in Nigeria Banking Sector, human capital gives competitive advantage to an organization, which necessitates the need and importance to retain valuable and productive employees. [4] emphasized that employee turnover affects organization as it increases direct costs such as cost of recruitment, selection and training of new employees. Indirect costs to be incurred include; knowledge lost and reduction in productivity as employee will leave a vacuum to be filled up by new recruited employee. Voluntary turnover is when an employee decides to leave the organization willingly, while involuntary turnover intention occurs when the organization is not satisfied with an employee’s performance and makes decision to disengage the employee

Objectives

Methods

Findings

Conclusion