Association Between Emotional Intelligence and Turnover Intention: Its Effects on Job Performance in the Banking Sector

Abstract

Studies in the banking sector in Pakistan showed that emotional intelligence (EI) and retention of employees had been found to be essential components in the job performance. Hence, this study tries to assess the relationship between emotional intelligence and job performance and turnover intention in the Pakistani banking industry. By examining how emotional intelligence might help with employee retention and performance, it aims to address the problem of high turnover rates. A total of 190 questionnaires were distributed to employees in various banks in Peshawar and Lahore, of which 169 questionnaires were collected back with a return rate of 89. Using AMOS version 26, the model was tested using a two-stage SEM methodology; first, the measurement model was used to assess the validity and reliability of the instrument, and then the structural model was estimated. The findings revealed that there was a positive and significant connection between EI and job performance, the relationship of turnover intention was found to be negative and significantly linked to EI. The results further show a positive but insignificant relationship between turnover intention and job performance. The results imply the prioritization of EI development among bank employees. This can be achieved through training and development programs that focus on improving emotional awareness, emotional regulation, empathy, and social skills.