Impact of Job Satisfaction on Employee Turnover Intention at Bank Al-Habib

Abstract

This study aims to examine the impact of job satisfaction on employee turnover intention in Bank Al Habib in Pakistan. This research is quantitative in nature and has utilized the double linear regression analysis and the data was collected through self-administrated structured questionnaire. A sample of 375 employees in the Bank Al Habib was selected randomly. The collected data was analyzed through partial least square technique using the Smart PLS software. The findings and results demonstrated that job satisfaction has a significant relationship with turnover intention. Five job-satisfaction dimensions as prescribed by the job descriptive index were employed to measure the job satisfaction variable, which include salary satisfaction, promotion satisfaction, work environment satisfaction, task satisfaction, and supervision satisfaction. The first-dimension salary satisfaction was found to have a significant relationship with turnover intention, which validates that if more salaries are offered to the employees, the job satisfaction level increases and turnover intention decreases. Similarly, the second dimension, promotion satisfaction was to also be found to have a significantly relationship with turnover intention which asserts that higher promotion and career development opportunities reduce the employee turnover intention. Correspondingly, the third variable, work environment satisfaction has a significant relationship with turnover intention which demonstrates that the better co-worker relationships and better physical work environment characteristics reduces employees’ turnover intention. Likewise, the fourth and fifth variables task satisfaction and supervision satisfaction, respectively, also validate a significant relationship with job satisfaction and a significant relationship with turnover intention. The purpose of this study was to provide a valid framework to the managers and decision makers at bank Al-Habib which would help them devise appropriate job motivational strategies to increase job satisfaction, reduce turnover intention and overall promote organizational productivity and efficiency.