Proposition and Validation of Retention Model for Managers in Select Indian Private Sector Banks

Abstract

Purpose- Focusing on private banking industry in Delhi (India), the study intent to identify the direct and indirect influence of select individual, internal (organizational) and external (environment) variables on retention of bank managers. Three retention models for banking industry with the said variables had been hypothesized and tested to find that most appropriate model. Design/Methodology/Approach - The required data of 301 lower and middle level managers was finalized using stratified random sampling. The managers examined for the study were with minimum two years of experience in the same bank. The study was conducted in two phases- (i) Significant determinants of retention were identified using multiple and hierarchical regression analysis, (ii) Involving only significant determinants three retention models were created and tested using Structural equation modelling (SEM). Findings- SEM result of best fit model suggests that perceived alternative employment opportunities, perceived organizations prestige, perceived competitiveness of pay, pay and benefits satisfaction, career advancement opportunities, work-life balance, and job satisfaction have significant effect on retention of managers and the result is consistent with regression analysis of the work. Moreover, final model showed retention acting as mediator between other variables and retention, though the indirect effect was found to be very weak. Practical Implications- The findings of the study will be serviceable for the banks want to keep those managers who had already spend a good amount of time in the bank. Originality/Value- Rather than including two or three predictors, the current work has considered determinants of retention from various dimensions. The study extended its area by making an effort to involve only those who retained in the organization for two years and can actually have an opinion on the matter or factors affecting their stay.