Nowadays financial sector is considered the driving engine of the economy of a nation, where the banking sector plays a significant role in developing the economy of a country (Ogony & Majola, 2018; Akhter et al., 2020). On the other hand, the banking sector is growing gradually in Bangladesh with competition from one bank to another (Jahan et al., 2020). The major challenge for every bank is to stay in the competitive market by providing better services to the customers and these services depend on qualified employees of a bank (Shan et al., 2014). Therefore, qualified employees are a crucial asset of an organization where the employer can easily obtain profit within a specified time by utilizing the effort of the employees. Any organization’s long-term performance, which depends on the retention of qualified people, is largely determined by its core employees. To a great extent, organizational performance, customer satisfaction, effective succession planning, etc., are dependent on the best employees in any organization (Mahmud et al., 2015). On the one hand, inspiring employees to remain in the organization for a long period of time can be considered the retention of an employee, and it is the best process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project (Coetzee & Stoltz, 2015).
In the era of globalization, the retention of qualified employees is very difficult and the management of every organization finds out a way to retain their employees and gain a competitive advantage (Khan et al., 2011; Rahaman et al., 2021a, 2021b, 2021c; Rahaman et al., 2020). Also, employee retention is defined as retaining the employee in an organization by providing attractive facilities. Retention prevents the organization from working or considering long-term planning, thus management must determine the causes. Previous studies found that some factors impact employee retention like job satisfaction, employee motivation, compensation & rewards, and job security (Do & Phan, 2020; Samuel & Chipunza, 2009; Ai et al., 2022). But this study lacks certain crucial elements that help a business retain its competent workers, such as training and development, organizational culture, job satisfaction, and career growth (Chen et al., 2022a; Prajapat, 2022). As a result, the bank management should learn about the aforementioned aspects to lower employee turnover in the company. The main objective of this study is to measure the influencing factors of retention of bank employees.
2. Literature Review
2.1. Employee Training and Development
Employee training means learning new knowledge, skills, and abilities to perform work effectively and efficiently in an organization (Ali & Dahana, 2021). However, training, including on-the-job training, vocational training, and general and specific training vital for the retention and development of employees (Magaisa & Musundire, 2022). On the other hand, training and development are considered the significant factor in employee retention which increases the skills of employees (Nishanthi & Kailasapathy, 2018). From the past study, it can be said that organizations often arrange employee training programs to determine the knowledge gap and enhance the skills of the employees (Chen et al., 2022a; Chen et al., 2022b). However, training and development are the major sources of creating skillful employees in an organization, and it has a positive and significant effect on employee retention (Rahaman et al., 2021a). Another study also recommends that training gives specialized techniques and skills to the employee and also helps to rectify deficiencies in employee performance, while development provides the skills and abilities to the employee who will need the organization in the future (Chee et al., 2022; Rahaman et al., 2021b). In the above-mentioned literature, the hypothesized can be developed as:
H1: Employee training and development has a positive and significant impact on employee retention.
2.2. Organizational Culture
Culture is defined as the important indicator of employee retention, which supports to make collaboration among employees in a working environment. Culture assists in changing the feelings, thinking, and attitudes of employees in the workplace (Chen et al., 2022c). On the other hand, organizational culture consists of a company’s beliefs, values, and attitudes and how these influence the behavior of its employees in that organization (Asheq & Hossain, 2019). From the previous studies, it can be assumed that organizational culture encourages employees to work enthusiastically and assist in staying in the organization (Rahaman et al., 2020). Besides, organizational culture has a positive and significant effect on employee retention, which helps to develop ethics, attitudes, behavior, entertainment activities, and so on (Yuan et al., 2021). Henceforth, there is a need for a link between individual and organizational culture to grow employee retention (Aliff, 2017). On top of it, organizational culture is a key factor in revealing employee engagement and loyalty (Singh, 2019). From the above literature, it can be developed the following hypothesis:
H2: Organizational culture has a positive and significant impact on employee retention.
2.3. Job Satisfaction
Job satisfaction is regarded as the mental and physical satisfaction in a job that encourages employees to perform willingly. On the other hand, job satisfaction can be defined as the mental satisfaction of employees in their job regarding facilities. From previous studies improving and maintaining employee satisfaction is crucial for achieving the goals of the organization (Nazia & Begum, 2013). Besides, employee satisfaction drives employee retention in the service profit chain (Rombaut & Guerry, 2020). Lack of job satisfaction contributes to poor retention (Mehta et al., 2014). Henceforth, the employee becomes dissatisfied when the output attained from the organization is less than expected (Khan & Aleem, 2014; Rahaman & Uddin, 2022). Therefore, individual sense of attainment, personal satisfaction, and realizing long-term personal goals are the factors of satisfaction that improve employee retention. On top of them, past studies explained that job satisfaction has a positive and significant impact on employee retention (Ali et al., 2022a, 2022b). From the literature review, the hypothesis can be developed in the following way:
H3: Job Satisfaction has a positive relationship with employee retention.
2.4. Career Development
Career development is a crucial factor in employee retention, which creates attention to the job in the organization. On the one hand, training and career opportunities have a direct effect on employee retention (Yuan et al., 2022). Besides, employee engagement and loyalty basically depend on career development that supports retaining qualified employees in the organization (Clarke, 2015). A past study also recommends that career development opportunities directly affect employee retention, which showed a strong positive association between them (Sinha & Sinha, 2012). Employees greatly value long-term career development (Hemalatha & Savarimuthu, 2013; Rahaman et al., 2022), and career opportunities strongly affect employee loyalty and retention in the organization (Mohlala et al., 2012; Ali et al., 2022a). From the above-mentioned literature, the hypothesis can be developed that:
H4: Career development has a positive and significant impact on employee retention.
2.5. Conceptual Model
The study proposes the following Figure 1 as the conceptual model of this research:
Figure 1: Conceptual Model
The non-probability convenience sampling method has been used in this research due to the number of employees of commercial banks. This study was quantitative and exploratory, and the targeted population was the employees of commercial banks in Bangladesh. The primary data was used in this study and the online survey questionnaire was developed based on past studies for data collection purposes. The e-mail ids of bank employees were collected by supporting the branch manager, and questionnaires were sent to 230 commercial bank employees through their collected e-mail ids. Among them, 200 responses were received, whereas 20 responses were removed due to incompleteness. So, the final sample size in this study was n = 180, and the response rate was 86% from the respondents. In this study, the survey questionnaire has two parts where part one indicates demographic information and part two mentions survey questionnaires on study variables, On the other hand, the survey questionnaire was given clarification for easy understanding of the respondents based on the study constructs such as training and development (TD), organizational culture (OC), job satisfaction (JS), and career development (CD). For data collection, the item-wise questionnaire was measured on a 5-point Likert scale, where ‘1’ stands for ‘Strongly Disagree’ and ‘5’ stands for ‘Strongly Agree’. The SPSS 26.0 version has been used to test the study model and the proposed hypotheses where the 5% significance level is considered to accept inferences.
Table 1 represents the reliability of the study variables found acceptable. In this study, to measure the reliability of the constructs, a Cronbach Alpha (α) value of 0.70 or more than 0.70 was considered an acceptable value where the constructs of TD, OC, JS, and CD were found reliable as TD (α = 0.751); OC (α = 0.787); JS (α = 0.798 and CD (α = 0.783).
Table 1: Cronbach Alpha (α) Value of the Variables
4. Results and Discussion
The total number of respondents in this study was 180, where males were 67% (n = 120), and females were 33% (n = 60). In terms of respondents’ age, there were 28% between 25–30 years, while 39% were between 31–35 years. On the other hand, 25% of respondents age were between 36–40 years (n = 45), and 8% of respondents age were above 40 years (n = 15). According to marital status, 69% of respondents were single, where the number was 125, and the total number of married respondents was 31% (n = 55). In terms of job experience, there were 42% of respondents between 0–5, and 44% of respondents’ job experience was between 6–10 years. On the other hand, the number of respondents who had job experience of more than 10 years their number was 14% (n = 25) (Table 2).
Table 2: Descriptive Statistics
From Table 3, it can be explained that in this study, the value of R2 = 0.853 or 85.30% means the variance which indicates four independent variables, namely training and development (TD), organizational culture (OC), job satisfaction (JS), and career development (CD). In this research, the above-mentioned variables are accepted at a 5% significance level which determines that training and development, organizational culture, job satisfaction, and career development have a positive and significant impact on bank employee retention in Bangladesh (Figure 2).
From the result of the regression analysis (Table 3 and Figure 2), it can be said that hypothesis one is training and development, which has positive and significant effects on employee retention, and it is accepted at the 5% significance level (β = 0.693, p < 0.05). Also, the previous literature supports that training and development have significant effects on employee retention (Chee et al., 2022; Rahaman et al., 2021b). Hypothesis two indicates that organizational culture has a positive effect on employee retention, which is accepted at the 5% significance level (β = 0.774; p < 0.05). This finding is also constant with past studies, as organizational culture has a relationship with employee retention (Singh, 2019). From table four, in terms of job satisfaction, there is a positive and significant effect on employee retention, which is accepted at the 5% significance level (β = 0.768, p < 0.05) where this result is related to the past studies. Previous studies also explained that job satisfaction is the key indicator of retaining qualified employees in an organization (Rahaman & Uddin, 2022). Furthermore, H4 mentions the career development that is accepted at the 5% significance level (β = 0.749, p < 0.05). From this regression analysis, it can be assumed that career development has a positive and significant impact on employee retention. A past study also recommended that career development is a crucial factor in employee retention which has a positive impact on employee retention (Jung & Yoon, 2013; Hemalatha & Savarimuthu, 2013; Rahaman et al., 2022).
Table 3: Regression Analysis
R2 = 0.853 or 85.30%. Durbin Watson value = 1.768. Dependent variable: Employee Retention. **Significant at 5% [n = 180].
Figure 2: Results of Regression Analysis
Employees are the key assets of any organization, and they play a significant role in staying in the competitive market in this globalization era (Lee & Way, 2010; Álvarez-García et al., 2016). Bangladesh’s banking sector is expanding quickly, driving up competition and expanding this market segment today. (Balser & Harris, 2008). The main objective of the bank is to provide attractive services to customers who depend on qualified employees of the banks. Therefore, the management of a bank should determine the factors for retaining qualified employees in the organization, which will assist in staying in the fierce market (Tso et al., 2015; Gu & Itoh, 2020). In this study. It can be assumed that training and development, organizational culture, job satisfaction, and career development are considered the key indicators of employee retention, which have a positive and significant impact on retaining qualified employees in the bank (Dixon & Warner, 2010). The main goal of this study was to determine the influencing factors of bank employee retention. This study also found that 85.30% of variance denotes four independent variables, such as training and development, organizational culture, job satisfaction, and career development have a positive and significant impact on employees of commercial banks in Bangladesh. This study also suggested that bank management should determine the factors for retaining qualified employees based on new strategies, such as improvement in the employee retention program in commercial banks in Bangladesh.
- Ai, Y., Rahman, M. K., Newaz, M. S., Gazi, M. A. I., Rahaman, M. A., Al Mamun, A. A., & Chen, X. (2022). Determinants of patients' satisfaction and trust toward healthcare service environment in general practice clinics. Frontiers in Psychology, 13, 850. https://doi.org/10.3389/fpsyg.2022.856750
- Alvarez-Garcia, J., Del Rio-Rama, MdlC., Saraiva, M., & Ramos-Pires, A. (2016). Dependency relationships between critical factors of quality and employee satisfaction. Total Quality Management and Business Excellence, 27(5-6), 595-612. https://doi.org/10.1080/14783363.2015.1021243
- Ali, A. R. S. I., & Dahana, W. D. (2021). What inhibits consumers in emerging countries from engaging in status consumption? A latent class conjoint analysis approach. International Journal of Emerging Markets, 64, 1121-1129. https://doi.org/10.1108/IJOEM-02-2021-0223
- Ali, A. R. S. I., Haque, A. A., & Nahar, S. (2022a). Influencing factors of bank employees' "motivation and its impact on employees" performance. American International Journal of Multidisciplinary Scientific Research, 13(1), 21-27.
- Ali, A. R. S. I., Rana, M. J., Nahar, S., Tesha, N. H. A., & Jabir, I. M. S. (2022b). CSR and organizational performance: A theoretical model. American International Journal of Multidisciplinary Scientific Research, 13(1), 14-20.
- Aliff, M. (2017). Career development, job security, and employee loyalty at a luxury resort in Terengganu, Malaysia. International Journal of Academic Research in Business and Social Sciences, 7(10), 667-674.
- Akhter, A., Al Asheq, A., Uzzal Hossain, M., & Mobarak Karim, M. (2020). Exploring customer intentions to adopt mobile banking services: Evidence from a developing country. Banks and Bank Systems, 15(2), 105-116. https://doi.org/10.21511/bbs.15(2).2020.10
- Asheq, A. A., & Hossain, M. U. (2019). SME performance: Impact of market, customer and brand orientation. Academy of Marketing Studies Journal, 23(1), 1-9.
- Balser, D. B., & Harris, M. M. (2008). Factors affecting employee satisfaction with disability accommodation: A field study. Employee Responsibilities and Rights Journal, 20(1), 13-28. https://doi.org/10.1007/s10672-007-9062-y
- Chee Hong, E. N., Hao, L. Z., Kumar, R., Ramendran, C., & Kadiresan, V. (2012). An effectiveness of human resource management practices on employee retention in the institute of higher learning: A regression analysis. International Journal of Business Research and Management (IJBRM), 3(2), 60-79.
- Chen, X., Miraz, M. H., Gazi, M. A. I., Rahaman, M. A., Habib, M. M., & Hossain, A. I. (2022a). Factors affecting cryptocurrency adoption in digital business transactions: The mediating role of customer satisfaction. Technology in Society, 70, 102059. https://doi.org/10.1016/j.techsoc.2022.102059
- Chen, X., Rahaman, M. A., Hossain, M., & Chen, S. (2022b). Is the growth of the financial sector relevant for mitigating CO2 emissions in Bangladesh? The moderation role of the financial sector within the EKC model. Environment, Development, and Sustainability, 2, 1-16.
- Chen, X., Rahaman, M. A., Hossain, M. A., & Chen, S. (2022c). Is there a relationship between natural gas consumption and the environmental Kuznets curve? Empirical evidence from Bangladesh. Environmental Science and Pollution Research, 29(34), 51778-51792. https://doi.org/10.1007/s11356-022-19207-w
- Coetzee, M., & Stoltz, E. (2015). Employees' satisfaction with retention factors: Exploring the role of career adaptability. Journal of Vocational Behavior, 89, 83-91. https://doi.org/10.1016/j.jvb.2015.04.012
- Clarke, M. (2015). To what extent is it a "bad" job? Employee perceptions of job quality in community aged care. Employee Relations, 37(2), 192-208. https://doi.org/10.1108/ER-11-2013-0169
- Dixon, M. A., & Warner, S. (2010). Employee satisfaction in sport: Development of a multi-dimensional model in coaching. Journal of Sport Management, 24(2), 139-168. https://doi.org/10.1123/jsm.24.2.139
- Do, T. D., Le, L. C., & Phan, T. T. (2020). Factors affecting talent retention: A case study of universities in ho chi MINH city. International Journal of Entrepreneurship, 24(1), 1-10.
- Gu, X., & Itoh, K. (2020). A comparative study on healthcare employee satisfaction between Japan and China. International Journal of Health Planning and Management, 35(1), 171-184. https://doi.org/10.1002/hpm.2859
- Hemalatha, N., & Savarimuthu, A. (2013). A study on employee retention techniques. Journal of Business Management & Social Sciences Research (JBM&SSR), 2(8), 45-49.
- Jahan, N., Ali, M. J., & Asheq, A. (2020). Examining the key determinants of customer satisfaction of Internet banking services in Bangladesh. Academy of Strategic Management Journal, 19(1), 1-6.
- Jung, H. S., & Yoon, H. H. (2013). Do employees' satisfied customers respond with a satisfactory relationship? The effects of employees' satisfaction on customers' satisfaction and loyalty in a family restaurant. International Journal of Hospitality Management, 34, 1-8. https://doi.org/10.1016/j.ijhm.2013.02.003
- Khan, A. A., Mahmood, B., Ayoub, M., & Hussain, S. (2011). An empirical study of retention issues in the hotel industry: A case study of Serena Hotel, Faisalabad, Pakistan. European Journal of Economics, Finance and Administrative Sciences, 1(29), 7-18.
- Khan, A. H., & Aleem, M. (2014). Impact of job satisfaction on employee turnover: An empirical study of autonomous medical institutions of Pakistan. Journal of International Studies, 7(1), 122-132. https://doi.org/10.14254/2071-8330.2014/7-1/11
- Lee, C., & Way, K. (2010). Individual employment characteristics of hotel employees play a role in employee satisfaction and work retention. International Journal of Hospitality Management, 29(3), 344-353. https://doi.org/10.1016/j.ijhm.2009.08.008
- Magaisa, G. M., & Musundire, A. (2022). Factors affecting employee retention in Zimbabwean companies. International Journal of Applied Management Theory and Research, 4(1), 1-20. https://doi.org/10.4018/IJAMTR.288507
- Mahmud, M. A. L., Azim, M., Ahmed, H., & Karim, M. M. (2015). Dynamics of remittance in Bangladesh: A case study on United Commercial Bank (UCB). Global Journal of Management and Business Research, 15(1), 9-15.
- Mehta, M., Kurbetti, A., & Dhankar, R. (2014). Study on employee retention and attrition. International Journal of Advance Research in Computer Science and Management Studies, 4(5), 54-63.
- Mohlala, J., Goldman, G. A., & Goosen, X. (2012). Employee retention within the information technology division of a South African bank. SA Journal of Human Resource Management, 13(1), 1-11. https://doi.org/10.4102/sajhrm.v10i2.438
- Nazia, S., & Begum, B. (2013). Employee retention practices in Indian corporate-a study of select MNCs. International Journal of Engineering and Management Sciences, 4(3), 361-368.
- Nishanthi, H. M., & Kailasapathy, P. (2018). Employee commitment: The role of organizational socialization and protean career orientation. South Asian Journal of Human Resources Management, 5(1), 1-27. https://doi.org/10.1177/2322093717739729
- Ogony, S. M., & Majola, B. K. (2018). Factors causing employee turnover in the public service, South Africa. Journal of Management and Administration, 20(1), 77-100.
- Prajapat, V., Taru, R. D., & Atikur, M. A. (2022). Comparative study about the expansion of digital libraries in the current era and the existence of traditional libraries. International Journal of Advances in Engineering and Management (IJAEM), 4(6), 1526-1533.
- Rahaman, M. A., & Uddin, M. S. (2022). The effect of promotion and job training on job satisfaction of employees: An empirical study of the SME sector in Bangladesh. Journal of Asian Finance, Economics, and Business, 9(2), 255-260. https://doi.org/10.13106/jafeb.2022.vol9.no2.0255
- Rahaman, M. A., Ahmed, T., Gupta, A., Taru, R. D., A. R. S. I., & Ali, J. (2022). What factors satisfy employees of the SME business sector? A study on a developing economy. Academy of Entrepreneurship Journal, 28, 1-5.
- Rahaman, M. A., Ali, M. J., Wafik, H. M. A., Mamoon, Z. R., & Islam, M. M. (2020). What factors motivate employees at the workplace? Evidence from service organizations. Journal of Asian Finance, Economics, and Business, 7(12), 515-521. https://doi.org/10.13106/jafeb.2020.vol7.no12.515
- Rahaman, M. A., Gupta, A., Ali, A. R. S. I., Ali, M. J., & Taru, R. D. (2021a). Identification of determining factors of employee performance of SME business. Academy of Entrepreneurship Journal, 27(6), 1-5.
- Rahaman, M. A., Luna, K. F., Mite, S., Islam, M., & Wafik, H. (2021b). The effect of entrepreneurial orientation, market orientation and gender on business performance: An empirical study of SMEs in Bangladesh. Journal of Asian Finance, Economics, and Business, 8(6), 741-746. https://doi.org/10.13106/jafeb.2021.vol8.no6.0741
- Rahaman, M. A., Luna, K. F., Ping, Z. L., Islam, M. S., & Karim, M. M. (2021c). Do Risk-Taking, innovativeness, and proactivity affect the business performance of SMEs? A case study in Bangladesh. Journal of Asian Finance, Economics, and Business, 8(5), 689-695. https://doi.org/10.13106/jafeb.2021.vol8.no5.0689
- Rombaut, E., & Guerry, M. A. (2020). The effectiveness of employee retention through an uplift modeling approach. International Journal of Manpower, 41(8), 1199-1220. https://doi.org/10.1108/IJM-04-2019-0184
- Samuel, M. O., & Chipunza, C. (2009). Employee retention and turnover using motivational variables as a Panacea. African Journal of Business Management, 3(8), 410-415.
- Shan, S., Li, C., Yao, W., Shi, J., & Ren, J. (2014). An empirical study on critical factors affecting employee satisfaction. Systems Research and Behavioral Science, 31(3), 447-460. https://doi.org/10.1002/sres.2284
- Singh, D. (2019). A literature review on employee retention with a focus on recent trends. International Journal of Scientific Research in Science, Engineering and Technology, 6(1), 425-431. https://doi.org/10.32628/IJSRST195463
- Sinha, C., & Sinha, R. (2012). Factors affecting employee retention: A comparative analysis of two organizations from the heavy engineering industry. European Journal of Business and Management, 4(3), 145-162.
- Tso, G. K. F., Liu, F., & Li, J. (2015). Identifying factors of employee satisfaction: A case study of Chinese resource-based state-owned enterprises. Social Indicators Research, 123(2), 567-583. https://doi.org/10.1007/s11205-014-0750-3
- Yuan, D., Gazi, M. A. I., Rahman, M. A., Dhar, B. K., & Rahaman, M. A. (2022). Occupational stress and health risk of employees working in the garments sector of Bangladesh: An empirical study. Frontiers in Public Health, 10, 938248. https://doi.org/10.3389/fpubh.2022.938248
- Yuan, D., Rahman, M. K., Issa Gazi, M. A., Rahaman, M. A., Hossain, M. M., & Akter, S. (2021). Analyzing user attitudes toward intention to use social media for learning. SAGE Open, 11(4). https://doi.org/10.1177/21582440211060784