Abstract:
Employee turnover is one of the major problem for the success of the financial
organization and it obstacle the growth and achievement of goals. This research assessed the
factors influence on employee turnover in private sector banks in Chilaw Division. The main
objective of this research was to identify the influencing factors on employee turnover in private
banks in Chilaw Division. The specific objectives of this research were to investigate the impact
of employee turnover, examine the relationship between factors and explore the strategies to
retain the employees in the banks. The target population of this research was all employees
in the private sector banks in Chilaw, there are 11 banks with 143 employees. Entire population
was used for the research. Both primary and secondary data were used for gathering related
information. Primary data was collected through interview and questionnaire which designed
with Likert scale questions and secondary data was collected from reports of Divisional
Secretariat and banks. Collected data analyzed by using MS Excel and Statistical Package for
Social Sciences (SPSS), using reliability test, principal component analysis, t-test
(independent sample test and ANOVA) and descriptive method. The finding of this research
revealed that, salary and benefits, working environment, job satisfaction, distance to work and
turnover intention were major factors for intention to leave the bank. As well as, employee
turnover creates some negative impacts in the banks. Further, there did not any employees of
the banks face frictional unemployment during their working period of life. According to the
findings of the research there were some recommendations provided to retain the employees
such as, provide reasonable salary, create friendly environment, identify the causes for leaving
the banks and provide proper solution, proper training and guidance.
