Abstract:
Organizational investment in Human Resources is critical in the achievement of organizational gxals. Organizations therefore must utilize a considerable amount of finances, materials and time in employee acquisition, maintenance and development. Despite the banking industries investing heavily in the acquisition and maintenance of its human resources, employees still quit their jobs in search of other alternatives. The main objective of this study was to establish the effect of selected factors (job characteristics and HRM practices) on employees’ intention to tumover in the Banking industry. The study population consisted of Managerial, Clerical and Direct Sales Staff fi'om twenty five (25) commercial banks in Eldoret town, Kenya, Descriptive survey was the research design used The study used purposive sampling to identify ten (10) commercial bark to tnrticipate in the study. In addition the study used census for the management category but random sampling design for the clerical and direct sales employees. This method gave a sample population of two hundred and ten (210) employees from the clerical staffl one hundred and nineteen (119) from the direct sales categories and fifiy eight (58) for the managerial employees forming a total sample of three hundred and eighty seven (387) employees. Qtnstionnaire method was used to collect data. The data obtained was processed using the Statistical Package for Social Sciences (SPSS). Both descriptive and inferential statistics were used in data analysis; that is, Frequencies, means, standard deviation and Percentages which were presented in tables and charts. Pearson’s Correlation analysis and Regression analysis were used to test the study hypotheses. The results of the multiple regression analysis showed that pay and benefits, participation in decision making and procedural justice were critical factors in determining employee tumover intentions. This showed that turnover intentions was high among employee who perceived that procedures used by the banks were unfair, who were not involved in decision making process and who received inadequate pay .The study recommends that in order to employees intention to turnover, the management needs to involve employees more especially in those decisions that directly affect them. Further studies should be carried out to investigate other aspects that may influence employee turnover intentions, the effect of HRM practices and job characteristics on other aspects of employee turnover intentions or actual employee turnover. A similar study should also be carried out in a different industry or location.
