THE FACTORS AFFECTING EMPLOYEE TURNOVER AT STATE COMMERCIAL BANKS IN SRI LANKA WITH SPECIAL REFERENCE TO WESTERN PROVINCE

Employee turnover is a significant challenge for organizations worldwide, and it holds relevance for State Commercial Banks (SCBs) in Sri Lanka’s Western Province. The economic crisis Sri Lanka faced last year exacerbated these issues, leading to decreased profitability across industries, including SCBs, and a surge in training and development costs. This study addresses a gap in the literature by exploring the factors influencing employee turnover within SCBs in this region. The research aims to examine the relationship between brand employment, candidate skills, job fitness, employee recognition, training and development, and compensation, and their impact on turnover rates. A quantitative research design was employed, using surveys distributed to SCB employees to gather data. The analysis, conducted through correlation and regression techniques, highlighted employee recognition, job fitness, and candidate skills as the most critical determinants of turnover, with recognition demonstrating the strongest influence. While the impact of brand employment, training and compensation were less significant. The findings suggest that to mitigate turnover, SCBs should prioritize enhancing employee recognition programs, ensuring better job fit during recruitment, and effectively managing candidate skills. Investments in training and development must be aligned with the organization’s retention strategies. Additionally, SCBs need to project a strong employment brand and offer competitive rewards to attract and retain talent. This study provides practical insights to SCBs for developing more targeted strategies to reduce employee turnover, thereby improving organizational productivity.

Keywords: Employee Turnover, Compensation and Salary, Employment Brand, Candidate Skills, Employee Recognition

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