IMPACT OF INFLATION ON EMPLOYEE RETENTION IN BANKING SECTOR

Abstract

The objective of this study is to identify the different factors impacting the turnover intentions of employees working in banking sector of KPK, Pakistan after Covid -19 Pandemic with Inflation being focus variable. Inflation increased turnover ratio and it becomes difficult for the banking sector to retain the employees on same package as were before pandemic. In this study banks in district Peshawar of Khyber Pakhtunkhwa and its employees were considered as population of the study. According to business reports Pakistan there are 25 private banks in District Peshawar. For research purpose 7 banks were included with an average of 20 staff members. Among already tested variables of job satisfaction, an economic factor of inflation was included as independent variable However, research was conducted on 100 respondents through adapted questionnaires. This research uses a quantitative methodology and sought to examine and identify the different factors impacting the turnover intentions of employees working in banking sector of Khyber Pakhtunkhwa.  Reliable performance indicators such as conducting correlation and regression analyses to assess the impact of inflation on employee retention in banking sector, KPK, Pakistan. The analysis table presents a comparison between the real and expected service quality as reported by employees of private banks.  The mean ratings of consumers in the groups did not show any notable variations in terms of real Inflation Rate, dependability, Organizational Commitment, Work-Life Balance, and Employee happiness. There was a significant disparity in the average scores of genuine Job Satisfaction seen across the groups, suggesting that only the significance of actual Job Satisfaction towards participants was established.

Key words: Inflation, retention, turnover, banking sector