CONSTITUENTS THAT EXERT INFLUENCE ON STAFF RETENTIVENESS AND ORGANIZATIONAL EFFECTIVENESS IN THE BANKING SECTOR OF PAKISTAN

Abstract

Employee retention is one of the key elements for realizing organizational effectiveness, especially in the competitive field of banking. The study will look into the effect of employee engagement dimensions such as vigor, dedication and absorption on the employee retention and organizational effectiveness in the banking sector in Pakistan. Mediating effect of employee retention between the relationship of employee engagement and organizational effectiveness will also be analyzed. A quantitative research design was used, and data was collected via a structured questionnaire based on a Likert scale among 100 employees in the banking sector. Data collection was done using purposive and non-probability sampling techniques, and the relationships among the variables of the study were measured using structural equation modeling in AMOS. The results show that vigor, dedication and absorption positively and significantly affect employee retention. Employee retention also has a positive relationship with organizational effectiveness. Out of the engagement dimensions, vigor shows the greatest standardized influence on retention, followed by absorption and dedication. Furthermore, there are positive indirect influences of the engagement dimensions on organizational effectiveness through the retention of employees. The study reveals the significance of having an engaged and stable workforce to increase the effectiveness of the organization. Banking organizations need to concentrate on improving employees' energy, dedication, and involvement in their jobs along with the use of good retention strategies.