THE EFFECT OF ORGANIZATIONAL COMMITMENT ON SKILLED EMPLOYEES’ TURNOVER INTENTION: THE CASE OF UNITED BANK S.CO

Abstract

Organizational commitment is very important for employees of every organization. Thus, objective of this study is to analyze the effect of Organizational Commitment (Affective Commitment, Continuance Commitment, and Normative Commitment) on skilled employees’ turnover Intention in the case of United Bank S.Co. Recently high labour turnover has become a problem for banking industry. Thus, well experienced, qualified professionals leave their position that they held in a bank operation and administration areas by creating undesirable cost and harming productivity as well as creating service gap for the company. United Bank S.Co. is one of the victims of this high skilled labour turnover. In this study, the researcher used both primary and secondary data sources. Primary data were collected through tested questionnaires and interview and secondary data for the study was added by referring relevant reports and documents within the organization. Being a quantitative and qualitative research, the population and sample in this study are current employees of the United Bank S. Co only in grade A branches. The data are collected by survey method using a questionnaire distributed to fourteen Grade “A” Branches of the bank using a purposive sampling method. With 205 respondents from 220, Statistical Package for Social Sciences (SPSS 20 Version) was used for data operation the data were analyzed using multiple linear regression analysis. The overall regression model showed a statistically significant relationship between the three forms of commitment (Affective, Normative and Continuance) and turnover intentions, although normative commitment had the strongest relationship with turnover intentions. The Study results provide additional evidence showing that employees’ affective, continuance, and normative commitment to their organizations relate to their turnover intentions. These results may contribute to positive social change by helping top level managers to better understand the relationship between employees’ organizational affective, continuance and normative commitment with turnover intentions. With this knowledge, leaders may be able to decrease turnover rate and turnover-related costs and Increase Company’s performance