The Impact of Job Satisfaction on Employee Turnover among Selected Commercial Bank Employees

a case study of Kandy District

Abstract

This study explores the effects of job satisfaction on employee turnover in selected commercial banks in Kandy District, Sri Lanka, where employee turnover exceeds urban banking rates. The study aims to establish factors impacting job satisfaction, their relationship to turnover intention, and strategies banks could implement to increase retention.  Using a qualitative case study design guided by Herzberg's Two-Factor Theory, Hackman and Oldham's Job Characteristics Model, and Mobley's Turnover Model, data was collected through semi-structured interviews with twelve participants across hierarchical levels in three commercial banks. Interviews were thematically analysed following Braun and Clarke's (2006) six-phase process. Results show intrinsic factors (recognition, interesting work, teamwork) enhanced job satisfaction, while extrinsic factors (workload pressure, limited promotion, lack of autonomy, customer stress) increased dissatisfaction and turnover intention. Work-life balance and organizational culture mediated these effects. Career development opportunities proved most impactful for retention. External shocks, particularly COVID-19, exacerbated turnover through workplace instability. The study demonstrates how performance recognition, structured career progression, and supportive culture reduce turnover in regional banks, providing recommendations for human resource managers and policymakers to enhance employee satisfaction and retention in Sri Lanka's banking sector.