Performance, Commitment, and Growth: Understanding Turnover Intentions in Pakistan's Banking Sector Through Job Satisfaction

Abstract

This study aims to examine the associations between performance appraisal, job satisfaction, career development, affective commitment, and turnover intentions among employees in the banking sector. Using a sample size of 400 banking sector employees, the research employs Smart PLS 3.0 for structural equation modeling. The study utilizes a cross-sectional design to analyze the direct and mediated relationships between the mentioned variables. The findings unveil a significant adverse association between affective commitment and turnover intentions, whereas performance appraisal demonstrates an unexpected positive correlation with turnover intentions, contrary to conventional expectations. Career development opportunities also display a positive albeit weaker link with turnover intentions. Job satisfaction emerges as a pivotal mediator, particularly in the relationships involving career development and performance appraisal. The study's focus on the banking sector limits its generalizability to other industries. The use of Smart PLS 3.0 and the cross-sectional nature of the study present methodological limitations. Future research could benefit, from a longitudinal approach, a more diverse sample, and the inclusion of various industries to enhance the applicability of the findings. The study underscores the need for banking sector organizations to reevaluate their performance appraisal systems and career development programs, considering their impact on turnover intentions. Enhancing affective commitment and job satisfaction is crucial for employee retention. This research contributes to the understanding of how performance appraisal, career development, and affective commitment influence turnover intentions in the banking sector, It offers valuable insights for human resource management practices in a rapidly evolving economic landscape.