The Impact of Competitive Pay and Continue Training on Sustain the Employees in Banking Sector of Khairpur Mir’s, Sindh, Pakistan

Abstract

The problem of employee turnover is one of the major and expensive challenges faced by the banking sector in Pakistan and more especially in the areas which are far from the reach of the banking facilities and skilled manpower is also not in abundance. In this study the effect of competitive remuneration and continuous training on retention of employees in banking sector of Khairpur Mir's, Sindh, Pakistan is discussed. The research used a quantitative cross sectional survey design with a sample of 290 employees of different banks in the area. A structured questionnaire with a 15-point Likert scale was used to collect data, and analyzed using SPSS 27 with reliability, correlation and regression analysis. The results indicated high internal consistency reliability (Cronbach's α = .902) and very high positive correlation between all the variables, with competitive pay having the highest correlation with employee retention (r = .974, p < .01) followed by continuous training (r = .924, p < .01). The regression model was very accurate in predicting employee retention (R² = .979). The two predictors were significant positive with competitive pay having a much larger effect than continuous training (competitive pay: β = .684, p < .001; continuous training: β = .339, p < .001). This research is supported by the Social Exchange Theory and Human Capital Theory, and has confirmed both research hypotheses, as well as the notion that both human resource practices are important for employee sustainability, but that competitive compensation is the primary HR practice that influences employee retention in this context. The study has added value to the body of knowledge on employee retention in developing economies from a regional perspective and it offers practical implications for banking institutions in semi-urban and rural environments. Banks are advised to pursue competitive salary measures, training and development that are in line with the context, use holistic human resource management, and carry out periodic employee satisfaction assessments. The study has several limitations, such as a cross-sectional design, self-reported data, potential multicollinearity issues, and limited generalizability to the banking sector of Khairpur Mir's.