3. Major Causes of Turnover

 



  • Economic Factors:

Inflation and currency depreciation have reduced real income, making overseas jobs more attractive.

Banking sector restructuring, including branch closures and downsizing, has caused job insecurity.

  • Job Dissatisfaction:

A study found that over 60% of employees in the finance sector report dissatisfaction with salary and benefits.

Heavy workloads, high stress, and limited career advancement contribute to frustration among employees.

  • Better Opportunities Elsewhere:

Many professionals move to fintech and digital banking roles, which offer higher salaries and flexible work environments.

  • Generational Expectations:

Generation Z employees have distinct expectations regarding their careers and employers. Misalignments between their expectations and organizational offerings can lead to higher turnover rates among this demographic. ​

Addressing these factors through clear career progression paths, competitive salaries, enhancing job satisfaction, clarifying roles, and aligning organizational offerings with generational expectations can help reduce employee turnover in Sri Lanka's banking and finance sector.

 




References

https://dr.lib.sjp.ac.lk/handle/123456789/13017

https://fmsh.kdu.ac.lk/jmsh/assets/pdf/V3/JMSHV3_MS03.pdf


Comments

  1. Hiranthi Kalansooriya10 April 2025 at 23:59

    Hi Ranjith, Great article. You have covered some of the key reasons behind employee turnover in Sri Lankan banks, such as economic factors, job dissatisfaction, better job opportunities, and generational expectations. I'd also add that factors like unclear job roles, limited career growth, and work-life imbalance play a significant role. Overall, a mix of these factors creates a challenge in employee retention. Thank you for bringing attention to this important issue.

    ReplyDelete
    Replies
    1. Ranjith Munasinghe14 April 2025 at 23:11

      Dear hiranthi,
      Thank you for your valuable insights! You’ve highlighted some crucial additional factors that definitely contribute to the challenge. I appreciate your thoughtful input and support in shedding light on this important issue.

      Delete
  2. Thiranji Samarakkody13 April 2025 at 09:21

    The article highlights key factors driving high turnover in Sri Lanka's banking and finance sector, including economic challenges, job dissatisfaction, and shifts towards fintech. It suggests improving retention through competitive salaries, career progression, and better alignment with employee expectations.

    ReplyDelete
    Replies
    1. Ranjith Munasinghe14 April 2025 at 23:12

      Dear thiranji,
      Thank you for your feedback! I’m glad the key points stood out to you. Addressing these challenges is vital, and I appreciate your support in highlighting their importance.








      Delete
  3. HARSHANI NARATHOTA15 April 2025 at 04:17

    Dear Ranjith, your article is explain for major Causes of employee turnover .Employee turnover refers to how many employees leave an organization within a timeframe. Some key factors influencing employees to quit their jobs are job satisfaction, communication, colleague relation, organizational commitment, justice, politics, reputation. good job!

    ReplyDelete
    Replies
    1. Ranjith Munasinghe16 April 2025 at 07:18

      Thank you! I'm glad you found the article helpful. Understanding these factors is crucial for building a positive and stable work environment.

      Delete
  4. Thamashi Amashakya D.16 April 2025 at 00:30

    Here its clearly outlines the major causes of employee turnover in Sri Lanka's banking and finance sector. It effectively highlights economic pressures, job dissatisfaction, better external opportunities, and generational shifts. Addressing these issues with strategic HR practices is essential for improving retention and long-term organizational stability.

    ReplyDelete
    Replies
    1. Ranjith Munasinghe16 April 2025 at 07:19

      Thank you for the thoughtful feedback! You're absolutely right—tackling these challenges with proactive HR strategies is key to boosting retention and ensuring sustainable growth in the sector.

      Delete

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