The Impact of Perceived High Performance HR Practices on Employee Intention to Quit: A Study with Special Reference to One of the Leading Private Sector Banks in Sri Lanka

Abstract

Investigating the impact of Perceived High Performance HR practices (HPHRPs) on employee intention to quit (ITQ) with special reference to one of a leading private sector bank in Colombo district, Sri Lanka was the main purpose of this study. There were very few research studies conducted to investigate the relationship between these two variables and none of the studies has been examined this relationship in the banking sector, Sri Lanka yet. Drawing on social exchange theory developed by Balu (1964), the current research examined the impact of perceived HPHRPs and the dimensions of perceived HPHRPs (Staffing, Training, Employee Involvement, Performance Appraisal, Compensation and Caring activities) on employee’s ITQ. The current study was conducted as a cross-sectional field study among the sample of randomly selected 160 employees including Bank Trainees and Junior Executive Assistants. Primary data was collected through a standardized pre-tested questionnaire. Collected data were analyzed with the support of SPSS applying correlation, regression and descriptive statistics. Findings revealed that there is a significant negative impact of Perceived HPHRPs on employee’s intention to quit. Thus, this study is suggested to improve HPHRPs in banks to reduce employee quit intentions by introducing well recognized best HR practices to retain highly talented employees for the betterment of the organization.