MEDIATING ROLE OF JOB SATISFACTION IN THE RELATIONSHIP BETWEEN HR PRACTICES AND TURNOVER INTENTION IN KPK

Abstract

Background: Employee turnover intention remains a pressing challenge for organizations, particularly in the banking sector where human capital is a critical resource. HR practices such as recruitment and selection, training and development, and compensation and rewards are known to influence employee attitudes and behaviors. Job satisfaction has been identified as a potential mediating factor, yet limited evidence exists from the Pakistani banking context. Addressing this gap is vital to ensure employee retention, operational stability, and sustainable growth.

Objective: The study aimed to investigate the relationship between HR practices and turnover intention, and to determine the mediating role of job satisfaction among employees of commercial banks in Charsadda, Pakistan.

Methods: A quantitative, descriptive cross-sectional design was employed. Data were collected using a structured, self-administered questionnaire distributed among employees of 10 commercial banks in Charsadda. A total of 92 responses were analyzed, derived through simple random sampling. HR practices were measured across three dimensions: recruitment and selection, training and development, and compensation and rewards. Job satisfaction and turnover intention were measured using established scales. Reliability was confirmed with Cronbach’s alpha (overall α = 0.818). Statistical analyses included correlation, regression, and mediation tests using SPSS.

Results: Findings indicated significant negative relationships between HR practices and turnover intention, with recruitment and selection (β = −0.498, p < 0.001), training and development (β = −0.407, p < 0.001), and compensation and rewards (β = −0.582, p < 0.001). Job satisfaction demonstrated a negative association with turnover intention (β = −0.044). Mediation analyses revealed that job satisfaction partially mediated the relationship between HR practices and turnover intention, although the effect size was modest.

Conclusion: The study confirmed that effective HR practices reduce turnover intention and that job satisfaction plays a mediating role in this relationship. Enhancing recruitment transparency, providing growth-oriented training, and ensuring equitable compensation are essential strategies to improve satisfaction and retention in the banking sector.