Mediation Effects of Organizational Citizenship Behavior on Expert Employee Retention and Organizational Performance in the Banking Industry

Abstract

Purpose: Employee retention (ER) has become a significant component in affecting the organization’s competitive performance through Organization Citizenship Behavior (OCB). The primary purpose of the present study is to determine the effects of OCB on expert staff retention and organizational performance (OP) in the banking industry. Methodology: This study was primarily conducted using a survey research method. A total of 390 bankers were conveniently selected from various branches of the top 15 DSE-listed banks according to their EPS in 2020. The survey was completed with a structured questionnaire using Google Forms (73.08%), with some face-to-face personal interviews (26.92%) conducted by the researchers. The data was analyzed using SPSS and Smart-PLS. Findings: According to the SEM analysis, the study found that employee retention directly impacts OCB and OP, while OCB has a mediated effect on ER and OP. Limitations: This study was conducted based ona survey method that showed the actual opinion of the employees of the organization, but it would be more generalized if it were based on data and methodological triangulation (data from different sources with multiple methods), which has not possible because of researcher personal limitations (e.g., time and data access). Hence, this study highlights the need for more research in this area. Practical Implications: The present study can suggest the appropriate strategies to improve OCB for retaining expert employees within their respective organizations and provides structured HR policy on evidence of organizational success. It is hoped that this research will raise managers' understanding of the retention process. Originality: Paper bridges the disciplines of strategic human resource management and organizational behavior and brings in OCB as an additional mediator in organizational performance. Through OCB, the researcher shows the direct and indirect relationship between employee retention and organizational performance.