Noman Ahmed
Noman Ahmed
Noman Ahmed
Abstract
This research examines the impact of work place flexibility, organizational culture and employee
engagement on employee retention in the banking sector. The study used a quantitative research
approach and a convenient sampling design, and collected data from employees of the banking
industry through structured questionnaires. Reliability and regression analysis were conducted to
analyze the data. The results of the study revealed that workplace flexibility, organizational
culture and employee engagement have a positive impact on employee retention. Employee
organizational culture and workplace flexibility. These findings suggest that HR practices play
an important role in employee retention. In order to improve employee retention in the banking
sector, employers should implement policies that focus on improving employee engagement,
organizational culture, and workplace flexibility. Employers should develop flexible working
arrangements that allow employees to work remotely, on flexible schedules, or even on a part-
time basis. Additionally, employers should strive to create a positive and supportive
organizational culture by providing employees with the resources they need to succeed,
should ensure that employees are aware of their rights and are provided with the necessary tools
and resources to exercise those rights. This will help to create a sense of security and trust in the
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Impact of Workplace Flexibility, Organizational Culture and Employee
Engagement on Employee Retention 1
Chapter 1: Introduction
Workplace flexibility is a widely discussed topic in the modern workplace and is seen as
essential in many settings (Halpern, 2004). Researchers from various fields study workplace
flexibility and use it as a variable in their models and analyses. These studies look at the impact
of flexibility on various outcomes, including those related to individuals, families, work, and
communities (Jacob, Bond, Galinsky, & Hill, 2008). Role of flexibility in these studies can vary,
mediates the relationship between other variables, a variable that moderates the relationship
We all know about organizational culture, we have a great desire to "manage" their barbaric
culture, create "excellent" cultures and "change" those that interfere with our strategic
preservation. There is no doubt that many trainers and consultants offer cultural "audits". The
real marketplace for lectures and experiences that definitively demonstrate that leadership can
create organizational culture. Our management seems to be saying, "Oh, this culture can be a
new management tool to help us improve productivity, improve our work lives, and regain our
The Desired state of organizational purpose is to become attitudinal and behavioral components
in relation to engage, commit, passion, enthusiasm, focus, and have a better energy to perform.
These positive attitudes and behaviors determine how people behave and the results are
according to sales growth, customer satisfaction, effective reporting staff, and satisfied partners.
Compensation can increase the element of employee retention to inspire them to work within the
organization for a long time period. Compensation is the process of encouraging them to stay
with the organization as long as possible or until the end of the planned missions. (Das &
Mukulesh, 2013)
No one has worked together on these variables that we are going to research. We want to
tell people through our research that a good salary does not make employee retention, but there
By this research, we want to tell people that people now want to work where that have a quality
of workplace, quality of environment, where have many opportunities to grow their career, get
rewards for performing well and many benefits. All of them have the advantage that the
employee is engage with his work and does not think of leaving one organization to join another
organization.
Hence, on the basis of the above discussion, we generate the below-mentioned research
questions are:
It is important to conduct study to know how these factors are affecting on employee
retention in banking sector. We know that maintaining a positive and motivated workforce is leg
bone to the success of any organization. Employee turnover increase the costs and affects the
company morale. Effective employee retention protects the organization from loss of
productivity. Workplaces with high security employ more workers, which increases productivity.
Engaged employees can improve customer relation, and teams that helps to communicate better
1.6.1 Work Place Flexibility highlights the willingness and capability to accept change,
specifically in how and when work is completed. A flexible workplace meets the needs of both,
employee and the employer. Flexibility in the workplace is often used to keep and engage
employees.
Impact of Workplace Flexibility, Organizational Culture and Employee
Engagement on Employee Retention 4
1.6.2 Organizational Culture refers to the shared values, beliefs, attitudes, behaviors, and
practices that characterize an organization and influence its employees. It is shaped by leadership
and is reflected in the way things are done within the organization.
1.6.3 Employee Engagement is define as the strong point of the mental and emotional
connection of employees who feel good in their organization is known as employee engagement.
1.6.4 Employee Retention is define as the Organization’s ability to retain employees and
ensure employee retention is called employee retention. Employee retention can be proven in
simple terms.
Impact of Workplace Flexibility, Organizational Culture and Employee
Engagement on Employee Retention 5
2.1.1 Work Place Flexibility Good work practices refer to the formal and informal
strategies that organizations implement to promote productivity, efficiency, and a positive work
environment, while also supporting the well-being and work-life balance of employees. These
practices can be implemented at various levels, including the individual, team, and
organizational levels. Such tactics typically incorporate one or more flexible practice types,
including flex time, job sharing (Mattis, 1990; Hunt, 1999) career flexibility, telecommuting, or
part-time work (Avery & Zabel, 2001). However, in a lot of the literature, flexible working is
used to refer to these distinctly diverse approaches. As a result, most of studies do not report the
specific effect of any kind of flexibility on the retention of employee. Additionally, although the
quantitative methods often used in early studies. Simple practices are often defined as business
planning of both formal and informal. This allows employees to work beyond the 9 to 5 working
day and change the perspective of working life that helps to improve work life balance (Cully,
Mark, Oreilly, & Dix, 1999). Such tactics typically entail one or more flexible practices, such
flexible scheduling work sharing. (Mattis, 1990; Hunt, 1999). However, much literature groups
these radically different practices together under the term of flexible working. According to the
previous studies, most of the studies have not clear facts on the impact of every kind of working
commonly used in previous studies and it will not allow us to fully understand the circumstantial
differences between the different countries of organizations. This study had taken a new
approach to that problem which is qualitatively evaluating the impact of flexible practices
Impact of Workplace Flexibility, Organizational Culture and Employee
Engagement on Employee Retention 6
include its five different kinds. H. Investigated employee retention rate in Malaysia, including
flexible hours, work sharing, flexible vacation, flexible career, and a flexible workplace. This
study took a new approach to this problem by qualitatively evaluating the impact of five different
flexible hours, work sharing, flexible vacation, flexible career, and workplace flexibility. The
benefits of flexible working that employees enjoy also have a positive impact on employers.
Research shows that HR practices will help to improve employee lifestyle and it also improve
work, allow employees to have more control over their schedules and work from different
locations. This flexibility makes it easier for employees to pursue continuous learning and
employees can improve their skills and knowledge, which can lead to more innovative thinking
and better job performance. In instance, the researcher shows how SHR approaches such that
flexible working that allows firms to develop stronger information and organization capabilities
that will improve the organization performance in terms of innovation. Despite these benefits,
managers frequently oppose the adoption of flexible working practices because they lack
confidence in support and stand for the strategy. (McCarthy, Cleveland, Hunter, Darcy, &
Geraldine, 2013)
Some managers are still dubious about the benefits of flexible work arrangements for the firm
(Duxbury & Jr., 1991). Therefore, it would seem that organizational and social elements such as
trust between coworkers, managerial backing, and a sincere appreciation of the advantages of
flexible working dictate how flexible working is implemented. Flexible working practices which
follow by the organizations were defined by the researcher. There are two types of work systems
Impact of Workplace Flexibility, Organizational Culture and Employee
Engagement on Employee Retention 7
which is formal and informal. These systems give employees temporally elasticity in working
schedules. We can say that flexible work practice give employees options other than the set 9 to
5 in a workday. Flexible time, job sharing, and flexible career are examples of typical flexible
practice dimensions. Although some academics have claimed that various flexible working
arrangements offer employees varying benefits employees (Cully, Mark, Oreilly, & Dix, 1999).
The majority of research frames and analyzes them as a single, all-encompassing term called
flexibility or flexible working. As a result, past research was not fully analyzed the conceptual
variations between these diverse forms of flexible practices as their varied consequences on the
institutions, and behavioral patterns that guide individuals. The cultural hypothesis suggests that
the way people learn and make decisions is influenced by the culture in which they are
embedded. This idea proposes that people allocate their mental resources in a manner that is
consistent with the values, norms, and beliefs of the culture they belong to. According to this
hypothesis, organizational culture can shape cognitive processes and influence the way people
think and make decisions. (Pettigrew, 1979). The multi-layered sets of differences in beliefs,
assumptions, and values underpin the cultural levels of the company. It helps to maintain
effective management (Tichy, 1982). The concept of an effective organizational culture helps in
improving the business decision making process. The preservation of culture within an
organization depends on the distinction between domestic and foreign cultures in cultural
administration (Schein, 1990). (Hodgetts & Luthans, 2003) Diversity in backgrounds, morals,
and ethnicities can affect an organization's culture and its performance. When people from
different backgrounds come together, they bring their own values and beliefs, which can impact
Impact of Workplace Flexibility, Organizational Culture and Employee
Engagement on Employee Retention 8
how they work together. Organizational culture is shaped by shared values and beliefs that are
influenced by the organization's systems and practices. When everyone in the organization
follows the same norms and values, it can lead to better performance and long-term success. The
quality of employees also plays a crucial role in the sustainability and management of
organizational culture. When an organization hires skilled and competent employees, they are
more likely to work effectively within the culture and contribute positively to its success.
organizational culture is a shared set of values, norms, beliefs, and behaviors that guide how
people within an organization interact with each other and with external stakeholders. It shapes
the organization's identity and influences how decisions are made, how work is performed, and
how employees are treated. It is shaped by the organization’s leadership styles, organizational
climate, systems, and work processes. It can be seen in the words and actions of the quality and
product managers, which reflect the values and beliefs of top management. Performance
management is the process of creating an environment that encourages people to perform at their
highest levels, while results management is a global process that focuses on achieving desired
2.1.3 Employee Engagement Employee engagement has become a key aspect of human
resource management operations. Employee engagement has been a concerned for organizations
since the 1990s and before 2000s (Rothbard, 2001; Kahn, 1990). It is defined that employee
engagement comes first and they choose to stay within the organization. This means that the
has been found to be related to individual attitudes, behaviors and intentions. (Saks, 2006). So
far, the focus of researchers has shifted from "employee engagement antecedents and outcomes."
Impact of Workplace Flexibility, Organizational Culture and Employee
Engagement on Employee Retention 9
However, the research consensus on the antecedents of employee engagement has shifted toward
talent management practices focused on employees and thus employee retention (Hughes &
Rog., 2008; Bhatnagar, 2007). Several studies have now been published on reducing the risk of
employee turnover by implementing practice management skills that can outcome in effective
Employee engagement is one of the practices which are connected to individual intentions,
attitudes, and behaviors (Ram & Prabhakar, 2011). Employee engagement is a crucial aspect in
the success of any organization. The study conducted by the Corporate Leadership Council found
performance and retention. Companies that prioritize employee engagement are likely to
experience higher levels of productivity, innovation, and commitment, while also reducing
turnover and associated costs. The study involved 50,000 employees from 27 countries and
showed that when employees feel connected to the company and its goals, they are more likely
to perform at a higher level. Additionally, highly engaged employees are less likely to leave the
organization, making recruitment and retention easier for the company. Tower's Global
Workforce Study, conducted by Perry, reached a similar conclusion, stating that highly engaged
employees are more likely to remain with the organization. This highlights the importance of
fostering strong relationships between employees and management for the benefit of the
organization as a whole. However, little research has been done on their impact on employee
productivity.” Therefore, it is verified that the important relationship occurs between the
incentives for employers to attract and retain the best people in their organization. Employee
Impact of Workplace Flexibility, Organizational Culture and Employee
Engagement on Employee Retention 10
retention is very important for every organization because employees are considering most
remain competitive, as the loss of talented employees affects business productivity and
profitability, researchers said. Also, as more money is spent on recruitment and training, the need
to retain employees becomes critical to the bottom line. Consequently, action plans and
employee retention strategies have considered the subject of many HR studies in recent years.
(Idris, 2014)
Employee retention programs are an integral part of the organization's vision, mission, values
and strategy. Dibble (1999) suggests that employee retention begins with attitude. Dibble
outlines the key elements that employers must provide to their employees so that they choose to
accepting the organization's vision, mission, values, and strategy. In their book on management
communication, Bell and Martin (2014) describe important steps and clarify the significance of
managing unofficial communication to initiate the healthy interactions between the all levels of
poor work culture that influence to employee turnover. We know that employee turnover is
costly for companies. Researcher point out that the owners do not have any idea of high costs of
employee turnover. Recruiting new employees is expensive for such aspects administrative and
advertising costs. Integration of time, resources and training also lost productivity. Baldoni
(2013) helps us to understand that engagement of employee goes beyond the work. Employee
absenteeism reduces safety and service quality. We have learned from the research of Powell's
(2012) that states, most employers and business leaders do not understand why their employees
leave. Inappropriately, many business leaders are attributing high turnover of employee because
Impact of Workplace Flexibility, Organizational Culture and Employee
Engagement on Employee Retention 11
of poor employee management connection. The survey was conducted by the researcher which
shows that the most employees leave their job for the following reasons such as poor work-life
balance, lack of professional development opportunities, workplace stress, unfair treatment and
inadequate pay. This is more common in less diverse workplaces for women and minorities.
Workplace Diversity is known as the strategy that improves retention of employee. The
researcher Corey's reminds us diversity is extra dark and white. Diversity includes age, gender
and race. In Swansky's (2004) study, the author explains how each generation affects the work
environment. Provides insight into how to balance unique characteristics and work experience
ideas then (Gen Y). While Swansky's insights are broad and relevant, I also use Hasserot's (2013)
article on multigenerational recruitment and retention from a law firm perspective. Regarding
gender issues in the workplace, the literature of Riemenschneider et al. (2006) and Sorohan
(1993) the importance of increasing women's employment. In another paper, Harris and Bryan
(1993) examine how cultural biases and misunderstandings increase employee turnover. Pace
(2011) adds data to support President Obama's cultural diversity study, which called for 100,000
additional workers with disabilities in the public sector. Gilmore and Turner (2010) suggest that
despite the importance of workforce diversity and employee engagement, the selection of new
employees should be based on personal and organizational fit, unique job characteristics and
culture. Researcher examines the relationship between general attitudes toward physical activity
and employees' positive experiences at work. Research shows that organizational effectiveness
and job satisfaction has a direct relation. They show that direct skills assessment, which begins
with hiring, improves performance by aligning employee’s skills, knowledge and values within
the organization. He noted that the concept of fitness changes over time. He used an article by
Impact of Workplace Flexibility, Organizational Culture and Employee
Engagement on Employee Retention 12
Starks (2007) in which he analyzed data from 72 agencies over a 9-year period to see how
institutions successfully recruit and retain students in federal jobs. Using relational and
generational theory, employment and retention rates have been shown to improve when job
prospects are adjusted for educational attainment and when individuals work in organizations
Figure 2.1
Self-Developed Model
Impact of Workplace Flexibility, Organizational Culture and Employee
Engagement on Employee Retention 13
Workplace
Flexibility
Organizational Employee
Culture Retention
Employee
Engagement
2.3 Hypotheses
The approach used in this study is quantitative approach to collect the relevant
information that emphasizes on explaining the process and that summaries the nature across the
group or relation, and to study the hypothesis and also identify the major issue regarding the
impact of the impact of work place flexibility, organizational culture and employee engagement
on employee retention.
The existing theories were tested without forming any new theory but focus was kept on specific
instead of general. Based on the objective of this study, exploratory research was conducted in
this research.
The approach that will be use in this study will be quantitative research method. This
research method is used to identify the cause of given behavior. A survey was done for the
collection of data for research objectives. The statistical analysis will be done through the data
collected through the structured questionnaire where the responses against each question are
taken on a “Likert scale” coded with 1=strongly disagree and gradually went to 5 = strongly
agree. Using causal research, we got to know that variations takes place in an independent
The convenient sampling design has been used. Employees of the banking industry have
In this research, Reliability and run test were conducted using SPSS software to check the
internal consistency and correlation of the variables. Reliability and regression analysis were
Impact of Workplace Flexibility, Organizational Culture and Employee
Engagement on Employee Retention 15
used to find the results of items and factors. It also validated the hypothesis results. The results
Chapter 4: Results
Table 4.1
Impact of Workplace Flexibility, Organizational Culture and Employee
Engagement on Employee Retention 16
Model Summary
Std. Error
Adjusted R of the
WorkplaceFlexibility, OrganizationalCulture
The table indicates that Employee Engagement, Workplace Flexibility and Organizational
Culture causes 45.2% change in Employee Retention. It also shows that there is 67.3%
Table 4.2
ANOVA
Sum of
Model Squares df Mean Square F Sig.
1 Regression 1204.418 3 401.473 67.749 .000b
Residual 1457.758 246 5.926
Total 2662.176 249
a. Dependent Variable: EmployeeRetention
b. Predictors: (Constant), EmployeeEngagement, WorkplaceFlexibility, OrganizationalCulture
The ANOVA results shows that p-value is 0.000 which is less than 0.05, hence, it can be said
that the model is significant and the researcher can proceed for further analysis.
Table 4.3
Coefficients
Impact of Workplace Flexibility, Organizational Culture and Employee
Engagement on Employee Retention 17
Standardized
Unstandardized Coefficients Coefficients
The Coefficients result indicates that the beta value is 0.112, which means that the change in
Workplace Flexibility by one unit will bring about a change in Employee Retention by 0.112
units. Furthermore, the positive value of beta indicates the positive relationship between
Workplace Flexibility and Employee Retention. The Sig. Value 0.000 which is less than 0.05
shows that the model is significant. Therefore, the hypothesis (H1) is accepted.
The second beta value is 0.268, which means that the change in Organizational Culture by one
unit will bring about a change in Employee Retention by 0.268 units. Furthermore, the positive
value of beta indicates the positive relationship between Organizational Culture and Employee
Retention. The Sig. Value 0.000 which is less than 0.05 shows that the model is significant.
The third beta value is 0.367, which means that the change in Employee Engagement by one unit
will bring about a change in Employee Retention by 0.367 units. Furthermore, the positive value
of beta indicates the positive relationship between Employee Engagement and Employee
Retention. The Sig. Value 0.000 which is less than 0.05 shows that the model is significant.
Table 4.4
This study aimed to examine the impact of workplace flexibility, organizational culture,
and employee engagement on employee retention in the banking sector. The results of the study
Impact of Workplace Flexibility, Organizational Culture and Employee
Engagement on Employee Retention 19
showed that there is a significant impact of workplace flexibility, organizational culture, and
The findings suggest that workplace flexibility has a positive impact on employee retention in
the banking sector. Employees who have the ability to work in flexible work arrangements, such
as part-time or overtime, and compressed workweeks, are more likely to remain in the
organization for a longer period. This is because flexible work arrangements allow employees to
balance their work and personal lives, which in turn, leads to job satisfaction and increased
motivation.
organizational culture that values employees and creates a supportive work environment is
essential for employee engagement. When employees feel valued and supported, they are more
likely to remain with the organization. The results of this study show that organizations with
Employee engagement is another key factor that affects employee retention. Engaged employees
are more likely to be satisfied with their job, feel motivated, and be committed to the
organization. The results of this study show that organizations with high levels of employee
engagement have lower rates of employee turnover, which suggests that employee engagement is
implement policies that focus on improving employee engagement, organizational culture, and
workplace flexibility. Employers should develop flexible working arrangements that allow
Impact of Workplace Flexibility, Organizational Culture and Employee
Engagement on Employee Retention 20
employers should strive to create a positive and supportive organizational culture by providing
employees with the resources they need to succeed, recognizing their accomplishments, and
creating teambuilding activities. Finally, employers should ensure that employees are aware of
their rights and are provided with the necessary tools and resources to exercise those rights. This
will help to create a sense of security and trust in the workplace, which is essential for employee
retention.
5.3 Conclusion
This study highlights the importance of workplace flexibility, organizational culture, and
employee engagement in employee retention in the banking sector. The results of this study indicate that
organizations that invest in these areas are more likely to have higher levels of employee retention.
Therefore, organizations in the banking sector should consider the findings of this study and work
towards creating supportive work environments that promote employee engagement, flexibility, and a
Organizations can achieve this by creating flexible work arrangements, such as compressed work weeks,
part-time and overtime options, and encouraging employees to take regular vacations. Organizations
should also focus on building a positive organizational culture that values and supports employees, and
work towards creating opportunities for employee engagement through regular feedback and recognition
programs.
This study provides valuable insights into the impact of workplace flexibility, organizational culture, and
employee engagement on employee retention in the banking sector. The results of this study can be used
Future research should investigate the impact of other employee retention practices such as
recognition, training and development, and work-life balance on employee retention in the banking
sector. In addition, future research should investigate the impact of these employee retention practices in
other sectors. Furthermore, future research should investigate the impact of employee retention on other