A Literature Review of Factors Causing Employee Turnover in Indonesian Banking

Abstract

Employees are assets for a company, therefore the company should maintain its employees for the benefit of the company in reaching the objectives and the employees can stay working at the company in the long term. The invesment in  training and development for employees will need more time and higher cost, this investment will vanish when employees exit and working at other companies. The higher employee turnover rate will cause more negative impact for the company, and therefore it should be maintained at the controllable rate. The way to control turnover is by understanding the factors that cause the turnover.

The employee turnover rate in Indonesia Banking industry is relatively higher compared to the employee turnover rate in financial sector at the advance country such as Singapore. The factors are considered to cause the turnover  in Indonesia Banking industry can be from internal factors and external factors. The internal factors are :(1)leadership, (2)compensation, (3) working environment, (4) performance appraisal system and (5) work-life balance. The external factors are: (1) location, (2) personal problems and (3) opportunities elsewhere.