Impact of Performance Appraisal on Employee Retention: A study on Banking Sector of Pakistan


  • Saba Gulzar Lecturer, Institute of Business Management Karachi
  • Avinash Advani Independent Researcher Karachi
  • Tariq Jalees Professor, PAF Karachi Institute of Economics and Technology



Employee retention, performance appraisal, job satisfaction, career development, reward system, rating system, empowerment, performance feedback


Banking industry despite being one of the most flourishing industries in the world is considered to have high turnover rate. The same is the situation in Pakistan where local banks are also facing this issue. All banks are having a difficulty in employee retention that in return effects their productivity for years. During the past few years. It has been observed that one of the biggest reasons for employee’s adverse performance is inadequate HR practices followed by the local banks. Thus the aim of this study is to measure the effects of performance appraisal, career development, and job satisfaction and reward system empowerment with feedback on employee retention. A valid sample size of the study was 316 with a response rate of 98%. The data was collected from 39 leading branches of a private bank operational in different cities. After carrying out preliminary analysis including reliability, validity and normality the overall model was tested through multiple regression analysis. The outcome of the study after conducting comprehensive research, it was found that the performance appraisal, career development, job satisfaction empowerment and feedback and reward system all have positive impacts on employee’s retention if practiced regularly and adequately. The findings of the study were seen consistent to earlier conducted studies. By the help of the drawn Implications the managers and policy makers will be able to develop practices and procedures under the policy that will have a significant effect on the productivity of the employees along with promoting job retention.


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How to Cite

Gulzar, S., Advani, A., & Jalees, T. (2017). Impact of Performance Appraisal on Employee Retention: A study on Banking Sector of Pakistan. JISR Management and Social Sciences & Economics, 15(1), 85–102.



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