Effects of Recruitment and Selection Process on Employee Turnover and Its Consequence on Organization’s Profitability- A Study on Financial Sector of Bangladesh

Abstract

Possessing a strong employee team, being profitable and achieving less turnover are desired by every organization. In country like Bangladesh, it is crucial to manage the recruitment and selection process properly to reduce turnover for both government and non-government sectors. This study aims at pointing out the effect of recruitment and selection process on employee turnover and its consequence on the organization’s profitability. The research has been conducted through a multiple case study method. Data has been collected with semi-structured interviews with twenty individual cases where the individuals are chosen from selected financial organizations. Analysis was done through pattern matching technique, based on the theoretical framework expected patterns were formulated and from the semi–structured interviews, empirical patterns were defined. Two propositions were proposed - appropriate recruitment and selection process affects employee turnover and proper recruitment and selection affects employee turnover which increases organization’s profitability. The study initiates that a small number of turnover factors can be controlled during the recruitment and selection process; thus organization becomes capable of reducing turnover up to a definite level and this reduced turnover eventually boosts up organization profitability. Thus the study partially confirmed the first proposition and completely confirmed the second proposition.

Keywords: Recruitment, Selection, Turnover, Profitability.