Intention to quit in the financial services industry: Antecedents and managerial implications

Abstract

complex nomological network of latent variables characterising the employee and the environment in which they operate. In order to proactively and reactively deal with these challenges, organisations need to understand what the factors are that influence successful PFAs’ intention to quit (Firth et al. 2004; Martin 2011), as well as discourage potentially successful PFAs from entering the sector. Background: A review of the literature revealed that the demanding and often challenging nature of work increases the turnover intention of employees. This trend is especially evident within the South African financial services industry. Aim: The research goal was to explore and empirically test a theoretical model identifying the most salient causes of turnover intention among sales employees employed by financial organisations operating in the South African financial service industry. Setting: The study was conducted on employees operating within the financial service industry in South Africa. Methods: The current study collected quantitative data from 102 employees of insurance or banking or investment companies, using a web-based compilation of standardised questionnaires. This followed a previous study by the research group that collected quantitative and qualitative data from 122 employees operating in an insurance environment, using a combination of an open-ended questionnaire and standardised instruments. Results: The results of the current study confirmed the significance of the paths between turnover intention and employee engagement, time wasted on non-core activities, perceived career development opportunities, and perceived supervisor support, mediated by perceived employee engagement. Conclusion: A replication of this study using a longitudinal research design is recommended in order to overcome the methodological limitations of the current study. The conceptual model developed in this study identified relationships that could be used as guidelines to effectively manage the retention of personal financial advisors in the financial service industry in South Africa