Organizational factors and intention to quit: evidence from operational level employees in Garment Industry in Sri Lanka

Garment industry in Sri Lanka plays a major role of the economy and captures vast majority of the total labor market in the country. Employees are the most valuable and important resource in the organization. Continuous production process, quality of the production and profits depend on the human resources of the organization. Organization goals can be achieved efficiently and effectively if employees have positive attitudes in respect to the organization. Otherwise production disruption, less quality production and losses might be occurred. So the satisfied workers are a vital resource not only for the organization but also for the whole economy.

This study attempts to examine the relationship between three organizational factors (financial reward factors, physical working conditions and fringe benefits) on intention to quit. Researcher has taken a random sample of 180 employees out of 1000 employees who have more than four years of experience from 22 garment factories. Data were collected by using a structured questionnaire and Pearson correlation coefficient technique & regression analyses were used to analyze data.

The analysis finds that the physical working conditions have a significant negative relationship with intention to quit. This proves that physical working conditions are highly significant in keeping the employee satisfied and loyal to the company. Further the results show that financial rewards adversely related to intention to quit, suggesting that an increase in financial rewards leads to lower intention to quit. There is a significant negative relationship between fringe benefits and intention to quit proving that companies which provide relatively higher fringe benefits are likely to incur low level of intention to quit. Regression analysis was conducted to identify the effect of organizational factors on intention to quit among labours. Since the regression is significant, researcher accepts the hypotheses formulated.