Occupational stress for employee turnover intention: mediation effect of service climate and emotion regulation

Purpose This study examines the effect of occupational stress on turnover intention of employees working in the banking industry. The authors examine the mediating effects of service climate and emotional regulations of the employees in the relationship between occupational stress and intention to leave the organization. Design/methodology/approach This study followed stratified sampling technique for data collection from employees of ten commercial banks based on the banks' financial performance of top 5 and bottom 5 out of 27 banks. Data were collected at 2 stages, first from 465 employees for occupational stressors and second from 408 employees among the participants in the first stage for turnover intention, service climate and emotional regulation. Harman’s one-factor test was conducted to examine the common method bias. Confirmatory factor analysis (CFA), regression analysis and Preacher and Hayes Process Macro approach were used to examine mediation effect. Findings Three factors, namely workload (WL), role ambiguity and growth opportunity expectations were identified as the occupational stressors in the banking industry, predicting a positive relation of overall occupational stress to the intention to turnover. Service climate and the employees’ emotion regulation ability mediate the relationship between stress and turnover intention. Results also revealed no significant role of control variables in predicting occupational stress and turnover intention. Practical implications This study implies that the WL, role ambiguity and growth opportunity expectations of the employees cause stress in employees which may lead to have turnover intention. In order to get success in competitive environment, managers of banking industry can address stressors by enhancing service climate and formulating policies and programs to strengthen the emotion regulation which is evidence to strengthen the reciprocity approach of social exchange theory in employees’ commitment. Originality/value This study contributes to the social exchange theory and attempts to fulfill the gaps in empirical research on personnel psychology, human capital\ and organization management in developing countries.