RETENTION OF EMPLOYEES IN BANKING SECTOR -AN EMPIRICAL STUDY

Banking sector is one of the key sectors in any country. In India, banking sector has a key role following Agriculture and IT. It is also a primary sector required for Economic Growth and Development. Banking sector contributes 21.06% of the total service sector. (Service sector accounts for 53.66% of total GVA). GVA (Gross Value Added) is the difference between output and intermediate consumption. Now coming to the bank employees' part, it is a known fact that a candidate once placed in the banking sector continues to be in the same sector, no matter in the same bank and branch or different bank and branch till the end. This paper reveals the reasons behind such retention. The objective of this research paper is to reveal the reason for retention of employees and what makes the employees retain (non monetary factors). For this purpose both primary and secondary data are collected. Primary data was collected from various bank employees of various banks, starting from SBI to UCO Bank. The secondary data was collected from various sources like research papers, journals, book etc. The statistical methodology used in Qualitative as this deals with non monetary and factors related to feelings and experiences which cannot be expressed in terms of numbers. The study concluded that apart from monetary factors such as pay, incentives & hikes, some non monetary factors also played a major role in employee retention. The non monetary factors include customer relation, job satisfaction, work environment, good relations with various levels of management. Among all these, " Employees' Recognition " played a major role in the employee's career which made them stick to the same sector. Banking sector, bank employees, employee retention and non monetary factors in banking sector.

Uttaranchal Business Review, 2017

While the importance of employee retention has been acknowledged by many researchers, only a few studies have examined the topic of retention. Given that, the purpose of the present study is to examine the role of select individual-related variables to explain employee retention in Indian private banking industry. It was primarily hypothesized that overall effect of select individual variables will be insignificant on employee retention. The hypothesis was tested using primary data collected from 301lower and middle level managers, who were working in the same bank for minimum two years. The managers from 60 branches of two select Indian private sector banks (i.e., Axis and HDFC Bank), located in National Capital Region of India- Delhi, were approached. Stratified Random Sampling was adopted to reach the sample. Multiple regression analysis was performed to analyze the predicted relationship. The results show that among seven independent variables studied, only gender and salary had a significant effect on how long employees retained their jobs. The study has implications for researchers and offer private banks insights into the employee characteristics that influence the retention of managers.

International Journal of Multidisciplinary Innovative Research, 2022

The demands and turbulence in the workplace and business have increased. As a result, there is much more rivalry amongst organizations. The study is regarding the factors of Employee Retention in the Private Banking sector of Chennai district. Employee retention plays a vital role in the development of private banks. In the current scenario, it is the major issue faced by the private banking industry in the Chennai district because of the huge employee turnover. Private banks face more difficulties to retain their employees regarding motivation, training, and development since there are many such banks in metropolitan cities like Chennai. This study focuses on the primary data which is collected through a closed-ended questionnaire with a five-point Likert Scale. The result of the data has been critically examined through data analytical tools. The study mainly examines the relationship between employee retention, employee motivation, employee training, and employee development.

2019

The purpose of this study is to explain the factors that help in retaining employees in IT and banking industry. These factors include performance appraisals, training and development and workplace environment. It is important to learn how different organizations use these variables as tools to keep their employees satisfied and preserved. In order to carry out this research, a count of 120 questionnaires were distributed among the respective officials in various IT companies and banks. SPSS software was used to analyse the received data to find the relationship between employee retention and these three factors. The study explains that some variables such as performance appraisal, training and development and work environment largely affect the rate of employee retention. Results showed that performance appraisal has a significantly more impact on the retention rate of the employees working in IT sector whereas in banking sector training and development has more influence on retention rate. And through conducting a survey from employees working in these sectors, it is verified that banking and IT industries are also focusing on employee retention management. The academic implication of this research is that academicians should introduce the separate course of employee retention or retention management for the students of HR major as this area is gaining attention of not only researchers, but also of corporate world practitioners. And the practical implication of this

— In the competitive world of business success of any organization depends on high quality service for which retaining valuable and skilled workforce is gradually gaining strategic significance. The nature of work in the banking sector is changing rapidly and that is why the factors that influence employee retention are also shifting. Several studies have been conducted on this topic where most of the researchers focus on the causes of employee turnover. However, this research focused on the organizational factors (Compensations & Benefits, Career advancement opportunity, Job security, Work place environment, Organization growth and reputation, Relation between top management and employee) that have varying impact on the managerial levels. The study is based on a self-developed questionnaire where Likert Scale was used to collect data from the sample size of 100.. The data analysis was done using SPSS Ver. 20 and Crosstab, frequency table was used to generate results. It has been also found that the priority of these factors differs based on management level. The banks should design their retention programs based on the level of management according to their preferences.

Asian research journal of arts & social sciences, 2022

This study sought to determine factors contributing to Employee Retention in Banks in Iringa Municipality Tanzania. The study specifically assessed the contribution promotion opportunities, financial incentives and work environment on employees' retention. The researcher employed quantitative research approach, and research design was descriptive cross-sectional research. Data was obtained from 93 respondents. Data were collected using structured questionnaire and analyzed using descriptive (frequencies and percentages) and inferential statistics (regression analysis). Regarding promotion opportunities, the study found that there is positive and significant relationship between promotion opportunities and employees retention. Furthermore on financial incentives were found to have positive and significant relationship with employees' retention and the study reveal banks provide bonuses and other benefits; however majority of the employees are not satisfied with salaried offered. Also the study also found there is positive and significant relationship between work environment and employees retention. As it was also revealed that work environment is very impressive as there are teamwork, support from management, and enough working tools but in terms of fair treatment the study there is a mixed opinion on this. All in all regression findings cemented that all the three determinants (work environment, promotion opportunities and financial incentives) have significant influence on employee retention. The study therefore concludes that there is significance influence between promotion opportunities, work environment and financial incentives on retention. Lastly the study recommends management of these banks to review salary and enhance fair treatment to all employees in the banks since most of employees had concerns on these two issues.

Asian Social Science and Humanities Research Journal (ASHREJ), 2019

The purpose of this study is to explore the important of organizations’ retention programs towards improving firm performance in banking sector. Almost every day, banking sector in Malaysia received resignation letter from its employees. It’s either from permanent or contract basis employees. An organization underestimate this matter and just take it for granted and it resulted bank performance decreased as well as increasing in spending for new hiring. This study has been conducted by distributing questionnaire to commercial and conventional banks in East Coast, Malaysia. The findings displayed the training and development, employee compensation, communication in workplace and value in teamwork is crucial to retain employees as well as to improve bank performance in Malaysia. Result from this study will help management especially HR department to look into retention programs seriously for the purpose of retaining its staff and expertise. For future research, it has been recommended...

Every growing organization considers its human resource as the most precious and critical asset. Hence the importance of retention management in the organizations is very important. The world of banking has changed radically since last decade. In banks, employees are required to be smarter, safer, better trained, more thoughtful and more aware and engaged in order to meet the expectations of customers, colleagues, regulators and stakeholders. This study is an attempt to investigate the retention issues in private banks of Pakistan and to identify the key contributor in overall retention management among job satisfaction, empowerment, training and development, career development and planning and organization image. The study revealed that among factors used in the study, career development and organization image were key contributors which helps in increasing the retention in the two private banks. The study further revealed that there are many other factors which are explaining the retention issues and need to be explored. Questionnaires among the staff members posted at Head Office of both banks were distributed and 15% of the total population of Head Office were submitted their responses. In the end it is found that the more HR practices are in place, the more the bank employee are competent, satisfied, and have sufficient role clarity in their job and will have no intention to leave the organization. This paper concludes that if the commercial banks in developing countries like Pakistan are able to successfully implement HR practices, they could achieve the maximum contribution of their employees, although, at present, the economic and political environment within which HR practices operate is not that conducive.

The government policy of less restriction in governmental regulations, liberalization, globalization and privatization have all contributed majorly towards Public Sector Banks in India to forcefully compete with Private and Foreign Banks. Organizational effectiveness can be achieved by Training and skill development of employees at various levels. Implementing Training and skill development programs in banks helps in running banking business effectively, and makes the banks prepared to cope up with changes and developments. Retention of employees with due compensation and reward system leads to commitment at work place, job satisfaction and motivation of employees. Further the banks implementation of Training and skill development for employee growth, their empowerment and environment of trust gives a competitive advantage due to the implementation of best HR Practices.

Management Science Letters

It may be queried why highly-qualified and skilled employees are allowed to leave their organizations. This study aims to determine the main factors affecting employee retention and how employee retention affects organizational performance in the commercial banking sector in Jordan. The employee retention drivers that are discussed in this study include economic security, psychological security, affiliation, and self-actualization factors. The researchers use a questionnaire as a research instrument to collect the primary data from employees using the simple random sampling technique. SEM-SPLS is used to analyze the collected data, to test the study model and the proposed hypotheses. The findings reveal that economic, psychological, affiliation, and self-actualization factors affected employee retention. The paper also discusses the study's theoretical and practical implications.