Attracting and Retaining Staffs in the Financial Sector Assignment
Attracting and Retaining Staffs in the Financial Sector
Article 1
Dwomoh, G. and Frempong, O, E. (2017). Factors influencing employee’s retention in the banking industry of Ghana. Review of public administration and management. 5(3). pp. 1-7. DOI: 10.4172/2315-7844.1000223.
Objective and Research Question:
The research is centred on identifying the factors that influence employee retention in the banking sector of Ghana. The researcher in the paper states that one of the main challenges that organizations face today is to recruit new and competent employees for their organization and then retain them in the long run. However, for retention, the companies need to ensure that they exceed the expectations of the employees so that the employees feel motivated and are loyal to stay with the firm. Therefore, the objective of the research is to select eight factors that influence retention of employees.
Method:
The targeted population for the research was 36 commercial banks licensed by the Bank of Ghana. However, as the research is focussed on understanding the factors influencing retention level among the employees, it was imperative for the researcher to gather the views of the employees. Therefore, through convenience sampling and distribution of questionnaire, the responses of 106 respondents were recorded and analysed using the Probit framework.
Findings and Discussion:
The variables considered for the survey were – employee retention, organizational justice, compensation and rewards, career development opportunities, job security, work life balance, supervisor support, organizational reputation and working environment and organizational beliefs and values. The findings received after the application of the Probit regression model, stated that the employee retention level was depended on the management’s decisions regarding human resource policies and procedures. As per the employees, the chief determinant factor of being associated with the company for long was reward and compensation level. If the company was able to provide adequate rewards an compensation for the employee efforts, the staffs were loyal and satisfied to continue their employment tenure with the firm for a long time. Another factor that played a significant role was flexibility in leave policy. The employees preferred having favourable and flexible leave policy. Some of the other factors that influenced employee retention rate are – safe work environment and good reputation of the firm, fair treatment to all staffs, surety of working tenure, self-actualization opportunities, link between organizational and employee values and good leadership and management. The results section also stated that career development and future growth opportunities factor bear less significance than the other seven factors, as the study believes that career development is the responsibility of the employee and not the employer.
Conclusion:
The study revealed that the ability of the banks to retain their employees in the organization was dependent on eight factors. Moreover, it also reinstated the fact that it is the prerogative of the management to ensure that they work on these factors as employee retention directly affects the customer satisfaction level. Meeting the same employee every day, develops a sense of trust in the customers hence, ensuring large customer base for the commercial banks.
How this article would contribute to my Essay 3:
Through the research, I was able to identify and understand the eight factors that influence the employee retention rate in the organizations. Therefore, tis information would help me to build on the proper solutions regarding the issues that would be presented to me in my next essay concerning employee attraction and retention.
Article 2
Kaya, N., Koc, E., & Topcu, D. (2010). An exploratory analysis of the influence of human resource management activities and organizational climate on job satisfaction in Turkish banks. The International Journal of Human Resource Management, 21(11),
2031-2051. DOI: 10.1080/09585192.2010.505104
Objective and Research Question:
The study is aimed at exploring the impact of organizational climate and human resource activities on the job satisfaction levels of the employees in the banking industry of Turkey. As the Turkish banks have witnessed a phenomenal level of growth in the past decades, the need for competent and skilled employees has also risen. However, attracting the right talent and then retaining them has become an issue for the management of the banks leading to lowering of productivity. Therefore, the objective of the study is to analyse the role of human resource policies and organizational environment on the satisfaction levels of the workforce.
Method:
The data for this research was gathered using the primary data collection technique and analysed with the help of qualitative tool. The study was conducted among 19 banks of Turkey and data was gathered from 346 employees working in the 19 banks. The participants for the research were chosen through convenience sampling. Interviews were conducted with all the employees to understand their viewpoint and collate the data for further analysis.
Findings and Discussion:
The study considered eight factors to understand the influence of human resource management practices on job satisfaction levels – teamwork, performance appraisal, recruitment and selection, written policies, rewards and incentives, training and feedback system. On the other hand, the factors determining job satisfaction through organizational climate, the following six factors were considered – innovation opportunities, work life balance, organizational ethics, cohesion and managerial consistency and competency. As per the findings of the study, human resource management activities and organizational climate had direct relationship with job satisfaction levels of the employees. For example, if the employees are restricted to follow the set standards and procedures and not allowed to show innovation and come up with new ideas, it would restrict their creativity and cause a sense of dissatisfaction. The monotonous work environment would dissatisfy the employees and increase the attrition rate. Moreover, if the human resource management of the banks fail to provide proper training and development opportunities to its staffs, it would lose out on its employees. The employees continuously seek opportunities for growth and development and lack of such opportunities would dissatisfy them.
Conclusion:
The study concludes on the note that a positive relationship exists between the two research variables- organizational climate and human resource practices, creating a correlation between the elements of human resource activities and work culture and environment. The study based on the findings also states that it is the duty of the human resource managers to ensure that they don not ignore any elements of the work environment and human resource elements before taking any decision as it would directly impact the motivation and satisfaction levels of the employees. Therefore, for successful results, the human resource activities and organizational climate elements have to be implemented together.
How this article would contribute to my Essay 3:
The research helped me to understand that human resource activities alone cannot help satiate the needs of the employees until the time it is coupled with a safe and positive work environment. Therefore, this knowledge would help me to identify the issues faced in attracting and retaining talent in the financial sector in a more detailed manner.
Article 3
Mohlala, J., Goldman, G. A. and Goosen, X. (2012). Employee retention within the information technology division of a South African bank. SA Journal of human resource management. 10(2). pp. 1-11. http://dx.doi.org/10.4102/ sajhrm.v10i2.438
Objective and Research Question:
The information and technology division of the South African banks are facing a dearth of skilled employees causing decrease in efficiency and an increased demand for skilled employees in the labour market. Therefore, the aim of the study is to understand the issues that technology leaders of the banks are facing in retaining the employees. The objectives of the study are:
- To identify the demand for skilled labour in the information and technology department of the South African banks
- To understand the issues causing high rate of employee turnover
- To recommend strategies to the technology leaders of the banks for improving the retention rate and reducing the skill shortages being faced
Method:
The method used for this research was primary data collection wherein interpretive approach and cross sectional study was used. A case study approach was resorted to understand the strategies used for retaining employees. Moreover, semi-structured interviews was also conducted with the four directors of the Information Technology department of the bank and thirteen senior managers of the same department hence, resorting to qualitative approach. The candidates for the interview were selected on the basis of purposive sampling and the data was analysed using Cresswell’s four stage data analysis process.
Findings and Discussion:
The study stated that situational challenges were being faced by the leaders of the information technology department of the bank in retaining employees. Some of the factors that contributed to the situational challenges were – lack of retention strategy, lack of power with the managers to resolve salary issues, continuous policy restructuring, defaulted and regressive management style and inability to retain staffs. Some of the other factors that affect retention are – improper reward and compensation policies, lack of interest in the job and unappealing technology. The study stated that lack of proper work environment was one of the main factors leading to issues in employee retention. Therefore, it is the responsibility of the management to ensure that they provide a positive work environment with ample growth opportunities present for the employees to fulfil their self-actualization needs.
Conclusion:
The study concluded that every organization and its management should develop a retention strategy keeping in mind the needs and demands of the employees. The study stated that for the banks investigated no unique retention strategy existed that lead to lack of skilled staffs for the information technology department of the bank. Therefore, the banks should focus on developing unique retention strategy pertaining to the employees’ demand.
How this article would contribute to my Essay 3:
The research paper helped me in understanding the need for development of unique retention strategy to ensure that no skill shortages are being faced by the organization. Therefore, this detail would help me in understanding the retention and attraction of staff issues in more details as I have a clearer perspective of the issues and the areas where the organizations are lacking to meet the needs and demands of the employees.
Article 4
Mwita, K. M., Mwakasangula, D. E., &Tefurukwa, O. (2018). The Influence of Leadership on Employee Retention in Tanzania Commercial Banks. International Journal of Human Resource Studies; Vol. 8, No. 2; doi:10.5296/ijhrs.v8i2.12922 , 274-283.
Objective and Research Question:
The objective of the research is to study the relationship between employee retention and leadership in the purview of the commercial banks of Tanzania. Leadership is a very important aspect in every organization as leaders are expected to guide, direct and motivate the employees to achieve the organisational goals. Therefore, the leaders have a direct communication channel with the employees on a daily basis. Hence, the hypothesis of the study aims to realize if a significant relationship exists between employee retention and leadership or not.
Method:
For this study, the primary data collection technique was used under which quantitative method was deployed for analysing the results. A survey questionnaire was circulated among the employees of two commercial banks located in Tanzania – Tanzania Postal bank and Akiba Commercial Banks. The questionnaire was circulated among 12 employees of Tanzania Postal Bank and 25 employees of Akiba Commercial Bank making the sample size 37. The sample was earlier considered between 30 to 500 keeping 5% confidence level into consideration.
Findings and Discussion:
The findings of the research state that a linear relationship does exist between the employee retention and leadership and therefore, the management of the banks should be careful in hiring leaders that have the competency to guide the employees in the right direction and motivate them to stay in the company. The findings clearly indicate that managers of the banks need to focus extensively on the leadership aspect before making policies for rewards, work condition and promotions as organizational environment is always dependent on the nature and behaviour of the people.
The findings of the study even suggested that the managers should be given periodic trainings on honing leadership skills and leadership and management are similar to some extent. The management should take advice and feedback from the employees regarding the leadership skills and styles so that the ways of improvement can be identified. One of the positive aspect of leadership that helped in employee retention was allowing the employees to take part in the decision-making process and share their views and opinions. The two way flow of communication helped the leaders to understand the issues being faced by the staffs based on which quick action is taken.
Conclusion:
The study concluded by stating the need of the commercial banks of Tanzania. The researcher explicitly stated that as the commercial banks thrived for sustainability and survival, they should focus more on training and development activities where not only the staffs would be trained but also the leaders would participate. Although, leadership is an important aspect for employee retention, the banks also need to focus on incentive schemes and promotional opportunities to retain their staffs.
How this article would contribute to my Essay 3:
The research helped me to understand the role of leadership in the employee retention and motivation aspect. As leaders are in direct communication with the employees, it is important for them to be trained so that they can motivate the employees to stay. This knowledge would help me to develop better solution to retain staffs.
Article 5
Pietersen, C. (2014). Employee Turnover in a Regional Commercial Bank. Mediterranean Journal of Social Sciences; Vol 5 No 27; Doi:10.5901/mjss.2014.v5n27p371, 371-380.
Objective and Research Question:
The research aims at exploring the employee turnover issue in the banking sector of Limpopo Province in South Africa. The objectives of the study are:
- To determine the extent of the employee turnover in the banking industry of Limpopo
- To identify the specific reasons leading to high rate of employee turnover
- To provide a set of recommendations to the management of the banks in order to retain more employee
Method:
As only one bank with a staff strength of 555 employees was ready to participate in the research, a sample size of employees was selected due to budgetary and time constraints. The primary data collection method was used wherein a cross-sectional study method was designed to gather necessary data. The 30 employees were surveyed using semi-structured questionnaire. Human resource manager was interviewed and total of eight employees, two from every hierarchical level participated in focus group study. The data gathered was analysed using the SPSS tool.
Findings and Discussion:
From the semi-structured interview, it was discovered that better job opportunities from another firm and Black Economic Empowerment (BEE) program and legislation were the causes of employee turnover. On the other hand, the focus group study revealed – BEE program and legislations, unsatisfactory rewards and compensation, better job opportunities and dearth of growth opportunities lead to high rate of employee attrition. The answers gathered from the questionnaire analysis also supported the above stated factors. Although the research was focussed at understanding the reasons behind employee turnover, through the findings it was noticed that the employee turnover rate in quite low, however, it is still an important issue provoking lower productivity and efficiency levels.
The findings when analysed also stated that the attrition level was highest in the lower hierarchical levels of the company where the skills demanded was less complex. However, attrition rate in the lower level is also an issue as the dysfunctionalities in the lower level affects the efficiency rates in the higher levels of the management. Moreover, the bank should be focussing more on the retention of young and female employees and the turnover rate among them is the highest. Lastly, the study also revealed that it is the responsibility of the management to come up with interventions and policies that reduce the dissatisfaction rate among the employees and instil a sense of loyalty in them. The loyalty would motivate the employees to carry on employment association in the long-run.
Conclusion:
The study revealed several reasons that lead to employee turnover rate in the banking sector of Limpopo, a province in South Africa. The study highlights the impacts of job dissatisfaction on service delivery, productivity and efficiency on the performance of the bank. The human resource management of the banks have been advised to develop human resource policies and procedures that resolve the issues being faced by the staffs so that employee displacement level can be reduced.
How this article would contribute to my Essay 3:
The research helped me in understanding the issues that lead the employees to end their association with the organization and seek employment elsewhere. An understanding of the issues would help me to put forward certain plans that would discourage employees from leaving their current organization.
