Employee Retention in Banking Sector

    Employee Retention Introduction to  Employee Retention In the current competitive job market, where there is a strong demand for skilled professionals, it is essential to retain high-performing individuals in order to maintain efficiency, foster innovation, and maintain a positive business culture. Employee retention is influenced by various factors, including competitive compensation packages, opportunities for career advancement, programmes promoting work-life balance, recognition and incentive programmes, and the presence of a positive work environment. Organizations have the potential to significantly reduce turnover rates and cultivate a committed and engaged workforce by prioritizing employee well-being, investing in their professional development, and fostering a culture that appreciates their contributions. The implementation of effective staff retention strategies not only enhances overall organizational performance and long-term viability, but also yields co...

  Social Exchange Theory and Employee Retention in   Banking Sector Social Exchange Theory (SET) offers a conceptual framework for understanding the intricacies of interactions, namely those occurring between employers and employees. Regarding employee retention, SET recommends that individuals make rational decisions by carefully considering the pros and cons of staying with or leaving a company. Based on this idea, employees are more inclined to remain with a company if they perceive that the advantages, such as compensation, perks, job stability, and opportunities for career progression, surpass the disadvantages, such as heavy workload, stress, lack of acknowledgment, and limited growth prospects. The emphasis placed by SET on reciprocity and resource sharing between employees and employers is of paramount importance in the context of employee retention. Based on the Social Exchange Theory (SET), individuals participate in a reciprocal exchange wherein they seek equit...

  The Theory of Organizational Equilibrium and Employee Retention in Banking Sector The Theory of Organisational Equilibrium posits that organisations strive to maintain stability and equilibrium in both their internal structures and external contexts. According to this theoretical framework, commonly associated with the domains of organisational behaviour and management research, organisations strive to attain a state of equilibrium wherein many forces, such as resource allocation, personnel dynamics, and market demands, are in a state of balance. When applied within the framework of employee retention, this concept offers valuable insights into the strategies that firms can employ to cultivate an environment conducive to retaining highly skilled personnel. The Concept of Balance is a fundamental tenet within the Theory of Organisational Equilibrium, which holds significance in relation to the retention of employees. Companies must navigate a delicate balance between meeting emplo...

  T he Resource-Based View of Employee Retention in the  Banking Sector The Resource-Based View (RBV) offers a distinct framework for understanding the intricacies of employee retention within organisational contexts. The Resource-Based View (RBV) posits that a firm's competitive advantage is derived from its unique amalgamation of resources and competencies. Examples of these resources include physical assets, intellectual property, organisational culture, and, notably, the company's human capital, which refers to its workers. This presentation delves into the potential of the Resource-Based View (RBV) paradigm in providing insights into the strategies and approaches employed by firms to retain their invaluable human capital. An essential principle of the Resource-Based View (RBV) approach to employee retention is that human capital is a crucial asset that may generate sustained competitive advantage. Human capital, unlike tangible assets like as equipment or technology, poss...

  Effect of  Expectancy theory  on Employee Retention in the Banking Sector Introduction to  Expectation theory Every employee inside an organisation aspires to receive acknowledgment for their extensive work hours and diligent efforts, which ultimately yield exceptional outcomes. Expectation theory, as a prominent theory in the field of motivation, posits that employees are more likely to be motivated to engage in additional labour when they perceive that the value they assign to a possible reward will ultimately satisfy a need or aim. Expectation theory posits that employees are faced with three alternatives as they strive to attain a reward based on their performance. The constituents in question encompass expectancy, instrumentality, and valence. Lately, there has been a decrease in the focus on motivating employees to strive for organisational goals and attain improved incentives. This forms the basis of the article's contention that expectation theory is necess...

   Herzberg Theory of Employee Retention  in  Banking Sector  Frederick Herzberg's thesis posits that employee pleasure  be delineated into two distinct components such as hygiene and motivation    (Tan,2013) . Workplace hygiene variables like as compensation and supervision contribute to the reduction of employee dissatisfaction. There is a positive correlation between the provision of acknowledgment and achievement to employees and their levels of dedication, innovation, and productivity. Introduction to  Herzberg Theory  The enhancement of job happiness and the cultivation of a good and productive work environment can be attained by means of employee motivation  (Wan and Tan, 2013) .Herzberg's two-factor theory of motivation identifies various elements that serve as motivators for professionals to complete work of high quality. The understanding and application of the two-factor theory can enhance the ability to provide effective...

  Effect of Employee Retention to an Organizational Performance in Banking Sector in Sri Lanka Many factors contributing to employee attrition inside the organisation, both historically and presently. Abundant information exists that elucidates the reasons behind employee retention. As we transition into the advanced era, the preservation of staff has consistently been crucial and is increasingly challenging for enterprises to sustain and retain. It is progressing rapidly. Employee retention is a significant concern that managers and organisations currently encounter (Pregnolato, Bussin, & Schlechter, 2017). The organisation incurs significant expenses in terms of institutional knowledge, as well as the resources of time, money, and effort needed to recruit and educate new employees when key workers are lost. The headhunters face both a potential risk and a significant task in the meticulous selection process from a vast pool of candidates. It is imperative to conduct comprehen...

  Negative Effects of Lack of Employee Retention on the Organization  in Banking Sector Employee turnover poses a significant challenge for organizations across diverse sectors. Regular staff turnover hinders productivity, disrupts workflow, and substantially increases the expenses associated with recruiting and integrating new employees. This phenomenon has the potential to engender a feeling of uncertainty within the workforce, so diminishing the level of engagement and morale among the remaining employees (Huselid, 1995). There are several variables that might contribute to low employee retention, including inadequate compensation and benefits, limited prospects for career advancement, ineffective leadership, and a mismatch between organizational culture and employee aspirations. Low worker retention in the banking business can result in significant repercussions for both the organization and its stakeholders. To begin with, elevated turnover rates result in increased costs...

  Employee Retention Introduction to  Employee Retention In the current competitive job market, where there is a strong demand for skilled professionals, it is essential to retain high-performing individuals in order to maintain efficiency, foster innovation, and maintain a positive business culture. Employee retention is influenced by various factors, including competitive compensation packages, opportunities for career advancement, programmes promoting work-life balance, recognition and incentive programmes, and the presence of a positive work environment. Organizations have the potential to significantly reduce turnover rates and cultivate a committed and engaged workforce by prioritizing employee well-being, investing in their professional development, and fostering a culture that appreciates their contributions. The implementation of effective staff retention strategies not only enhances overall organizational performance and long-term viability, but also yields cost savi...