The Resource-Based View of Employee Retention in the Banking Sector

 The 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, possesses inherent diversity and dynamism, rendering it very valuable and difficult to replicate. The diverse talents, expertise, and life experiences of employees can significantly improve an organization's productivity and success when used correctly. Consequently, organisations seeking to maintain their competitive edge in the market must prioritise the retention of high-performing employees.

One significant implication of the Resource-Based View (RBV) for employee retention is the prioritisation of creating conditions that facilitate the cultivation and use of employees' skills and expertise. Enterprises must allocate funds into training and development endeavours that enhance employees' competencies and align them with the organization's strategic objectives. Organisations have the potential to mitigate staff turnover and enhance employee attachment through the cultivation of a learning-oriented culture and the provision of opportunities for skill enhancement. Furthermore, organisations have the ability to maintain their competitiveness and adapt to changing market dynamics through the continuous enhancement of their workforce's competencies.

Furthermore, the Resource-Based View (RBV) underscores the need of aligning organisational objectives with employee interests as a means to enhance employee retention. This alignment can be achieved through various means, including as offering competitive compensation packages, facilitating opportunities for professional advancement, and fostering a conducive work environment. The level of employee commitment to the organisation is positively correlated with their perception of their contributions being valued and the alignment of the organization's aims with their personal career aspirations. In addition, firms can strengthen desired behaviours and retain employees by identifying and incentivizing high-performing individuals.

The Resource-Based View (RBV) theories provide insights into the impact of corporate culture on employees' attitudes and behaviours, so contributing to the understanding of staff retention. A business culture that is strong and supportive, characterised by mutual respect, cooperation, and devotion to ideals, has the potential to foster a sense of inclusivity and loyalty among employees. Organisations that prioritise the establishment of a pleasant work environment, wherein staff members perceive themselves as appreciated, empowered, and respected, are more inclined to achieve talent retention. Conversely, toxic cultures that exhibit prejudice, micromanagement, or a dearth of openness are prone to deterring highly skilled individuals and undermining the competitive advantage of the organisation.

The Resource-Based View (RBV) underscores the strategic significance of employee engagement in fostering employee retention. Engaged workers are those that have a strong emotional connection to their work and are committed to the company's success. Organisations have the potential to enhance employee engagement and foster a sense of ownership among their workforce through the implementation of strategies such as promoting open communication, soliciting input, and involving staff members in decision-making processes. Furthermore, corporations have the ability to foster favourable conduct and strengthen employees' connections with the organisation through the act of commending and recognising achievements.

The Resource-Based View provides valuable insights into the complex dynamics of employee retention. The Resource-Based View (RBV) emphasises the importance of allocating resources towards the development of individuals, aligning their interests with the objectives of the company, fostering a positive work environment, and promoting employee engagement. This perspective recognises human capital as a critical driver of competitive advantage. Organisations that adopt a strategic approach to employee retention based on the Resource-Based View (RBV) principles will have a greater advantage in retaining high-performing individuals, promoting innovation, and attaining sustained growth in today's competitive business environment.

Resource-Based View of Employee Retention at Banking sector 

The RBV places significant emphasis on the significance of internal resources and competencies as primary drivers of long-term competitive advantage. Human capital is an essential resource for banks due to the active participation of workers in service creation and delivery, client connections, and organisational innovation. As per the Resource-Based View (RBV), banks should focus on cultivating and using unique human resources to maintain a competitive advantage in terms of employee retention.

It is imperative for banks to initially acknowledge and cultivate their most crucial human capital. This involves the recruitment of individuals possessing the requisite skills and experience, as well as the continuous allocation of resources towards their education and training. To enhance their capacity to meet evolving market requirements and outperform rivals, banks can cultivate a workforce equipped with specialist proficiencies in domains such as financial analysis, customer service, and risk management.

Furthermore, the Resource-Based View (RBV) underscores the need of cultivating a favourable workplace culture and environment. It is imperative for banks to cultivate a work climate that prioritises the welfare of their employees, acknowledges achievements, and fosters innovation and collaboration. By fostering a positive workplace culture that enhances employee satisfaction, engagement, and dedication, banks may effectively reduce turnover rates and retain highly skilled individuals.

The Resource-Based View (RBV) also underscores the significance of strategic human resource management (HRM) strategies in enhancing employee retention. Banks should implement initiatives and policies that promote employees' career objectives, offer opportunities for advancement, and provide appealing benefits and salary structures. Furthermore, fostering effective communication channels and including personnel in decision-making processes can enhance organisational transparency and trust, hence increasing job satisfaction and retention.

References 

Ahammad, M. F., Tarba, S. Y., Liu, Y., & Glaister, K. W. (2016). Knowledge transfer and cross-border acquisition performance: The impact of cultural distance and employee retention. International business review, 25(1), 66-75. 

Ahmad, A. F. (2022). The influence of interpersonal conflict, job stress, and work life balance on employee turnover intention. International Journal of Humanities and Education Development (IJHED), 4(2), 1-14. 

Al Mamun, C. A., & Hasan, M. N. (2017). Factors affecting employee turnover and sound retention strategies in business organization: A conceptual view. Problems and Perspectives in Management, (15, Iss. 1), 63-71. 

Ali, B. J., & Anwar, G. (2021). An empirical study of employees’ motivation and its influence job satisfaction. Ali, BJ, & Anwar, G.(2021). An Empirical Study of Employees’ Motivation and its Influence Job Satisfaction. International Journal of Engineering, Business and Management, 5(2), 21-30. 

Al-Suraihi, W. A., Samikon, S. A., & Ibrahim, I. (2021). Employee Turnover Causes, Importance and Retention Strategies. European Journal of Business and Management Research (EJBMR). Ashton, A. S. (2018). How human resources management best practice influence employee satisfaction and job retention in the Thai hotel industry. Journal of Human Resources in Hospitality & Tourism, 17(2), 175- 199. 

Narayanan, A., Rajithakumar, S., & Menon, M. (2019). Talent management and employee retention: An integrative research framework. Human Resource Development Review, 18(2), 228-247. 

Choy, M. W., & Kamoche, K. (2021). Identifying stabilizing and destabilizing factors of job change: A qualitative study of employee retention in the Hong Kong travel agency industry. Current Issues in Tourism, 24(10), 1375-1388.

 Cloutier, O., Felusiak, L., Hill, C., & Pemberton-Jones, E. J. (2015). The importance of developing strategies for employee retention. Journal of Leadership, Accountability & Ethics, 12(2).