Challenges in Retaining and Attracting Employees in Financial Sectors

Running head: Challenges in Retaining and Attracting Employees
Challenges in Retaining and Attracting Employees
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Challenges in Retaining and Attracting Employees1
Introduction
In the contemporary business environment retaining workforce has been a challenge in
the organization due to numerous factors. The current paper focuses on the key challenges in
attracting and retaining workforce in financial sectors. The employees in this industry needs high
level of competency in order to deal with the customers and maintaining good relationship with
the customers. Therefore, retaining and attracting employees in this type of industry is
challenging for the management of the organization. It is observed that is a significant increase in
employee turnover rate in the financial sector. It is opined by Kramar, that there has been a
significant relation between the employee turnover rate with non-monetary and monetary
employee benefits. The financial sectors are highly responsible for various activities which
incorporates strengthening the nation’s economy and maintaining the economic structure. This is
enhanced by the extensive contribution towards GDP. In 2018, according to the government
released financial records the financial sector of Australia has made a he contribution with
around $150 billion to the GDP. It is also recorded that the sector holds around 450,000
workforce within the organization. Regardless of the growth of the sector, it has been observed
that the organization are facing huge issues with retaining and attracting potential employee in
the organization. The essay primarily focuses on analyzing the key Human Resource
responsibilities and roles in order to overcome high level of employee turnover issues in the
financial sector. The paper focuses on reviewing ten journal articles for brief understanding of
the concept and draw desire conclusion. The different challenges and factors behind the
challenges are discussed in the paper. The five selected Human Resource management themes
which would be relevant to the paper are ‘Strategic Human Resource Management’,

Challenges in Retaining and Attracting Employees2
‘Recruitment and Selection’, ‘Managing Employee Retention’, ‘Job Design’ and ‘Career
Planning and Human Resource Development’.
Discussion
In the article by Mohamed, Katua Ngui & Mulili (2017) stated that ineffective
communication in between the diverse functions of human resource management. The article
evaluate the banking sector in Sudan and on a specific focus towards agricultural banking
sectors. The top management may face issues by creating barriers in the implementation of
strategic tools in the organizations. In financial companies it is observed that the lack of effective
communication could result in voluntary turnover. In the financial sectors the management must
provide the individuals with career development opportunities so that the employee could feel
the growth opportunity in the organization and will not leave the company. It also fosters the
new employees to work and join the company who are seeking better opportunities in the
financial sectors. Therefore, the organization need to understand the integration if various human
resource aspects to manage the rate of employee turnover. The strategies incorporates monetary
and non-monetary benefits, fair pay to the employees, incentives, work-life balance for
especially the women employees. This factors motivates the employees to stay in the
organization and work dedicatedly for the organization. From the article it is well assessed that
the human resource practices especially the benefits helps the employees to stay motivated and
carryout their responsibilities effectively in the organization. Since, few decades the financial
sectors utilizes the motivational approaches in order to keep the employees motivated and this is
how the employees can be retained and attracted to the financial sectors as well.
In the article supported by Talukder (2011), proposes that job Analysis and Job Design
are the two human resource management function which helps the individuals to embrace and

Challenges in Retaining and Attracting Employees3
leverage the performance of the employees in the organizations and also helps them to embrace
to achieve their professional objectives and goals. The job design function in overall supports the
following other human resource management functions (HRM) such as career planning, job
evaluation, selection, work design and performance management. It is highly necessary for the
operation manager of the financial sector to align their organization strategic goals while
working on the job deign of the employees (Gialuisi & Coetzer 2013). It is highly necessary that
the designed job for the employees is realistic and doable by the employees. It is observed that
most of the Australian financial sector use diverse motivational approaches to design jobs for the
employees. It is also recommended that the managers must implement and oversee the three
motivational approaches such as biological, mechanistic and perpetual motor.
As opined by Siengthai & Pila-Ngarm, (2016), the job design has a significant role in
embracing job satisfaction within the employees. The article focuses on the banking sector in
Thailand. When there is a positive effect on job satisfaction, employees tend to give their best
performance in the organization and the employee turnover rate is reduced. Therefore, the
financial sectors needs to focus on analyzing the job satisfaction level of the employees. The job
satisfaction can be embraced by redesigning their jobs of the employees in the organization. This
initiative would lead to increased performance of the employees. It is quite difficult to retain
employees if they are not satisfied with their job, especially for long term and for attracting g
new candidates as well. Change management in the financial sector would help the management
to understand their employee needs and where the organization is lacking in order to satisfy the
employees. The research of Siengthai and Pila-Ngram, also suggest that the human capital
development is also a crucial part of human resource management functions which is used to
motivate the employees so as to maintain their level of performance intact by leveraging the