HRMT20024 Essay: Attracting and Retaining Staff in Banking Sector

This essay explores the critical challenges faced by the banking and financial sector in attracting and retaining employees. It identifies key issues such as HR planning, recruitment and selection difficulties, the complexities of human resource management, job design inadequacies, and safety concerns. The essay delves into the importance of HR planning in bridging skill gaps, addressing high employee turnover, and the impact of financial crises on employee uncertainty. It further discusses the role of effective human resource management in talent retention, highlighting the risks associated with employee attrition and the need for strategic implementation of employee-centric policies. The analysis extends to the significance of job design in enhancing employee motivation and satisfaction, as well as the crucial role of safety and well-being in fostering a positive work environment. The essay emphasizes the necessity for banking and financial institutions to prioritize employee needs and implement comprehensive strategies to improve attraction and retention rates.

BANKING AND FINANCIAL SECTOR
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Banking and financial sector
Introduction
In the workplace, it can be said that to attract and retain the employees is considered as one of
the motive of the organization. It is considered as the concept that states that retention in the
workplace is important so that culture of the company can be maintained. If employees are
retained then positive impact can be seen on the overall activities assigned by the top
management. But in the present scenario, attraction and retention of the employees is considered
as the challenge, which is faced by the top management or by the human resource department.
The challenge related to it, affects the operations of the company and also it can be considered as
the barrier in relation to the overall success of the company. In the workplace, it can be stated
that the employees should be retained and attracted so that it can be easy for the company to
reduce the cost related to recruitment process and also it is an opportunity for the company to
enhance the profit ratio in the highly competitive market.
In the banking and financial sector, it has been analyzed that attraction and retention is
considered as the challenge. In this sector, the emphasis is also on maintaining the flow of money
so that negative impact can be reduced from the organizational activities. The overall activities
of the company are operated by focusing on the other companies like insurance organizations,
securities organizations. These companies emphasizes on controlling the financial flow as it
helps to give direction to the employees in relation to trading, lending and also it also manages
the organizational assets. Therefore, in this paper the different challenges will be highlighted
which are faced by top management or by the manager in the banking and financial sector. The
challenge is faced to attract and retain the employees. So, the challenges will be highlighted that
should be reduced so that growth can be attained in the market.
 Hr planning, recruitment and selection as a challenge
According to Fejfarova & Urbancova, (2015), it can be stated that human resource planning is
considered as the concept that helps to maintain proper understanding and conceptual practices
in related to strategic human resource planning. In relation to human resource planning, it can be
stated that there are two themes on which focus should be given. The first theme is related with
mutual responsibility and the second one is related with the abilities, opportunities and
motivation of the employees. Also, in the banking sector the emphasize is on the sector that are
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Banking and financial sector
knowledge based and also focus is given on the needs related to interpersonal skills and also on
the work experience as it can help the employees to be focused towards their work. This can help
the banking sector to enhance the satisfaction level of the customers. The banking and financial
sector is broad, so in his case it could be a major challenge for the management to search the
employees who have the issue in relation of the knowledge and skills required in the banking
sector. Therefore, HR planning is one of the essential aspects that should be present at the time
of recruiting and selecting the employees in the banking and financial sector. It is important for
the candidates to have the skills so that they can be selected. In this context, it is important to
focus on reducing distance among the employees who are appointed and the workers have the
skills required for the job. Through HR planning, it can be easy for the company to focus on
reducing the skill. But the management of the company has to select the employees who have
basic skills, as it would not be easy to select the talented employees for the overall operations of
the company. In banking and financial sector, the challenge that can also relate with the turnover
ration of the workers as in this sector, the employees are not motivated to give their best towards
the work. The issue in relation to it could be concerned with the increase in the workers turnover
and also it affects the retention power of the employees in the workplace (George, 2015).
It has been noted that in the banking and financial sector there are various issues faced by the
management. One the reason is due to the shortage of the employees who are the skills and also
knowledge of the activities. It can be analyzed that the financial crisis which took place in 2008,
has enhanced the high turnover employment and also just because of this reason the
retrenchment was considered by the organizations in the banking and financial sector. Due to this
the employee’s uncertainty has been enhanced and also the employees who are on mid and upper
level are not present in the sector. To maintain the demand of the labor, it is important for them
workers to have the basic skills so that it can be easy for them to work in the banking and
financial sector. The major issue is also concerned with recruiters in finance sector as it has been
seen that to retain the highly skilled employees they have to focus on the experience in payroll
and also in the overall methods in the banking sector (Raziq & Maulabakhsh, 2015).
It can be said that to enhance the retention of the employees it is important to focus on managing
the overall activities. It has been stated that if the experience employee is replaced then it will
enhance the expense of the employees and also it can be stated that employees could not be
replaced only on the basis of lack of skills. Therefore, it can be stated that HR planning is
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Banking and financial sector
considered as the process that help in maintaining the retention of the employees in the financial
and banking sector. But only the reason is related with high turnover, in which the companies
face difficulty in emphasizing on the concept of HR planning. Therefore, it is said that many
aspects are present that is related with the issue in context to HR planning, recruitment and
selection in banking and financial sector (Ghosh et al., 2015).
 Human resource management as the challenge
According to Ali, Lei & Wei, (2018), it has been state that to manage the employees in the
workplace is important as it helps in achieving success in the highly competitive market. Also,
the survey was conducted in which the sample was 400 but 217 senior workers responded who,
were the members of the Chinese bank of Shanghai. In this it can be stated that the survey was
conducted in the financial company of china and in this the main aid is to determine the relation
in relation to the employee climate and also in the performance. So through the survey it was
stated that the strategic implementation if the Shanghai relates with the financial attributes.
It can be stated that the human resource management emphasizes on deployment of management
and it helps in attaining the set goals. To retain the employees in workplace, talent management
is considered as the approach that can help in maintaining the retention of the employees in the
workplace. The opportunities are also offered in context to enhance the skills and to use the latest
practices in human resource management.
Organizations that are present in the finance and banking sector have to suffer from the issue
related to retention of the employees as the level of competition has been enhanced in the
market. The reason behind it relates with the overall retention of the employees and also it is
necessary to focus on hiring the employees in the workplace. Retention can be considered as the
challenge and one of the challenges that are faced by the company is related with the loss of the
data. It has been observed that when the employees leave the company, then they have useful
information which could be given to the competitors, so it can be considered as one of the
challenge that can affect the growth. To retain the employees in the workplace can only be done
when focus is given on implementing the plans by considering their basic needs. Therefore, it
can be stated that human resource management is considered as the basic function that should be
there so that the needs of the employees can be satisfied and maintained (Ibidunn et al., 2015).
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Banking and financial sector
 Job designing as a challenge
According to Chahardoli, Motamedzade, Hamidi, Golmohammadi and Soltanian, (2014), it can
be said that job designing should be done effectively so that the challenge related to attraction
and retention of the employees can be minimized. There should be proper concept between the
job designing, performance and also the workers satisfaction in relation to the targeted audience.
In the case of Hamadan in Iran, it has been observed that they focused on doing survey in
relation to the designing of the job in bank. So, by the overall analysis it can be stated that the by
proper job designing it can be easy to motivate the employees in the workplace.
It can be said that job designing is considered as the concept in which the overall decisions are
considered in relation to the job and also the emphasis is on meeting the needs of the people.
The factors that negatively impact the satisfaction level of the employees who are working in the
banking sector. The dissatisfaction can be related to due to compensation, promotion in the
different banks on the worldwide platform. It is essential to define the job requirement as
retention of employees can be done and for this it is important to focus on focusing on the theory
related to job characteristic. In the theory the focus is on the different factors that should be there
like proper evaluation of the task significance and also the feedback should be given so that it
can be easy to retain the employees in the workplace. By focusing on the theory, it can be stated
that designing of the job should be done by considering the factors related to motivation and
satisfaction level of the employees (Lin, 2016).
 Safety as the challenge
It can be observed that in the banking and finance sector, the employees are considered as the
essential aspect, so it is important to focus on retaining them in the workplace. The companies
should emphasize on maintaining the policies in the company so that security of the workers
from the injury can be reduced. It is important to focus on maintaining the safe and healthy
environment as it can help in maintaining the performance of the employees. In the sector of
banking and finance, there could be different aspects that influence the attraction and retention of
the employees. It can be seen that in this context the challenge can be related to maintaining the
safety of the operations related to transportation of the documents (Agbozo et al., 2017).
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Banking and financial sector
The challenge faced by the employees is related to the stress that should be maintained so that
the efficiency of the employees can be boosted. In the banking sector, it is important for the
companies to focus on considering the strategies related to risk as it helps in retention of the
employees in workplace. The health and safety model should be considered by focusing on the
needs of the employees. The theory that can be considered is related to Maslow Hierarchy of
needs that should be there so that the needs of the employees can be satisfied. To attract the
employees and to retain the employees in the workplace, it is important for the company to focus
on considering on the basic needs of the employees so that they can feel positive and good
towards the organizational activities. This is considered as the best technique that should be
considered by the companies so that it can be easy to retain the employees in the workplace. To
maintain the safety of the employees, it is important to focus on satisfying the needs so that they
can be willing to work with the banking and financial sector (Schumacher et al., 2016).
 Ethical activities as the challenge
According to Wickham (2012), it can be stated that one of the basic principle that governs the
organizational management is related with ethical decision. In the workplace, it is important to
focus on the ethical practices and should also focus on maintaining the overall decision process
as it can help in attaining success in the highly competitive market. To be ethical it is important
to focus on maintaining positive relation with the customers and also to maintain the reputation
in the market so that it can be easy to consider the ethical practice in the workplace.
In the financial sector it is important for the companies to emphasize on culture as it can assist in
considering the basic values. The employee’s expectation level can be enhanced, which is
important to be controlled so that it can be easy to focus on maintaining the values. It has been
examined that financial crisis has impacted the large companies and it is just because if the
failure of the corporate governance system. So, it is stated that ethical framework is considered
as the issue which managers faces in relation to the banking sector and it should be considered so
that attraction and retention of the employees can take place in an effective manner. In this
context, it is important for the companies to emphasize on taking the stewardship theory as it can
help in boosting the ethical values in the workplace (Goswami, 2015).
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Banking and financial sector
 Recommendations
By evaluating the challenges, it can be recommended that it is important for the banking and
financial sector to focus on giving training to the employees, so that it can be easy to boost their
efficiency towards the work. In relation to the human resource challenge it is necessary for the
company to emphasize on satisfying needs of the employees as it can help to retain and attract
the customers towards organizational activities. Also, it is important for the companies to
emphasize on implementing the safety management system to maintain the safety of the
employees in the workplace. The job characteristic should also be matched so that it can
maintain the workers skills in the banking and financial sector.
 Conclusion
So, it can be concluded that there are various challenges which are faced by the companies in the
banking and financial sector. It is important for the HR manager to focus on considering the
theories so that it can be easy to minimize the issue and also the needs should be satisfied as it
helps the employees to give their best towards the organizational activities. Motivation given to
the employees can help in maintaining the retention of the employees in the banking and
financial sector.
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Banking and financial sector
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