Essay on Attracting and Retaining Employees in the Banking Industry

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Essay on attracting and retaining staff
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Employees are the key part of any business organization whether it is a banking sector company,
mining sector company or any other sector. The employees are held responsible for the purpose
of smooth operations within an organization and they are also responsible for the success of
business organizations. It is very necessary for a business organization to attract as well as retain
the high skilled labor within the business so that it can achieve the stability within this
competitive market. The Human Resource Management within a business holds a significant
position in order to manage effectively the human resources or employees of any organization.
Several numbers of plans and strategies are being made by the managers of a company in order
to attract new workforce and also motivate the existing employees to be loyal towards the
organization and stay with the organization for a long term (Cooper, et. al., 2019).
Human resource management is an important concept which is required to be utilized by each
and every organization of the banking sector. There are several numbers of challenges faced by
the management of the banking sector organizations in order to manage and retain the employees
within a company. The human resource management is a very crucial department of an
organization which is responsible to manage the workforce in a company and attract them more
towards the working structure of the organization. Human resource management plays a very
crucial role in order to maintain the dimension of the human resources within a company and
keep them retaining. They provide a solution to each and every professional problem of the
employees at the workplace and keep them satisfied so that they can be loyal towards their
company and do not leave the organization of such banking sector (Akyüz, et. al., 2015).
There are several numbers of practices and strategies adopted by the human resource
management so that more and more people can be attracted towards the business and the existing
ones can be retained but there are always some problems which create the challenges in front of
these organizations in order to retain the existing employees by satisfying their demands. The
strategic human resource management is an approach to manage the human resources of an
organization which supports the long term objectives of business as well as outcomes with the
help of the strategic framework. The human resource management holds the responsibility of
formulating such HR policies so that the performance of the employees can be improved as well
as evaluated. The human resource management mostly focuses on the recruitment as well as the
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hiring of the best employees and also provides them the compensation, training as well as the
development which they are required to be successful and more productive in future.
In the banking services sector, there is a great burden of the work as well as the responsibilities
as the bank deals with the money of the other people. It is necessary for the employees working
within the banking sector to fulfill their responsibilities with great concentration and enthusiasm.
There are several reasons due to which the employees in the banking sector organizations avoid
continuing in such companies as well as the new upcoming workforce avoid to work in such
banking sector companies. The people of this age are looking forwards towards learning new
things while earning but if there is continuously same processes being bused and done by a
person when he gets frustrated by doing such work again and again. This becomes a very crucial
reason behind the employees switching their jobs into the different sectors. Due to such reason,
the retention rates of the banking sector companies get affected as the employees leave the
organization in order to work with any other sector companies (Akyüz, et. al., 2015).
Employee’s retention is a technique which is required for the management to apply within a
business in order to help the employees to stay within the company for a longer period of time
rather than leaving the company after being frustrated. Employees retention has become a very
major problem or it can be said the concern for the banking sector companies as the individuals
of nowadays have the tendency to leave their organizations after being trained properly and then
move to other sector organizations after attaining the necessary skills for some better prospects.
The people of the new generation are having different interests and different choices. They do
not want to do such kind of jobs or look for future for such opportunities where they will need to
do the repetitive work. They want the creativity in their work schedule. If it has been asked to
them anyways that what they want to do in future then their answers would be obvious that they
want to become a technician, doctor, engineer or a lawyer. The attraction of the new generation
towards the banking sector companies is fading away as there are no such opportunities of being
creative at the workplace and there are numerous job role responsibilities as they deal with the
money of other people and the money related works should be implemented with great care as
well as concentration.
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Each business within a banking sector cannot do all the things which the employees wanted and
required to be done. The banking sector employees face a very big challenge of the work burden
at the workplace as there may be a large pressure of the work on the employees which are
working within the banking sector and due to such pressure they feel devastated and tend to
leave the organization. The high skilled employees when leaving the company, it affects the
business routine to a great extent due to which the profitability of the business gets affected in a
negative manner.
One of the biggest challenges is the monetary dissatisfaction which causes to the low retention
rates within a business for the employees. If any employees have the excessive expectations from
their organization regarding the salary and the company is not able to pay the same to him then
there will come the frustration which will lead to the changes in the mind of employees and they
may require a change from their employment. It has been analyzed that the highly skilled
employees are generally given plenty of works as well as responsibilities which may be the cause
of the frustration with such employee and he may leave the sector to work in any other sector
(Madanat & Khasawneh, 2018).
There are some sorts of employees who get bored very soon in a very short span of the time
period. For such kind of employees, working with the same organization of the same sector can
be challenging as they want to change their job profile and want creativity at their workplace.
This is one of the major challenges which are faced by the banking sector organizations in order
to attract and retain the employees. The human resource management within the organization
finds the difficulty in order to manage such kind of people at the workplace and then retain them.
Due to this reason, the retention rate of the business gets affected and further the employees
leaving the organization also tell the other people which are going to enter into the employment,
all the negative things regarding working with the banking sector companies.
In the market, there are a lot of opportunities in the market for jobs. In every sector such as IT,
medical, mining as well as banking, there are lots of job opportunities for skilled labor. It has
become very challenging and difficult of the banking sector organizations to attract them towards
themselves. There is a requirement of attractive human resource management practices so that
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those people can be attracted towards the banking sector and can give their full potential on the
work to increase the profitability (Robin Kramer, et. al., 2013).
There has been seen the diversities at the workplace in reference to the employees working there
in the banking sector. There are several people from different culture and backgrounds and they
are also having different interests and different point of views. Due to the improper diversity
management, the employees do not feel valued within banking sector companies and they look
for such workplace where their perspectives and the point of views are respected and values.
They are required to be considered as an important part of the business organization. In the
world, where there are lots of opportunities for the individuals and there is so proper diversity
management within the workplaces, it is quite not possible for the people to stay within one
organization and not switch their companies (Kendall, 2017).
The imperfect and unusual practices used by the human resource management within the
banking sector regarding the recruitment and selection of the employees is also a very big
challenge in front of the banking sector organizations in Australia. There are not being used the
attractive hiring and the recruitment policies by the human resource management of the banking
sector companies (Akanji, 2017). The banking sector is a very grooming sector yet there is a lot
of work pressure which is required to be handled by the most appropriate employees. For such
purpose, it is required to attract the highly skilled employees within the business but due to the
competition in the market, it has become very hard to attract the highly skilled employees in this
sector. There is a requirement of attractive salary packages for the employees so that they can be
attracted towards the company but due to the changing remuneration policies in the banking
sector, the people and the new generation avoids to work within this banking sector organization
(Boon, et. al., 2018).
In order to provide the financial services, the employees of the banking sector are required to
deal with the client directly. It is necessary for the employees to have the necessary skills such as
great communication skills as well as the patience while dealing with the client. The same
attributes are required in the different sector organizations also which is causing to the increasing
competition in the market to attract the employees or retain them for a longer period of time on
the same remuneration. Employee retention is a very necessary concept for the business
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organizations in order to be successful and to retain the employees, it is necessary to fulfill all the
demands of the employees and meet their expectations.
The employees face the problems of maintaining the work life as well as the personal life while
working with the banking sector companies. The main problem in front of the banking sector is
regarding satisfying the employees in terms of managing the workplace diversities as well as the
increasing burden of the work. The excessive workload is the reason why the employees do not
want to come into the banking sector or the existing ones continue the job in this rector. The
management of these companies is not able to retain the employees as due to the work burden
they are not able to spend the time for themselves which has become the main reason in front of
them to leave the jobs. The management of banking sector companies is required to adopt such
practices which can manage the stress at the workplace for employees.
The most important and attractive concept to attract the employees as well as retaining them is to
employ the practices of rewards as well as benefits to the employees for the good work they have
done. It is a very big challenge which is causing to the increasing costs of the banking sector
companies as they need to provide the performance appraisals as well as the rewards to their
highly skilled employees. It increases the cost of the business. This is a very big challenge in
front of the banking sector companies in order to attract the employees and for such purpose,
they are required to form such practices and policies which can be helpful in satisfying the
demands of employees band make them happy.
Apart from these, there is a big challenge in front of banking sector companies regarding the
employee human relations at the workplace. It has been identifying that in the workplace, there
arise several numbers of conflicts which lead to frustration in the workplace as well as the bad
work environment. The human resource management is liable or responsible towards the
solution of the conflicts taking places between the employees at the workplace of the banking
sector. This brings a problem in form of the management of banking sector companies to solve
such conflicting problems among the employees and retain them by keeping them happy and
satisfied at the workplace (Gawlik, et. al., 2016).
The employees within a business organization are the most important part as all the work is
being operated and managed by them. There is a requirement of time to time performance
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appraisal for the employees at the workplace based on their performance. It is very necessary for
the management of the banking sector company to review the performance of the employees
from time to time and on such basis provide them appraisal as well as benefits. As there are
several other works to do and manage within a banking sector organizations, it is not easy for
them to keep all these things in their mind and keep the employees motivated as well as satisfied
(Konrad, et. al., 2016).
Within the banking sectors, all the operations are associated with the money and it is important
for the managers to pay attention towards the effective management of the employees within the
organizations. The employees of the banking sector organizations face the issue regarding the
work-life balances which are required to be sorted out so that they can be retained within the
organization and can also attract more and more skilled high labor through mouth publicity
(Prakash, 2015).
There can be made several recommendations in order to identify such strategies which are
required to address such challenges faced by such banking sector organizations. The continuous
changes within the external as well as the external environment of the banking sector companies
are leading to the resistance to change among the employees and which is being the reason of the
employees leaving the jobs in banking sector organizations. It is highly recommended to the
human resource management of the banking sector companies to adopt such practices which can
be used to attract more and more employees with the attractive salary packages (Jiang &
Messersmith, 2018).
There must be the low burden of the work and for such purpose, there is the requirement of
effective utilization of the human resources as well as the nonhuman resources of the company
by the management of such banking sector organization. In order to keep motivating the
employees, so that they do not leave the organization and stay there for a longer time period, it is
necessary to provide those rewards and compensation from time to time for the good work and
efforts they put into the productivity of the organization. It can be concluded from the essay
presented above that there must be employed the best human resource management practices by
the management of the banking service companies so that more and more employees can be
attracted and retained with such companies.
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