Attracting and Retaining Staff in the Banking Sector: HRMT20024 Essay

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ESSAY ON ATTRACTING AND
RETAINING STAFF HRMT20024
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The banking sector is one of the most important sections of any economy which is devoted to
keeping the financial assets or the money of other people in order to further invest them as the
leverage to create more wealth from such investment. Banking sector holds a significant position
in the market which contributes towards the GDP of a country. The employees within the
banking sector companies have very big responsibilities at the workplace as they are involved in
the dealing of money of other people. It is very necessary for the banking sector companies to
attract new employees and retain the existing ones so that they can be stable in the market and
hold a significant growth (Tejpal, 2015).
In any sector of business, the employee retention is a very important practice to be used by the
organizations in order to attain the loyalty of the employees as well as keeping them working
within the organization for a longer span of time period. It is quintessential for the banking sector
business organizations to keep attracting and retaining the employees within the business
organization so that they can be successful and there can be saved the cost of lost sales, training
costs as well as the hiring costs. There have been found or identified the key areas by the
managers where they are facing the challenges regarding retaining as well as attraction of the
workforce. There are several challenges which include challenges related to legal, ethical and the
safety context, selection and recruitment processes, performance management, employee
relations, work- life balance as well as the diversity management (Robin Kramar, et. al., 2013).
There has been significantly increasing the employee turnover rates which are causing to the low
stability of the employees within the banking sector companies. The employees are facing sacral
numbers of issues while working with the banking sector due to which they are not able to stay
in that company and continue their job. The human resource management within a banking
sector must make such policies and implement such practices which can prove to be helpful in
retaining the existing employees by keeping them completely satisfied.
The biggest challenge that has been highlighted regarding the attraction and retention of the
employees within the banking sector is the legal, ethical and safety concern for the employees.
Due to the hard deadlines as well as too much pressure at the workplace, employees of the
banking sector may suffer from several numbers of diseases and this is one of the biggest
challenge in front of the banking sector to adopt such health and safety policies which can
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provide the employees of the banking sector, the protection from such hard deadlines and log
working hours. The challenging work environment is one of the reasons for the banking sector
employees which create the risk to the health of the banking sector workforce. Due to such
reasons, the employees do not want to stay within the companies and they want some other perks
and benefits while working with some other company of different sector.
To work within banking sector is a difficult task for the staff due to the high work burden and the
lower incentives. The employees are not able to have time to spend on personal works as well as
to communicate with their friends and family. They are not able to maintain their work and
personal life balance altogether (Iqbal, et. al., 2018). This has become a very big challenge in
front of the management of banking sector companies that they keep satisfying the employees of
the organization and also managing the operations so that the work cannot be hampered. This is
not an easy task to boost up the morale of the employees and also keeping them working hard in
order to increase the productivity. There is requirement of the stress management policies within
the banking sector and it is a very big challenge in front of banking sector companies to keep
satisfying the employees and ensuring that they are loyal to the company.
Out of such challenges of attracting and retaining employees, the ineffective recruitment and
selection policies are also reason behind the employees not being attracted towards the banking
sector organizations for the career. It has been noticed that the competition in the market has
increased. Every company of any sector within the market is involved in the race of attracting
and hiring the best people having the great skillet (Robin Kramar, et. al., 2013). It has become
very tough for the banking sector to attract the new workforce as other sector companies are also
providing the skilled employees, comparative salaries as well as great facilities with a good
working environment. The employees are getting attracted towards such places where there are
good working conditions and no stress while working. They are looking for such career
opportunities where they can also have enough time for their personal lives along with the
professional lives.
The banking sector is grooming day by day as the habits of people in developing regarding
investing their money for further benefits and also saving their money for future contingencies. It
is required for the banking sector companies to recruit such policies which can be helpful in
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managing such work and can have their sense of responsibilities. They are required to manage
the money of other people and deal with the clients so that there can be transparency in front of
clients regarding their money (Kanengoni & Murugan, 2013). There is requirement of recruit
such people having great skill set. The people are employed from different places which have
their own point of views and thoughts. It increases the diversity at the workplace. It is a very big
challenge in front of the management of banking Sector Company to manage such employees
and diversity at the workplace effectively. It is necessary that no employee should feel
demoralized and all their thoughts and differences should be valued and respected. This will help
in keeping the employees motivated and retaining them within the organization for long term.
The challenge of managing the diversity at the workplace is also a big challenge for the banking
sector company management (Russell & Brannan, 2016).
There has been identified the continuous changes and modifications in the remuneration policies
of banking sector employees as well as the regulations regarding the working conditions in
banking companies. It is generally not easy for the management of a company to adopt such
changes and motivating the other employees to adopt such challenges positively. The employees
always resist to the changes. It is a challenging for the banking sector company management to
convince the workforce to accept such changes and taking them positively (Luthra & Mangla,
2018). The managers are also required to ensure that the feelings and sentiments of any person or
the employees are not being hurt. If the employees are not happy and satisfied, it can cause to the
problem for the organization as the employee turnover rate will increase and there will be
downfall in the retention rate of the company. This has become very problematic and challenging
for the banking sector companies to retain the employees and keeping them loyal as the market is
also providing them better working environment as well as great opportunities to work (Robin
Kramar, et. al., 2013).
In the banking sector, it has been identified that due to the heavy work pressure, it has become
quite challenging for the human resource management to measure and evaluate the performance
of each and every employee. The numbers of employees joining and leaving the banking sector
organizations is increasing with time and it has become very difficult for the management to pay
attention towards the performance of each and every employee. This is leading to the problems
in the function ability of the organization and the employees are also feeling depressed due to
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ineffective management. They are not able to assess their work that whether they are doing good
or any further improvements are required. The employees do not want to stay and work at such
places where there is nothing new to learn. It is being one of the main reasons of leaving the
organization for them which has become a major challenge for the banking sector companies
(Akar & Sharma, 2018).
The new and young generation is moving towards the other career perspectives and
opportunities. They are looking for some innovative and creative jobs where they can learn more
and develop their skills. It can help them in achieving great professionalism and they will also be
able on focusing their career. They want to work at such places where it is easy for them to
develop themselves and learn different new concepts, but while working with the banking sector,
they cannot satisfy their these kinds of requirements. There will be a fixed job role and fixed
work assigned to them along with the tight deadlines. This is being considered as one of the man
reasons behind the non attraction of the employees towards the banking sector. In the race of
being doctor, engineer as well as teacher, the interest of working within the banking sector
companies has faded away. It has become very important for the banking sector organizations to
identify the needs of their employees and then keeping them satisfied. It will help the companies
in retaining their good employees for longer time period and the costs of the recruitment for the
companies will also not increase.
The sick relations among the employees within an organization are an increasing problem
noticed in banking sector organizations (Darzi & Bhat, 2018). The banking sector includes
people of different types and they may have conflicts at the workplace regarding any point of
discussion. The banking sector management is responsible to solve such conflicts in order to
keeping their employees and not leaving their organization after being frustrated. Mouth
publicity plays a very important role during the recruitment and selection process of any
organization. If the employees are satisfied with their jobs, they will also recommend it further
for their friends. It will help in attracting them towards the banking industries. The relationship
among the employees must be healthy as it will promote the employees to stay loyal with the
company and perform their duties with their full potential. Attracting and retaining the
employees in the banking sector is a very big challenge because it has become the most difficult
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task for the management of banking sector companies in this competitive environment (Tlaiss,
2013).
The monetary dissatisfaction is the biggest cause behind the employees leaving their
organizations. It has become prominent for every sector company to pay well for the skills the
employees are holding. They deserve better pay as well as the monetary rewards for the work
they are doing with these companies. The challenge in front of banking sector companies is
regarding implementing the policies of rewards and compensation to the employees so that the
profitability of the organization can also be maintained along with the satisfaction of the
employees working within the organization.
The higher job risks as well as the lower security of the job is another reason in front of
management of banking sector due to which they are not being able to attract more and more
new workforce. The demand of the skilled employees is increasing with time and the availability
of such skilled labor is being rare as they are already being taken by the IT firms or the medical
and pharmaceutical industries. The people now want a great job security along with the flexible
working hours which is being a problematic situation for the management of the financial
services sector. Employees generally join the banking companies to take the training and develop
their skill set. They further leave such organization and go for another sector companies. The
complete cost burden of training goes on the banking sector organizations. The companies are
facing these challenges from a very long time and the profitability of the businesses is also being
affected due to such reasons.
In order to retain and attract the employees in banking sector, it has become necessary to make
certain changes in the working criteria of this sector so that the employees can be satisfied with
their work and can be retained within the company. The limited career growth has become a very
big threat in front of banking sector as it is not able to attract the new workforce and retain the
existing one in order to increase the efficiency of the business. The ineffective policies used by
the human resource management are being the biggest cause of high employee turnover. It is a
challenge for banking sector companies to make the improvements in their human resource
planning. The employees must be treated and the preference must be given to them for the
purpose of keeping them motivated and satisfied from their job. A rich work culture is required
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to be followed by banking sector companies so that they can enjoy working within the banking
sector companies (Mansor & Idris, 2015).
The employees are very essential part of any business organization and they must be treated very
well so that they can be retained in the organization and can also enhance the productivity and
profitability of the organization. The companies are facing the challenges for the purpose of
keeping these employees loyal to the organization. The pay scale revisions are the reasons of the
frustration among the employees as they expect more and do not get the exact increment as they
want. It demoralizes the employees and leaves the organizations for some better future prospects.
The companies in banking sector are required to take the necessary steps in order to address such
challenges and retain the employees (Khalid, et. al., 2016).
The recognition and rewards systems on a higher level must be adopted by the banking sector
companies in order to motivate and keeping happy their employees so that they can also
recommend working within the banking sector companies as well as attracting more and more
employees. The retention rate of the banking sector employees can be increased by doing so
which will be quite beneficial for the industry (Khan, 2014). The employees must also be
provided the feedbacks on their work and they should be provided the training sessions to make
improvements in themselves. It will make them realize that they are not only earning but also
learning while working with the banking companies. The innovation should be brought within
the banking sector organizations in order to retain the employees and saving the recruitment and
training costs on the new employees. The programs must be conducted to release the stress of the
employees and they should also be provided the leaves and holidays from time to time. It will
make them happy and satisfied at the workplace and they will also be able to give time to their
friends and family members.
In order to address the challenges of attracting and retaining the workforce, it is necessary to
adopt effective policies for the human resource management. The companies must take care of
their employees and also provide them necessary perks and benefits. It the expectations of the
employees are fulfilled, they will never tend to leave the organization (Ibidunni, et. al., 2016).
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