Strategies to Improve Job Security in MNCs in Bangladesh for Retention

This report examines strategies to enhance job security and employee retention in multinational companies (MNCs) operating in Bangladesh. It synthesizes findings from three research articles. The first article emphasizes the importance of employee retention for organizational success, identifying factors influencing employees' decisions to stay or leave, such as work environment, financial security, job satisfaction, and growth opportunities. The second article highlights the significance of effective human resource management in retaining employees, focusing on work-life balance, flexible work schedules, and competitive salaries. The third article explores the influence of cultural factors on HR practices, suggesting that MNCs should align their strategies with Bangladesh's cultural context, including power distance and performance orientation, to improve employee motivation and job security through appropriate compensation policies, training, and teamwork. The report underscores the need for MNCs to prioritize employee well-being, fair compensation, and culturally sensitive HR practices to attract and retain a skilled workforce in Bangladesh.

What could be the best possible strategies to enhance job securities
in multinational companies operating in Bangladesh so that more
employees are attracted to such companies?
In Bangladesh the most common idea is that you need to work for a
living so everyone who works, tend to work to maintain their cost of
living (to be able to pay rent, to be able to buy food etc.). So, having
a sense of security of job that is, their jobs all on a sudden will not be
terminated, gives every employee a sense of relief, more
importantly, a sense of security. The three articles below cover the
research question.
Article 1:
In this article the authors made it very clear that the overall growth,
profitability, sustainability of any organization lies with its employees
as turnover, especially employee turnover is very costly for the
organizations. It can never be certainly stated that employees get a
sense of security just by having large scale of pay and facilities, at the
same time poor pay is not always the only reason for a person to quit
their jobs in the organization in Bangladesh. This article has identified
main causes for employee retention and factors behind employee’s
quitting or sticking to their jobs. This will also be beneficial for the
top management of different organizations in Bangladesh, to identify
the basic needs that the employees expect in from their employers
and from their companies. In terms of theoretical framework, this
study has undertaken two main factors, negative and positive effects
of influencing factors. For the Methodology of the study the authors
have used a structured questionnaire for collecting primary data by
using a five point scale, where 1= strongly agree, 2= agree, 3= neither

agree nor disagree, 4= disagree, 5= strongly disagree and the
researchers made factor analysis from the collected data by using
Likert scale. The researchers also used ‘non-probability sampling
technique’ where they followed the judgmental sampling method to
collect the data. The Statistical Package for Social Science, version
16.0 was used for this analysis where, Factor analysis was used to
identify the factors. The researchers have also used several factor
analyses like Total variance explained, Communalities, Scree Plot,
Rotated Component (Factor) Matrix, and Composition of factors. This
study also identified that almost all the factors have positive
relationship with employee’s intention to stay or to quit. And it can
be stated that employee’s staying in a job or leaving the job is a
strong reflection of contributory factors and the ones which are
quitting factors were Work location & leave provision, organizational
structure and interpersonal relations, volume of work and
supervision, future financial security, imbalanced organizational-
personal- family expectation, salary and performance appraisal, level
of job satisfaction and security, work life balance and scope of
growth & development, discrimination and supervisor’s attitude.
Whereas the factors that made the employees to stay at their jobs
were stated as satisfactory job conditions and organizational
support, empowerment & growth, nature of job and updated
training, fulfillment of one’s job expectations and organization’s
image, sound administration and scope of personal development and
pay and environment. (Islam et.al, 2014)
Article 2:
In accordance with this article, the authors stated that Human
Resource can be stated as one of the most major key aspects of an

organization for which, it is highly essential to find effective human
resource management to help the companies retain their employees.
The main aim of this study was to find effective strategies to help
employee retention of multinational corporations in Bangladesh
based on the perspective of the employees. The researchers used
primary data from different MNCs from different industries in
Bangladesh and used many graphs and charts and statistical tools
such as ANOVA test & Correlation, used as secondary data. For the
methodology, this study used hypotheses and survey data. For the
sampling, convenience sampling was used. In the study, the
researchers considered many key points as, ‘years of experience at
corporate world’, ‘age and type of industry of the respondents’ and a
variety of different questions. The survey data of the research
basically showed that the maximum number of the employees are
more focused on the work life rather than the salaries and even
more than the working hours as the highest number of employees
strongly resembled that they were not happy with their the balance
of work life whereas very small number of employees mentioned
about unsatisfactory pay scale and working hours respectively,
where none of the employees thought they were being able to
balance their work-life. The authors stated that though the main aim
of any organization is to earn maximum profit, in order to attain that
profit, the multinational companies or organizations in Bangladesh
should concentrate more on employees and the ways to retain them
for their sustainability for the long run. This study has identified that
lack of flexibility in work schedule and salaries are two of the major
facts that force employees to switch jobs. Also, employees look
forward to having stability of the career. The authors also suggest
that the companies should consider recruiting people who live
nearby the industry. In conclusion, the authors have made some
important recommendations to employee retention and to friendly

HR policies such as employers should emphasize more on improving
the working environment and should focus more on motivating their
employees. In order to really know employee’s expectations,
companies should conduct meetings regularly. Providing proper
training to employees should also be kept in consideration.
Furthermore, companies should also try to make work time more
flexible considering the social aspects as well. (Tirno et.al, 2019)
Article 3:
In this article, the study has used Hofstede’s (1980) culture
dimensions. It demonstrates how culture may play an important role
in terms of shaping key HR practices in the South Asian context that
facilitates top management of MNCs to manage the workforce better
not only in Bangladesh but also in other countries as well. Additional
points like relationship between culture and key Human Resource
practices like compensation policy, job security, training and
development selection recruitment etc. was kept in consideration.
Here, the authors have given detailed history about Bangladesh and
have made very descriptive comparison between Hofstede’s study
and the culture of Bangladesh and have compared link between
culture and Salient HR practices. The authors identified that
Bangladeshi culture is mostly combined with high power distance
and low performance orientation. In the cultural context of
Bangladesh, the authors have made eight propositions, as employees
think that salaries are offered by the decisions made by top
management, rather than following a more structured compensation
policy. And the second proposition is that employees prefer having
flexible benefits in groups as incentives rather than being rewarded
individually. Some other propositions include that job security is one
of the most important factors that can motivate employees, in the
context of Bangladesh. As providing training helps to get an

improved workforce, trainings should be given in relation to
employees’ cultural orientation, internal advertisements should be
made to hire new staff, teamwork and decentralized decision making
should be made as the employees in Bangladesh are familiar with
not getting to know all the information. Since cultural context,
historical, social and political spheres of a country play very
important roles in improving an organization’s human resources very
effectively which also can influence the management practices as
well, a company should align itself with these cultural and other
contextual factors to gain competitive advantage. In addition, this
paper has discussed about six salient HR practices which are
compensation policy, job security, training and development,
selection and recruitment, decentralization and teamwork and job
security. Finally, the authors suggested that since Bangladesh has
very significant socioeconomic development opportunities,
multinational companies in Bangladesh should focus more on
attracting, retaining and managing their human resources effectively
by managing considering expectations from their employees. If the
MNCs study HRM practices in Bangladesh and how cultural and
contextual issues affect them, not only will it be easier for them to
understand and know about the impact of these contextual
workforce, but also it will allow the HR managers of the MNCs to
identify the most appropriate HR practices that will bring the best
outcomes from the employees. (Abdullah et. al, 2011)

References:
Abdullah, Boyle, Joham. (2011). Cultural Factors in Workforce
Management: The Case of Multinational Companies Operating
in
Bangladesh. https://www.researchgate.net/profile/Ste
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Workforce-Management-The-Case-of-Multinational-
Companies-Operating-in-Bangladesh.pdf
Islam, Alam. (2014). Factors influencing Intention to Quit or Stay in
Jobs: An Empirical Study on selected sectors in
Bangladesh. Stamford Journal of Business
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Intention-to-Quit-or-Stay-in-Jobs-An-Empirical-
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Tirno, Sharmin. (2019). Effective Employee Retention Strategies for
the Multinationals of
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