Impact of Employee Training on Retention: A Westpac Case Study

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Professional Project (BUSN20019)
Assessment 2: Research Report
Student name: Patel Vishal kumar Bipinbhai
Student ID:12064534
Lecturer and Tutor Name: Bruce Johnstone
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Executive summary
The objective of this particular research report is to avail the information about the employee
training and development so as to retain the staffs for a long period of time in the company. The
consideration has been done on the different research questions based on the specified topic. The
strategies and training programs that are been used by Westpac bank has been focused in detail.
The impact of training on the results availed by the employees for the assigned task has also been
answered. The research questions were the major focus so that the problems and the probable
issues that a company might face is facing can be resolved appropriately and effectively.
The literature review has explained the strategies and the impact of training that Westpac bank is
using to retain its employees. The annual report of the last 15 years has been considered where
all the detail information has been presented. The data gathered here is supporting the readers to
understand the efforts and hardship put by the company for its employee retention programs. The
concern on the two drawn variables has been done as these factors have helped in enhancing the
knowledge about the company’s effectors on the retention as well as the training program.
The data collection is based on the secondary sources where articles based on the company's
information have been drawn. The analysis has been focused to be done through the quantitative
method where different numerical formulas have been utilised. The data obtained are highly be
referring to the chosen company strategies could be effectively used in the entire industry. The
closure of this project provides information about the strategies which lead the company to retain
its employees effectively.
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Contents
Executive summary.........................................................................................................................2
1. Introduction..................................................................................................................................5
1.1 Research Aim.........................................................................................................................5
1.2 Research questions.................................................................................................................5
1.3 Research objectives...............................................................................................................6
2. Critical Literature review.............................................................................................................7
2.1 Importance of training and development program in banking sector....................................7
2.2 Need of employee retention in the company.........................................................................8
2.3 Impact of training programs on the retention of the workforce in banks..............................8
3. Methodology..............................................................................................................................10
3.1 Data collection.....................................................................................................................10
3.2 Data analysis........................................................................................................................10
3.3 Research method..................................................................................................................10
3.4 Research design...................................................................................................................10
3.5 Variable specifications.........................................................................................................11
3.6 Regression............................................................................................................................11
3.7 Anova-one way....................................................................................................................11
4. Findings and analysis.................................................................................................................12
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5. Discussion..................................................................................................................................15
6. Conclusion.................................................................................................................................16
6.1 Recommendation.................................................................................................................16
6.2 Limitations...........................................................................................................................16
References......................................................................................................................................17
Appendix........................................................................................................................................19
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“Impact of employee training on employee retention rate: A case study of Westpac Group
Australia.”
1. Introduction
The employees are one of the key factors that have an essential role in the company. The
employees are considering being the main players who contribute highly to the attainment of the
aims and long term objectives of an organisation. The presence of employees acts as the
supporting pole for the company to perform and to survive effectively in the competitive world.
It is very important for Westpac Bank to make sure that the employees are provided different
opportunities which will make them motivated and retain long in the company. The retention of
the employees is very important for which the proper planning and strategies are very necessary
to be done. The employee's retention rate has to be balanced and must not decrease; it will
ultimately lead to a situation where employees are leaving their jobs. As long the employees are
retaining in an organisation the worth of it is getting increased and the profit generated will also
be in favour of the firm.
The Westpac Company is well-renowned banks established in Australia which is I the need to
train the employees so that they can retain the employees. The employee's retention rate of the
bank will be the concerning element in this report. As it is availing different and wide ranges of
financial services to the customers, the need for efficient and dedicated employees are high for
serving the clients. This project report will be including different factors such as research
background, its aims/standards and research questions, literature review, data analysis and its
discussion, methodologies and at the end conclusion, all these are the sections that will get
covered in this research report.
1.1 Research Aim
The prime objective here is to understand the influences of employee's training and development
program on the employee's retention. This research will also be concerning the involvement that
the employees will be putting in the ultimate goal of the firm.
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1.2 Research questions
Primary Question
 What is the impact of employee training on employee retention rates?
Secondary Question
 What are the methods used by Westpac Bank for the employee’s training and
development?
 What is the need for retention of employees in the company?
 Is there any relation between the employees training and employee retention in an
organisation?
1.3 Research objectives
 To understand the significance of training and development program in the banking
sector
 To determine the need for employee retention in the company
 To analyse the impact of training programs on the retention of the workforce in Westpac
company
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2. Critical Literature review
The training and development programs are the commons and most consistently used strategies
by every organisation at present. The level of competition in the market is very high which has to
be met effectively by the companies so that the challenges can be balanced. The need to develop
and introduce the strategies is very important as with the help of these threats can be handled
effectively. The human resource in the organisation plays a lead role which can only be attained
when they are getting supportive and effective working culture. To retain highly skilled
employees in the company, it is very important for the organisation to meet their (employee's)
needs and requirements.
2.1 Importance of training and development program in the banking sector
As asserted by Rani & Garg (2014), the employee’s growth and development is very important
in an organisation to make them perform according to the needs and requirements of the firm.
The employee is considered to be the key factors which are helping the company to meet the
standards and objectives set by it. The contribution of the employees highly influences the
sustainability of the firm. It is very important for management to take into consideration the
employee's growth and development aspect.
By Mehta (2016), the major problem that is getting arisen in the banking field is the shortage of
eligible candidates. The employees are not able to put their best in the tasks and works because
of lack of knowledge. The trained and well-skilled people are required in the field of banking so
that the operations, as well as the activities, can be obtained in the needed way. The training
programs are considered the best strategy that could be utilised by the banks so that they can
motivate employees and enhance their skills to deal in an effective and appropriate needed
manner.
As opined by Wright (2014), this is one of the HRM practices which is very important and are
focused highly. With the help of this, the company can be able to develop the skills and
knowledge of the employees. The training and development program will be assisting the
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company to make the employees skilled and knowledgeable. This will be making the company
more productive and effective to attain growth and success in the market.
2.2 Need for employee retention in the company
As asserted by Lewis & Sequeira (2016), the employee retention is the program or the strategy
which is used by the company where the staffs are motivated and influenced positively so that
they can remain in the firm for long period. The employees are the asset of the company which is
needed to be treated well and has to be used in the best possible manner. The need to retain the
employees becomes very important in the organisation to attain success and long term
sustainability in the competitive market. With the help of this, the firm will be able to utilise the
resources in the most desired manner.
By Kossivi, et. al. (2016), the banking sector is the employee’s retention has been understood to
be one of the most serious elements in the present era. Managing employee retention is one of
the challenging factors as the behaviour of the employees cannot be controlled and managed.
The employees are encouraged and provided different benefits so that they can stay long which
will aid the firm to deal with the market challenges. The skilled employees will contribute highly
to the growth of the firm. Therefore it is focused by the company to retain the employees in the
firm.
As opined by Mathimaran & Kumar (2017), the retention program plays an essential role in the
company as the employees will not be leaving the company and the employee turnover rate will
be comparatively less. This will be assisting the company to deal with the market needs and
required in the best and effective possible manner. The operations and activities in the banking
sector are very critical; therefore the efficient and talented people are required for this. The
employees who are skills needed to be retained and the one who are not having the traits are to
be availed with different learning processes. Hence the retention is very important for which the
company need to develop effective and suitable strategies so that the employees with satisfaction
can be able to put their efforts in the most desired manner.
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2.3 Impact of training programs on the retention of the workforce in banks
In the viewpoint of Engetou (2017), a training and development program, as well as the
employee's retention program, are interrelated with each other. The impact of training and
development on employee performances are very high. The behavioural change in the employees
can be able to get obtained effectively and appropriately. The training will provide moral support
to the employees to perform the work and activities in an effective and appropriate required
manner. The training will help the employees of the companies to enhance their professional
skills which are highly required in the company. The retention of the employees is also able to
get obtained in the needed manner. The employees become comfortable with the working culture
and will able to understand the aims and standard of the company.
According to Ldama & Bazza (2015), the employee’s retention in the Westpac company is
stable, and there is very less number of employees who are leaving the company or are getting
fired. The training programs that is organised by the company is very effective and suitable. The
training expenses incurred are very high because the company is willing to retain their skilled
and talented employees appropriately. In 2017, the training expense that is nearly $9,434 million
and the employees retained in the company was 35096 (Westpac Group, 2017). This is
considered to be a good number as the effort of the management is also very high.
As asserted by Terera & Ngirande (2014), the training plays a vital role in making the employees
get motivated by the company's efforts made for them. This will make the employee stay long in
the company; this will make the firm to work appropriately and effectively. The training and
retention both are a parallel factor to each other as this will be assisting the company to attain
effective and productive results.
H1: There is a direct impact of training on employee retention in the banking sector.
H0: Training and development have no impact on employee retention.
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3. Methodology
3.1 Data collection
This is the major factor of the research as with this the major portion of the investigation is
getting addressed. The validity and authenticity of the work can also be able to get effectively
attained with this part of the research method. The secondary source of data collection procedure
has been used in this research process. The data has been gathered from the articles and official
sites of the company so that the real and actual data can be able to get obtained in the needed and
required manner (Johnston, 2017). The annual report for accurate figures and data has been used
as one of the secondary sources. These used links and sources are very reliable and
authenticated.
3.2 Data analysis
The analysis of the gathered information is very important to be done, and in this investigation
process, the quantitative data analysis technique has been used. This is very useful and beneficial
for attaining authenticity and accuracy in the gathered information. The method like ANOVA, T-
test, Chi-Square test, correlation and regression all these are important techniques for calculation
the authenticated information (Sutton & Austin, 2015).
3.3 Research method
The research study needs to be got done in the specific needed manner. Therefore proper
structure and method have to be used. The quantitative, as well as the qualitative methods, are
there which are highly are used in the research. In this research study, the quantitative research
method has been used as with the assistance of this the effective functioning and management of
the research could be able to get obtained. The reliability and authenticity of the information will
also be able to get obtained in an effective and appropriate needed manner (Rahi, 2017). The
research method is assisting in attaining suitable results for the drawn issues and problems.
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3.4 Research design
The structure for any work is highly needed and in this research method the need to develop and
understand so that the effectiveness in the research could be able to get done systematically.
There are different research design method that could be used as, case study method,
experimental, causal-effect, exploratory, descriptive etc. (Wright, et. al., 2016). Among these, the
exploratory method is one of the best suitable techniques as with this the detail information and
in-depth information about the subjective topic can be able to get obtained effectively. This
research has assisted in meeting the research questions and the objectives of the study in an
appropriate manner.
3.5 Variable specifications
The research when get performs it is very important that some variables need to be focused. With
the help of these variables the information and data could be able to get obtained in an effective
and detailed manner (Jäntschi, et. al., 2015). The two variables that have been focused on this
research are the dependent and independent variable.
 Dependent variable- Employee retention
 Independent variable- Employee training
3.6 Regression
The regression is one of the statistical tools which are used in this particular research to identify
the relationship between the different variables. The dependent and independent variables are
there which is needed to be considered, and with the help of this, the dependency and its relation
with each other could be able to get understood (Kpolovie, 2017).
3.7 Anova-one way
The ANOVA testing is a statistical tool which is used in the report to compare the means for the
different samples used in the research process. This proves the null hypothesis of the sample
used (Orlitzky, et. al., 2017).
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4. Findings and analysis
Findings
Years Employee
retention
Training
expenses (in
million
dollar)
2003 26,780 1,643
2004 26,819 1,744
2005 27,138 1,877
2006 27,224 2,009
2007 28,018 1,933
2008 28,302 2,199
2009 34,189 2,319
2010 35,055 2,884
2011 33,898 3,312
2012 33,418 3,479
2013 35,894 3,462
2014 36,596 3,670
2015 35,484 9,473
2016 35,580 9,217
2017 35,096 9,434
The data has been collected from the annual report of the Westpac Bank. All the expenses
regarding the training as well as the number of retention of the employees in the company since
2003 to2017 have been directed extracted from the official site of the company (Westpac Group,
2012).
Regression analysis
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.62
R Square 0.39
Adjusted R Square 0.34
Standard Error 3226.64
Observations 15.00
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