Employee Turnover And Retention In Banks

A
PROJECT REPORT
ON
EMPLOYEE TURNOVER AND RETENTION IN BANKS
SUBMITTED BY
ELEANOR AMANNA

EXECUTIVE SUMMARY
Employment turnover means number of incoming and outgoing workers from a
banking organization or company. In other words, when a new employee takes place of an old
employee it is called as employment turnover during a period of time. Turnover of employees
can happen due to some internal factors such as excessive workload, low salary or a bank does
not provide proper facility. In employment turnover we can analyse the attitude and behavior of
the banking employees in the way how they affect the organization outcome and profit. If the
banking institution or the organization is not encouraging the employees, then there will be
higher rate of employee turnover.
Employee retention” It is the basic building block of an organization and the factors
which are the important contributors laid the foundation must be analyzed by the management in
an effective manner. Today, the environment of the organization has changed dramatically as
well as the behavior of employees has also changed. They are not the ones who have only one
opportunity to survive but they have many offers at hand at one point of time. It is more than just
keeping the employees on the job. It is the main responsibility of the employer to keep the best
employees in the banks. Employee retention is an effectivemean or a way to maintain a
workforce in banks which is both stable and sustainable.
There are certain reasons for the employees to leave an organization. Expectations play
an essential role to determine whether an employee is satisfied or dissatisfied with the current
job.

These expectations will range from pay, working hours, holidays and bonuses etc. If the
expectations have been unrealistic from the day one of the job that would be result in
unnecessary cost to the organization and it would take more time to reach the goals and
objectives, revenue and profitability. Employees to find themselves in a role that is somewhat
different from their individual strength, tend not to stay for a long period of time. Employees
who find a mismatch for their particular talent or ability may choose to leave the company and
go for another job in another organization.

OBJECTIVES
Objective is to study the following:
(1) To measure the satisfaction level of employees in an organization.
(2) To find out the cause of employment turnover.
(3) To measure the cost of turnover.
(4) To find out how can the bank retain/ profitable customers

INDEX
Sr. No. TOPICS Page. No.
1. INTRODUCTION 1-3
2. COST OF TURNOVER 4-6
3. CAUSES OF LOW OR HIGH EMPLOYEE TURNOVER 7-8
4. WHY DO EMPLOYEES LEAVE THEIR JOB? 9-10
5. HOW TO PREVENT TURNOVER? 11-12
6. CALCULATION OF EMPLOYEE TURNOVER 13-15
7. EMPLOYEE RETENTION 16-19
8. RETENTION TOOLS AND RESOURCES 20
9. SECRETS OF EMPLOYEE RETENTION 21
10. NEED AND IMPORTANCE EMPLOYEE RETENTION 22-25
11. EMPLOYEE RETENTION STRATEGY 26-28
12. CHALLENGES IN EMPLOYEE RETENTION 29-31
13. ROLE OF HR IN EMPLOYEE RETENTION 32-34
14. ROLE OF SUPERVISORS IN EMPLOYEE RETENTION 35-37
15. HOW TO IMPROVE EMPLOYEE RETENTION 38-42
16. FINDINGS 43-51
17. SUGGESTION 52-54
18. WIBLIOGRAPHY 55

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INTRODUCTION TO EMPLOYEE TURNOVER
Employment turnover or staff turnover or labour turnover is the rate at which an
employer loses or gains employees. The simple ways to describe it are “how long the employees
tend to stay in a company or a bank” or “the rate of traffic through the revolving door”. Turnover
is measured for individual companies and for their industry as a whole. If an employer is said to
have a high turnover relative to its competitors, it means that employees of that company have a
shorter average tenure than those of other companies in the same industry. High turnover may be
harmful to a company's productivity if skilled workers are often leaving and the worker
population contains a high percentage of novice workers. Companies also often track turnover
internally across departments and divisions or other demographic groups such as turnover of
women versus turnover of men.
Employees rarely quit on the spot. Generally, an employee becomes dissatisfied and
stays disengaged for quite a while before leaving. However, from the moment of disengagement,
most employees are no longer as dedicated or productive as they once were. Nearly all the real
reasons why employees quit, fall into four basic categories of human needs: the need for trust,
the need for hope, the need to feel competent, and the need to feel valued and trustworthy.
Thirteen possible reasons for resignations were identified within the banking sector,
namely:
 desire to take on a new challenge,
 bad relationship with management,
 bad relationship with colleagues,
 lack of opportunity for advancement,

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 lack of appreciation (perception of recognition),
 better compensation and benefits elsewhere,
 long working hours, lack of control over work or working environment,
 travelling distance to work,
 personal satiation at home,
 lack of training and support to reach potential,
 the department is conducive to black advancement.
The bank embraces diversity for all
.
Most of the employees that resigned voluntary did so because of lack of
opportunity for advancement, a desire to take on a new challenge and a lack of appreciation. The
statistical analysis revealed that amongst position title, there is a statistical significance for the
bank embraces diversity for all as a reason for resignation and that the effect between junior
managers and team leaders has a large effect.
When employees leave on a continuous basis and high turnover occurs, it may
become a problem for management, especially where skills are relative scarce, and recruitment is
costly as it takes several weeks to fill a vacancy. This is particularly true of situations in which
employees are lost to direct competitors or where customers have developed relationships with
individual employees, as is the case in many financial services organisations.
A high rate of turnover in an organisation could reflect unfavorably on
management. This could indicate that there is a lack of hiring quality employees, which could
result in increased poor performers which could in turn lead to turnover. High turnover could
also indicate misaligned or unclear goals set by management or management not providing

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enough training. Due to a shortage of skilled labor the problem of employee turnover becomes
more delicate.
Employee turnover remains one of the most persistent and frustrating problems that
organisations face. Whether it is involuntary, such as termination of poor performance, or
voluntary, such as resignations, turnover is extremely costly.
With recognition of turnover as a financial issue increasing, companies are searching
for strategies to confront the problem in ways that generate a good return on investment.
Successfully managing turnover is a matter of understanding its costs, causes and cures
Employment turnover represents a huge potential loss in productivity, continuity and
an increase in cost. But these problems can be averted with avance planning and keen
management.

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COST OF TURNOVER
When accounting for cost, which includes both real cost(such as cost taken to select and
recruit a replacement) and opportunity cost(such as lost productivity), the cost of employment
turnover to for-profit organization has been estimated to be 30%( the figure used by the
American Management Association) to upwards of 150% of the employees remuneration
package.
There are both direct and indirect cost. Direct cost relate to the leaving cost, replacement
cost and transition cost. The indirect cost relates to the loss of production, reduced performance
level, unessecary overtime and low morale. The true cost of turnover is going to depend on a
number of variables including ease or difficulty in filling the position and nature of the job itself.
INTERNAL V/S EXTERNAL TURNOVER OF EMPLOYEES
Like recruitment, turnover can be classified as Internal and External turnover of
employees. Internal turnover means or involves employees leaving their current position and
taking up new position within the same organization. Both positive (such as increased morale
from change of task and supervisor) and negative (such as project/relational disruption) effects of
the internals turnover exist, and therefore I would be equally important to monitor this form of
turnover, as it is to monitor its externals counterparts. Internal turnover may be moderated or
controlled by typical HR mechanism such as an internal recruitment policy.
Internal turnover, called internal transfers, is generally considered an opportunity to
help employees in their career growth while minimizing the more costly external turnover. A

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large amount of internal transfers leaving a particular department or division may signal
problems in that area unless the position is a designated stepping stone position
SKILLED V/S UNSKILLED EMPLOYEES
Unskilled positions often have high turnover, and employees can generally be
replaced without the organization or business incurring any loss of performance. The ease of
replacing these employees provides little incentive to employers to offer generous employment
contracts; conversely, contracts may strongly favour the employer and lead to increased turnover
as employees seek, and eventually find, more favorable employment
VOLUNTARY V/S INVOLUNTARY TURNOVER
Practitioners can differentiate between instances of voluntary turnover, initiated at
the choice of the employee, and involuntary turnover initiated by the employer due to poor
performance or reduction in force (RIF).
The US Bureau of Labor Statistics uses the term "Quits" to mean voluntary turnover and "Total
Separations" for the combination of voluntary and involuntary turnover.

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SUMMARY OF EMPLOYEE TURNOVER COST
COST TO OFF-BOARD EMPLOYEES
+ COST PER-HIRE FOR REPLACEMENT
+ TRANSITION COST, INCLUDING OPPORTUNITY COST
+ COST FROM LONG TERM DISRUPTION OF TALENT PIPELINE
= TOTAL COST OF EMPLOYEE TURNOVER
Understanding the cost is important but mitigating is essential.

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CAUSES FOR LOW OR HIGH EMPLOYENT TURNOVER
High turnover often means that employees are dissatisfied with their jobs, especially when it is
relatively easy to find a new one. It can also indicate unsafe or unhealthy conditions or that too few
employees give satisfactory performance (due to unrealistic expectations, inappropriate processes
or tools, or poor candidate screening). The lack of career opportunities and challenges,
dissatisfaction with the job-scope or conflict with the management have been cited as predictors of
high turnover.
Each company has its own unique turnover drivers so companies must continually work to identify
the issues that cause turnover in their company. Further the causes of attrition vary within a
company such that causes for turnover in one department might be very different from the causes of
turnover in another department. companies can use exit interviews to find out why employees are
leaving and the problems they encountered in the workplace.
Low turnover indicates that none of the above is true: employees are satisfied, healthy and safe, and
their performance is satisfactory to the employer. However, the predictors of low turnover may
sometimes differ than those of high turnover. Aside from the fore-mentioned career opportunities,
salary, corporate culture, management's recognition, and a comfortable workplace seem to impact
employees' decision to stay with their employer.
Many psychological and management theories exist regarding the types of job content which is
intrinsically satisfying to employees and which, in turn, should minimise external voluntary
turnover. Examples include “Hertzberg’s two factor theory” and “McClellands theory of needs”.

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INVESTMENTS
On the other hand, low turnover may indicate the presence of employee "investments" (also
known "side bets") in their position: certain benefits may be enjoyed while the employee remains
employed with the organization, which would be lost upon resignation (e.g., health insurance,
discounted home loans, redundancy packages). Such employees would be expected to demonstrate
lower intent to leave than if such "side bets" were not present.

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WHY DO EMPLOYEES LEAVE THEIR JOB?
Employee turnover technically projects the rate of employees leaving a company and new
employees filling up their positions. Employee turnover is not a good thing for any company as it
directly hits the cost aspect. And yes, employee turnover is expensive.
What could be the reason for employee turnover? There is a saying that most employees leave
their managers. If this could be one of the reasons, then inadequate pay could be the other.
Surprisingly, neither one of these are the main causes for employee turnover.
Here are the main reasons of employee turnover.
 Lack of vision: Initially, no employee cares about the company’s profit but about their
personal interest and gains. These shortsighted employees come with high expectations without
realizing that the process would take some time. Therefore, they tend to change jobs.
 Salary scale: This is the common reasons why the employee turnover rate is high. Employees
are for sure in search of jobs that pay them well. When employees are underpaid, they tend to
look out for jobs that offer considerable pay.
 Work environment: Work environment is also the main cause for employee turnover. Every
employee would want to work in the environment that he is comfortable in. This is one such
reasons why employees jump from one company to another in a just a couple of months.
 Paucity of motivation: Employees who leave due to lack of motivation are not among those
who look forward for a pat on their back, but those who would want to know if their work adds
value to the company’s growth.
 Growth policies: This is the prime reason why employees quit their job. Employees always
look up for potential opportunities for advancements and promotions.

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 No employee engagement: Employee engagement is one of the important motivator.
Employees would be happy to be a part of the company’s ups and downs, and therefore they
should be kept posted with all the happenings in the organization.

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HOW TO PREVENT TURNOVER?
Employees are important in any running of a business; without them the business would be
unsuccessful. However, more and more employers today are finding that employees remain for
approximately 23 to 24 months, according to the 2006 Bureau of Labor Statistics. The
Employment Policy Foundation states that it costs a company an average of $15,000 per
employee, which includes separation costs, including paperwork, unemployment; vacancy costs,
including overtime or temporary employees; and replacement costs including advertisement,
interview time, relocation, training, and decreased productivity when colleagues depart.
Providing a stimulating workplace environment, which fosters happy, motivated and empowered
individuals, lowers employee turnover and absentee rate. Promoting a work environment that
fosters personal and professional growth promotes harmony and encouragement on all levels, so
the effects are felt company wide.
Continual training and reinforcement develops a work force that is competent, consistent,
competitive, effective and efficient. Beginning on the first day of work, providing the individual
with the necessary skills to perform their job is important. Before the first day, it is important the
interview and hiring process expose new hires to an explanation of the company, so individuals
know whether the job is their best choice. Networking and strategizing within the company
provides ongoing performance management and helps build relationships among co-workers. It
is also important to motivate employees to focus on customer success, profitable growth and the
company well-being Employers can keep their employees informed and involved by including
them in future plans, new purchases, policy changes, as well as introducing new employees to
the employees who have gone above and beyond in meetings.Early engagement and engagement

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along the way, shows employees they are valuable through information or recognition rewards,
making them feel included.
When companies hire the best people, new talent hired and veterans are enabled to reach
company goals, maximizing the investment of each employee. Taking the time to listen to
employees and making them feel involved will create loyalty, in turn reducing turnover allowing
for growth.

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CALCULATION OF EMPLOYEE TURNOVER
MONTHLY TURNOVER-Monthly turnover is the number of employee separations in one
month divided by the average number of active employees at the worksite during the same
period. We’ll make it easy and say we have one site of operations.
Written as a math formula, here is the same calculation:
Now to pull numbers into our formula for monthly turnover:
Calculating Turnover of Employees Within First Year of Employment
Among the most expensive of turnover is that of employees who leave in the first year of
employment. In many jobs, an employee is not fully productive for months. A high turnover in
the first year of employment can therefore represent a particularly painful cost.
To compute the value for your company, divide the total number of employees who leave in less
than one year by the total number of employees who leave in the same period.
Here’s what the formula looks like:

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How to Calculate the Employee Turnover Rate on an Annual Basis
The annual employee turnover rate is the ratio of total separations to the average number of
employees. The U.S. Bureau of Labor Statistics defines separations as both voluntary and
involuntary employee terminations, including retirements, resignations, dismissals and layoffs.
Turnover rates may affect profitability and staff morale. A company may have to redesign its
human resource planning processes if its turnover rate is high relative to the industry average.
Calculate the turnover rate on an annual basis by determining the annual separations and the
average monthly employment.
Step 1
Add up the monthly employment for the preceding 12 months and divide by 12 to calculate the
average monthly employment. The monthly employment could be simply the average number of
payroll deposits per month. If you pay your employees twice a month, then add the number of
deposits for each payroll and divide by two to get the average employment for a particular
month.
Step 2
Determine the total number of separations for the preceding 12-month period. You may add the
separations for an accounting period, such as a quarter, and project the total for the year.
However, this may skew your numbers because of variations in seasonal employment and
layoffs.

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RelatedReading:
Step 3
Calculate the annual employee turnover rate. It is the ratio of the total number of separations to
the average monthly employment for the preceding 12-month period, expressed as a percentage.
For example, if the number of separations is 60 and the average monthly employment is 800,
then your turnover rate is about 7.5 percent [100 x (60/800)].

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EMPLOYEE RETENTION
Employee retention refers to the ability of an organization to retain its employees.
Employee retention can be represented by a simple statistic (for example, a retention rate of 80%
usually indicates that an organization kept 80% of its employees in a given period). However,
many consider employee retention as relating to the efforts by which employers attempt to retain
employees in their workforce. In this sense, retention becomes the strategies rather than the
outcome.
Employee retention is a process in which the employees are encouraged to remain with
the organization for the maximum period of time or until the completion of the project.
Employee retention is beneficial for the organization as well as the employee. Employees today
are different. They are not the ones who don’t have good opportunities in hand. As soon as they
feel dissatisfied with the current employer or the job, they switch over to the next job. It is the
responsibility of the employer to retain their best employees. If they don’t, they would be left
with no good employees. A good employer should know how to attract and retain its employees.
Most employees feel that they are worth more than they are actually paid. There is a natural
disparity between what people think they should be paid and what organizations spend in
compensation. When the difference becomes too great and another opportunity occurs, turnover
can result. Pay is defined as the wages, salary, or compensation given to an employee in
exchange for services the employee performs for the organization. Pay is more than "dollars and
cents;" it also acknowledges the worth and value of the human contribution. What people are
paid has been shown to have a clear, reliable impact on turnover in numerous studies.

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Employees comprise the most vital assets of the banking organisation. In a work
place where employees are not able to use their full potential and not heard and valued, they are
likely to leave because of stress and frustration. In a transparent environment while employees
get a sense of achievement and belongingness from a healthy work environment, the bank is
benefited with a stronger, reliable work-force harbouring bright new ideas for its growth Blog
Online And Earn Money.
Why is retention so important?
Is it just to reduce the turn over costs ?
Well, the answer is a definite no. It’s not only the cost incurred by a company that
emphasizes the need of retaining employees but also the need to retain talented employees from
getting poached.
Retention involves five major things:
 Compensation
 Environment
 Growth
 Relationship
 Support

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 Compensation:
Compensation constitutes the largest part of the employee retention process. The employees
always have high expectations regarding their compensation packages.
Compensation packages vary from industry to industry. So an attractive
compensation package plays a critical role in retaining the employees.
Compensation includes salary and wages, bonuses, benefits, prerequisites, stock
options, bonuses, vacations, etc. While setting up the packages, the following
components should be kept in mind:
 Salary and monthly wage: It is the biggest component of the compensation package. It is
also the most common factor of comparison among employees. It includes
 Basic wage
 House rent allowance
 Dearness allowance
 City compensatory allowance
Salary and wages represent the level of skill and experience an individual has. Time to time
increase in the salaries and wages of employees should be done. And this increase should be
based on the employee’s performance and his contribution to the organization.
Bonus: Bonuses are usually given to the employees at the end of the year or on a festival.
Economic benefits: It includes paid holidays, leave travel concession, etc. Long-term incentives:

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Long term incentives include stock options or stock grants. These incentives help retain
employees in the organization's start up stage.
 Health insurance: Health insurance is a great benefit to the employees. It
saves employees money as well as gives them a peace of mind that they have
somebody to take care of them in bad times. It also shows the employee that the
organization cares about the employee and its family.
 After retirement: It includes payments that an Employee gets after he retires like EPF
(Employee Provident Fund) etc.
The banking industry has transformed rapidly in the last ten years, shifting from
transactional and customer service-oriented to an increasingly aggressive environment, where
competition for revenue is on top priority. Long-time banking employees are becoming
disenchanted the industry and are often resistant to perform up to new expectations. The
diminishing employee morale results in decreased revenue. Due to the intrinsically close ties
between staff and clients, losing those employees completely can mean the loss of valuable
customer relationships. The retail banking industry is concerned about employee retention from
all levels: from tellers to executives to customer service representatives because competition is
always moving in to hire them away. The competition to retain key employees is intense. Top-
level executives and HR departments spend large amounts of time, effort, and money trying to
figure out how to keep their employees from leaving

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RETENTION TOOLS AND RESOURCES
o Employee Surveys – By surveying employees, organizations can gain insight into the
motivation, engagement and satisfaction of their employees. It is important for
organizations to understand the perspective of the employee in order to create
programs targeting any particular issues that may impact employee retention.
o Exit Interviews – By including exit interviews in the process of employee separation,
organizations can gain valuable insight into the workplace experience. Exit interviews
allow the organization to understand the triggers of the employee’s desire to leave as
well as the aspects of their work that they enjoyed. The organization can then use this
information to make necessary changes to their company to retain top talent. Exit
interviews must, however, ask the right questions and elicit honest responses from
separating employees to be effective.
o Employee Retention Consultants – An employee retention consultant can assist
organizations in the process of retaining top employees. Consultants can provide
expertise on how to best identify the issues within an organization that are related to
turnover. Once identified, a consultant can suggest programs or organizational changes
to address these issues and may also assist in the implementation of these programs or
changes.

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Secrets of employee retention
 Equity and job security: Employees want to be treated fairly and, just as importantly,
compensated fairly. Banks must demonstrate more than the minimum obligations to
people.
 Communication: employees want to understand management’s expectations so they
have a clear idea of how their work will be judged. It is important to set measurable goals
and evaluate an employee’s performance.
 Pride and teamwork: Employees want to feel good about their jobs, have a sense of
achievement, and be proud of their accomplishments. Individuals should be properly
trained and provided with adequate materials and equipment to complete their jobs
successfully. Employees want to work with teammates who are as enthusiastic and
competent as they are. Failure to address problem employees communicates to team
members that management view substandard performance as acceptable.
 Recognition: “People want to do good work and they want to be recognized for it,” says
Larry Johnson. Johnson recommends that recognition be significant, specific and sincere.
For example, telling an employee “you’re great” isn’t nearly as meaningful as saying that

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his/her innovative ideas and work to satisfy a particular tenant or to keep a specific
project on budget was terrific.
NEED AND IMPORTANCEOF EMPLOYEE RETENTION
 Hiring is not an easy process: The HR Professional shortlists few individuals from a large
pool of talent, conducts preliminary interviews and eventually forwards it to the
respective line managers who further grill them to judge whether they are fit for the
organization or not. Recruiting the right candidate is a time consuming process.
 An organization invests time and money in grooming an employee and make him ready
to work and understand the banking culture: A new joinee is completely raw and the
management really has to work hard to train him for his overall development. It is a
complete wastage of time and money when an individual leaves an organization all of a
sudden. The HR has to start the recruitment process all over again for the same vacancy;
a mere duplication of work. Finding a right employee for an organization is a tedious job
and all efforts simply go waste when the employee leaves.
 When an individual resigns from his present organization, it is more likely that he would
join the competitors. In such cases, employees tend to take all the strategies, policies
from the current organization to the new one. Employees take all the important data,

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information and statistics to their new organization and in some cases even leak the
secrets of the previous organization. To avoid such cases, it is essential that the new
joinee is made to sign a document which stops him from passing on any information even
if he leaves the organization. Strict policy should be made which prevents the employees
to join the competitors. This is an effective way to retain the employees.
 The employees working for a longer period of time are more familiar with the banks
policies, guidelines and thus they adjust better: They perform better than other
individuals who change jobs frequently. Employees who spend a considerable time in an
organization know the organization in and out and thus are in a position to contribute
effectively.
 Every employee needs time to adjust with others: One needs time to know his team
members well, be friendly with them and eventually trust them. Organizations are always
benefited when the employees are compatible with each other and discuss things among
themselves to come out with something beneficial for all. When a new employee replaces
an existing employee, adjustment problems crop up. Employees find it really difficult to
establish a comfort level with the other person. After striking a rapport with an existing
employee, it is a challenge for the employees to adjust with someone new and most

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importantly trust him. It is a human tendency to compare a new joinee with the previous
employees and always find faults in him.
 It has been observed that employees sticking to an organization for a longer span are
more loyal towards the management and the organization: They enjoy all kinds of
benefits from the organization and as a result are more attached to it. They hardly
badmouth their organization and always think in favour of the management. For them the
organization comes first and all other things later.
 It is essential for the organization to retain the valuable employees showing
potential: Every organization needs hardworking and talented employees who can really
come out with something creative and different. No organization can survive if all the top
performers quit. It is essential for the organization to retain those employees who really
work hard and are indispensable for the system.
The management must understand the difference between a valuable employee
and an employee who doesn’t contribute much to the organization. Sincere efforts must be made
to encourage the employees so that they stay happy in the current organization and do not look
for a change.

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For an organization to do well and earn profits it is essential that the high potential
employees stick to it for a longer duration and contribute effectively. The employees who spend
a considerable amount of time tend to be loyal and committed towards the management and
always decide in favour of the organization. When you meet someone, there is hardly any
attachment in the beginning, but as the friendship matures, a sense of loyalty and trust develops.
In the same way, when an individual spends a good amount of time in an organization, he gets
emotionally bonded to it and strives hard for furthering the brand image of the organization.
The management can’t completely put a full stop to the process of employees quitting their jobs
but can control it to a large extent.

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STRATEGIES TO RETAIN AN EMPLOYEE
 An employee looks for a change when his job becomes monotonous and does not offer
anything new. It is essential for everyone to enjoy whatever he does. The responsibilities
must be delegated according to the individual’s specialization and interests. It is the
responsibility of the team leader to assign challenging work to his team members for
them to enjoy work and do not treat it as a burden. Performance reviews are important to
find out whether the employees are really happy with their work or not.
 Constant disputes among employees encourage them to go for a change. Conflicts must
be avoided to maintain the decorum of the place and avoid spreading negativity around.

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Promote activities which bring the employees closer. Organize outdoor picnics, informal
get together for the employees to know each other better and strengthen the bond among
themselves. Let them make friends at the workplace whom they can really trust.
Friendship among employees is one strong factor which helps to retain employees.
Individuals who have reliable friends at the workplace are reluctant to move on for the
sake of friendship. No one likes to leave an organization where he gets mental peace. It is
essential to have a cordial environment at the workplace.
 The human resource department must ensure that it is hiring the right candidate.
Frustration crops up whenever there is a mismatch. A finance professional if is hired for a
marketing profile would definitely end up being frustrated and look for a change. The
right candidate must be hired for the right profile. While recruiting a new candidate, one
should also check his track record. An individual who has changed his previous jobs
frequently would also not stick to the present one and thus should not be hired.
 Employee recognition is one of the most important factors which go a long way in
retaining employees. Nothing works better than appreciating the employees. Their hard
work must be acknowledged. Monetary benefits such as incentives, perks, cash prize also
motivate the employees to a large extent and they prefer sticking to the organization. The
performers must have an upper edge and should get a special treatment from the
management.
 Performance appraisals are also important for an employee to stay motivated and avoid
looking for a change. The salary hike should be directly proportional to the hard work put
by the employees. Partiality must be avoided as it demotivates the talented ones and
prompt them to look for a better opportunity.

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 The salary of the employees must be discussed at the time of the interview. The
components of the salary must be transparent and thoroughly discussed with the
individuals at the time of joining to avoid confusions later. The individuals should be
made to join only when the salary as well as other terms and conditions are acceptable to
them.
 The company’s rules and regulations should be made to benefit the employees. They
should be employee friendly. Allow them to take a leave on their birthdays or come a
little late once or twice in a month. It is important for the management to understand the
employees to gain their trust and confidence. The consistent performers must also have a
say in the company’s decisions for them to feel important.

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CHALLENGES IN EMPLOYEE RETENTION
In the current scenario, a major challenge for an organization is to retain its valuable and talented
employees. The management can control the problem of employees quitting the organization
within no time to a great extent but can’t put a complete full stop to it. There are several
challenges to it.
Let us understand the challenges to employee retention:
 Monetary dissatisfaction is one of the major reasons for an employee to look for a
change. Every organization has a salary budget for every employee which can be raised
to some extent but not beyond a certain limit. Retention becomes a problem when an
employee quotes an exceptionally high figure beyond the budget of the organization and
is just not willing to compromise. The organization needs to take care of the interests of
the other employees as well and can’t afford to make them angry. The salaries of the
individuals working at the same level should be more or less similar to avoid major
disputes amongst employees. A high potential employee is always the center of attention
at every workplace but one should not take any undue advantage. One should understand
the limitation of the management and quote something which matches the budget of the
organization. An individual should not be adamant on a particular figure, otherwise it
becomes difficult for the organization to retain him. Remember there is a room for
negotiation everywhere.
 In the current scenario, where there is no dearth of opportunities, stopping people to look
for a change is a big challenge. Every organization tries its level best to hire employees
from the competitors and thus provide lucrative opportunities to attract them. Employees

30
become greedy for money and position and thus look forward to changing the present job
and join the competitors. No amount of counseling helps in such cases and retaining
employees becomes a nightmare.
 Individuals speak all kind of lies during interviews to get a job. They might not be
proficient in branding but would simply say a yes to impress the recruiter and grab the
job. It is only later do people realize that there has been a mismatch and thus look for a
change. Problems arise whenever a right person is into a wrong profile. An individual
loses interest in work whenever he does something out of compulsion. The human
resource department should be very careful while recruiting new employees. It is really
important to get the reference check done for better reliability and avoid confusions later.
 Some individuals have a tendency to get bored in a short span of time. They might find a
job really interesting in the beginning but soon find it monotonous and look for a change.
The management finds it difficult to convince the employees in such cases. Individuals
must also understand that every organization has some or the other problem and
adjustment is required everywhere, so why not in the present organization? It becomes
really difficult for the HR Department to find out what exactly is going on in the minds of
the individual. An individual should voice his opinions clearly to make things easier for
the management.
 Unrealistic expectations from the job also lead to employees looking for a change. There
is actually no solution to unrealistic expectations. An individual must be mature enough
to understand that one can’t get all the comforts at the workplace just like his home.
Individuals from different backgrounds come together in an organization and minor
misunderstandings might arise but one should not make an issue out of it. An individual

31
must not look for a change due to small issues. One needs time to make his presence feel
at the organization and must try his level best to stick to it for a good amount of time and
ignore petty issues.

32
ROLE OF HR IN EMPLOYEE RETENTION
An organization can’t survive if the top performers quit. It needs employees who are loyal and
work hard with full dedication to achieve the organization’s objective. It is essential for the
management to retain its valuable employees who think in favour of the organization and
contribute their level best. An employee who spends a longer duration at any particular
organization is familiar with the rules, guidelines and policies of the organization and thus can
adjust better.
The Human Resource team plays an important role in employee retention. Let us find out their
role in the same:
 Whenever an employee resigns from his current assignments, it is the responsibility of
the HR to intervene immediately to find out the reasons which prompted the employee to
resign. No one leaves an organization without a reason. There has to be one and the
human resource team must probe into it. There can be innumerable reasons for an
employee to leave his current job. The major ones being conflict with the superiors, lesser
salary, lack of growth, negative ambience and so on.

33
 It is the duty of the HR to sit with the employee and discuss the various issues face to
face. Understand his problems and listen to his side of the story as well. Remember the
HR should not focus on conducting exit interviews, rather more emphasis should be laid
on retaining the employees.
 Try to provide a solution to his problem. Hiring is a tedious process and it is really very
difficult to recruit the right candidate and train him once again. Do check the track record
of the employee who wishes to move on. It is really essential for the management to
retain those employees who have the potential and are really indispensable for the
organization. If they leave and join the competitors; the organization would be at loss. If
one feels that the employee is not very happy with his team leader, try to shift him to a
new team. If the employee feels his salary is not justified, try to give him a hike but make
sure he is worth it and you don’t end up upsetting others.
 The HR person must ensure that he is recruiting the right employee who actually fits into
the role. A right person doing the wrong job would never find his job interesting and
certainly look for a change. Make sure every individual has been assigned responsibilities
according to his specialization and interest. The employees must be clear with their
KRAs from the very beginning. Every individual works for money and the HR must
quote a justified salary acceptable to the other person. Don’t compel anyone to join at a
lesser salary. He might join at that moment but would most likely quit after sometime.
The hike should be on the present salary and must match the market trends and the
expectations of the individual.
 The human resource department must conduct motivational activities at the workplace.
Organize various internal as well as external trainings which help the employees to learn

34
something extra apart from their routine work. Make them participate in extracurricular
activities important for their overall development. Encourage them to interact with each
other so that the comfort level increases.
 The HR must launch various incentive schemes for the top performers to motivate them.
This way the employees feel important for the organization and strive hard to perform
even better the next time. The employees who show promise should be awarded with
cash prizes, lucrative perks and certificates to make the individual stand apart from the
crowd. Send a mail wishing the employees on their birthdays or congratulating them
when they perform exceptionally well or come out with something innovative. Arrange a
small bouquet for them as a gift from the organization’s side. This way the employees
feel attached to the organization and are reluctant to look for a change. A friendly
atmosphere is essential for the employees to feel safe and secure. Make them participate
in various management decision making.
 Performance reviews are a must. The HR along with the respective team leaders must
monitor their team member’s performance to ensure whether they are enjoying the work
or not. The employees look for a change only when their job becomes monotonous and
does not offer any growth or learning. Job rotation can be one of the effective ways to
retain employees.
The HR professional must try his level best to motivate the employees, make them feel special in
the organization so that they do not look for a change.

35
Role of supervisors in employee retention
Employee retention includes various steps taken to satisfy the employees so that they stay with
the organization for a longer duration. Strong measures must be taken to retain the high potential
employees who have spent a good amount of time in the organization and know it in and out. It
is essential to retain the talented employees who are loyal towards the organization and can
contribute effectively.
The team leaders and the supervisors play an important role in employee retention:
An employee quits his job whenever he faces problems at the workplace and is not satisfied with
his work. The job must be challenging enough and the employees should learn something new
every day for them to stick to it for a long time. It is the responsibility of the team leader to
ensure that the team members are contented with their work and share a good rapport amongst
themselves.
The team members must be assigned responsibilities as per their specialization, qualification,
interests as well as experience. The team members must find their job interesting for them to
enjoy and work hard to achieve the organization goals. The KRAs must be formulated in the
presence of the employees. Let them decide what best they can perform. Problems crop up
whenever there is a mismatch or the employees have to do something out of compulsion. Don’t
compel anyone to do something. Let them accept the responsibilities willingly. An individual
with an analytical bent of mind would not do very well in a marketing or branding profile. A
wrong profile is one of the several reasons as to why an employee looks for a change.

36
An over burdened worker never finds his job interesting and would always be eager for a change.
It is the duty of the team leader to distribute the work equally among all the employees. The
manager should not be partial to anyone and treat all his members as one. He should not let
negativity creep in the team. The superiors must have a control on their subordinates and make
sure they do not fight with each other. Nothing productive comes out of disputes, rather it
demotivates the individuals and prompt them to look for some another opportunity.
Rules and regulations should be same for everyone. Avoid granting special favours to anyone.
One should never fear his boss. Hitler approach does not work in the current scenario. A team
leader should be a role model for his team. The team managers should not be arrogant and avoid
misuse of their position. He should let all the team members participate in the decision making
process. Every employee should have the freedom of expression and no one should be left out or
neglected. The team leader should trust and respect his team members to expect the same from
them.
The team leader should be accessible to his team members. Employees feel demotivated when
their queries remain unsolved and there is no body to listen to them. When the team leader
doesn’t have time for his team, the employees crib among themselves and wish to move on. The
team leader must make sure to be with his team whenever required. He should support his team
members always. Listen to their problems and try to provide a solution. Make them feel that you
are there for them. A little care is essential to make them feel safe and secure. If you find any of
the team members worried, intervene immediately. Minor problems left unattended can lead to
severe stress later, forcing employees to look for a change.

37
The superiors must maintain transparency in communication. Every team member should get the
same information from their boss for them to remain satisfied and loyal towards the organization.
The team leader must appreciate those who perform well. Give them a pat on their back. The
hard work of the team members should never go unnoticed. The top performers must be given a
special treatment to motivate them further and expect the same from them every time. The
employees who have not performed well should also be asked to buck up for the next time.
It is the responsibility of the team leader to bind his team together. Take your team out for lunch
once in a while for them to come closer to each other. Every individual expects peace at the
workplace and looks for a change only when there is unnecessary stress at work. The team leader
must promote healthy competition at the workplace.
A team leader should mentor his team well. Employees are reluctant to go for a changes when
they have a good boss.

38
How to Improve Employee Retention?
People want to enjoy their work so make work fun and enjoyable.
Understand that employees need to balance life and work so offer flexible starting times and core
hours. Provide 360 feedback surveys and other questionnaires to foster open communication.
Consider allowing anonymous surveys occasionally so employees will be more honest and
candid with their opinions. Provide opportunities within the company for career progression and
cross-training. Offer attractive, competitive benefits .
Organizations should target job applications for employees who have characteristics that fit well
with the organizational culture. Upon conducting an interview, seek out traits, such as loyalty.
Also, ask the potential employee what motivates them on the job. Having more information
about the potential employee’s expectations can help retain them, should they get hired into the
company.
 Rewards and Recognition
Employees want to be recognized for a job well done. Rewards and recognition
respond to this need by validating performance and motivating employees toward continuous
improvement. Rewarding and recognizing people for performance not only affects the person
being recognized, but others in the organization as well. Through a rewards program, the entire
organization can experience the commitment to excellence. When the reward system is credible,

39
rewards are meaningful; however, if the reward system is broken, the opposite effect will occur.
Employees may feel that their performance is unrecognized and not valued, or that others in the
organization are rewarded for the wrong behaviours. Unrecognized and no valued performance
can contribute to turnover. Recognition for a job well done fills the employees' need to receive
positive, honest feedback for their efforts.
 Needfor Rewards and Recognition
Recognition should be part of the organization's culture because it contributes to
both employee satisfaction and retention. Organizations can avoid employee
turnover by rewarding top performers. Rewards are one of the keys to avoiding
turnover, especially if they are immediate, appropriate, and personal. A Harvard
University study concluded that organizations can avoid the disruption caused by employee
turnover by avoiding hiring mistakes and selecting and retaining top performers.
One of the keys to avoiding turnover is to make rewards count. Rewards are to be immediate,
appropriate, and personal. Organizations may want to evaluate whether getting a bonus at the end
of the year is more or less rewarding than getting smaller, more frequent payouts. Additionally, a
personal note may mean more than a generic company award. Employees should be asked for
input on their most desirable form of recognition. Use what employees say when it comes time to
reward for performance.
Designing a Rewards and and Recognition Solution

40
In designing a rewards and recognition program, the following guidelines should be considered.
 Rewards should be visible to all members of the organization.
 Rewards should be based on well-defined, credible standards that have been developed
using observable achievements.
 Rewards should have meaning and value for the recipient.
 Rewards can be based on an event (achieving a designated goal) or based on a time frame
(performing well over a specific time period).
 Rewards that are spontaneous (sometimes called on-the-spot awards) are also highly
motivating and should also use a set criteria and standard to maintain credibility and
meaning.
 Rewards should be achievable and not out of reach by employees.
 Nonmonetary rewards, if used, should be valued by the individual. For example, an avid
camper might be given a 10-day pass to a campsite, or, if an individual enjoys physical
activity, that employee might be given a spa membership. The nonmonetary rewards are
best received when they are thoughtfully prepared and of highest quality. Professionalism
in presenting the reward is also interpreted as worthwhile recognition.
Rewards should be appropriate to the level of accomplishment received. A cash
award of $50 would be inappropriate for someone who just recommended a process that saved
the organization a million dollars. Determining the amount of money given is a delicate matter of
organizational debate in which organizational history, financial parameters, and desired results

41
are all factors. Recognition for a job well done can be just as valued and appreciated as monetary
awards. Formal recognition program can be used with success. First Data Resources, a data
processing services company that employees more than 6,000 individuals in Omaha, Nebraska,
uses a formal recognition program (Adams, Mahaffey, and Rick,2002). Rewards are given on a
monthly, quarterly, and yearly basis, and range from Nebraska football tickets, gift certificates,
pens, plaques, mugs, and other items.
One of the most popular awards at First Data is called the "Fat Cat Award" that
consists of: $500 gift check Professional portrait of the employee
 Appreciation letter from the CEO and senior management
 E-mails, phone calls, and notes from peers
In addition to nonmonetary rewards, employees can be rewarded using money in numerous
ways. Cash is a welcome motivator and reward for improving
performance, whether at formal meetings or on the spot. Variable bonuses linked to performance
are another popular reward strategy. Profit sharing and pay-for-skills are monetary bonus plans
that both motivate individuals and improve goal achievement. Small acts of recognition are
valuable for employee daily Retention. Sometimes a personal note may mean more than a
generic company award.
In one survey, employees cited the following as meaningful rewards (Moss, 2000):
 Employee of the month awards Years of service awards
 Bonus pay (above and beyond overtime) for weekend work

42
 Invitations for technicians to technical shows and other industry events
 Meaningful and Retention Rewards
What gives meaning to rewards and recognition? What makes them effective? First, rewards and
recognition should be based on a clear set of standards, with
performance verifiable or observable. The standards for the reward should also be achievable. If
the reward is based on an unachievable result, such as a production goal that is beyond
employees' power, then those employees will not be motivated. Meaningful rewards and
recognition that are achievable have the greatest impact.

43
FINDINGS
In order to obtain the first hand information about the employment turnover and retention in
banks, which was collected by visiting various banks and a questionnaire was prepared and
responses were obtained form 50 employees working in different banks. The responses were
obtained on random basis. Therefore the number of respondents were not same in each bank.
The information obtained has been adequate to obtain an idea about the mindset of different
employees. And also the scale regarding the satisfaction level of the employees in respect of the
working with the subordinates and the superiors. These responses helped in ascerting the idea
about the employee turnover and what does the bank do to retain its employees.
1. EMPLOYEES PREFENCE OF A BANK
SR. NO TYPE OF BANKS PREFERENCE OF
EMPLOYEES.
1 Public Banks 19
2 Private Banks 16
3 Both 15
TOTAL 50
NOTE: The employees were asked whether they would prefer working in a private bank or a
nationalized bank. The responses are presented in the above table.

44
 Out of 50 employees, 19 employees would prefer working in public bank, because public
bank provide more better perks and facilities.
 Out of 50 employees, 16 employees would prefer working in a private sector bank,
because private banks provide better employment opportunities and better job
satisfaction.
 Out of 50 employees, 15 employees would prefer working in both the public sector banks
and private sector banks.
2. What causes employee turnover in your bank?
Sr. no REASONS OF EMPLOYEE
TURNOVER
ACCORDING
TO THE
MANAGERS
ACCORDING
TO THE
EMPLOYESS
1 Job and employee mismatch 
2 Less recognition 
3 Less or no appreciation for the
work done
4 Less growth opportunities
5 Fight within the groups  
6 Personal problems  
7 Might be getting better salary at
another bank

NOTE: When the managers were asked the reasons which cause employee turnover in their
bank, their answer was various conflicts within the groups (point no. 6) and personal problems

45
(point no. 7). Whereas when the same question was asked to the employees their answer was job
and employee mismatch, less recognition fights within the groups and personal problems and
also the employee may be getting better salary in the other bank.
THE DATA COLLECTED FROM VARIOUS BANKS AND EMPLOYEES
 According to the managers of various banks, the main reason through which they retain
employees are, by creating growth opportunities and by giving them rewards.
 The banks take up exit interviews for those who are willing to leave the job, which helps
them to know the reason why the employee is resigning and will help them to improve
their relations and services and help retain employees
 According to the managers the annual employee turnover rate of their banks is 5% to
10%
 According to the managers in some banks , none of their employees leave before 3-5
years, as they have a good hirerhical relationship . whereas in some banks there are
hardly two or three employees who leave their job during their first 12 months. When
asked the manager what was the main reason, they said that, employees mainly come for
work experience.
 Most of the employees are working with the organization for more than 2-5 years. This
creates a sense of unity among the employees of the bank. The employee will have a
good and cordial relation with superiors and their subordinates respectively. Which shall
also reduce employee turnover. Some of the employees have joined the banking company

46
6 months before due to which it may take time for the employees to get a cordial relation
with the superiors.
 According to the employees, they feel that the banking organization they are working
with, is an excellent organization which provides them a very good service and benefits.
By seing this we come to know that the employee is happy with the organization and that
would in future never think of leaving this organization.
 According to employees, the main reason for employee turnover are less growth
opportunities. If the employees are not given proper growth opportunities they would
probably prefer working with another organization.
 According to employees, the various ideas that their bank uses to keep their employee
turnover rate low is to pay them well and appreciate them by giving them incentives. By
appreciating the employees they become motivated and happy and fell very good to work
for the organization. The bank should also treat every employee with respect.
 The employees have an excellent relationship with the superiors. They should have a
good heirerhical relationship, which means that a good relation should be maintained
with the top, middle and lower level emloyees.
 The working enviorment of the employees in their respective banks are excellent as well .
 According to the employees, the main reason why an employee leaves a job is due to low
salary or no proper training.

47
QUESTIONNAIRE FOR BANK MANAGERS
NAME: _________________________
GENDER: ____ Male ____ Female
BANK NAME:
LOCATION: _____________________________________
Q1. Are employees leaving after three to five years or during their first 12 months?
 Yes
 no
Q2. Are you providing enough opportunities to learn? Explain how
 Yes
 No
Q3. Has he or she received adequate training?
 Yes
 no
Q4. How do you rate your wage and compensation vis-à-vis competition.
Tick the appropriate option

48
Higher then competition
Similar
Lower
Below average
Q5. What is the annual turnover of emloyees in your bank?
Q6. What are the main reasons for employee turnover in your bank?
 May be getting higher salary in the other company
 Employees do not feel appreciated.
 Fights within the group
 Employees not capable of performing task
 Personal problems
 Others (please specify)______________
Q7. What measure does your bank take to retain employees?
 By creating growth opportunities.
 By giving them rewards.
 Showing appreciations by way of incentives, benefits, etc.
 By making them valued.
Q8. Does your bank take up exit interviews for those who are willing to leave the banking
institution?
 Yes
 No
Signature:
Date: stamp:

49
QUESTIONNAIRFOREMPLOYEES
NAME:
GENDER:
BANKNAME:
LOCATION:
Q1. How longhave youbeenworkingwiththisbankingorganization?
 Lessthan 1 year
 Between1-2years
 Between2-5years
 Above 5 years
Q2. Which bankwouldyouprefertowork with
 Private sectorbank
 Publicsectorbank
 both
Q3. What do you thinkaboutthe bankingorganizationyouare currentlyworkingwith?
 Excellent
 Good
 Fair
 poor
Q4. What according to youcausesemploymentturnover?
 Joband employee mismatch
 Lessrecognition
 Lessor no appreciationforthe workdone
 Lessgrowthopportunities

50
Q5. What according to youare a fewideasthata bank usesto keeptheiremployee turnoverrate low?
 Pay themwell
 Appreciate thembygiving incentives,etc
 Treat eachemployeeswithrespect.
Q6. Is the bank providingyouthe proper expectedsalary?
 Yes
 No
Q7. How isyour hirerhical relations?Rate itona scale of 1-5
1- Excellent
2- Good
3- Better
4- fair
5- disatisfied
Q8. How isyour workingenviorments?Rate itona scale of 1-5
1 excellent
2 good
3 better
4 fair
5 dissatisfied
Q9 whydoesan employee leave the job
 lowsalary
 conflictsbetweengroups
 no propertraining
S.NO STATEMENTS STRONGLY
AGREE
AGREE NEITHER
AGREE OR
DISAGREE
DISAGREE STRONGLY
DISAGREE
1 I feel proud to work for
this bank
2 I am satisfied with the

51
training provided for my
current job
3 I feel secure that I will
bes able to work for the
bank as long as I do a
good job
4 I feel I can voice my
opinion
5 my superior deals with
the employee problems
fairly
6 I receive cooperation
from all departments
7 I feel there is an
adequate opportunity
for me to move to a
better job within the
bank
8 Satisfied with job

52
SUGGESTIONS
It is important to look for employees who will fit into the banking culture with ease.
 Increasing communication with the employees. They should also be allowed to express in
their opinion. Not every suggestion will be viable, but it is important for the employees to
know that the superiors are implementing those things or they voices have been heard.
 The superiors must give timely feedback and take preudent and timely decisions. Reward
exceptionally smart, resourceful, and hard-working employees by gradually increasing
their responsibility and giving them more important titles. An employee who's advanced
from an entry-level position to a manager role is much more likely to be loyal to the
banking company than one who have done the same job for years in spite of hard work.
 Give awards and rewards for achievement. Awards can be items such as employees’ pins
for good attendance or cash incentives for increased department productivity. The
banking organization can also offer some form of extra pay as a reward.
 Create a sense of ownership by giving responsibility to employees. Make their duties
look like responsibility and not just another activity. Expressing appreciation regularly
should be made important. Reward success especially jointly, making everyone feel they
contributed to the joint success. Employees who feel appreciated and successful are less
likely to leave.
 Increasingly, employees looking for work don't just consider the salary being offered by a
potential employer, but also the benefits provided. By offering affordable benefits like
health insurance, etc, the banking company can retain employees decreasing employee
turnover

53
1. Developing an attractive employee value proposition.
An employee value proposition means that the bank has something attractive to offer that is
perceived as valuable to an employee. As an employer,the bank must understand what makes the
banking organization attractive to potential recruits and current employees. Branding the bank as
an employer of choice is not just a slick set of marketing tactics. The best advocates for an
employer’s brand are its current employees. What messages do they send to others about their
employer? Are they honestly saying and believing that, “This is a great place to work.”
2. Create a total reward structure that includes more than compensation.
Every banking company should have all the normal compensation mechanisms common to their
type of employment. Yet, total rewards packages go far beyond money. While money might
temporarily retain employees, it does not always equate with engagement. People want a chance
to make a difference and realize themselves. That self-realization is multi-dimensional and
different for each employee. The total reward structure should include,
 In addition to compensation,
 Support for employees to attain their personal objectives aligned with the goals of their
organization.
3. Give feedback on employee performance on a regular basis.
Most managers and employees are not enamored with the performance appraisal
process in their organization. Yet, an effective performance management process
serves many purposes. Ongoing performance feedback allows employees to better know where
they stand, gives them a formal means to provide input, indicates that their managers pay

54
attention to them and that their performance matters. This feedback contributes to employee
engagement and retention.
4. Be flexible in terms of work-life balance.
employees more and more value a balance between work and life. They want more
flexible ways to engage with their employer. To attract and retain workers with different work
and career expectations, banking organizations have to be more flexible in structuring work and
its expectations. It calls for a different managerial mindset and practices that involve letting go of
old ways of controlling workers’ time and attendance in favor of result criteria such as output,
productivity and quality.
5. Create a culture of engagement.
Employees have become more connected with others in the banking organization (and
the broader supply-and-customer chain) through project-based team work and process
management activities. Employees are shifting their loyalty to people, teams and projects and
away from bank loyalty. It is organizations that create the culture and climate that allow people,
processes and projects to become fully connected and engaged with one another. Engaged
employees are more likely to stay with their employer.
6. Train managers to be effective.
Exit interviews consistently show that “poor and bad” management practices greatly contribute
to an employee’s decision to leave a company. It is imperative to provide supervisors and
managers with adequate tools to become effective managers since we cannot assume that these
competencies are innate.

55
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and-private-banks-marketing-essay.php#ixzz3ASS7doAl
o
http://www.ukessays.com/essays/management/an-introduction-to-employee-turnover-
management-
essay.php#ixzz3ASGGNhnEhttp://www.ukessays.com/essays/management/an-
introduction-to-employee-turnover-management-essay.php
o http://customerretention.hubpages.com/hub/Bank-Customer-Retention
o http://www.managementstudyguide.com/role-of-team-leaders-employee-retention.htm
o http://universumglobal.com/2013/11/understand-the-cause-of-employee-turnover/#ixzz3AjzU3KOI
o http://journal-archieves32.webs.com/795-804.pdf
o http://www.inc.com/guides/2010/04/employee-retention.html
o http://www.academia.edu/4814561/Employee_Turnover_in_banking_sector_Empirical_e
vidence
o http://dspace.nwu.ac.za/bitstream/handle/10394/7273/van%20Zyl_MA.pdf?sequence=2

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