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Voluntary Employee Turnover in Banking Sector
1
Table of Contents 1. Introduction .................................................................................................................................... 2
2. Literature Review ............................................................................................................................ 3
3. Methodology ................................................................................................................................... 4
4. Participant Basic Information ........................................................................................................... 6
5. Employment Tenure ........................................................................................................................ 8
6. Job Satisfaction ................................................................................................................................ 9
7. Factors Involved in Leaving Previous Jobs ...................................................................................... 10
8. Promotion ..................................................................................................................................... 11
9. Attributes for Better Employment Opportunity ............................................................................. 13
10. Salary Package ............................................................................................................................... 14
11. Organizational Commitment .......................................................................................................... 17
12. Workload Balance and Appreciation of Work ................................................................................. 19
13. Employee Training and Development ............................................................................................ 21
14. Organizational Culture and Work Environment .............................................................................. 23
15. Interviews...................................................................................................................................... 25
16. Findings ......................................................................................................................................... 26
17. Recommendations ......................................................................................................................... 27
18. Questionnaire ................................................................................................................................ 29
19. Sample Interview ........................................................................................................................... 31
20. References .................................................................................................................................... 32
Voluntary Employee Turnover in Banking Sector
2
1. Introduction
Commercial Banks play a key role in controlling the economic activity of a country, as the State
Bank of Pakistan implements monetary policy with the help of commercial banks. Government
of Pakistan is facilitating the investors in every sector due to which lot of multinational banks
have been encouraged to invest in banking sector. The new multinational banks no doubt
created lot of employment opportunities for the Pakistani youth but it also raised the
phenomenon of Employee Turnover. Turnover has become a major concern for organizations
especially in banks with employee shortages and competitive pressures making retention of key
employees a strategic issue. There is no doubt that retaining top talent is a high priority. With
the war for talent in today’s workplace and the changes in the larger business world,
organizations have to do more than pay well.
As the paradigm of lifetime employment becomes unrealistic, the question ‘who stays with
you?’ has assumed great importance in organizations today. Simultaneously, there has been an
increasing tendency to ‘buy in’ the talents of professionals with cross functional skills in order
to create a competitive advantage. One visible effect of this has been a consistent rise in the
pay packages of most organizations so as to attract and retain the most desirable employees.
Such a trend over the last few years has resulted in an unstable labor market, especially for
industries such as marketing, advertising, banking, finance and software where the skills are by
and large transferable, from one work environment to another.
Poor supervision, unproductive relationships with the boss, low salary, low career growth, too
much workload etc are the prime reasons cited by the employees for turnover. As in the case of
absenteeism, this too can be minimized by planning, supervising, and the application of good
management principles.
Turnover is generally classified into two major ways i.e. voluntary and involuntary. Voluntary
employee turnover is the employee intention to quit the job or decision to give resignation
from the job due to several reasons which can be better job opportunity, job dissatisfaction,
bad work environment, compensation packages, supervisor’s bad behavior, less chances of
growth, personal/family reasons etc. Involuntary employee turnover is triggered by
organizational policies, work rules and performance standards that are not met by employees
e.g. restructuring, downsizing, needs to cut cost, low performers being fired from job or
dismissals, employee death, retirement etc.
Our project is focusing on Voluntary employee turnover issue in banking sector and for this
reason the objective of our project will be answering these two questions:-
a. What are the particular reasons/ issues involved in voluntary employee turnover
in banking sector?
Voluntary Employee Turnover in Banking Sector
3
b. How can we get control over factors identified for voluntary employee turnover
in banking sector?
2. Literature Review
a. Anonymous. (1989) suggests that Worker turnover is also a serious problem in
construction and warrants attention. Poor supervision, unproductive
relationships with the boss, poor planning, and generally poor management are
the prime reasons cited by the workers for turnover. As in the case of
absenteeism, this too can be minimized by planning, supervising, and the
application of good management principles. Lower turnover offers a broad range
of productivity gains. One other significant cause of turnover is the
attractiveness of nearby jobs offering extended overtime.
b. Becker (1975) indicated that higher paid employees are less likely to resign than
lower paid employees. Human capital theorists say that firms pay skilled
employees more than their unskilled counterparts, because skilled employees
have higher marginal productivity. There is some evidence to support a negative
relationship between wage or salary level and turnover.
c. Harman et al., (1999) that negative job attitudes (e.g., low levels of job
satisfaction) is one of the causes of leaving. In their seminal work, March and
Simon (1958) proposed a psychological explanation of turnover that is based on
individuals’ utility functions: When outcomes (such as pay or promotion
opportunities) are too low relative to the employee’s expectations, an employee
becomes dissatisfied and motivated to leave
d. Smithers et al., (1998) found that Turnover (loss from schools) of fulltime
teachers in 2002 was found to be 14.1 per cent in Spanish schools. Five main
factors were found to influence teachers’ decisions to leave: workload, new
challenge, the school situation, salary and personal circumstances. Of these,
workload was by far the most important, and salary the least. Leavers tended to
be disproportionately either young with a few years’ service or older and
approaching retirement. Young leavers were more likely to cite ‘salary’ and
‘personal circumstances (including travel)’, older leavers ‘workload’. Young
leavers, particularly those travelling or teaching abroad, were more likely to
expect to return to full-time teaching.
Voluntary Employee Turnover in Banking Sector
4
3. Methodology
Both quantitative and qualitative methods were used to carry out this study. For quantitative
method, questionnaire was prepared and distributed in various branches of different banks.
Commercial banks in which questionnaire were distributed are as under:
a. NIB
b. Barclays
c. Askari Bank Ltd
d. HSBC
e. Standard Chartered
f. National Bank of Pakistan
g. Habib Bank Ltd
Total responses received from the banks were 118 and their distribution is as under:
NIB 17
Barclays 32
Askari 24
HSBC 9
Standard Chartered 7
National Bank of Pakistan 9
Habib Bank Ltd 20
The major problem which we faced in collection of data was getting these questionnaires filled
from the bank staff and getting exit interviews data from interviews with the branch managers.
Due to their busy routine we had to leave questionnaires with the bank managers and then
collected them after interval of 2-3 days. Moreover branch managers were reluctant to provide
exit interviews data but we managed this with the help of our questionnaire as questions were
targeted specifically for this purpose to know about employees’ viewpoint on voluntary
employee turnover. Questionnaire was designed so as to cater for all the aspects of employee
turnover. Our questionnaire is based on following factors:
Factors Question Numbers
Participant’s Basic Information 1, 2, 3
Voluntary Employee Turnover in Banking Sector
5
Job Satisfaction 5, 6
Organizational Commitment 11
Work Environment/ Supervisor’s Behavior 12, 13, 14, 17
Less Career Growth 7, 10, 12
Monetary Reward 8, 10, 12, 14
Organizational Culture 17
Ease of Movement 11
Better Employment Opportunity 9
Employment Tenure 4
Employee Training & Development 15, 16
Questionnaires response was gathered from different departments within a bank to obtain a
view point of every employee about voluntary employee turnover. Departments are generally
the same in each bank and they are as under:
a. Operations
b. Customer service
c. Sales
d. Credit Initiation
e. Banking services
f. IT department
g. Coordination & Administration
h. Liability
i. Loans initiation
Voluntary Employee Turnover in Banking Sector
6
4. Participant Basic Information
74% male and 26% female responded to the questionnaires floated in different banks and their
age group is as under:
Age Group Percentage
18-24 13%
25-34 58%
35-44 14%
Above 45 15%
The results of gender are as under:
0.00 20.00 40.00 60.00 80.00 100.00
Male
Female
Male Female
Std Chtd 85.71 14.29
HSBC 44.44 55.56
NBP 88.89 11.11
NIB 82.35 17.65
Askari 83.33 16.67
Barclays 53.13 46.88
HBL 90.00 10.00
Gender
Std Chtd
HSBC
NBP
NIB
Askari
Barclays
HBL
Voluntary Employee Turnover in Banking Sector
7
Results of age group are as under:
The results of age group shows that people falling within the age bracket of 18-24 and 25-34
have opted for commercial banks which have opened recently and people joined these banks
because of company profile, chances of career growth and salary packages. Employees at NIB,
Askari, Barclays, HSBC and Standard Chartered have majority of employees who are within
these age brackets. Age group of majority of employees at NBP and HBL lie within 35 and above
which shows that these employees’ needs are being satisfied by their employer and they value
monetary rewards which are being provided to them.
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00
18-24
25-34
35-44
45-55
Over 55
18-24 25-34 35-44 45-55 Over 55
Std Chtd 14.29 71.43 14.29 0.00 0.00
HSBC 11.11 77.78 11.11 0.00 0.00
NBP 0.00 11.11 33.33 55.56 0.00
NIB 11.76 82.35 5.88 0.00 0.00
Askari 16.67 58.33 12.50 12.50 0.00
Barclays 21.88 71.88 6.25 0.00 0.00
HBL 5.00 20.00 30.00 40.00 5.00
What is your age group?
Std Chtd
HSBC
NBP
NIB
Askari
Barclays
HBL
Voluntary Employee Turnover in Banking Sector
8
5. Employment Tenure
Employment Tenure defines how much time an employee has spent with a particular
organization in which he/she is employed. As long as the employee needs are met in that
organization, he/she stays there but as soon as employee find better opportunities, they then
leave the organization to pursue those opportunities. These opportunities maybe company
profile, better growth chances, salary packages, domestic problem etc. Results of employment
tenure are as under:
Employees at Askari, HBL and NBP have shown greater commitment with their organizations
and majority of them have stayed for more than 3 years which shows that they are satisfied and
their needs are being met by their organization. They value what their organization has to offer
in short term and long term aspects. Standard Chartered, NIB, Barclays and HSBC have majority
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00
Less than 6 months
6 months to 1 year
1 year to 3 years
3 years to 6 years
6 years to 10 years
Above 10 years
Less than 6 months
6 months to 1 year
1 year to 3 years
3 years to 6 years
6 years to 10 years
Above 10 years
Std Chtd 28.57 14.29 57.14 0.00 0.00 0.00
HSBC 0.00 0.00 88.89 11.11 0.00 0.00
NBP 0.00 0.00 11.11 0.00 0.00 88.89
NIB 23.53 23.53 47.06 5.88 0.00 0.00
Askari 0.00 0.00 25.00 37.50 25.00 12.50
Barclays 15.38 7.69 73.08 3.85 0.00 0.00
HBL 1.00 5.00 10.00 10.00 15.00 65.00
For how long you have been working for this company?
Std Chtd
HSBC
NBP
NIB
Askari
Barclays
HBL
Voluntary Employee Turnover in Banking Sector
9
of employees who have less than 3 years in their present jobs. They join these commercial
banks based on these banks company profile, career progression and monetary benefits.
6. Job Satisfaction
Employee feels job satisfaction when their intrinsic needs are being met and they are given
sufficient autonomy to do their job. Results of job satisfaction are given as under:
Employees at Askari, NBP, HSBC, Barclays and HBL are satisfied with their job. They are satisfied
because their needs are being met which are monetary benefits and career progression. Also
employees of these banks feel freedom while performing their work. They experience less
supervision in performing their job as they are given more responsibility to finish the task
assigned to them in order to have better customer satisfaction.
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00
Extremely Disagree
Disagree
Neutral
Agree
Extremely Agree
Extremely Disagree
Disagree Neutral Agree Extremely Agree
Std Chtd 14.29 14.29 28.57 14.29 28.57
HSBC 0.00 0.00 44.44 55.56 0.00
NBP 0.00 0.00 22.22 77.78 0.00
NIB 0.00 5.88 52.94 41.18 0.00
Askari 0.00 8.33 25.00 62.50 4.17
Barclays 3.13 9.38 37.50 50.00 0.00
HBL 0.00 5.00 50.00 45.00 0.00
I am satisfied with my job?
Std Chtd
HSBC
NBP
NIB
Askari
Barclays
HBL
Voluntary Employee Turnover in Banking Sector
10
7. Factors Involved in Leaving Previous Jobs
This question was specifically designed to know about those factors which compel employees
to leave their job and joining new commercial banks. Employees generally communicate these
factors about leaving their present jobs in exit interviews.
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00
Extremely Disagree
Disagree
Neutral
Agree
Extremely Agree
Extremely Disagree
Disagree Neutral Agree Extremely Agree
Std Chtd 0.00 14.29 42.86 42.86 0.00
HSBC 0.00 0.00 22.22 77.78 0.00
NBP 0.00 0.00 33.33 66.67 0.00
NIB 0.00 0.00 58.82 41.18 0.00
Askari 8.33 4.17 29.17 54.17 4.17
Barclays 0.00 6.25 40.63 46.88 6.25
HBL 0.00 20.00 60.00 20.00 0.00
I feel freedom while working?
Std Chtd
HSBC
NBP
NIB
Askari
Barclays
HBL
Voluntary Employee Turnover in Banking Sector
11
Employees at HBL and HSBC have cited low salary as a major factor for leaving their previous
jobs. Employees at NIB, Askari, Barclays and HSBC have pointed low career growth as a factor
for leaving their jobs and, Bad working condition and supervisor’s bad behavior has been a
factor for leaving job for employees at Standard Chartered, NIB and Askari.
8. Promotion
Career growth is a major factor contributing towards voluntary employee turnover. When
employee do not get chances to excel in their career after putting up a hard work they feel low
and then look for better job opportunity where more chances of career progression is promised
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00
Low salary
Supervisor's negative behavior
Bad work condition
Low career growth
Domestic Problem
Other
Low salarySupervisor's
negative behavior
Bad work condition
Low career growth
Domestic Problem
Other
Std Chtd 28.57 14.29 14.29 28.57 0.00 14.29
HSBC 44.44 0.00 0.00 55.56 0.00 0.00
NBP 0.00 0.00 0.00 0.00 33.33 66.67
NIB 23.53 5.88 11.76 41.18 0.00 17.65
Askari 12.50 8.33 12.50 58.33 4.17 4.17
Barclays 9.38 3.13 18.75 59.38 0.00 9.38
HBL 65.00 5.00 5.00 0.00 0.00 25.00
Which of the following factors most influence your decision to leave the job?
Std Chtd
HSBC
NBP
NIB
Askari
Barclays
HBL
Voluntary Employee Turnover in Banking Sector
12
to them. Career growth not only recognizes a hard working employee, it also gives employee
more monetary benefits.
At NBP where employees have been serving for more than 3 years, experienced more
promotions as is evident from the results. But majority of employees serving in other
commercial banks apart from NBP have not experienced promotion as they had expected when
they joined these organizations. A major factor for this is also that majority of employees
working in these banks have relatively less tenure in their present jobs. They joined these banks
because of high company profile, career progression and salary package but they have yet to
receive promotion. Banks will also consider these employees for promotion after they have put
some years and effort in their present jobs.
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00
None
1
2
3
4
Over 4 times
None 1 2 3 4 Over 4 times
Std Chtd 71.43 28.57 0.00 0.00 0.00 0.00
HSBC 66.67 33.33 0.00 0.00 0.00 0.00
NBP 11.11 0.00 33.33 11.11 44.44 0.00
NIB 82.35 11.76 5.88 0.00 0.00 0.00
Askari 45.83 16.67 20.83 0.00 4.17 12.50
Barclays 78.13 18.75 3.13 0.00 0.00 0.00
HBL 65.00 20.00 10.00 5.00 0.00 0.00
How many times you got promotion in this company?
Std Chtd
HSBC
NBP
NIB
Askari
Barclays
HBL
Voluntary Employee Turnover in Banking Sector
13
9. Attributes for Better Employment Opportunity
We asked from employees through our questionnaire about what attributes they prefer for
better employment opportunity and the results are as following:
Employees of NBP, HSBC and Barclays chose company profile an attribute for better
employment opportunity. NBP is one of the leading banks in the country with annual profits
greater than any other bank. Clearly NBP has a very good profile and people join NBP for long
term and short term benefits it provide. HSBC and Barclays are world leading banks with very
strong company profile. It’s no surprise that people who have joined these banks were looking
for good company profile for their career progression. Employees at HBL, NIB and Standard
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00
Company Profile
Monetary Benefits
Supervisor
Working Condition
Medical Facility
Internal Environment
Other
Company Profile
Monetary Benefits
SupervisorWorking
ConditionMedical Facility
Internal Environme
ntOther
Std Chtd 28.57 42.86 0.00 28.57 0.00 0.00 0.00
HSBC 44.44 22.22 0.00 22.22 0.00 0.00 11.11
NBP 66.67 22.22 0.00 0.00 0.00 0.00 11.11
NIB 29.41 47.06 0.00 11.76 0.00 5.88 5.88
Askari 29.17 29.17 4.17 33.33 0.00 1.00 4.17
Barclays 41.38 10.34 3.45 24.14 3.45 13.79 3.45
HBL 0.00 85.00 1.00 10.00 1.00 0.00 5.00
Which attribute is more important for better employment opportunity?
Std Chtd
HSBC
NBP
NIB
Askari
Barclays
HBL
Voluntary Employee Turnover in Banking Sector
14
Chartered chose monetary benefits for better employment opportunity and working condition
was chosen by employees of Askari, Barclays, HSBC and Standard Chartered.
10. Salary Package
Salary package is one of the most important factor that decide whether an employee will leave
or stay in a given organization. Employees look into salary package when they join new jobs and
also after joining organization, it is an extrinsic factor which motivates employees to work hard
to improve on their salary package and get more incentives. Sometimes they get their desired
outcomes but sometimes they don’t and when this happens it forces employee to leave job and
look for better opportunity.
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00
Extremely Disagree
Disagree
Neutral
Agree
Extremely Agree
Extremely Disagree
Disagree Neutral Agree Extremely Agree
Std Chtd 28.57 0.00 42.86 28.57 0.00
HSBC 11.11 22.22 33.33 33.33 0.00
NBP 0.00 0.00 55.56 44.44 0.00
NIB 11.76 47.06 29.41 11.76 0.00
Askari 0.00 12.50 25.00 58.33 4.17
Barclays 0.00 40.63 34.38 25.00 0.00
HBL 0.00 20.00 80.00 0.00 0.00
Salary package/monetary incentives are sufficient in my company?
Std Chtd
HSBC
NBP
NIB
Askari
Barclays
HBL
Voluntary Employee Turnover in Banking Sector
15
Employees at Askari and NBP are satisfied with salary package and incentives which are being offered to them by these banks. This
will cause less employee turnover and will guarantee long term stay in these banks. A comparative analysis of salary packages of
these banks was also done to find out why employees are satisfied with the salary and incentives.
NBP Askari Barclays
Designations Cadre Basic Pay Range
(Rs) (min-max)
Remarks Basic Pay Range
(Rs) (min-max)
Remarks Basic Pay
Range (Rs)
(min-max)
Remarks
President - 1) Salary
package is
revised after
every 2 years.
2) Increment in
Basic Pay is
based on yearly
appraisal.
3) HRA is 50%
of Basic Pay.
4) Medical
Allowance is
8.3% of Basic
- 1) HRA is 45% of
Basic Pay.
2) Utility
Allowance is
10% of Basic
Pay.
3) Medical
Allowance is
10% of Basic
Pay.
4) Fuel/
Conveyance
Allowance as
per existing
- 1)300 lit
and
2400cc
bank
maint
car for
SVP.
2)200 lit
and bank
maint
car for
AVP.
3)150 lit
for OG-I.
SEVPs
Executive
Cadre
43,500 - 108,750 215,700 - 500,000 -
EVPs 26,000 - 65,000 134,800 - 350,000 -
SVPs 20,000 - 50,000 87,000 - 225,000 200,000
VPs 16,500 - 41,250 58,000 - 150,000
AVPs 13,000 - 32,500 40,000 - 100,000 110,000
MG(Askari)
- 28,600 - 70,000 -
AMG(Askari)
- 21,200 - 55,000 -
Voluntary Employee Turnover in Banking Sector
16
OG-I
Officer
Cadre
10,000 - 25,000 pay.
5) Fuel/
conveyance
ceiling as per
entitlement
6) Education
allowance as
per existing
policy
15,700 - 40,000 policy 60,000
OG-II 7,250 - 18,125 11,600 - 30,000 45,000
OG-III 5,000 - 12,500 8,900 - 22,000 30,000
NBP is governed by independent Board of Directors who looks after bank administration, finance, employee salary etc. NBP also
maintain a revolving fund with CMH, MH and AFIC Rawalpindi by which their employees can get treatment in these hospitals at any
time by just showing a reference letter. Employee and his/her family get medical treatment from these hospitals and bank pays all
the expenses afterwards. Employee can also get treatment from other hospitals apart from the ones mentioned above but then all
the expenses are borne by the employees and get paid afterwards by showing the expenditure bills.
Also employees get different incentives, bonuses and loans which are as under:-
a. Hafiz e Quran Rs 25,000
b. Marriage Rs 50,000
c. Institute of Banker Exam (clearing each stage in first attempt)
(1) Stage 1 Rs 50,000
(2) Stage 2 Rs 75,000
(3) Stage 3 Rs 100,000
Voluntary Employee Turnover in Banking Sector
17
d. Loans without interest (Motor car loan, House Building loan, Computer purchase
loan).
e. Year end bonuses basing upon profit earned by the bank. As NBP has been
achieving considerable profit over the past few years, employees get yearly
bonuses on regular basis.
Although basic pay of employees at NBP is much less than that of Askari and Barclays but they
are much satisfied with their present jobs. Mr. Aftab Gul, an HR manger of NBP, on giving
interview said this that employees at NBP get much more year end bonuses than any other
bank. Also incentives as described above are much greater and the kind of medical facilities
which they receive is also very good. This causes low turnover and employees show greater
organizational commitment.
In contrast employees at Barclays and NIB are not satisfied with the salary packages which are
being offered to them. This shows that company profile was more important to these
employees when they were joining these organization but after sometime there need changed
and they realized that pay and incentives being offered to them was not up to their
expectations. This will cause dissatisfaction among employees at these banks and voluntary
employee turnover will occur more.
11. Organizational Commitment
When intrinsic and extrinsic needs of employees are not met then employees show less
organizational commitment and are more likely to leave their organization. Better salary and
incentive packages, company profile, career progression, working condition, domestic situation
of employees are some of the factors which contribute towards organizational commitment.
Organizations try to have a balance of all these elements. Any lacking in one or more of these
elements will cause employees to leave that organization. By looking at the results
organizational commitment, employees at HBL have greater organizational commitment. They
are less likely to leave their organization whereas majority of employees in other banks are
generally satisfied but they don’t have any plans for the future meaning that whenever good
opportunity comes in their way, they may take it.
Voluntary Employee Turnover in Banking Sector
18
Moreover we also asked from employees after how long they served before they left their
previous organization. This shows also the organizational commitment which these employees
had with their previous organizations that is organization were able to meet their employee
needs or not. For employees at NBP, NIB and HBL it is their first job as majority of them have
been have been working for these organizations for more than 3 years showing greater
organizational commitment. Majority of employees at Askari, Barclays and Standard Chartered
left their previous organization after serving less than 3 years in them. When they find better
job opportunity meeting their needs, they left their jobs to join present organization.
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00
Less than 1 year
2-3 years
3-5 years
More than 5 years
Don’t have Plans
Less than 1 year 2-3 years 3-5 yearsMore than 5
yearsDon’t have
Plans
Std Chtd 0.00 28.57 14.29 14.29 42.86
HSBC 22.22 22.22 33.33 0.00 22.22
NBP 0.00 0.00 0.00 22.22 77.78
NIB 5.88 29.41 5.88 0.00 58.82
Askari 0.00 12.50 0.00 12.50 75.00
Barclays 9.38 18.75 15.63 0.00 56.25
HBL 0.00 0.00 10.00 50.00 40.00
I have decided to stay with current employer?
Std Chtd
HSBC
NBP
NIB
Askari
Barclays
HBL
Voluntary Employee Turnover in Banking Sector
19
12. Workload Balance and Appreciation of Work
Employees usually prefer an environment where they feel that equity is maintained in their
work. They will be more satisfied in an organization where their work is appreciated and they
get paid equally on the basis of their workload. In comparison to reward/ facilities, employees
at HSBC, Askari and HBL feel their workload is equal whereas workload is more at Standard
Chartered, NIB, Barclays and NBP. This may result in employee turnover and job dissatisfaction.
When employee start to have this feeling that his workload is more as compared to other
0.00 20.00 40.00 60.00 80.00 100.00 120.00
Before 3 months
3-6 months
7-12 months
1-1.5 years
2-3 years
4-6 years
Over 6 years
Its my first job
Before 3 months
3-6 months
7-12 months
1-1.5 years
2-3 years 4-6 yearsOver 6 years
Its my first job
Std Chtd 14.29 0.00 14.29 14.29 42.86 0.00 0.00 14.29
HSBC 0.00 11.11 22.22 22.22 0.00 22.22 0.00 22.22
NBP 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100.00
NIB 0.00 5.88 0.00 5.88 35.29 0.00 0.00 52.94
Askari 4.17 0.00 8.33 20.83 4.17 8.33 20.83 33.33
Barclays 3.13 9.38 12.50 25.00 15.63 9.38 0.00 25.00
HBL 0.00 0.00 0.00 10.00 0.00 0.00 0.00 90.00
After how long you left the previous job?
Std Chtd
HSBC
NBP
NIB
Askari
Barclays
HBL
Voluntary Employee Turnover in Banking Sector
20
employee working with him and also he is not getting paid accordingly, then he will be looking
for better job opportunity.
Similarly the employee wants recognition from their supervisor and bosses. The amount of
effort they put up also results in company success. From our surveys we found out that
generally all employees agree that their immediate boss/supervisor appreciate their work. This
will also cause fewer turnovers as it influences the working environment and organizational
culture. Employees will take more responsibility when risk taking will be encouraged and will
show results. Employees will respond more to supervisors who will be guiding, coaching and
appreciating their work.
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00
Extremely Less
Less
Equal
More
Extremely more
Extremely Less Less Equal More Extremely more
Std Chtd 14.29 0.00 14.29 57.14 14.29
HSBC 0.00 0.00 66.67 33.33 0.00
NBP 0.00 0.00 0.00 55.56 44.44
NIB 0.00 5.88 41.18 41.18 11.76
Askari 0.00 12.50 54.17 20.83 12.50
Barclays 3.13 9.38 43.75 31.25 12.50
HBL 0.00 10.00 65.00 20.00 5.00
In comparison to reward or facilities, my work load is . . .
Std Chtd
HSBC
NBP
NIB
Askari
Barclays
HBL
Voluntary Employee Turnover in Banking Sector
21
13. Employee Training and Development
Training and Development is an important part of any organization success. It helps in
employee retention and shows that organizations value its employees. Employees feel this as a
part of their career progression so they also value training and development a lot. It encourages
employee to put on more effort when that training is directly centered towards the goals and
objectives of employee and organization. Employees at Barclays, HBL, Askari, NIB and HSBC
agree that they are given training for the job at hand.
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00
Not at all
Usually not
Neutral
Sometimes yes
Always
Not at all Usually not Neutral Sometimes yes Always
Std Chtd 28.57 0.00 14.29 28.57 28.57
HSBC 11.11 0.00 33.33 33.33 22.22
NBP 0.00 0.00 33.33 55.56 11.11
NIB 5.88 11.76 29.41 35.29 17.65
Askari 0.00 12.50 20.83 29.17 37.50
Barclays 0.00 6.25 34.38 21.88 37.50
HBL 0.00 0.00 35.00 60.00 5.00
Your immediate boss encourages/appreciates your work?
Std Chtd
HSBC
NBP
NIB
Askari
Barclays
HBL
Voluntary Employee Turnover in Banking Sector
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Training and development can only succeed when it is carefully planned by the HR department.
Also HR department efforts in resolving employees issues, conducting career counseling and
career progression will also help in employee retention. Generally employees in all banks agree
that HR department needs to do more in their career progression and, training and
development. Employees will feel more job satisfaction and there will be less chances of them
leaving their jobs.
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00
Extremely Disagree
Disagree
Neutral
Agree
Extremely Agree
Extremely Disagree
Disagree Neutral Agree Extremely Agree
Std Chtd 0.00 14.29 57.14 28.57 0.00
HSBC 0.00 11.11 33.33 55.56 0.00
NBP 0.00 22.22 77.78 0.00 0.00
NIB 0.00 11.76 52.94 23.53 11.76
Askari 20.83 0.00 33.33 33.33 12.50
Barclays 3.13 6.25 40.63 43.75 6.25
HBL 0.00 0.00 55.00 40.00 5.00
Are you given training for the job at hand?
Std Chtd
HSBC
NBP
NIB
Askari
Barclays
HBL
Voluntary Employee Turnover in Banking Sector
23
14. Organizational Culture and Work Environment
Organizational culture is the shared values and beliefs in an organization. Good organizational
culture affects attention and retention of competent employees. Organizational culture is seen
as a climate of the organization which employees, manager, customers and other experience.
This culture affects service and quality, organizational productivity, and financial results. Results
of this question are as under:
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00
Extremely Disagree
Disagree
Neutral
Agree
Extremely Agree
Extremely Disagree
Disagree Neutral Agree Extremely Agree
Std Chtd 14.29 14.29 42.86 0.00 28.57
HSBC 22.22 11.11 44.44 22.22 0.00
NBP 0.00 77.78 22.22 0.00 0.00
NIB 11.76 47.06 29.41 11.76 0.00
Askari 33.33 33.33 16.67 12.50 4.17
Barclays 9.38 28.13 46.88 15.63 0.00
HBL 0.00 10.00 65.00 25.00 0.00
Does HR department provide career counseling on your job progression?
Std Chtd
HSBC
NBP
NIB
Askari
Barclays
HBL
Voluntary Employee Turnover in Banking Sector
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From the results, it is evident that employees of Standard Chartered, HSBC, Askari and Barclays
are satisfied with their organizational culture and working environment. These banks are
providing an open, free and family like environment to their employees. They are doing a
number of things to retain their valuable employees.
a. These banks have free way work environment, for entertainment they had
small entertainment corner where Cable and television facility was available for
employees. And it’s a mutual understanding between employees that they know
if they avail these facilities whenever they will be having some free time or lunch
breaks, and everyone understands their responsibilities.
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00
Extremely Disagree
Disagree
Neutral
Agree
Extremely Agree
Extremely Disagree
Disagree Neutral Agree Extremely Agree
Std Chtd 0.00 14.29 42.86 28.57 14.29
HSBC 0.00 0.00 33.33 66.67 0.00
NBP 0.00 0.00 77.78 22.22 0.00
NIB 0.00 11.76 76.47 11.76 0.00
Askari 0.00 12.50 33.33 50.00 4.17
Barclays 3.13 15.63 21.88 46.88 12.50
HBL 0.00 5.00 70.00 25.00 0.00
Overall, I am happy with organizational culture and work environment?
Std Chtd
HSBC
NBP
NIB
Askari
Barclays
HBL
Voluntary Employee Turnover in Banking Sector
25
b. These banks arrange family picnics and get-togethers, to make employees feel
like a part of one family, getting to know each other.
c. They have arranged for small sports facilities like Tennis table, carom, playing cards
etc.
d. Freedom of work is promoted in these organizations and risk taking is
encouraged.
e. Immediate supervisor and bosses helps and guide their subordinates. They also
act as mentors for their subordinates.
f. These banks reward and recognize high performing employees.
g. They create a sense of pride in their employees about their organization values
and beliefs.
h. Employees consider meeting organizational goals and objectives as their
personal goals.
Apart from these above mentioned banks, other banks are also trying hard to have a culture
where they attract more employees and have fewer turnovers.
15. Interviews
a. Satisfaction with recruitment and selection
i. We interviewed different employees and managers about the process of
recruitment and selection process and most of the employees at all banks
were satisfied with the recruitment and selections process at NBP, HBL
and Askari.
ii. In banks like NIB, Barclays and HSBC, most of the recruitment is done on
Referral basis as concluded after interviews.
iii. It was also told that most of the times when one senior employee moves,
his all team moves with him to the new bank thus increasing the turnover
rate. This behavior is mostly observed at banks like Barclays, NIB etc.
b. Measures Adopted for Reducing Voluntary Turnover
i. At Barclays what they do for retaining their employees is that they give
special performance Appraisals or promotions.
Voluntary Employee Turnover in Banking Sector
26
ii. At NIB it was told that some measures like shifting an employee to his
desired department where he may feel comfortable and be more
productive, giving him his desired responsibilities.
iii. At Banks like HBL, NBP and Askari there are not many efforts for reducing
employee turnover.
c. Reasons For Voluntary Employee Turn Over
i. At Barclays and NIB main reasons were Changing Company Policies in a
sense that would result in a constructive discharge sometimes.
ii. Sometime Conflicts with management is also main reason for turnover in
banks like NIB, HSBC etc.
d. Feed Back Systems
i. At Barclays they have Employees feedback surveys conducted by a third
party and these surveys are conducted once a year in all branches at all
over the world.
ii. At NIB employees feedback surveys are conducted by the HR and then
improvements are made based on the findings of those surveys.
16. Findings
Most common reasons observed after conducting surveys and Interviews were:-
In overall survey Barclays has shown to be an employer in terms of Work environment,
Organizational Culture, Rewards and facilities, Employee satisfaction as far as these private
banks are concerned.
If we compare it to NIB, NIB still has to improve itself in these above mention areas where
Barclays has proven to be better in order to control its employee turnover.
At NBP compensation given are excellent and their employees are very satisfied with it, where
as if we compare it to Askari, it needs to improve in that respect.
Better working condition is a desire and right of every employee, and a very important factor
for employee satisfaction, motivation and thus reduction of employee turnover. At NIB and HBL
management needs to focus on providing better working conditions to employees as according
to employees demand in interviews.
Voluntary Employee Turnover in Banking Sector
27
Most Banks do not have Exit interview policies, after our interview we came to know that HR
management at Askari will be starting exit interview process soon.
It is observed that most employees that switch between 1 to 2 years of experience in order to
get early promotions as, in most of the banks there are no promotions at early stages up to 3
years (i.e. promotions are done after 3 years of service).
17. Recommendations
After going through the survey results, interviews and findings, we have come to following
recommendations:
a. HR department should play a key role in retaining their valuable employees.
b. HR department should carry out career progression based upon performance
appraisal.
c. It should include training and development of employees after observing
weaknesses and shortfalls in their performance appraisal.
d. With new commercial banks opening in the Pakistan banking sector, already
established banks should opt for pay for performance incentive plan to attract
and retain employees more.
e. Banks should also introduce bonuses based upon performance appraisal and
improved benefits for all.
f. Employees should be included in the organization goal and objective setting so
that they feel valued and work hard to achieve those goals.
g. Employees should then be rewarded and recognized when banks achieve those
targets.
h. More freedom at work be provided to employees so that they are able to
perform much better and take risk when necessary to achieve organizational
goals.
i. Supervisors and managers should act as coach, rather as bosses and they should
appreciate good performance and guide employees when they fail to reach
goals.
j. Organizational culture and work environment plays a very important part in
having less employee voluntary turnover therefore banks should create a culture
Voluntary Employee Turnover in Banking Sector
28
which truly represent their shared beliefs and values, and employees also believe
in those values and beliefs.
Voluntary Employee Turnover in Banking Sector
29
18. Questionnaire
VOLUNTARY EMPLOYEE TURNOVER IN BANKING SECTOR QUESTIONNAIRE
Hello, we are doing research on factors that affect Voluntary Employee Turnover (VET) as
partial requirement of our MSc Engineering Management program at CASE, Islamabad. We are
interested in your views on VET. Please spend five minutes to fill the following questionnaire.
______________________________________________________________________________
1. Gender: A) Male B) Female
2. What is your age group?
A) 18-24 B) 25-34 C) 35-44 D) 45-55 E) Over 55
3. Please mention your department below:
______________________________________________
4. For how long you have been working for this company?
A) Less than 6 months B) 6 months to 1 year C) 1 year to 3 years
D) 3 years to 6 years E) 6 years to 10 years F) Above 10 years
5. I am satisfied with my job?
A) Extremely Disagree B) Disagree C) Neutral D) Agree
E) Extremely Agree
6. I feel freedom while working?
A) Extremely Disagree B) Disagree C) Neutral D) Agree
E) Extremely Agree
7. How many times you got promotion in this company?
A) None B) 1 C) 2 D) 3 E) 4
F) Over 4 times
8. Salary package/ monetary incentives are sufficient in my company?
A) Extremely Disagree B) Disagree C) Neutral D) Agree
E) Extremely Agree
Voluntary Employee Turnover in Banking Sector
30
9. Which element is more important for better employment opportunity?
A) Company Profile B) Monetary Benefits C) Supervisor D) Working Condition
E) Medical Facility F) Internal Environment G) Other
10. After how long you left the previous job?
A) Before 3 Months B) 3- 6 Month C) 7-12 Month D) 1-1.5 Years
E) 2-3 Years F) 4- 6 Years G) Over 6 Years E) It’s my first job
11. I have decided to stay with current employer?
A) Less than 1 Year B) 2-3 Years C) 3-5 Years D) More Then 5 Years
E) Don’t Have Plan
12. Which of the following factors most influence your decision to leave the job?
A) Low Salary B) Supervisor’s Negative Behavior C) Bad Work Condition
D) Low Career Growth E) domestic Problem F) Other
13. Your immediate boss encourages / appreciates your work?
A) Not At All B) Usually Not C) Neutral D) Sometimes Yes E) Always
14. In comparison to reward or facilities, my work load is. . . .
A) Extremely Less B) Less C) Equal D) More E) Extremely More
15. Are you given training for the job at hand?
A) Extremely Disagree B) Disagree C) Neutral D) Agree
E) Extremely Agree
16. Does HR department provide career counseling on your job progression?
A) Extremely Disagree B) Disagree C) Neutral D) Agree
E) Extremely Agree
17. Overall, I am happy with organizational culture and work environment?
A) Extremely Disagree B) Disagree C) Neutral D) Agree
E) Extremely Agree
Voluntary Employee Turnover in Banking Sector
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19. Sample Interview
SAMPLE INTERVIEW
Section One:
a. Introduction of the interviewer and interviewee.
b. Briefing about company and interviewee position in the company.
c. Overview of employee turnover in the company (Voluntary & Involuntary)
Section Two:
d. Are you satisfied with recruitment and selection process in this company?
e. How do you identify employee training needs?
f. Have you implemented any skill enhancement program for employees?
g. How you measure efficiency or performance of individual employee?
h. Which measures you are adopting to minimize Voluntary Employee Turnover?
i. How you make work environment healthy for employees?
j. How you maintain salary slabs at different levels of employees?
k. What are the main reasons for Voluntary Employee Turnover?
l. Do you have any feedback system to know about employee needs?
Voluntary Employee Turnover in Banking Sector
32
20. References
Anonymous. (1989). Absenteeism and turnover, Business roundtable.
Becker, G. (1975). Human Capital. New York: National Bureau of Economic Research.
Harman, W.S., Lee, T.H., Mitchell, H., Felps, W. and Owens, B.P. (1999). The Psychology of
Voluntary Employee Turnover. Psychological Science.
Smithers, A. and P. Robinson. 1998. Factors Affecting Teachers’Decisions to Leave the
Profession. Research Report.
Human Resource Management 11th edition by Robert L. Mathis and John H. Jackson