The increasing globalization
has challenged pakistan to position its economy in the global marketplace. the
banking sector plays an important role in pakistan to face the challenges of the
emerging market and can help to put a step forward for stable and growing
economy. no doubt, regulations and infrastructure plays an important role for
banking sector in pakistan but banks should realise that their real important
asset is their current talented and qualified employees. employees turnover can
be acceptable when there are more than sufficient no of current employees but it
can be a serious issue in reverse situation. besides that there are some
organiations, rely on turnover as they think that bad employees should must be
replaced with the new talent.
in last 15 years liberaliation has transformed the pakistan banking system.
privatiation of banking sector maximied the profit but this change failed to
bring efficiency in performance. efficiency can be gained by paying attention
towards the factors that can improve the quality of service and bring efficiency
in performance.in early era of banking, bankers were just concerned about making
profits and employees were not considered important. studies and researches had
realised the importance of employee satissfaction because a satisfied employee
can make a customer satisfy for organisation. customers are now more consious
about quality of service and product and that can only be possible if employees
are performing well. employees play a significant role in providing service
quality to the customers but experienced and skillfull team is more preffered to
understand and deliver the needs of customers.the existing talented and
qualified individuals of banks are the most important commodity for them. the
retention of such employees saves money as well as enhance the productivity of
the banks.hiring new employees can be expensive for employers as the hiring
process needs money for recruiting, advertising and training of employeess and
it may cause less productivity untill the employees are familiar with their
duties and responsibilities because it takes time to mold yourself according to
the organiation culture and perform duties as the people were performing before.
in order to retain existing employees, banks should must consider the factors
influencing the productivity and prohibit problems that may cause negative
results such as employee turnover, customer dissatisfaction, low productivity,
poor quality services and so on. banks in pakistan are providing better job
opprtunities with sufficient salaries but people have to work in banks work
environment that is almost the same seven days a week. a little bit change in
tasks can increase the interest of employee and enhance the productivity. the
other factor is the employee's privacy right;disclosure of personal data of any
employee infront of his colleagues may effect his dignity and self-esteem and
the employee may become dissatisfied. as a result of dissatisfaction, that
employee may decide to not to work honestly and show lack of interest in
assigned tasks.recent studies has shown results that employee's privacy is now a
days playing an important role in building a strong internal brand and retention
of employees. few researchers tried to find out the impact of such factors on
employee turnover rate. according to a research paper, a survey was conducted in
banks of pakistan and 450 employees were sselected for questionnaires and in
depth interviews. on the basis of that survey it was founded that trend is
changing from financial rewards towards non-financial rewards among
employees.moreover, incentive plans base3d on experience, lack of proper
training and work overload are the major factors that must be considered in
banks of pakistan.
on the other side the more threatning fact for a bank is that when any of its
employee leaves the bank for any other of its competitor, there is a possibility
of disclosure of the bank's secrets to that competitors. that is the most
important critical reason for a bank to retain its existing employees because
when an employee leaves an organisation it can cause problems for the
organisation's privacy as well as result in expenses for recruitment and
selection process.
in todays competitive and fastly growing marketplace, human resource is
considered as a competitive tool for any business including banks. employes are
the one who generates profit and provide a competitive edge for the organisation
in terms of differentiated quality service for the customers. in pakistan
banking sector it is compulsory to have equal concentration on their employees
and customers because an employee can make a bank's customer satisfied and a
satisfied customer can help to increase the target market through word of mouth
or by sharing their personal experience with people.