Retention Issues in Banking Industry of Pakistan: A Case Study of Habib Metro and Soneri Bank

Abstract

Every growing organization considers its human resource as the most precious and critical asset. Hence the importance of retention management in the organizations is very important. The world of banking has changed radically since last decade. In banks, employees are required to be smarter, safer, better trained, more thoughtful and more aware and engaged in order to meet the expectations of customers, colleagues, regulators and stakeholders. This study is an attempt to investigate the retention issues in private banks of Pakistan and to identify the key contributor in overall retention management among job satisfaction, empowerment, training and development, career development and planning and organization image. The study revealed that among factors used in the study, career development and organization image were key contributors which helps in increasing the retention in the two private banks. The study further revealed that there are many other factors which are explaining the retention issues and need to be explored. Questionnaires among the staff members posted at Head Office of both banks were distributed and 15% of the total population of Head Office were submitted their responses. In the end it is found that the more HR practices are in place, the more the bank employee are competent, satisfied, and have sufficient role clarity in their job and will have no intention to leave the organization. This paper concludes that if the commercial banks in developing countries like Pakistan are able to successfully implement HR practices, they could achieve the maximum contribution of their employees, although, at present, the economic and political environment within which HR practices operate is not that conducive