Factors Determining Employee Retention: A Study in Banks

Abstract

Employees are the backbone of an organization. Hence, the retention of the employees is an important tool in keeping an organization on track. Banking sector of India is characterized by a high competition and is fully technology-based which create a severe problem to survive in the market place. The banking sectors are spending huge amount of money for developing training strategies and programmes in banks, the question is that once training is given to employees, are they remain in the organization for long period? If not training is meaningless particularly in banking sectors. Therefore, the study is carried out to find out factors determining employee retention based on the facts that experience and trained employees create a good impression in service delivery to the customers and at the same time when they switch over from the present job, the organization suffers a lot. The dependant variable of the study is employee retention. The intervening variable of the study is career development and opportunities and independent variable is Training. The study has found that training has significant relationship with employee retention in case of Public sector Banks compared to Private Sector Banks. At the same time, when it is determined for both types of banks (Public as well as Private Sector Banks), it is found that training has a significant impact on employee retention. As the research has shown, there is a significant impact of training on employees’ retention it becomes imperative to have a latest HR policies and practices for creating a competitive workforce by retaining employees for long period of time, especially in the banking sector.