voluntary employee turnover in banking sector

Voluntary Employee Turnover in Banking Sector

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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


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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?


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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.


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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


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


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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


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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


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


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


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


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


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


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


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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


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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


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


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 -


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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


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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.


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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


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


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


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


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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


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


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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


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


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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


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


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.


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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.


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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


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which truly represent their shared beliefs and values, and employees also believe

in those values and beliefs.


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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?


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?


E) Extremely Agree


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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?


E) Extremely Agree

16. Does HR department provide career counseling on your job progression?


E) Extremely Agree

17. Overall, I am happy with organizational culture and work environment?


E) Extremely Agree


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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?


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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

voluntary employee turnover in banking sector

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