Saturday, March 31, 2018

High resignation turn over in Banking Sector ???



Large numbers of employees are not satisfied with their jobs in banking sector. According to various type of reasons with combination of Human Resource Management, employee resignation turnover is high in financial & banking sector.

When we comparing Nations Trust Bank Plc & other commercial banks. The NTB employee resigning turnover is relatively high. Because employees aren’t satisfied but they are working because of reputed name of designation as a Banker. That means large number of employees work to keep a good will, obtain reputed name as a banker from the social environment.
NTB has a centralized operations system. Any kind of matters such a credit facility approvals, decision making at the real time and etc directly handling by head office management. As a branch manager, he also hasn’t any rights to decision making and giving facility approvals. That proves managers work duties are cut off when comparing to other commercial banks. Not only that but also other employees are also not satisfied. Because they are monthly salary scale is not sufficient, not happy to spend a month. Actually employee’s basic salary is very poor. Even employer pays insufficient salary scale to employee, always employer hoping monthly target achievement of the employee. Always employees are working under target orient environment. Even Assistant managers, Managers of branches have to work under target based working environment. According to these reasons employees are working under pressurized environment. Even employees are working such a environment while achieving required targets, they have to work under probation period, under fixed term contract in more than two years. To be a permanent staff member of Nations Trust Bank, employees have to work more than three years. Sometimes employees have to wait four five years also. There are employees working more than four years still they couldn’t go to permanent category. These are HR issues of banking sector. In Sampath Bank, Commertial Bank and other commertial Banks also have same working culture (To read more about working Culture, please go through blog of  Organisation Culture)
) but especially considering Nations Trust Bank, they have these HR Issues when comparing to other commercial Banks.

How do author say about those HR issues in Banking sector???

According to small Interview with Employees in Nations Trust Bank, Sampath Bank and Commercial Bank, it is help to make Investigation about HR issues in banking sector.

Employee in NTB – He said some times he also have not rights to approve some kind of credit facilities. If he going to approve credit facility he can approve low amount of credit facility (ex: if client need 200000/= manager can approve 100000/=) in other way it will take more time. Then time wasting.as a result of those clients are move to another banks. According to authors experience this person tries to keep friendly environment at the branch. But he has less power. Because top management cutoff the work power and they also work in structured procedures.

 Employee in NTB – Senior Recovery Assistant NTB said that working in bank always task oriented. Still He had to work under structured routing. Although this is continuously 5th year of NTB but he also have to work under pressurized working environment. Because always management looking only targets. 

Employee in NTB – Senior Banking Assistant NTB said that always focus on policies and procedures. Although he is working still 3 years but he was not able to obtain much more benefits rather than other banks.   

Employee in Commercial Bank – Assistant Manager Retail commercial bank Plc said that in branch vise they are able to make decisions at the relevant time. That is very helpful to give a satisfying financial service to customers. Credit facility approval can give by branch manager. In COM bank branch managers have powers to do right and best thing without any approval from head office or top management. Furthermore he said every employee work with happy mood. Because all of employees have more benefits. More salary scales and increments. 

Employee in Sampath Bank – Senior Banking Assistant sampath bank plc said they also have flexible friendly working environment. In her branch manager strong and he has powers to take decision at the correct time. That will be a great thing to provide a satisfying financial service to customers. not only that but also every employee has more benefits with increments. 

According above mention Investigation there are so many issues in different, different sides.
What are there?

Very firstly we should know general field of HRM and how to manage employees/people management. To more information please read the blog slid of People Management. Because people management is very important thing in HRM.

According to the Investigation, Employees are engaging with their relative job duties. However they achieve targets but not satisfied. Because they work under pressurized environment. If employees satisfying and engaging their work happy, that will be a great thing to achieve organizational targets.

Meanwhile employees are considered internal customers of the organization their level of satisfaction plays an important role in maintaining the health of the organization. When they are satisfied, it is obvious that they will treat their external customers, including buyers and end users, in the best possible way. It is guaranteed that customers will continue to come back when treated well. Not only that, but also helps to increase the level of customer loyalty to the business.
To go through more job satisfaction please read the blog article of about Employee Engagement and Job Satisfaction ”. To make job satisfaction, should consider about improve job design and work design for effective work output. Actually author believes job satisfaction depends on their design of Job and design of work. In the real sense of the word employees job and work should be design to obtain effective output. Importance of job and work design mention in the blog of the How to improve Job Design & Work Design for effective output ??. The job design follows the job analysis, ie E. This is the next step after the job analysis. It aims at presenting and organizing tasks, duties and responsibilities in a single work unit to achieve certain goals. It also describes the methods and attitudes necessary for the success of a particular job.



To get effective as well as efficient work output from employees, employer should motivate and develop employee while giving learning to them. Not only that but also should manage the employee performance to make it better for achieve organizational targets. Explaining more about performance management and learning & developing & motivating employee is  very important. To find more about those mentioning areas please read blog articles respectively “ Managing Performance ” and “ Learning and Development ”. Because Training and development are important elements in the development of human resources. It continues to play an important role as a result of advances in technology, which leads to ever-increasing competition, increased customer expectations for quality and service, and the consequent need to cut costs. At the global level, it has also become more important to prepare workers for new jobs. In the current formulation, we will pay more attention to the emerging need for training and development, its consequences for individuals and employers. further more When going to manage performance, Talent Management also author can’t forget. Please read blog article of “Talent Management” for more about management of Talent.

Although employees satisfied if there is no discipline as an organization that is no worth. Therefore it should be awareness and  employees must be formed with Ethics. Why do ethics such important? Asnswer available in "The ethical context of HRM".

According to these HR Issues that is crystal clear that Employees aren't satisfied. when employees aren't satisfied, as a bank very difficult to provide a very good financial service to customers. If customer base become decrease as a bank, market shares/ deposits/ incomes came into low level, less profit. That is very poor behavior as a reputed bank. To over come these problems, Author's point of  view is  that as a bank should provide a achievable targets with high salary scheme. Employees should be  a satisfyed.Target oriented is all right but it should be achievable. When employees completed their probation period or contract period although their performance in achievable level, they should confirm under permanent category. Happy to say among these issues, some of branches work in friendly. finally Author would like to propose, If NTB will able to correct these HR Issues, as a Bank will has a reputed Name & wealthy future.   




Post Author: Heshanga Amarasiri

References:



Managementstudyguide.com (2018) How can Employee Engagement help increase Customer Satisfaction. A study [online] Available at: https://www.managementstudyguide.com/employee-engagement-and-customer-satisfaction.htm.[Accessed on: 2018].










3 comments:

  1. Hi Heshanga,

    I highly agree to your first fact that your employees are given very limited authorization in approving credit facilities. There are some cases where I experienced the same issue as a customer and have seen employees are struggling to take calls on their own for small customer requests even. In this case both customer and employee facing an uncomfortable situation. I feel some sort of approval rights should be given to the employees in your bank. This way it will help to retain bank employees' more and customers’ satisfaction levels can also be increased.

    ReplyDelete
    Replies
    1. Thanks Dear Nohani for sharing your experience which is related to my article.I wish go forward as a reputed bank with providing more satisfying financial service to customers.

      Delete
  2. In Sri Lanka, relatively higher salaries are paid in banking sector and there are more financial assistances for employees than other sectors. If there is employee turn over issue, it may be due to dissatisfaction occurred by psychological factors. However I feel that in HRM practices,employee engagement play major role regarding this issue.

    ReplyDelete

People Management

Firstly we should know the general field of HRM. Usually HRM refers some activities undertaken by an organization to effectively utilize...