01. Employee Recruitment and Retention in Banking Sector

Banking sector plays a vital role in global economy, the bank is proving financial services to the society by providing loans, mortgage facilities through its clients deposits,

At present the banking industry is the highest income earning entity among financial sector, Apart from that the job security of the employees much higher that other financial entities.

Most of youngest would like to select banking sector as their career cause the banking career goals help them to focus on what they hope to achieve in life with shorter period of time, better salary compared to other financial entities and social recognition. 

To get efficient output from the employee, the banks are intend to recruit young blood to the industry ,for this purpose the banks are not going to demand  higher level of educational and experience requirements  for the staffs who are going to select to  minor level (Starting Level). So the school leavers can join as a banker and to achieve desired target (developments) the applicant has to set career goals.

1.1 Banking career goals and important of having banking career goal

When pursuing a career in banking, it's important to have goals. Banking career goals help to focus on what hope to achieve in the industry. Understanding some common banking career goals the applicant can perform better to accomplish dreamed career targets.

Having banking career goals is important because they help you take the appropriate actions to reach your desired outcome. These can help you reach the long-term targets you hope to achieve throughout your career in banking and continue to develop professionally. Since these objectives help you continue to improve yourself, they can increase your self-esteem. Those who set career goals can increase their overall job satisfaction and eventually work in their dream job.

1.2 Main career goals to be developed by an applicant in banking sector            

Providing excellent customer service 

Since many banking roles involve working with customers, it's beneficial to focus on providing excellent customer service. This involves listening carefully to understand the customers' needs and maintaining a positive attitude. Some employers may conduct customer satisfaction surveys to assess how well an employee does at their job.

Example: Earn at least a 95% on this month's customer satisfaction surveys. To do this, I plan to be a more mindful listener so that can fulfil my customer's requests and offer them the service they need.

 Cross-sell bank products and services

It's important to stay up to date on your bank's products so you can provide customers with the information they need to make their decision whether to purchase it. Banking professionals may want to keep track of what their bank offers so they can present customers with related items. For instance, if a bank teller is helping a high school student set up a bank account, they may also let them know about student loans their bank offers since the student may be preparing for college.

Example: Sell at least 20 debit cards to those looking to withdrawal funds from their savings accounts. When customers come to withdrawal money plan to give them a sales pitch about the benefits of our debit cards.

 Learn new skills

Acquiring new skills can help you to develop professionally. This is helpful when searching for new jobs and can show your current employers you're willing to take on new responsibilities. When choosing a new skill to learn, consider what would help you professionally develop and succeed in the banking industry. For instance, it may be helpful to stay up-to-date on computer systems used at your bank or learn how to handle cash.

Example: Develop skills in time management to help me take on additional responsibilities and meet loan application deadlines. To accomplish this career goal, plan to find a mentor who possesses this characteristic and ask them for advice

 Educational Development

If you're interested in a managerial position in a bank setting, you may want to consider earning an advanced degree. Gaining a master's degree in business can help teach you skills to use in your current field and expand your banking knowledge. These programs also help prepare individuals for a leadership role.

Example: Earn a master's in finance by 2026 so, can gain risk management and investment strategy skills to use in a managerial role at well-established bank. To achieve this, plan to take classes part-time while continuing to work as a bank teller.

1.3 Recruitment

Human resources (HR) is the division of a business that is involve in with finding, screening, recruiting, training job applicants, developing as well as administering employee-benefit programs. HR plays a key role in helping companies deal with a fast-changing business environment and a greater demand for quality employees in the 21st century.

The roll of HR department is part and parcels of any business, which is essential for each and every organizations regardless to the organization's size. An HR department is tasked with maximizing employee productivity and protecting the company from any issues that may arise within the workforce.

Nowadays managers are not only responsibly for getting the job done but also responsible for finding the right people for the right job, getting the job done on time, save costs, liaise with various stakeholders, develop and retain existing staff,
keep staff morale high, increase staff productivity, etc.

Based on above mentioned requirement the HR department it sourcing relevant bodies from the society as their employee (work force)

 

Recruitment process of a bank

In recruitment process the HR department should think about the distance from the branch to home town of the employee. Assigning branch playing a critical function in staff productivity, development and staff turnover.

 

1.4 Distance from Hometown and Employee Productivity

 

Does distance of workplace from hometown help or hurt individual performance?

 

It is possible that distance from home has opposite effects on individual performance in the short and the longer-term. In the short-term, it is possible  that working far from home has a positive effect on individual performance, perhaps increasing the productivity and utility of ‘working time’ vis-à-vis the productivity and utility of ‘consumption time’ (Becker 1965, Gronau, 1976)

Based above theoretical conclusions the HR department of the bank has taken some decisions pertaining to staff placements. Obviously said situation will not applicable to all situations.

Advantages of working closure to the home town

 

Working closure to the home town obviously bring great advantages to both bank and employee.

 

1.   Savings time is most important factor;

Employee will have much more time for his private life, Opportunity go for higher educations for career development.

2. Employee can give extra contribution in achieving branch target;

     Motivated employee will do cross- sell to promote bank product and travelling time can

     Use for   promotional activities.

3. Employee will much more able to work productively.

     Employee can have a better night –sleep be less frustrated traffic jams /travelling issue         

     And will have a positive productivity.

4. This will naturally lead to job satisfaction

 

According to above clarifications when HR persons not consider on this issue, Employee turnover will high due to frustrated employees.

 

 

References :

 

https://www.investopedia.com/terms/h/humanresources.asp

https://www.indeed.com/career-advice/career-development/banking-career-goals-examples

https://www.jstor.org/stable/2390606

https://www.diva-portal.org/smash/get/diva2:1446903/FULLTEXT01.pdf

https://marriott.byu.edu/upload/event/event_549/_doc/Distance%20from%20Hometown%20and%20Employee%20Performance%20-%20Choudhury%20and%20Kwon%20(1).pdf

www.wikipedia .org

www.Google.lk