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Journal of Business and Management Research, 7 (2015) 186-188
p-ISSN : 2356-5756 / e-ISSN: 2356-5764

© Knowledge Journals
www.knowledgejournals.com
Short Research Communication
Human resource practices and employee retention, evidences from banking sector of
Pakistan
Naveed Ahmada,*, Muhammad Sulaman Tariqb, Alamdar Hussainc
a
Preston University, Islamabad Campus.
b
Finance Manager, Research and Development Solutions, Islamabad.
c
MS Scholar National College of Business Administration and Economics DG Khan Campus.
* Corresponding author: E-mail address: naveeddgk2010@gmail.com (Naveed Ahmad)
Abstract
The primary objective of this paper is to study those factors that affect banking sector employee retention in Pakistan
and also the impact of independent variables (Benefits & compensation, working environment) on employee
retention. The three strategies rated most important to banking sector for more employee retention of workforce are
attractive rewards and recognition, annual performance appraisal and training opportunities.
Keywords: Employee retention, Rewards, Performance appraisals, Working environment.
© 2015 Knowledge Journals. All rights reserved.
1. Introduction banking sector. There are a lot of reasons to retain

Banking industry is one of the most booming employ at banking sector. The main research objectives
industries in Pakistan. Banking sector of any country are as under below:
plays very important role and help to increase the
economy growth of any country. Basically bank is an - Find out which types of benefits &
institution which has deal with cash and instrument compensation which are necessary for the
related cash. Banks are always give facilitation like employees.
borwing, lending, distribution and consumption of
wealth. The commercial banks of Pakistan are more - To study which type of strategies were
important on providing such services to their making to retention of banking employees.
customers. The whole economy is surrounding on
banking system. The evolution of globalization have - Explore which type of organizational culture
changed the affect of the entire world our all business issues put in retention of the banking
setting from all over the world deals with the help of employees.
banking system. People exchange their currency
- Explore the future plan of banking staff that
through the help of banking system. People transfer
contributes to their retention.
their money through this sector on the other hand in
Pakistan the banking sector is day by day becoming 3. Literature Review
more and more challenging. Now a day’s banking
sector has a lot of changes in it like regulation of According to Sheridan (1992) concluded in the
customer, customer behavior, services, industrial research paper that the most challenging factor for
changes and those challenges which are from outside retention of employee is organizational cultural and
the businesses. ecological factor these are the positive factors between
employee efficiency and efficiently.
2. Objectives of Study Shafiq et al. (2011) conducted a research on topic
of relationship between compensation and motivation
The main aim of this study is to find out those of employees, taking interviews of 226 banks
factors which are affecting employee retention in employees of different banks. Motivation is also
N. Ahmad et al., 2015 187
helpful for employee retention. Demotivated are against any employee the factor of leaving the
employees early quit from current organization as organization in employee are increased. The results
compared to motivated employees. The Association indicates organizations must develop their policies and
between Compensation and motivation of employ was making those strategies that would be helpful for
0.546, which indicate the positive relationship between retention of employee and it would also created to
them. develop policies, practices, and strategies that would
According to Price (1981) “turnover” is the enable higher levels of employee retention and create
concept of number of employees hired to replace those better efficiencies in meeting strategic business
who left of ere fired during one year. Haorei, W. objectives.
(2012) described in his article that Job satisfaction According to Jasra et al. (2011) the human resources
plays a significance role when the employee are not play a vital role impact on employee job satisfaction
satisfied with jobs they resign. The result shows HRP and job satisfaction has also play a positive role on
performs a positive and important role with job employee retention. According to Qualification the
satisfaction and negative with the turnover. Hence, the employees’ selection and their rewards and
results of HR practices and job satisfaction are strong recognitions, their training and development, work
predictors of turnover. design and job definition all are the most important
Ting (1997) concluded that important part of human resource management areas to motivate and
employee performance is pay that is behind the retain employee in the organization.
employee performance. However, the author Rehman et al. (2007) defined the strategies like
differentiates the two type of satisfaction the first is salary, training and promotion on job satisfaction in
related with salary , wages or pay and the other is Pakistan. They defined that salary; training and
related with employee future perspective like promotion have a significant role and positive impact
insurance, bonus , allowances. These are the two types on job satisfaction of employee. Hence the most of the
which are related with the job satisfaction of employee. most employees give less importance to training as
Ramlall (2003) stated that the most important compared to pay and promotion.
factor which are impact on employee performance is
compensation and geographical location if these factors
Fig.1: Theoretical Model of Employee Retention

188 Journal of Business and Management Research
4. Conclusion The Centralize any company can increase rate of

commission and other all benefits for employee
Employees are the main concerning person which retention through following steps:
leads a business success or failure therefore they must 1- Engaging the other employs for decision making.
be retain through motivation to success of any 2- Flexible working hours of employees.
organization. In the organization the turnover is the 3- Provide different benefits and compensation.
critical issue facing by the employers the Turnover 4- Equality between employees.
impact product, service quality and productivity. 5- Employee satisfaction (Motivation)
Finding technical and skill persons are difficult and 6- Making those strategies which are in favor of
investments in trainings are less secure. employees.
The main objective was this research paper is to
study those factors which will take employee retention
in any banking sector of Pakistan. The some factors are References
i.e. working ecological, Benefits and compensation and
Haorei, W. (2012). A Study on Job Satisfaction And Its
career Development. More over the salary package is
Consequences On Work Productivity In Textile Mills. Journal
most important in the organization which can also Of Business Management & Social Sciences Research, 1(3), 50-
motivate or attract the employee. On the other hand the 56.
management of banking sector must give employees Jasra, J. M., Khan, M. A., Hunjra, A. I., Rehman, R. A. U., & Azam,
R. I. (2011). Determinants of business success of small and
different type of packages to retain employ on their
medium enterprises. International Journal of Business and Social
level of satisfaction as well as job retention. Science, 2(20), 274-280.
Martin, T. N., Price, J. L., & Mueller, C. W. (1981). Job performance
5. Recommendations and turnover. Journal of Applied Psychology, 66(1), 116.
Ramlall, S. (2003). Organizational Application Managing Employee
Retention as a Strategy for Increasing Organizational
The HR department and management staff of all Competitiveness. Applied HRM Research, 8(2), 63-72.
banks should be establish more flexible working hours. Rehman, K. U., Zaheer, B., & Sufwan, N. (2007). A Study
Safe and good working environment must be there be Measuring the Effect of Pay.
there.

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Journal of Business and Management Research, 7 (2015) 186-188

p-ISSN : 2356-5756 / e-ISSN: 2356-5764

Short Research Communication

© 2015 Knowledge Journals. All rights reserved.

1. Introduction banking sector. There are a lot of reasons to retain

Fig.1: Theoretical Model of Employee Retention

4. Conclusion The Centralize any company can increase rate of

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