The HR initiatives that are undertaken by the organizations are dependent on the objectives of enabling the smooth functioning of the workforce. Diverse range of regulations and policies govern the HR initiatives that are undertaken by the organizations. As per case, the HR initiatives in banking and financial services are dependent mostly on the standardization and implementation of different capital norms. However, it has been studied that around 58% of the bank and financial sectors are affected by the higher rate of turnover due to the structural inappropriateness of the same while operating in the different global markets (Van Quyet, Vinh & Chang, 2015). On the other hand, the banking and the financial service sectors lose one third of the workforce every year due to the lower attractiveness of the package that is being planned by the HR. Therefore, the HR managers in the banks face significant challenges in attracting the attention of the fresh candidates and retain the workforce while operating in the different objectives for sustainable growth.
Thesis statement: The challenges faced by HRM relating to attraction and retention of workforce in a banking and finance sector
Epetimehin and Obafemi (2015) stated that diversity in the workplace helps in enhancing the operations of businesses as per the concerns faced by the same in the global market scenario. Work- life balance contributes to job satisfaction of the employees while operating as per the objectives of the business. Alkalha et al., (2012) stated that the 73% of the banks impose a tight schedule which affected the work- life balance of the employees. The imbalance in work and life results to maximization of staff turnover rates in the banking and financial service oriented firms. On the other hand, diversity in the workplace contributes to the cross- cultural clashes that affects the job satisfaction among the employees in the banking and financial sectors. Mention and Torkkeli (2012) stated that most of the cross- cultural employees, amounting to 16% of the workforce, resigns from their posts due to their inability of establishing sound communication with the coworkers and the management in a banking sector. On the other hand, it has been researched that the bank requires multi layered workforce for supporting the diverse range of operations undertaken by the same (Tsui et al.,2014). In this relation, the recruitment of diverse people in the organization through EEO (Equal Employment Opportunity) helps the financial service organizations in maximizing the operational efficacy.
However, there are different issues that are faced by the financial and banking institutions while recruiting an efficient workforce due to shortage of appropriate knowledge and skills. The global banking and financial sector is facing different issues relating to the lack of skilled personnel, which has affected the recruitment capabilities of the businesses as per the concerns. The nature of communication and decision making criterion of the management in most of the financial and banking sectors around the world affects the capabilities of the same in attracting and retaining the workforce as per the objectives of the business. On the other hand, Ramiah, Zhao and Moosa (2014) stated that the technological innovations that are undertaken by the financial and banking organizations has affected the capabilities of the same in managing a diversified workforce. The tight schedules and implementation of different technologies in the processes affect the workforce retention capabilities of the banking and finance sectors. Arrowsmith et al. (2013) stated that the implementation of automated systems in the banking and financial industry has reduced the needs of recruiting skilled human workforce in the banking sectors. On the other hand, Gill, Bunker and Seltsikas (2015) opined that the implementation of different biased regulations and the changes in the workplace culture might challenge the capabilities of banking and finance sectors in retaining diverse workforce. The regulations that are undertaken by the banking and financial organizations affected the capabilities of the same in retaining the larger diverse workforce.
Williams and Adams (2013) stated that the ethical and legal considerations in the workplace helps in maintaining the efficacy of organizations in retaining and attracting significant amount of workforce as per the needs of sustainability. The imposition of different regulations has brought about significant changes in the workplace environment in banking and financial sectors. The disposition of anti- discrimination laws in the workplace has helped in maintaining the efficacy of the operations through employment of diverse employees. However, the banking and financial sector has often compromised the legislation affecting the employees’ psychological capital index. Workplace harassment is again an issue that is being faced by the banking and financial sectors, which is a growing concern for the ventures while acting as per the norms of providing EEO (Equal Employment Opportunities). Ramiah, Zhao and Moosa (2014) stated around 27% of the women and 12% of men are subjected to workplace harassment and bullying in the year 2018 which has affected the rate of satisfaction in their respective job roles in the banking and financial sectors.
The changes in the workplace atmosphere often affects the retention rate of the employees in the banking and financial sectors. It has affected the organizational operations of undertaking the smooth operations to support their collective objectives. The ethical background of the organizational operations is dependent on the culture, customs, values and behavioral norms. Epetimehin and Obafemi (2015) stated that the policies and regulations that are formed by banking and financial organizations while operating in diverse international markets helps the same in ensuring the implementation of the ethical considerations in the operations. However, David, Dube and Ngulube (2013) stated that the rigid policies and regulations that are formed by the banking organizations in the guidance of the Banking standards has resulted to maximization of the turnover rates. The employees who cannot survive the pressure of maintaining the efficacy of the conduct as per the needs of the bank, resigns from their posts.
Ameer and Othman (2012) stated that around 53% of the workforce in the banking and financial service sectors resigns due to the rigidity of the regulations that are implemented on the same for attaining customer satisfaction over employees’ psychological capital. On the other hand, the regulations and provisions relating to the workplace health and safety is again a major concern for the banking and financial sectors as it help organizations in retaining the workforce. The adherence to the OHS (Occupational Health and Safety) measures will be helping the organizations in maintaining their activities in retaining the workforce as per the objectives of the same. However, Oh, Park Ghauri (2013) stated that more than 27% of the employees resigns from their respective posts due to the organizational incapability of adhering to the OHS measures. Therefore, the banking and financial organizations face significant issues in attracting the attention of the new candidates in the workforce. On the other hand, the existing workforce resigns from their respective posts due to the lack of agile regulatory systems, which would suit the psychological needs of the employees.
The HR planning initiatives helps an organization in maintaining the performance through the assessment of the labor need of the businesses. David, Dube and Ngulube (2013) opined that HR plays a major role in the banking and financial sector as it helps the organizations in understanding the human resource needs of the same. On the other hand, the HR planner in an organization improves the existing systems through enumeration of the job roles that would integrate the entire process of the banking and financial sectors. Mention and Torkkeli (2012) stated that lack of skilled workforce supply affects the HR planning systems in the banking and financial service sector.
The organizations in the banking and financial service providing sectors are focused on the implementation of different automated technologies in order to maintain the smooth functioning of the systems. The implementation of the automated technologies has resulted to downsizing of the existing workforce in an organization. On the other hand, Epetimehin and Obafemi (2015) stated that the implementation of the automated technologies in the banking and financial service providing industry has reduced the demand for skilled workforce in the operations. The loyalty of the employees is hampered through the implementation of the automated technologies. McDonnell and Burgess (2013) stated that the key elements modifications in the banking and financial sector is often challenged by the employees resulting to maximization of the rates of turnover. On the other hand, Shanks and Bekmamedova (2012) stated that the implementation of the automated technologies in the banking and financial service processes results to clash between the management of the organization and the employees which affects job retention. Therefore, it might be stated that the HR planning that is being undertaken by the banking and financial service pro viding institutes are affected through the smooth functioning of the systems as per the objectives of the business.
The implementation of the HRIS (Human Resource Information Systems) helps the banking and financial service- providing sector in maintaining the record of the employees as per the needs of the same. However, the different issues relating to data falsification might affect the HRIS processes in the sectors. Ramiah, Zhao andMoosa (2014) stated that the implementation of the HRIS initiatives helps an organization in maintaining the efficacy of the operations through empowerment of the employees. However, Mention and Torkkeli (2012) noted that in 23% cases the falsification of the data in the records of an organization affects the understanding of the needs of the employees while operating in diverse international markets. The HR planning method often brings forth disruptive changes in the systems and operations of the same, which affects the smooth functioning of the businesses.
Epetimehin and Obafemi (2015) stated that the recruitment policies are developed by organizations in order to attract the attention of the skilled candidates to the different job profiles. It helps an organization in aligning their recruitment process with the demand and supply of labor while operating in different international markets. Van Quyet, Vinh and Chang (2015) stated that the banking and financial service sector aims at attracting the attention of the skilled candidates through the enumeration of standardized pay scale and other amenities. However, Wallace et al. (2014) stated that the banking and financial sector face a major threat due to competitive amenities provided by the other sectors in the market.
The skilled labor force search for the best alternative relating to the amenities that are provided by the organizations. Therefore, the banking and financial service providing organizations face intense competition while recruiting the skilled workforce where the other sectors provide better amenities to the skilled workforce. On the other hand, the standardization of the recruitment methods assists an organization in maintaining the efficacy of the selection and recruitment of skilled employees. McDonnell and Burgess (2013) stated that around 67% of the employees resigns from their respective posts in the banking and financial sector due to lack of accurate information on the job role. Delineation of attractiveness and unattractiveness of the job role provides the candidates with a clear concept of the job requirements. However, Shanks and Bekmamedova (2012) stated that the efficacy of the operations that are undertaken by the banking and financial sectors are dependent on the smooth functioning of the informed employees. However, in most of the cases, the HR departments in different banking and financial organizations provide incomplete details of the job roles that are to be performed by the candidates. It diminishes the employees’ psychological capital resulting to huge turnovers.
On the other hand, Tsui et al. (2014) stated that the offerings that are made by the banking and the financial service sectors failed to attract the attention of the skilled workforce. It affected the recruitment process of the same as per the needs of the organizational smooth functioning. The skilled employees expect fair remuneration and different facilities, which are being provided by the companies in the competitive sectors. It has diminished the rate of recruitment in the processes as per the needs of the banking and the financial service providing sectors. David, Dube and Ngulube (2013) stated that the requirement elicitation of the skilled workforce in the recruitment process helps an organization in maintaining the efficacy of the performance as per the needs.
The workforce turnover affects the smooth functioning of the systems as per the objectives of the business. Williams and Adams (2013) stated that the different factors related to the job turnover in the different industries are related to the voluntary and involuntary turnovers. The enhanced turnover in the workforce affects the smooth functioning of the different processes as per the needs of organizational performance. Gill, Bunker and Seltsikas (2015) stated that stress management in the organization brings forth changes in the rate of voluntary turnover rates in the organizations. The banking and financial service sectors suffer huge turnovers related to the workplace bullying and lack of work- life balance. The diminishing rate of work- life balance in the workforce affects the smooth functioning of the systems. Oh, Park and Ghauri (2013) stated that the enhanced stress in the banking and financial service sectors results to huge turnovers in the sectors amounting to 78% of the workforce. On the other hand, Alkalha et al. (2012) stated that the workplace bullying and the negative workplace environment affects the employee’s psychological capital resulting to huge turnovers in the sectors. Therefore, stress and bullying enhances the rate of turnover in the banking and financial sectors’ workforce.
Relation with the superiors also results to huge workforce turnover rates. Ameer and Othman (2012) stated that the delineation of the LMX (Leader- Member Exchange) helps in understanding the prioritization that is provided by the organizations to the employees in order to support the smooth functioning of the same. Ahmed, Rasheed and Jehanzeb (2012) also noted that 87% of the employees resign from the private banks due to the authoritarian role played by the managers. The enhanced relation between the employees and the management helps in ensuring the collaborative functioning of the same as per the objectives of the business. The relations between the managers and the subordinates help an organization in maintaining the performance of the same as per the objectives. Arrowsmith et al. (2013) stated that the marginalized relation between the superiors and the subordinates affects communication in an organization, which results to malfunctioning of the processes. Therefore, in most of the cases, the banks and the financial sectors suffer huge amount of turnover due to the diminishing relation between the employees and the managers.
Conclusion
Therefore, from the above discussion it might be stated that the banking and financial service sectors encounter different challenges while retaining or attracting the attention of the skilled employees to the job offerings. The different regulations and leadership roles played y the management plays as a tool of increasing the staff turnover rates in the sectors. The different factors that leads to the enhancement in the staff turnover in the banking and financial sectors are being portrayed in the discussion.
References
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