The factors effecting key employee retention Essay Example

task identity , task significance , and feedback which enhance motivation levels. Retaining valuable employees is essential for improving productivity , motivation , overall company performance as well as gaining an advantage over competitors . Taking proactive measures is necessary to prevent turnover from occurring within organizations . As suggested by Mitchell & Holtom (2001), personal reasons and conflicting beliefs can contribute to voluntary turnover. Employee turnover presents challenges for both individuals and organizations due to associated costs . Individuals need to adjust to new colleagues, supervisors, and environments which requires time and effort.Organizations must prioritize the retention of valuable talent due to the negative consequences of losing employees. This includes the loss of their knowledge, experience, and potential impact on customers, as well as the costs associated with finding replacements. Employee satisfaction is influenced by various factors such as job satisfaction, career options, economic standpoint, work environment, and growth opportunities within the organization. Limited chances for advancement increase the likelihood that employees will seek alternative employment options. While organizations can control job satisfaction to retain employees, they have no control over external job opportunities that may arise. Both positive events like job offers and negative occurrences such as poor performance assessments or company changes can prompt employees to leave their current positions.

The concept of "job embeddedness" plays a significant role in determining an employee's attachment to their occupation through three components: links, fit, and sacrifice. Many organizations recognize the importance of relationships that employees build with customers or clients and encourage development of these connections as part of their job responsibilities. The level of fit between an employee and their occupation directly affects how

likely they are to stay in that role. Therefore, it is crucial for organizations to address any issues related to employees feeling unsuited for their positions during the early stages of employment. A recent study conducted by Caliper revealed that this feeling leads to 40 percent of employees leaving their jobs.To promote work-life balance, companies often offer flexible work hours. Additionally, tailoring positions and hiring high-performing individuals can enhance their sense of belonging. Sacrificing refers to the incentives and benefits that employees would need to give up if they were to leave their job. Many organizations have long-term plans for employee development, making leaving the job mean forfeiting these opportunities. Financial incentives such as retention bonuses, retirement funds, stock options, and golden handcuffs are crucial in retaining employees.

Different strategies may be employed to retain a workforce depending on the company. Some involve employees in long-term development plans while others provide personal development funds to retain top talent. This allows employees to receive training on any subject that can improve their performance. Job embeddedness also influences employee retention; if someone is dissatisfied with their job and lacks commitment, they may quit despite substantial compensation offered by the organization.

Therefore, monetary means alone cannot achieve retention; internal and external factors should also be considered. When creating a retention plan, it is important for company leaders to take various factors into consideration in order to maintain employee satisfaction (Guthrie, 2001).The use of high-involvement work practices requires significant investment from organizations. However, investing in human capital has long-term benefits as it enhances productivity. These practices are implemented when employees have a vital role in the organization's success. Implementing such practices

not only helps retain employees but also prevents turnover. Employee-centric organizations prioritize their employees and emphasize responsibility and accountability towards tasks. To support and empower employees, their human resource department encourages self-management and programming. This approach fosters a competitive advantage by motivating employees to contribute in unique and valuable ways that cannot be easily replicated by competitors. These contributing employees are indispensable to the organization because their departure would result in significant costs. HR practices play an essential role in increasing employee commitment to the organization, which positively impacts organizational productivity through high levels of work engagement. Highly engaged employees are less likely to leave compared to those who are less involved, as extensively involved employees possess specialized knowledge and experience that is not easily replaceable, making staff turnover dependent on the nature of the job.Fast-food restaurants often have younger staff members with higher turnover rates, while jobs requiring expertise necessitate employee retention. It is important for organizations to consider the substantial costs incurred when hiring an employee (Curtis & Wright, 2001). Thus, creating an environment where employees can genuinely commit themselves becomes vital to mitigate negative impacts caused by individuals leaving after only a few years of employment.

This text highlights the significance of employee commitment and its impact on organizational success. It suggests that employees become more dedicated to their work when they have a strong sense of belonging, receive encouragement and fair treatment from their manager, and are valued through employee engagement. Additionally, offering competitive wages, diverse career opportunities, flexible work options, and benefits can further increase employee commitment.

Implementing a job plan that allows employees to effectively utilize their skills, find meaning in

their work, receive feedback, and access adequate training is crucial for enhancing job commitment. Retaining key employees is essential as studies indicate that the departure of 10 managerial or professional staff members can cost an organization around $1 million.

The text underscores the importance of knowledge management in improving customer satisfaction and overall organizational performance (Mitchell & Holtom, 2001).The text discusses the challenge companies face in retaining key employees and the costs associated with turnover. It emphasizes the importance for leaders to identify factors that motivate employees to stay while addressing reasons for leaving. The loss of key employees can have negative effects on an organization's output, efficiency, motivation, and productivity. However, if organizations are successful in retaining these employees, they can achieve strategic business goals. By meeting their needs and desires, organizations can reduce the risk of losing valuable talent. High turnover rates and employee departures can be detrimental to factors like quality and client service which are crucial for maintaining a competitive advantage. This leads to a decline in business growth. Therefore, it is important for directors and other key staff members to recognize the value of retaining key employees and fostering employee commitment as there is a direct relationship between retention and commitment.

Chapter # 2

Industry BACKGROUND

Banks play a vital role in driving economic growth in countries like Pakistan. During Pakistan's establishment in 1947, there was a lack of significant banking infrastructure.
Impressive progress was made in the banking sector over the following two decades, including the establishment of the State Bank of Pakistan as the central bank in 1948. By the 1970s, a successful banking industry had emerged and nationalization occurred in 1974 with

hopes of promoting growth and welcoming private sector and Western banks into the industry. These changes have had significant implications for Pakistan's domestic banking industry, altering its characteristics and impacting the value of its currency, the rupee. Unfortunately, some private sector banks have engaged in questionable business practices that negatively affect public sector banks essential to the banking system. Moreover, local banks have faced challenges as larger businesses prefer to work with Western banks instead, resulting in decreased revenue for local banks. Additionally, interference from previous governments regarding nationalized bank operations has further contributed to present-day challenges within the banking system.

Moving on to Chapter 3 of this research project, we will delve into our research aim and outline key objectives and questions related to our study. The research aims to investigate factors influencing employee retention within organizations, examine how employee retention is managed by organizations, and determine why employees choose to leave their jobsIn order to achieve our goals, we conducted a literature review and developed a conceptual framework for data collection in this study. The research aims to identify factors that contribute to retaining key employees such as motivation, job satisfaction, a participative environment, opportunities for growth, training, benefits, and fair treatment. Additionally, it seeks to establish effective strategies for keeping employees engaged and understand the reasons behind employee turnover.

Chapter 4 discusses the research methodology which includes both qualitative and quantitative approaches. Qualitative research involves gathering perspectives through interviews or focus groups and studying attitudes, behaviors, and patterns in-depth resulting in fewer participants but longer-lasting connections. On the other hand, quantitative research involves large-scale analysis using techniques like questionnaires or planned interviews to generate

statistics reaching a larger number of people but with shorter contact compared to qualitative research.

Over the years, there has been extensive debate about research methodology and inquiry procedures theory with qualitative versus quantitative research's scientific rigor being a common topic of discussion. The text discusses the popularity of different methodologies and emphasizes the importance of recognizing their strengths and weaknesses in various societal, political, historical, and educational contexts.The text highlights the choice of qualitative research for this study, which is selected for its interpretative and realistic nature. Qualitative research aims to understand phenomena by examining people's attributions in natural settings. The study specifically focuses on factors related to employee retention, particularly perceptions and behavior, necessitating a subjective and in-depth examination. The research design serves as a comprehensive plan for collecting and analyzing information, providing a framework for the project. In this case, the chosen research design follows phenomenology, which explores various phenomena such as events, situations, experiences, or concepts. Phenomenology opposes acknowledging unobservable affairs and expansive systems while countering naturalism (objectivism/positivism). Furthermore, the text discusses the worldview that emerges from modern natural science and technology. It examines how phenomenologists explain knowledge and achievement through Evidenz – a consciousness of something's essence revealed in the clearest, most distinct, and adequate way according to Edmund Husserl. Moreover, phenomenologists believe that not only objects in the natural and cultural worlds but also ideal objects like numbers and conscious life can be made evident and known. They argue that inquiry should focus on "meeting" directed at objects and "objects as they are encountered," utilizing a dual problematic and reflective approach.Phenomenologists recognize the significance of describing universal aspects before explaining

them through causes, intentions, or evidence. There is a debate among phenomenologists regarding the usefulness and attainability of Husserl's nonnatural phenomenological epoche and reduction. In terms of research methodology, professionals' experiences related to factors crucial for employee retention are gathered using a chosen phenomenological design. The research purpose is divided into three categories: exploration, description, and explanation. Exploratory research aims to gain a better understanding or clarify a problem rather than providing precise measurements or quantification. The chosen research strategy is qualitative in nature as it analyzes factors influencing key employee retention. The text discusses the use of in-depth interviews conducted in the banking industry to gather data addressing research questions while keeping intact with their contents.The importance of the gathered data is determined by analyzing the subjects derived from the written text of these interviews. The sampling process involves selecting a small number of items or parts from a larger population to draw conclusions about the entire population. Various methods, including chance and non-chance techniques, are used for sample selection.In this specific study, the focus is on retaining key employees in the banking industry.
Data is collected from four banks using purposive sampling, where an experienced individual selects subjects based on relevant characteristics. Human resource managers from each bank participate in unstructured interviews, which means that there is no predetermined list of questions but rather a clear understanding and exploration of specific aspects. Field notes and audio recordings are utilized to transcribe the data obtained through these interviews for further analysis. Overall, this text emphasizes gathering information and establishing its significance within the context of present throughout.

4.8 Trustworthiness

To ensure accurate perception, the researcher

sent a research bill of exchange to the respondent before finalizing it.

4.9 Ethical Consideration

Consent has been obtained from respondents for information collection, and all provided information will be kept confidential.

Chapter # 5 TIMESCALE

Week # 1 (17th January - 23rd January)

Tasks during this week include familiarizing with the library, searching for a thesis subject, selecting a subject, and conducting literature search.

Week # 2 (24th January - 30th January)

Tasks during this week include working in the library, researching the chosen topic, designing research questions/objectives, and writing a literature review.

Week # 3 (31st January - 06th February)

Tasks during this week include writing an industry background and finalizing it.The researcher also returned to Pakistan for their grandfather's funeral. During Week #4 (7th February - 13th February), tasks included contacting different banks for assignments, visiting various Pakistani banks for research information, summarizing collected data, and writing Chapter #1 Background after finalizing the data. In Week #5 (14th February to 20th February), the tasks include finalizing Chapter #2 Industry Background and Chapter #3 for inclusion in the proposal and collecting any remaining information. The proposal for Chapter 6 "Research Methodology Design Timescale, Resources, and Mentions" has been organized and finalized for submission. The resources used for this study include research diaries, visits to different libraries interviews conducted at various banks in Karachi, and assistance from instructors. The chapter references include articles by Curtis & Wright (2001), Guthrie (2001), and Mitchell et al. (2001).The article "A Review of Employee Motivation Theories and their Implications for Employee Retention within Organizations" by Ramlall, S. (2004) in the Journal of American Academy of Business (5(52–63)) discusses the topic of "Managing Employee Retention as a Strategy

for Increasing Organizational Competitiveness". Ramlall, S. (2003) also addresses this topic in the journal Applied H.R.M. Additional information related to this topic can be found on various websites including:
- http://www.phenomenologycenter.org
- http://www.wordiq.com
- http://www.businessdictionary.com
- http://www.wisegeek.com
- http://www.mediamonitors.net/biopakbymuhkhan.html
- http://www.pakistaneconomist.com/issue1999/issue49/f&m.htm
- http://bizcovering.com/business/banking-history-and-banking-in-pakistan/
- http://www.jstor.org

For more detailed research on this topic, refer to the following sources:
- www.xavier.edu/appliedhrmresearch/2003-Winter/MS%208_2_%20Ramlall.pdf
- file transfer protocol: //ftp.cba.uri.edu/Classes/Beauvais/HPR412/Ramlall_2004.pdf
- www.emeraldinsight.com