Diving into Employee Turnover & Retention; Reasons for employee turnover & how important employee retention & correct resourcing for banking sector in Sri Lanka
What is Employee Turnover?
What is Employee Retention?
Employee retention can be simply defined as “employees' pattern to stay with their current employer without seeking any potential job opportunities from the competitors”
Why would people tend to seek new opportunities or prefer for a change of environment regularly?
From 2022 until mid 2023 most of the banks' retention ratio dropped considerably. As per my personal opinion I think economic condition of Sri Lanka highly impacted to this. So, this was the reason of many bankers who were in higher positions of their respective organizations left the country even as a migrant student or for low grade job vacancies comparing to their current designations.
According to a webinar held in 26.09.2023, Hatton National Bank (HNB) Managing Director/Chief Executive Officer Jonathan Alles said that "Sri Lanka has 24 licensed commercial banks operating within the country and according to a report by Capital Alliance Ltd. (CAL), about 3,000 staff have left the nine listed commercial banks in 2022, which is a 67.8% increase compared to 2021"
Identified main reasons for employee turnover in Sri Lankan banks
Comparison of employee turnover ratios of a leading bank in Sri Lanka
How the banks try to mitigate employee turnover by increasing the retention?
Why employee retention is important for banks?
References
Holliday, M., 2021. What
Is Employee Turnover & Why It Matters for Your Business. [Online]
Available at: https://www.netsuite.com/portal/resource/articles/human-resources/employee-turnover.shtml
[Accessed 16 July 2024].
Insperity Staff, 2024. 8 winning employee
retention strategies to try today. [Online]
Available at: https://www.insperity.com/blog/employee-retention-strategies/
[Accessed 16 July 2024].
Sampath Bank PLC, 2023. The Journey Beyond - Sampath Bank PLC - Annual Report 2023, Colombo: Sampath Bank PLC
This article provides a detailed examination of employee turnover and retention in the Sri Lankan banking sector. It discusses the primary causes of turnover, such as migration and higher education, and the significant impact of economic conditions on retention rates. And also, The importance of maintaining a healthy retention rate is emphasized to reduce recruitment costs and retain experienced, tech-savvy employees. The article also outlines various strategies banks use to increase retention, including promotions, salary revisions and employee referral programs.
ReplyDeleteGreat one...!!!
Thank you for the valuable feedback!
DeleteYes, employee referral program is the latest method which my employer started to use in employee resourcing. They even offer cash rewards for each successful recruitment on monthly basis to encourage employees for referral program.
This blog effectively highlights the critical issue of employee turnover and its impact on the Sri Lankan banking sector. Anyways, the employee turnover is inevitable in the open contest of workforce in any place across the globe. However, the employee retention can be modernized using the Employer branding concept. (Please visit my blog)
ReplyDeleteThese two can be define as interconnected concepts that are essential to attracting and retaining top talent. Your blog highlighted and dive more into the employee branding. When U relate it to Sri Lankan Banking Sector, one of my previous organization's co-worker who had 5+ years of experience resigned and join a public bank as a trainee mainly because of this employer branding.
DeleteYour blog insightfully addresses employee turnover in Sri Lankan banks, highlighting economic impacts, compelling statistics, and key reasons for turnover. Effective retention strategies like promotions and referrals are noted. Emphasizing the importance of retaining experienced, tech-savvy staff for digital banking growth and customer satisfaction is particularly valuable. Great analysis!
ReplyDeleteGreat to see your interest on this post. Thank you for the highlighting the retaining strategies. Nowadays, most of the employees leave the job for better salary and recognition in this field.
DeleteThis blog clearly explains about employee turnover in banking sector. Due to economic situation of our country most of the employees resign from the jobs specially for migration and higher studies. So banking industry use different strategies to overcome this issues and for employee retention. And also this blog clearly defines the importance of employee retention in banking industry. This article is very important to all the other industries too!
ReplyDeleteI totally agree with your remark. economic condition and unbearable personal tax led to increase of employee turnover in the industry. However, with comparing to 2022 and end of 2023 , employee turnover ratio is getting decrease.
DeleteVery detailed article about employee turn over in banking sector.Employee turnover occurs not just in the banking industry but also in the private sector.We can apply mitigation methods to other sectors as well.Sometimes it takes time to get confirmation in the job.Reduced periods of probation and performance reviews prior to confirmation will lower employee turnover in the industry.However great analysis.Looking forward to more articles.
ReplyDeleteI think then reducing the probation time it is more suitable to apply "fast track programs" in a sector like banks. As an example the probation period of a trainee is 2 years and based on his/her outstanding performance the manager can recommend him for fast track program where the trainee can get permanent in the job within 1 1/2 years than waiting to get the confirmation for 2 years.
DeleteThe blog effectively highlites a critical issue about employee turnover and retention in Sri Lanka's banking sector. It lists the main causes behind high turnover and stresses importance of stability is in avoiding those costs increasing customer relationships. Addressing these problems & concerns is crucial for the success of the organization
ReplyDeleteYour article provides a clear overview of how banks can reduce employee turnover through strategies like competitive offers, internal promotions, and referral programs. I appreciated your focus on why retention is critical, especially in light of the challenges posed by digitalization and the impacts of COVID-19.Your insights into the importance of retaining experienced, tech-savvy employees and the negative effects of frequent management changes on customer relationships are particularly valuable. Overall, your discussion highlights the need for a stable and skilled workforce in the banking sector. Thank you for the thoughtful analysis!
ReplyDeleteAn article relevant to this day and age, especially with the high turnover not only in the country but globally. Given that employ retention is crucial in a lot of industries such as banks when it comes to the upper enchelons of middle management, I think the suggestions high lighted to in this blog should be seriously considered
ReplyDeleteGreat article that explains the key factors affecting employee turnover and retention rates. It's full of great details, theories, and real-life examples that make it a really interesting read.
ReplyDeleteIn a digitally transforming banking landscape, strong retention is essential for keeping talent and avoids the cost of high recruitment bills but also protects valuable customer relationships. Well Written Article !!
ReplyDeleteA hot topic in the industry explained theoretically with relevant statistics and theories. The loss of expertise staff in a bank where they are engaged in a very competitive environment is an utmost important aspect to be considered and taken care on immediate basis.
ReplyDeleteThis blog post provides a thorough analysis of employee turnover and retention, especially within the Sri Lankan banking sector. It highlights the significant impact of turnover on banks, including the economic factors driving migration and job changes. The post emphasizes the importance of retaining skilled employees to maintain efficiency, customer relationships, and organizational stability. The strategies employed by banks to improve retention and manage turnover are also well explained, making this a valuable read for understanding how banks can address these challenges effectively.
ReplyDeleteIt is streamlined for clarity and flow. This was made for emphasizing the key areas to make it more concise and professional.
ReplyDeleteThis article provides detailed analysis about employee retention. If you can add the mitigation plan for staff turnover also will be added information for the article.
ReplyDeleteKasun Hennayaka
Thank you very much for your kind suggestion. Will add the same to the posts in due cause.
Delete