Retention Factors for Employees in Banks
According to the statistics released by the Banking Bureau of Financial Supervisory Commission in 2018, more than 150,000 people were employed by the banking industry in Taiwan. With the rapid technological and economic development worldwide, however, bank employees’ workload has grown to an unprecedented level. Tremendous workload has created huge pressure for bank employees. Many employees were unable to endure the huge pressure and chose to resign from the financial industry. At the time that service has become the most important requirement for all industries, high employee turnover not only means extra costs for corporations, but also affects corporation’s service quality. Therefore, this study aims to discuss the topics related to banking industry’s employee retention in order to find out the key factors which affect banking industry’s employee retention. Over the past years, many researchers have discussed a wide array of topics related to employee retention, but very few researchers have focused on bank employee retention up until today. This study categorized the issues related to bank employee retention in accordance with the three aspects introduced by Osteraker in 1999, namely, material aspect, psychological aspect and social aspect. Next, this study reviewed literatures and summarized seven factors which have much to do with bank employee retention, namely, (1) career development, (2) salaries, (3) work environment, (4) working pressure, (5) supervisors’ leadership, (6) employee benefits, (7) employee education and training, using questionnaire to survey the employees of local private banks in Taiwan in order to find out the key factors which affect bank employee retention. Research results were presented to business managers for their reference. This study incorporated ordinal scale into the questionnaire, using Bonferroni correction and Friedman rank test in a multiple comparison test to survey bank employee retention. According to the test results, salaries are the most important factor which determines bank employees’ willingness to remain in their organizations. Career development is the most important factor in the psychological aspect whereas work environment is an optimal factor in social aspect.
Keywords - Employee retention, Banking industry, Ordinal scale