LAHORE - The increasing globalization has challenged the Pakistan economy to get global marketplace. The banking sector plays an important role in Pakistan to face the challenges of the emerging market and can help to put a step forward for stable and growing economy. No doubt, regulations and infrastructure also play an important role for banking sector but banks should realise that their real important asset is their talented and qualified employees.
Privatiation of banking sector maximised the profit but this change failed to bring efficiency in performance. Studies have realised the importance of employee satisfaction because a satisfied employee can make a customer satisfied for the organisation. Now the customers are more conscious about quality of service and product and that can only be possible if employees are performing well.
The existing talented and qualified individuals are the most important commodity for the banks. The retention of such employees saves money as well as enhance the productivity of the banks. Hiring new employees can be expensive for employers as the hiring process needs money for recruiting, advertising and training and it may cause less productivity until the employees are familiar with their duties and responsibilities because they will take time to mold yourself according to the organisation culture and perform duties as the other people were performing their duties.
The other factor is the employee’s privacy right; disclosure of personal data of any employee may effect his dignity and as a result of dissatisfaction, that employee may decide not to work honestly and show lack of interest in assigned tasks. Recent studies have shown results that employee’s privacy is now a days playing an important role in building a strong internal brand and retention of employees. According to a research paper, a survey was conducted in banks of Pakistan and 450 employees were selected for questionnaires and in depth interviews. On the basis of that survey it was founded that trend is changing from financial rewards towards non-financial rewards among employees.
On the other side the threatening fact for a bank is that when any of its employee leaves the bank for other competitor, there is a possibility of disclosure of the bank’s secrets to that competitors. That is the most important critical reason for a bank to retain its existing employees because when an employee leaves an organisation he can disclose the organisation’s privacy and bank will has to bear expenses for new recruitment and selection process.