You are on page 1of 8

Term Paper: HRM 201 (Employee Retention Practices in Private Commercial Banks of Bangladesh)

Institute of Business Administration Jahangirnagar University

Savar, Dhaka-1342, Bangladesh

Employee Retention Practices in Private Commercial Banks of Bangladesh

Course code & Title


Human Resource Management (HRM 201)

Submitted To
Ms. Tasnima Aziza Course Instructor

Submitted By

Group: Slytherin 20th batch, BBA

Institute of Business Administration Jahanginagar University

November 19, 2012

Members of Slytherin
Name Aniqa Tahsin Anchal Patrick Kanny Sarkar A.R.M. Mozaffar Hossain Muammer Al Misbah Sudipto Chakroborty Kaiser Mahmud ID 787 801 823 1978 1979 1983

November 19, 2012 Ms. Tasnima Aziza Course Instructor, HRM 201 Institute of Business Administration, Jahangirnagar University Savar, Dhaka-1342

Subject: Submission of Term Paper for the partial fulfillment of HRM 201, course.

Madam Its our pleasure to submit you the Term Paper on Retention Practices in Private Commercial Banks of Bangladesh. The Paper is submitted as the partial fulfillment of BBA program. We have studied the topic Employee Retention in our course Human Resource Management (HRM 201). This Paper gave us unique opportunity to gain some practical knowledge on Employee Retention Program. This paper aims to discuss what organizations do to retain its employees in real life situation. We believe that, this Paper will help to get some ideas about employee retention practices in organizations. We are pleased to be granted this vital opportunity and grateful for your versatile assistance. And we hope that our work will please you. We want to have the privilege to give answers to your quires, if any.

Sincerely . Patrick Kanny Sarkar (801)

On the behalf of Group: Slytherin 20th batch, BBA

Acknowledgement
Firstly, we would like thank Almighty creator. We express our heartiest gratitude to our course instructor Ms. Tasnima Aziza, Assistant Professor, Institute of Business Administration, Jahangirnagar University for her valuable guidance, scholarly direction and unconditional support during the preparation of this Term Paper. We have learnt a great deal from her. We would also like to express our sense of gratitude and appreciation to Dr. Shuddhasattwa Rafiq, Director, Institute of Business Administration, Jahangirnagar University. We would like to thank Arafat Rahman, batch manager, 20th batch. We would like to thank HR department and divisions of Eastern Bank Limited, Ar-Arafah Bank Limited, One Bank Limited, NCC Bank Limited and AB Bank Limited. Finally we would like thank all the parties and organizations, who have helped us to prepare this Term Paper.

Table of Contents
Executive Summary Background of the Study Origin Problem and Purpose Objectives of the Study Methodology of the study Limitations An Overview of Sample Banks Al-Arafah Islami Bank Limited Eastern Bank Limited AB Bank Limited NCC Bank Limited One Bank Limited Introduction What is Employee Retention? What is Employee Turnover? Why do Employees Leave? What can prevent employees form turnover? Real Organizational Practices Employee Retention Strategies Contractual Job Period
vi

viii 1 1 1 1 2 2 3 3 3 4 4 5 8 9 9 9 10 10 11 11

Friendly Work Environment Employee Relationship Employee Support Employee Growth Employee Compensation Practices Employee Turnover Rate Exit Interview and Special offers Suggestions for the Banks Conclusion Bibliography

11 12 13 14 15 17 17 18 19 20

vii

Executive Summary
Employee retention refers to the ability of an organization to retain its employees. Employee retention can be represented by a simple statistic. However, many consider employee retention as relating to the efforts by which employers attempt to retain employees in their workforce. In this sense, retention becomes the strategies rather than the outcome. Banking sector is one of the most attractive sectors of Bangladesh; a large number of employees are working in this sector. Banks have to work hard to retain this large number of employees, private commercial banks in Bangladesh maintain different types of strategies (though similar enough) and offers different types of benefits to their employees. Banks normally provides higher compensation to their employees compare to other industries. ABL, AIBL, EBL, NCCBL, OBL provides different types benefits to their employees, those includes mandatory job leave, different types of loan, they also always try to maintain friendly work environment. The banks also provide training to their employees at the very beginning of their job life so that they can grow themselves as the organizational people.

The retention rate is fairly high in private commercial banks. Banks should address that issue. They can take many step to reduce the retention rate. Employees leave an organization out of frustration and constant friction with their superiors or other team members. In some cases low salary, lack of growth prospects and motivation compel an employee to look for a change. The management must try its level best to retain those employees who are really important for the system and are known to be effective contributors. It is the responsibility of the line managers as well as the management to ensure that the employees are satisfied with their roles and responsibilities and the job is offering them a new challenge and learning every day. Banks should be more employee focused, they should periodically provide training to the employees. They should always be aware of employees needs and want. In todays competitive business space, an organizations success depends on cost minimization as well as on other factors. If organization retain its employees effectively then, the cost will be minimized partly, again an experienced employee will provide greater service value than the novice someone. So organization should always be aware of employee retention, is they want to function smoothly and efficiently.
viii