An Analysis of Employee Retention Techniques of Modhumoti Bank Limited”

Abstract

After becoming Independent in 1971, Bangladesh Government took some major steps to run the banking industry successfully. They Declared the State Bank of Pakistan as Central Bank which named Bangladesh Bank. From then some national bank was conducting the business but they couldn„t fill the real need of this newly independent country. They were making loss in fact they were not able to recover the loan which was given to customers. That„s why government approved to do business for Private Limited Bank and it really worked. Scenery was changed dramatically and Banking Industry was developed so much within last 14 years (2000-2014).And private bank started their business and achieved customer beliefs through their standard service and quality. Banking sector in Bangladesh passed somewhat a moderate year in terms of governance, profitability and soundness in 2013. Continued setback suffered by some major sectors in the economy i.e. textiles, ship-breaking, real estate and commodity trading and lackluster performance of the capital market put pressure on banks' liquidity, asset quality and profitability. Effective from December 2013, the stricter regulation from BB related to loan classification and rescheduling affected the volume of classified loans, raised the requirement of provision and thereby decreased the amount of distributable profit. Employee retention refers to the ability of an organization to retain its employees. Employee retention can be represented by a simple statistic (for example, a retention rate of 80% usually indicates that an organization kept 80% of its employees in a given period). 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. A distinction should be drawn between low performing employees and top performers, and efforts to retain employees should be targeted at valuable, contributing employees. Employee turnover is a symptom of a deeper issue that has not been resolved. These deeper issues may include low employee morale, absence of a clear career path, and lack of recognition, poor employee-manager relationships or many other issues. A lack of satisfaction and commitment to the organization can also cause an employee to withdraw and begin looking for other opportunities. Pay does not always play as large a role in inducing turnover as is typically believed. In a business setting, the goal of employers is usually to decrease employee turnover, thereby decreasing training costs, recruitment costs and loss of talent and organizational knowledge. By implementing lessons learned from key organizational behavior concepts employers can improve retention rates and decrease the associated costs of high turnover. However, this isn't always the case. Employers can seek "positive turnover" whereby they aim to maintain only those employees who they consider to be high performers. Modhumoti Bank Limited has played good role in keeping the turnover ratio as low as possible. In order to retain the workforce, the Bank has paid highest attention towards the benefits and facilities of its employees.