1. How do manage Human Resources in the Banking Sector?

The resignation turnover of the banking sector?

    Employee turnover  or the resignation turnover of an organization refers to the percentage of employees who leave a company and that are replaced by new employees. According to information obtained from my bank's human resources department, I have identified that the bank's high resignation turnover age limit is between twenty to thirty years old.

    Why is this so important? Measuring employee turnover helps employers to find out how many people leave the organization on a given period of time and it will help to identify the reasons for turnover or estimate the cost of hiring for budget purposes and can implement plans to minimize the employee turnover. The main reason that can be identified is that many young employees are not satisfied with their jobs in the banking sector or rather their expectations on the new job is high but once they continue to work, they eventually get discouraged. For various reasons in human resource management, the resignation turnover of employees in the financial and banking sectors is high.

    It is common in the banking industry for newly hired young employees to start their careers as bank counter or account opening assistants. These two departments basically handle 80% of the daily bank customers. Most of the times, newly hired employees have to work after bank hours due to heavy workload. Maybe it goes on until 7.00 pm. The main reason  that can be identified for high startup resignations is increased stress during the career startup phase itself.

    Also, most of the times, banks pay lower salaries during the training period compared to the permanent staff salary. Even trainees don't get most of the benefits that are given to the permeant carder. In order to enjoy the benefits of a banker, they have to wait for 2 years until they get permanent and pass the certification level in banking test.

    Many branch managers have not been able to provided the trainees' performance appraisals as expected which is another reason for the high resignation of the youth group. Some managers set high goals for trainees in the hope that they would work hard to open more and more  new deposits and accounts to the bank. Eventually this put more pressure on new employees. These are the main reasons which I have identified for the high resignation turnover in the banking sector when considering the facts and figures.

    When looking at young employees expectations, surveys have proven that young employees expected a well-paying job with low workload, good performance appraisals for their work and a recognized job with less amount of stress for their length of service. Therefore, the Human Resources Department of the Bank should play a major role in managing the above matters of the Bank. They need to devise new strategies and minimize the resignations of the bank's young employees as it would be an additional cost as well as a hassle for the bank to find and recruit new employees frequently.

   So lets look at human resource management, skills management, learning and development in the banking sector, employee relations, human resource management, and work planning and performance management as solutions to the above problem.

How to effectively manage the human resources of the banking industry

In almost all organizations, there is a report of its mission stating that people are the most valuable resource. To achieve its goal, survive and succeed, any organization should have the right personnel at the right place and at the right time. Banking organizations, as well as other types of business organizations, depend largely on the quality and competence of its employees. Therefore, organizations have to pay more attention to their human resources, because implementation of human resource practices supports maximizing employees' competences in the organization.

People are the main resource for financial services organizations, and skills, abilities, employee motivation levels, and the way they are deployed will be a major competitive advantage. Human resource management plays a vital role in attracting, developing, and disposing of employees in efficient and effective use. HRM practices are likely to create work conditions and environment where employees become highly committed to the organization (have positive attitude) and do their best to accomplish the organization's goals. Organizational commitment can be considered the employees' willing to be committed to help the organization in achieving its goals. Organizational commitment involves the employees' levels of identification, involvement and loyalty

There are several similarities between the financial industry and other companies in an economy. All companies try to maximize profits by selling their products or services in the market. Products and services are manufactured by companies using several inputs. However, banking companies differ from other companies in one important aspect, which is the composition of the balance sheet.

    

 A bank's balance sheet consists mainly of assets in the form of loans, advances, and investments. Other companies contain more real assets and fewer other assets. Therefore, the bank uses one important input of knowledge and skills to produce its output. Acquisition, development, promotion, and use of knowledge and skills by individuals working in a bank. Such individuals are labeled as the human resources of the banks and have given their maximum influence to achieve the banking objectives (vision and mission). 

    

For banking, the importance of human resource management has grown manifold because the nature of banking industry, which is mainly service based. The management of people in the organization along with handling the financial and economic risks at the wider level is the most potent challenges in front of the banking industry in any given time frame. Human resources perform a variety of functions such as credit proposal analysis, credit eligibility analysis, loan portfolio monitoring, providing other services to customers (LC facility, purchase checks, etc.), and debt recovery.

    

For any organization dealing with people requires a good human resource management efficient working of the organization. Banking has been and will always be a "People Business". Efficient and effective management of the human resource in the organization turns it a successful one. Therefore, the human resource base is the most imported asset base for the banking industry. Therefore, the banking industry should be properly identified as a key resource of the HR organization. In order to gain a competitive advantage in the banking industry, banks need to properly manage their human resources using a variety of human resource strategies.

Human resource flow in the banking sector

    Human resource flow covers the entire spectrum of human resource management and development activities in an organization. It begins with recruitment and ends with employment and resumes as a cycle covering all human resource activities. Human resource management involves a full spectrum of activities from HR marketing, hiring, training, developing, specialists deployment, to out-placing. The key to the determination of your company's human resource requirements is deciding, depending on the complexity of your operation, what your staffing needs are in this Organization.

Human Resource Management covers the below fields in the Banking Sector

Hard talk Humen Resource for The Banking Industry