Commercial Banks offers the same types of products and services. It raises funds by collecting deposits from businesses and consumers via checkable deposits, savings deposits, and time (or term) deposits. It makes loans to businesses and consumers. It also buys corporate bonds and government bonds. Its primary liabilities are deposits and primary assets are loans and bonds. They should have a competitive advantage and be distinguish to one bank from another. That is through their employee. The employee makes company grow. “In a global marketplace driven by ideas where information freely flows, brainpower remains the source of competitive advantage” (Kaye, Jordan-Evans & Career Systems International, 2002, p. 4).
Pfeffer (1998) says,
Success comes from successfully implementing strategy, not just from having one. This implementation capability derives, in large measure, from the organization’s people, how they are treated, their skills and competencies, and their efforts on behalf of the organization. A people-centered strategy facilitates higher levels of customer service and enables firms to compete on the basis of knowledge, relationships, and service, not just price. (p. 17).  Smart (1999) says,
Proactively seeking out and employing the most talented people can have a multiplier effect on the creation of the competitive advantages. High performers, the A players, contribute more, innovate more, work smarter, earn more trust, display more resourcefulness, take more initiative, develop better business strategies, articulate their vision more passionately, implement change more effectively, deliver higher quality work, demonstrate greater teamwork, and find ways to get the job done in less time with less cost. (p. 12).
Employees need great attention from the management. To discover how long an employee stays with in the bank determined by his or her relationship with his or her immediate supervisor. This research provides commercial banks with the reason why employees leave the company, and the remedy being to ensure that the management provide supports to there employees.
A high turnover affects commercial banks in several ways, not only banks, but also other companies. When long-time employees leave, they often take valuable institutional knowledge or intellectual assets with them. Seasoned staff members serve as morale boosters for work teams and help new employees progress more quickly. Having to replace these assets costs employers a lot in both time and money.
High employee turnover often forces commercial banks to focus their own efforts on staffing. Whether the employees being replaced are rank-and-file employees like teller, new account clerk, accounting staff bank owners often bear the responsibility of recruiting, interviewing and training new hires. And this is at a great cost.
Companies’ costs of losing employees are expensive, but the costs can be even higher if the employee is a talented contributor in the company. Some of the cost factors are obvious, such as productivity loss due to a vacant position. However, there are often unseen costs, like the reduced productivity from the departing employee who is inevitably distracted during his or her job search and therefore contributes less during this time period.
There is no one simple solution to avoid high turn-over. There are many factors that affect an employee’s reasons for staying with in the company.
Some prefer an employment relationship that allows them to try a number of different jobs as a way to gain experience and develop a broad skill set. Others want balance between work and commitments beyond work. Still others are looking for a fast track that offers challenging work, quick advancement and high rewards. Attitudes and expectations such as these determine, in turn, which factors attract, retain and engage employees,...