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Voluntary Turnover in Banking Sector of Pakistan
(Reasons, Cost and retention strategies)
By Erum SaleemDated: 19th October 2014
What is Voluntary Turnover?
Employee turnover is the reduction of employees from the organization. Turnover has two dimensions, Voluntary and Involuntary Turnover. Involuntary turnover is caused by employer’s decision to terminate or layoff employees whereas voluntary turnover is caused by employee’s decision to leave the organization. This article comprises of voluntary turnover trends in banking sector of Pakistan, causes and effects of voluntary turnover, its cost and retention strategies to overcome this issue.
Current Trends in banking sector Of Pakistan:
Turnover has become the most significant issue of banking sector of Pakistan. In Pakistan employment opportunities are scare and unemployment rate is 5.08 %, in absence of employment opportunities employees try to stay on their jobs. Despite of this fact In FY 2012 41.5% of total turnover in State Bank of Pakistan was caused by involuntary turnover. Large percent of employees switched their jobs in the same industry. Although from the last couple of years Human resource departments of banks have designed and implemented several policies and changes to retain their employees but still there is more to do.
Reasons of Voluntary Turnover in Banking Sector of Pakistan:
There are a number of reasons to leave the job but it varies with the nature of job, culture of the organization and person-job-fit. Pakistan is a developing country with a very low GDP per capita and unequal income distribution structure. Government is unable to fulfill basic needs of the population. Most of the employees especially in lower ranks and designations switch their jobs for better pay and monetary rewards. In Pakistan working hours in banks are comparatively very high with no over time payment. In closing (moth end days) workload is excessively high which deteriorates work-life balance and caused
(Reasons, Cost and retention strategies)
By Erum SaleemDated: 19th October 2014
What is Voluntary Turnover?
Employee turnover is the reduction of employees from the organization. Turnover has two dimensions, Voluntary and Involuntary Turnover. Involuntary turnover is caused by employer’s decision to terminate or layoff employees whereas voluntary turnover is caused by employee’s decision to leave the organization. This article comprises of voluntary turnover trends in banking sector of Pakistan, causes and effects of voluntary turnover, its cost and retention strategies to overcome this issue.
Current Trends in banking sector Of Pakistan:
Turnover has become the most significant issue of banking sector of Pakistan. In Pakistan employment opportunities are scare and unemployment rate is 5.08 %, in absence of employment opportunities employees try to stay on their jobs. Despite of this fact In FY 2012 41.5% of total turnover in State Bank of Pakistan was caused by involuntary turnover. Large percent of employees switched their jobs in the same industry. Although from the last couple of years Human resource departments of banks have designed and implemented several policies and changes to retain their employees but still there is more to do.
Reasons of Voluntary Turnover in Banking Sector of Pakistan:
There are a number of reasons to leave the job but it varies with the nature of job, culture of the organization and person-job-fit. Pakistan is a developing country with a very low GDP per capita and unequal income distribution structure. Government is unable to fulfill basic needs of the population. Most of the employees especially in lower ranks and designations switch their jobs for better pay and monetary rewards. In Pakistan working hours in banks are comparatively very high with no over time payment. In closing (moth end days) workload is excessively high which deteriorates work-life balance and caused