2019
HUMAN RESOURCE
MANAGEMENT
A STUDY OF THE FACTORS EFFECTING EMPLOYEE
RETENTION AT UNITED BANK LIMITED (UBL)
JAVERIA NASIR 20161-20451
SUFIYAN TARIQ 20161-21564
Table of Contents
Executive Summary ...................................................................................................................................... 2
Objectives ..................................................................................................................................................... 4
UBL overview ............................................................................................................................................... 4
Mission...................................................................................................................................................... 4
Vision ........................................................................................................................................................ 5
Values ....................................................................................................................................................... 5
Literature Review.......................................................................................................................................... 5
Introduction .............................................................................................................................................. 5
Factors effecting employee retention ...................................................................................................... 6
Employee satisfaction ............................................................................................................................... 6
Company practices ........................................................................................................................................ 7
Analysis ........................................................................................................................................................ 8
Data collection .......................................................................................................................................... 8
1. Questionnaires............................................................................................................................... 8
2. Interviews ...................................................................................................................................... 8
Methodology ............................................................................................................................................. 8
Research process ....................................................................................................................................... 8
Sample Design .......................................................................................................................................... 9
1. Element ......................................................................................................................................... 9
2. Sampling unit ................................................................................................................................ 9
3. Extent ............................................................................................................................................ 9
Result analysis .............................................................................................................................................. 9
Recommendations ....................................................................................................................................... 12
Improved training and development programs ....................................................................................... 12
Employee compensation and benefits ..................................................................................................... 12
Performance management ....................................................................................................................... 13
Conclusion .................................................................................................................................................. 13
References .................................................................................................................................................. 13
Appendices.................................................................................................................................................. 15
Appendix-A............................................................................................................................................. 15
Executive Summary
The purpose of this research is to identify the key factors which pose a threat to employee
turnover and retention in any organization. We selected United Bank Limited (UBL) for our
study. Comparison between our results and theoretic study was made in order to identify any
gaps between the practical research conducted and theory.
In order to collect data, we used printed questioners which were distributed to three different
branches of UBL. The key variables used in our research are; training and development,
work/life balance and reward and recognition. We built our study around these variables to
observe how the thirty employees from UBL responded to them and whether these variables
were defining factors of employee retention or not.
The results of our research definitely favored placing importance on our selected variables when
it comes to employee retention which links our theoretical learning to practical application. We
studied the response of each of the thirty questionnaire and the general consensus was placing
importance on the significance of our selected variables as factors playing a role in employee
retention.
Objectives
We opted for UBL as the organization to study for our research. Following are the key objectives
that this research is aimed at:
1. To identify the significant factors which effect employee retention.
2. To study the impact of our selected variables on employee retention and turnover.
3. To identify any gaps between the practical application and theoretical learning related to
employee retention.
4. To provide recommendations and alternatives.
UBL overview
United Bank Limited (UBL) is a Pakistani commercial bank based in Karachi, Pakistan. It is
one of the largest banks in the private sector, the Bank operates overseas. With a customer base
of over 4 million, it leads the banking and financial services sector in Pakistan. Customers across
the world have 24/7 access to the bank via UBL's internet banking facilities. The bank has an
asset base in excess of $15 billion, a global workforce of almost 13,000 people and a diversified
client base covering a broad spectrum of segments and industries across the globe. UBL
provides a complete array of services in wholesale and retail banking through its network of
branches and presence across 12 countries in four continents including the UAE, Bahrain, Qatar,
Yemen, UK, Switzerland, China, Oman, US, Tanzania, Iran and Pakistan.
Mission
• Their mission is to provide investment management and investment advisory services to enable
clients in achieving their financial goals.
• UBL focuses on being accessible for investors and for those who want to invest in Pakistan from
abroad.
• UBL aims to create awareness on savings and investments among general public.
Vision
Their vision is to be the best and most sought out investment solution providers.
Values
• Customer Focus
• Respect
• Entrepreneurship
• Curiosity
• Excellence
• Teamwork
• Integrity & Trust
Literature Review
Introduction
Now a days, retaining employees has become a struggle especially with the intense competition
within the job market. Companies face the problem of retaining skilled and key employees which
reasons as to why the employees choose to leave an organization. However, these reasons fall
under two major categories; one is due to personal reasons such as family situation etc. Second is
due to complexities arising with the employing organization. (Mitchell, Holtom, & Lee, 2001)
According to (Das & Baruah, 2013) the long-term sustainability, health and success of any
organization is dependent on the retention of key employees. It is crucial to motivate the
employees and encourage them to remain in the organization. This can be achieved through
following a steady employee retention policy.
Factors effecting employee retention
(Fitz-enz, 1990) suggested that employee retention does not depend on one factor alone, in fact
there are multiple factors that play a huge role in retaining key employees. Through our research
we try to establish the main factors that play a role in retaining key employees within United
Bank Limited. Training and development, work/life balance and reward and recognition are what
we focused on mainly in our research.
Shedding light on the factors in focus, today employees are constantly looking for exciting tasks
that broadens the scope of their skills and knowledge and this is why training and development is
to be kept in high regards within the employing organization.
Secondly, the factor of work/life balance is a major element in defining the status of employee
retention in an y organization as it is directly linked to satisfaction. The lesser satisfied the
employee will be the more likely he will be to leave the organization. According to (Hyman &
Summers, 2004) work/life balance is increasingly important for employee engagement and
effects retention.
Lastly, reward and recognition motivate the employees to keep performing in a stellar way.
(Agarwal, 1998) explained that the term reward is something which the organization gives to the
employees as a response to the work they performed and something which is highly desired by
the employees.
Employee satisfaction
The research findings by (Jewell & Segall, 1990) clearly point towards the fact that employee
satisfaction is equivalent to employee retention. Many other research findings have linked
employee satisfaction to the employee turnover in any organization. These researches have
established that there is a monumental correlation between job satisfaction and turnover of
employees. Hence, the lower the satisfaction level is of an employee within an organization, the
more likely are the chances that he will seek another job to fulfill his requirement of job
satisfaction.
Company practices
Upon our survey of UBL we found out the following HRM practices which are in full swing
within the organization;
• United Bank Limited (UBL) conducts human resource planning on a regular basis.
• The company puts importance on employees service while doing HR planning.
• They have a well defined recruitment policy.
• They attract service-oriented employees.
• They recruit individuals on the basis of service attitude and competence.
• They conduct a job analysis regularly.
• UBL has regular performance appraisal as well.
• They have a properly effective HR information system.
• UBL provides sufficient opportunities for career growth and development.
• They pay competitive salaries to their employees.
• Employee attitude surveys are also regularly conducted within the organization.
• UBL is open to adopting new and improving HR practices.
Analysis
Data collection
The data collection procedure was divided into two parts;
1. Questionnaires
2. Interviews
Printed questionnaires were used to collect the answers of the survey. We got the survey filled in
person and later conducted a short interview regarding the questions to get a more detailed
perspective. Through this we were able to draw a much well-informed conclusion about the
results of the surveys.
Methodology
As part of this research, we carried out a survey to analyze the perception of UBL regarding
employee retention. We used questionnaires to carry out this survey, (refer Appendix-A for sample
questionnaire). We analyze their general perception in the light of our selected variables and how
the organization viewed them as playing a role in employee retention.
Our methodology was a step wise approach where the first phase was to get the surveys filled by
our target population. The second phase was to interview the individuals with sound knowledge
of the companies HR structure in order to a get a much clear perspective of the company.
Research process
The research process utilizes the following technique;
Figure-1 The Research Process as compiled by the author
Conclusive Sample Questio- Data Data Conclus-
Research Design nnaire Collection Analysis ions
Sample Design
For the sample design we first defined our target population. Our focus was to target individuals
with a sound knowledge of the HR structure of the company.
1. Element
Individuals with a sound understanding of the entire HR structure of the company chosen.
2. Sampling unit
30 individuals of UBL belonging to three different branches.
3. Extent
Three branches of United Bank Limited (UBL).
Result analysis
The selected population was given a questionnaire that consisted of two sections; a close ended
section and an open-ended section. They were required to fill all the sections after which we also
conducted a short interview session in order to find out their opinion on the company’s employee
retention policy.
CLOSE ENDED QUESTIONS
7
6
6
4
4
0
Strongly agree agree neutral disagree
Through the analysis of the obtained results we found out that sixty percent of the employees
from all the three branches of UBL that were selected for the survey strongly agreed that the
integration of the selected variables played an important role in employee retention.
Whereas, forty percent agreed to the selected variables being significant. This is a very positive
response towards the variables which shows that the employees do in fact believe that training
and development, reward and recognition and work/life balance plays a very significant role in
the employee retention of UBL.
The results of the questionnaires backed up our study of the selected variables, namely; training
and development, recognition and reward and work/life balance to be the key players when it
comes to employee retention. Although our study was limited to UBL, but it can be applied to
similarly functioning financial institutions and banks.
Open-ended questions:
WHAT MOTIVATES YOU TO PERFORM YOUR BEST IN THE
ORGANIZATION?
Dream/Aspirations Recognition Respect Increment
10%
20% 40%
30%
The second section of our questionnaire was to study the open-ended responses of the
employees. The most important question to determine our study outcomes was; what motivates
you to perform your best at the organization?
As we can observe the responses in the pie chart above, the employees placed importance on
their dream/aspirations, recognition, respect and salary increment. The data is statistically
presented for easy understanding where it can be seen the degree of importance that was put on
each factor. These above-mentioned factors were the ones that were most popular amongst the
employees we selected for our test. Other factors included; appreciation, leadership
opportunities, acknowledgement, promotion etc.
Recommendations
In the light of our research we have reached towards the following recommendations which
could best serve in retaining the employees at UBL. The recommendations are as follows;
1. Improved training and development programs
Firstly, they should keep updating and improving their training and development programs and
activities as we concluded that majority of the employees at UBL believed it to be a defining
factor for them. It plays a very integral role in the decision making of the employees and
therefore something that should be given high regards when it comes to strategizing HR policies.
Therefore, the improvement in the current training and development programs can lead to a good
employee turnover and help retain the valuable employees already associated with UBL. It works
as the step in the right direction and proves our theoretical learning as well where training and
development does in fact play a key role in helping towards motivating employees and retaining
them.
2. Employee compensation and benefits
Secondly, we would like to recommend additional importance to be put of employee rewards,
compensation and benefits. As driven from the results of our study many of the employees
placed considerable amount of importance in this particular factor. This is a key motivator for
them to bring forth their best foot and perform in the best possible way which ultimately benefits
the organization as a whole.
When linked to our theoretical learning we can see the link very clearly between the employee
compensation and benefits and employee turnover. We saw in practice how this factor effects the
employees decision in staying or leaving any organization. In case of UBL they already have a
good employee compensation and benefit plan in practice and it should be regularly improved
and updated to meet the changing needs of the employees.
3. Performance management
Lastly, we recommend UBL to use new and innovative techniques to measure the performance
of its employees. It is a significant factor when it comes to building a healthy work environment,
which in turn will result in employee satisfaction. As we established in the earlier areas of this
report that employee satisfaction is directly equivalent to employee retention in any organization.
In order to ensure the best performance from the employees it is crucial to keep monitoring them
on constant basis and for this new and innovative techniques should be used which doesn’t come
off as too intimidating and in fact results in increasing the morale of the employees.
Conclusion
Through our research we studied the employee retention at United Bank Limited (UBL) and used
a survey approach to understand the dynamics and key factors of employee retention. We used a
set of variables which were fixed under our close ended section of the questionnaire and studied
thirty different responses from three different branches of UBL.
The responses were then linked and connected to our theoretical study where we were able to
make a visible crossover of practical application and theoretical study. The practical on field
survey proved to be a great learning experience and helped back our learning of the HRM
course. We were clearly able to link the key factors which we concluded from our result of the
selected sample size to what we studied in theory.
References
Agarwal, N. (1998). Reward systems: emerging trends and issues. Canadian Psychology, 437-
435.
Das, B., & Baruah, M. (2013). Employee retention: A review of literature. Journal of business
and management , 08-16.
Fitz-enz, J. (1990). Getting and keeping good employees. In Personnel, 25-29.
Hyman, J., & Summers, J. (2004). Work-life employment practices in the modern economy.
Personal review, 418-29.
Jewell, L., & Segall, M. (1990). Contemporary industrial/organizational psychology . St. Paul:
West publishing company.
Mitchell, T., Holtom, B., & Lee, T. (2001). How to keep your best employees: developing an
effective retention policy . Academy of management executive.
Appendices
Appendix-A
SECTION - 1
Indicate the extent to which the following applies to you;
Question 1: Your organization offers considerable perks to you?
Strongly agree agree neutral disagree strongly disagree
Question 2: There are incentives taken by the organization that motivates you to improve your skills/ add
to your skills?
Strongly agree agree neutral disagree strongly disagree
Question 3: You get recognized for the work you do?
Strongly agree agree neutral disagree strongly disagree
Question 4: You see a career in this organization for the foreseeable future?
Strongly agree agree neutral disagree strongly disagree
Question 5: The management is supportive during tough and difficult situations?
Strongly agree agree neutral disagree strongly disagree
Question 6: You feel like you are treated in a respectable way?
Strongly agree agree neutral disagree strongly disagree
Question 7: Work/life balance is encouraged by your organization?
Strongly agree agree neutral disagree strongly disagree
Question 8: Communication with your superiors is easy and without barriers?
Strongly agree agree neutral disagree strongly disagree
Question 9: You will suggest your close friends and family to join this organization?
Strongly agree agree neutral disagree strongly disagree
SECTION – 2
Question 1: What motivates you the most for best performance in your organization?
Question 2: If you have worked in any organization prior to this, what was the major reason you
switched? (Can be more than one)
Question 3: What do you feel are the reasons due to which employees leave your organization?
