Need for retaining employees in the Indian banking sector for sustainable growth: An empirical study

Abstract

The banking sector in India is experiencing rapid growth, but this expansion is coupled with significant challenges in employee retention. The high attrition rate underlines the ability of the sector to provide quality service and manage more stable operations for success of long-term. The study explores the need for retaining employees in the Indian banking sector is a key component for achieving sustainable growth. The study explores the mix-method, primary quantitative data has been collected through surveys from employees across various banks and secondary qualitative data is sourced from existing literature on employee retention strategies in the financial sector. The research aims to evaluate the factors that influence employee retention in the Indian banking sector and to identify strategies that can help banks retain employees for sustainable growth.

The findings suggest that competitive compensation, a positive work culture, career growth opportunities, and effective leadership are among the critical factors for influencing retaining employees. Banks are failed to address these areas tend to experience higher turnover, leading to disruptions in service quality and increased costs associated with recruitment and training. Additionally, the study highlights the role of organisational commitment, sustainable growth employee engagement in fostering long-term retention. The result focuses on underscoring the strategic human resource management in the Indian banking sector, where talent retention for operational efficiency for maintaining the competitive edge for evolving through the financial landscape. The study emphasies the importance of addressing both financial and non-financial factors in retention strategies to build a committed and engaged workforce essential for the long-term success of the Indian banking sector.