Introduction
Human resources and practices play an integral role in the growth and success of companies. In general, the term HR practices refers to a variety of strategies that businesses use to oversee their human resources effectively (Alajlani & Yesufu, 2022). The procedures and policies that have an impact on the conduct, output, and mindsets of employees are included in these practices (Alajlani & Yesufu, 2022).
Usually, the most common practices related to HR involve recruitment, hiring, education and growth, pay and benefits, and wellness. As a result, an essential instrument for gaining an organization’s competitive edge is the efficient use of its processes. Understanding and managing HR practices can make it easier to ensure not only the satisfaction of the employees but also their retention. Employee retention refers to the process of encouraging employees to continue working for the company for as long as possible or until the project is finished (Alajlani & Yesufu, 2022). In the context of the banking sector in Qatar, this research aims to investigate the impact of HR practices on employee retention.
Problem Statement
Banking Workforce in Qatar
Among the most crucial sectors in every country is the banking sector. The given sector acts as a backbone for the economy and the nation (Shah et al., 2020). It promotes economic expansion, aids in creating new opportunities, and helps in giving millions of individuals new opportunities and jobs (Shah et al., 2020). When reviewing the case of Qatar, it is noteworthy that 2020 there were 2.4 million persons of working age, which was an increase of 1% over the previous year (Planning and Statistics Authority, 2020). Additionally, half the working force was considered skilled and university graduates (Planning and Statistics Authority, 2020). However, despite the increasing number of the active labor force, it is crucial to recruit and retain professionals.
Costs and Dangers of Employee Turnover
Employee turnover has negative effects on many businesses, especially those in the banking sector. It is expensive for all companies due to the costs of new staffing, educating and replacing workers, and sustaining losses from work suspensions, all of which directly affect productivity as a whole (Shah et al., 2020). Due to the higher-than-usual rate of job switching among bank employees, which is an inevitable condition, companies in the banking sector must become more competitive and implement novel strategies and technology to survive (Khatun et al., 2023).
Retaining prospective personnel is one of the major and long-term investment choices that banks must prioritize to thrive and expand in this cutthroat environment (Khatun et al., 2023). Here, HR practices that involve sustaining the level of satisfaction play a crucial role. The level of job satisfaction is influenced by a number of different factors, including worker sales, work rotation, career advancement, time management, job performance, and teamwork (Abboud, 2021). Therefore, one can see the complex nature of the HR frameworks and banking sector.
Employee Retention Recommendations
The proposed strategies and recommendations vary and are usually holistic. Some researchers, such as Hanai and Pallangyo (2020), claim that since fair pay is one of the most appreciated aspects of compensation, bank management should establish and implement retention plans that take this into account. Additionally, to increase employee retention, bank managers must pay close attention to the appropriate retention rules (Hanai & Pallangyo, 2020). However, others, such as a consulting firm, PwC, argue that employers in Qatar need to concentrate on luring new talent and keeping talented staff members because of the great resignation in 2023 (PwC, 2022). Finally, another consulting firm, KPMG (2019), states that the issue of having the appropriate set of abilities and expertise must be addressed for better retention and growth.
Conclusion
As a result, examining and comprehending the link between HR procedures and employee retention in Qatar’s banking industry is essential. Organizations can design approaches to improve their procedures and create a work environment that promotes employee satisfaction, engagement, and long-term commitment. In such cases, identifying the individual HR practices can significantly impact retention.
References
Abboud, S. (2021). The impact of 360 degrees performance appraisals on employee retention. The Journal on Global Socio-economic Dynamics, 3(28), 37-49. Web.
Alajlani, S., & Yesufu, L. O. (2022). The impact of human resource practices on employee retention: A study of three private higher educational institutions in the United Arab Emirates. SA Journal of Human Resource Management, 20, 1-10. Web.
Hanai, A. E., & Pallangyo, W. A. (2020). The contribution of compensation in the employee retention of the banking institutions in Dar Es Salaam, Tanzania. European Journal of Business and Management Research, 5(4), 1-8. Web.
Khatun, M., Rahman, S. N., & Khatun, M. (2023). Impact of development opportunities and compensation on employee retention: A comparative study on banking industry of Bangladesh. European Journal of Management and Marketing Studies, 8(1), 40-63. Web.
KPMG. (2019). Qatar banking perspectives 2019. Web.
Planning and Statistics Authority. (2020). Labor force sample survey 2020. Web.
PwC. (2022). The hopes and fears of employees across Qatar. Web.
Shah, S. H. A., Sajjad, S., Ahmed, N. A. M., Arshad, B., Kazmi, M., & Nawaz, R. (2020). The role of HR practices on turnover intentions directly and through organizational citizenship behavior in the banking sector of Malaysia. International Review of Management and Marketing, 10(5), 172-178. Web.