Dissertation Chapter 6 - The Causes of Employee Turnover in Omani Banking Sector
The focus of this study is to determine reasons behind employee turnover among banks in Oman. Data collected from the different sets of respondents provided answers to the queries of the researcher. The primary source of data came from questionnaires that are distributed to the employees of 5 Omani banking sectors. The secondary of data came from an extensive review of the literature on articles, journal articles, books, and magazines relating to employee training programs. The study used random sampling as a method of choosing its population. Random sampling can be very useful for situations where you need to reach a targeted sample quickly and where sampling for proportionality is not the primary concern. Most sampling methods are randomly because they approach the sampling problem with a specific purpose in mind. A sample size of not more than 186 employees in banking sector of Oman is sizable amount of respondents that the researcher hopes to gather data from. This sample size ensures the validity of the response that the researcher was able to gather. To determine the assessment of the employees, the researcher prepared a questionnaire and a set of guide questions for the interview that is e asked to the intended respondents. The respondents graded each statement in the survey-questionnaire using a Likert scale with a five-response scale wherein respondents are given five response choices.
Concurrently, the study employed both qualitative and quantitative research methods to ensure a flexible and iterative approach. During data gathering the choice and design of methods are constantly modified, based on ongoing analysis. This allows investigation of important new issues and questions as they arise, and allows the investigators to drop unproductive areas of research from the original research plan. The researcher also uses percentage analysis, t-test and analysis of variance to evaluate the collated data.
From the results of this research, the researcher concludes the following:
1. The subjects who took part in this research are mature in age, responsible and consistent. They are also conscious of what’s phenomenon in their organization i.e. Omani banking sector and are extremely concerned about the development of the programs.
2. The subjects have given an overall rating of Uncertain or Agree to each of the criteria. This indicates that they are not sure or satisfied with the current state of things in Omani Banking Sector. In job related factors as determinant of employee turnover, majority of the subjects believed that turnover was caused by (1) heavy work load and (2) excessive stress. Some also argued that employees (3) found a better job and (4) better pay that causes turnover in banking sector of Oman. And for other statements, majority of the subjects are unsure if these are determinants of high turnover rate in banking sector of Oman. And for organization related factors, it shows that recognition and communication are important part in maintaining job retention among employees.
3. Using the test of variability, the results identified that there is significant evidence that job related factors are most likely affecting employee turnover compared to organisation related factors.
4. With regards to the demographic profile of the subjects, the views of male respondents were different to the views of female subjects when they are asked about issues on job related factors. Apparently, both male and female subjects show similar respondents pertaining to their views about organization related factors that affects employee turnover among bank businesses in Oman.
5. The statistics also show that the views of subjects are varying in job related factors and shows similar responses in organisation related factors in accordance to their age. Similarly, the previous results of age and causes of employee turnover, the education level of subjects and years of experience are varying in job related factors and shows similar responses in organisation related factors. Contrary, the occupation of subjects shows varying responses in organisation related factors and shows similar responses in job related factors.
Based on the foregoing summary of findings and conclusion, the researcher recommends the following:
1. Update the tools, facilities, training methods in Omani Banking Sector. Furthermore, there should be a stringent execution of the training and development programs to avoid high turnover rate in Omani Banking Sector.
2. Sustain open communication lines between the Omani Banking Sector’s management, employee and top administrators.
3. Assess the training and development program of Omani Banking Sector and revise the practices to augment the business standard. Omani Banking Sector’s employee must also be given stricter training obligations to guarantee that they know their job well.
4. Omani Banking Sector’s open communication lines between administrators and employees particularly in giving details and messages. This is to make sure that the employees know what the Omani Banking Sector’s administration is up to and vice-versa.
5. Financial rewards are nothing if training, management support and a workable culture is present. Monetary strategies are thus insufficient although one of the preferences. Staff incline to comfort and something appealing to the human limitations and qualities than increased rewards. Here’s the summary of the strategies to make retain Omani Banking Sector employees:
Ø Employers need to enrol their staff in annual or quarterly training courses to upgrade their skills and enrich their knowledge so as to foster individual and personal development and improvement. Possibilities of promotion through their acquired knowledge and improved skills as competitive employees should always be reminded to the staff as a form of motivation to encourage productive outputs.
Ø Incentives in the form of financial aids like bonuses and other material compensations as well as intrapersonal rewards such as positive critical feedbacks and recognition should be endorse by the company to boost confidence and motivate the employees. This in turn will also be profitable to the organisation itself due to increased output of the work force.
Ø It is also apparent that equal relations between the employer and the employees should be practiced to encourage productivity in the business organisation. Enhancing good working relations among all the employees and preserving a good working environment and atmosphere ideally, will provide harmonious relationship inside the business organisation. Maintaining such condition within the office will elicit productivity from the employees as they enjoy their duties of accomplishing their tasks and will help in reducing stress and eventual burnout in the workplace.
Ø Encouragement of wider work responsibility of basic skills such as development and learning courses should be given to employees on specified times of the year. This will restore fresh knowledge to old employees. In the case of newly hired staff, more comprehensive and rigorous training exercises should be applied to better prepare them of the workloads they will be responsible of in the actual business transaction and work process. Promoting individual competence and competitiveness among the staff and other members of the organisation will be of benefit to the company since this will uphold and advance the initiative work attitude.
Ø Since workplace learning and training programs in organisations is a common practice nowadays, more trust should be given to the work team of the company. Entertaining and respecting solicited opinions and ideas of ordinary employees will be of help in setting the corporate goals of the company since the staff is encouraged to think as owners of the business enterprise.
Non-monetary strategies overwhelm priorities but one must not deny the luring power of monetary strategies in retaining. The fact remains that the staff or human resource market is considered as very competitive and high in their turnover rates because the Staff are looking for challenges and money.
The Interview results justified and verified the validity of previous studies. It has been found out that their interests in their jobs have been beginning to wane down as time goes by, partly due to the unresponsive organisations. The organisation cuts off funds and stress employees in overtime hours. The organisation is only enthusiastic in the beginning, but later on it begins to drag the employee through stagnant opportunities and poor working environment. The management and staff withheld feedback and recognition earlier given. From the responses of interviewed individuals, this study suggested the creation of high-powered incentives in order to retain their top-skilled Staff. High-powered incentives should necessitate a moderately noticeable and convinced relationship involving actions and results, which would be the reason why organisations possess the propensity to reward robust incentives for the existing accomplishment and meagre incentives for exploration. Nonetheless, this couple of jobs to accomplish, individuals reasonably falls back on the responsibilities that they acquire will suggest them the highest reward in comparison to the hazards implicated. Therefore if organisations aim for the conventional course, giving high-powered rewards where they can and less extreme ones where they have got to, their workforce will more or less positively react by taking focus on their well-rewarded tasks and possibly retention of their services. The opportunities of growth and development also come to a stop. The interview revealed the importance of maintaining their morale and growth in keeping them in the organisation. They are also very much interested with pride and serving the organisation but first the organisation must serve them first. The interviews also presented how concerned these people are to support their personal welfare as well as their family. They are very particular on support and this may be provided by recognition or constant education. Lastly, monetary strategies are deemed insufficient and even less important in the retention of workers especially as they grow in experience. It revealed Non-Monetary Strategies may actually be sufficient to retain the employees for as long as they are consistent with their strategies.
The study recommends then a mixture of both strategies. What the study revealed about non-monetary strategies is their utter significance in the retention. Staff are similar as any other employee and thus the retention strategies used for others should speak the same for them.
This is to find fulfilment and actualisation in the employee and finding out the fruits of their labour and contributions to the organisation. These are people organisations should be dealing with and not merely as economic assets. They are concerned of culture and working environment because they too are dynamic and responsive workers. They need to be able to grow as the organisations grow along. It is about attaining self goals.
Monetary strategies may motivate an employee to report to work, but to have this employee aspire towards the growth and development of the organisation, and to be united to its goal, it will take dedication, such that can be inspired by non-monetary strategies, those that directly strikes at the human nature of Staff. Monetary strategies would only lead to higher turnover rate, with nothing solid for the employee to hang on but expendable financial resources. A salary increase only compels employees to want more of these monetary strategies and job hop. Strategies need to be focused on the person itself. The trick is not to keep them in the company for merely financial means but to forge dedication, commitment and loyalty to the employers or organisations which would yield to positive effects such as retention. Monetary strategies can control, but not sufficient to create commitment. In fact, companies need only to have fair and sufficient salaries than a totally high amount to retain an employee for as long as they are provided other, intrinsic rewards. These rewards would fuel interest and a challenge to the Staff's employees which would then allow higher satisfaction and engage themselves to organisational mission and vision. This also involves management support (which would involve involvement and empowerment) and workable culture in such a way that employees are empowered participants and given a variety of tasks.
Being Dynamic workers, there is really no specific procedure or strategies. It will depend and it will vary between a mixture of monetary and non-monetary strategies but the latter needs to be highly invested upon much rather the former.
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