IMPACT OF RETAINING EXPERT EMPLOYEES ON ORGANIZATIONAL PERFORMANCE: AN EMPIRICAL STUDY ON PRIVATE COMMERCIAL BANKS (PCBs) IN BANGLADESH

Abstract

Over the past few decades, retaining expert employees has become progressively more significant in the financial institutions, especially in the private commercial banks (PCBs) in Bangladesh. There are extensive ranges of research exist to explore and study the proper utilization of these expert employees to improve the quality and performance of the organization in the process sustaining and developing the organization. This investigation inspects how retention affect the overall performance of the organization and also the determinants of the retention program and the impact of it. This study claims that knowledgeable, skilled, abled employees have substantial influence on the performance within and outside the organization. The stability of the business organization depends largely on the retention of skilled and stable employees of the organization. If the employees are changed frequently, it has a great negative impact on the organization‟s performance. It efforts to uncover the factors of retention and how these factors have prime influence in retaining employees, interacting them with organizational environment which is crucial for the betterment of enhancing the performance of the quality organization. Previous research have not addressed this interacting theme. This study argues that when there is an association among retention of employees and trained them for the organization with benefits, there is a likelihood that the quality and the performance of the organization would be improved. Proposed conceptual framework or model consists of five factors, each has a direct relationship with the employee retention and on the other hand, employee retention has direct impact on three basic components in role performance, organizational citizenship behavior and turnover intention consequently their impact on organizational performance. Again employee retention has direct impact on organizational performance. The phenomena has been explored using a quantitative research. The data are collected from significant stakeholders, employees of the PCBs in Bangladesh. The survey has been conducted with executive employees of the private commercial banks. Microsoft Excel 16, SPSS 23.0, and Smart PLS software are used to collect, organize, and analyzed all the quantitative data systematically.

To enrich the theoretical foundations of this research, retention strategy literature is examined. The practices of retaining expert employees have not improved in line with the vii

expectations that is one of the gaps in the existing literature. Objectives can act as a benchmark to evaluate the outcome of the study. All the relevant theories are applied to explain the findings. Study found, contemporary practices of retention in the organizations are partial and relatively weak. It also reveals that for retaining experts in the organizations need to identify the determinants which motivate them to be in the job and also help to find the ways how to utilize them in an optimist way. Lastly, it is found that retaining expert employees directly supports to the positive work performance of the organization. It has been concluded that retaining expert employees add directly to heighten quality and stable performance of the organization. The study's implications for relevant approaches and theories are also considered. Furthermore, new research directions are identified.