Title of the Article:

Employee Retention Relationship to Training & Development: A Study on the Banking Sector of
Bangladesh

Group number 10
Serial no. Name ID
01 Aurpita Paul Rupna 108
02 Sumaiya Sultana 116
 Objectives and Literature review

Broad objective:
The main objective is to investigate the relationship between training and development and
employee retention.
Specific objectives:
I. To ascertain the link between training and development and employee retention.
II. To know how to hold back employees by providing training and developmemt
facilities.
III. To examine the factors leading to employee retention through training
opportunities.
IV. To determine the effect of training and development,its type and duration on
employee retention in banking sector.
V. To find out problems regarding employee retention due to lack of training and
development.
VI. To provide a solution using training and development practice to retain employee in
banking sector.

Literature review

Training and development refers to educational activities within a company created to enhance
the knowledge and skills of employees while providing information and instruction on how to
better perform specific tasks. Training is a short-term reactive process meant for operatives and
process while development is designed continuous pro-active process meant for executives. In
training employees' aim is to develop additional skills and in development, it is to develop a total
personality. Employee retention is the ability of an organization to retain its employees and make
sure the sustainability of employees.

Training and development are essential to improve employee performance (Chaudhry Jariko,
Mushtaque, Mahesar, and Ghani, 2017). Development for an organizational perspective
categorized into succession and career development plans. Succession plans are planned for the
overall preservation of the organization, while career development plans are in place to improve
personnel for employees (Chlebikova, Misankova, & Kramarova, 2015). Succession planning
involves multiple steps, starting with identifying candidates with the potential to gain more
significant roles (Schepker, Ulrich, & Wright, 2018). Once the profiles identified, the evaluation
begins by measuring key factors such as problem-solving skills, etc.
Companies consider retention of employees as a challenge due to the increased flexibility of
jobs. Various studies have been conducted that popular HR practices are not the only
ways to enhance commitment and reduce retention. Scott Brum (2007) highlighted that when
the employees are introduced to more trainings, they show higher level of commitment as
compared to others. Roya Anvari et al (2010) revealed that it is possible only with the help of
planning training programs that are totally based on needs valuation to achieve commitment and
retention. Training is considered important in developing a feeling of belongings among
employees. Eva Kyndt et al (2009) revealed that training has a potential to change the
turnover thoughts and is an important factor that helps in originating the intentions of
turnover. Those employees that are highly committed to the organization have lower turnover
thoughts. Trainings basically bring association between commitment and retention. Danlami
Sani Abdul kadir et al (2012) has considered training as an investment, organization bears
the whole expenditures of training employees which eventually act as an investor and expect a
return in the form of commitment and retention from employees. Trainings elevate
commitment and retention rate, when employees consider it as investment and force them to
offer a return to the organization. Alexandros G. Sahinidis and John Bouris (2007) Training is a
long term investment in the skills of employees. Training is not a tool to polish current skills of
employees but to prepare employees for future impacts from competitive forces. This kind of
training boosts the commitment and employees think that organization is opening doors to our
success. This sense eliminates the thoughts of intentions to quit from employees mind and force
them to retain. Mohammad I. Fheili (2007) has stated that employee turnover is a major human
capital risk for an organization, which needs to be catered. Organizations that provide trainings
which are specific in nature applied only to the specific work within the organization that makes
the employees specialists not generalists. By doing this Organization limits the employment
opportunities and leads to the development of committed employees and will eventually
affect retention rate. Thomas Joseph McCabe and Thomas N Garavan (2008) Revealed that
with the help of training organizations can provide their employees with practical support and
assist in valuable delivery. This encourages the commitment of employees and which ultimately
effects retention. Vlad Vaiman (2008) Organizations focus on trainings in order to
maintain attractiveness and competitive as compared to others in the external environment.
This enhances the organizational status in the eyes of knowledgeable employees and makes
them to think that no one cares about you more than us. Anders Dysvik and Bård Kuvaas
(2008) Training and development develop a social link between organization and
employees. This social link creates a commitment factor that bounds the employee to stay longer
with an organization. There is a social exchange between employer and employees due to
provision of training. Fathi Mohamed Abdul jlil AL Damoe et al (2012) Training and
development results in intangible outcomes such as enhancing employee commitment, retention
and employee satisfaction. The basic opinion in these publications is that HR managers should
take into account several factors when developing retention policies, compensation is not the
only policy and some employees wants skills upgrading opportunities rather than compensation.
The organizing training programs for employees during job improves their skills (Hanaysha &
Tahir, 2016). In this way, training during a job enables the employees to deal with future
problems(Khan & Aleem, 2014). Besides, training programs during a job also equip the
employees with the skills to adapt to a new technology that ultimately improves their efficiency.
Likewise, educational programs to enhance the capabilities of employees enable them to
visualize the company's long-term goals and actively participate in accomplishing organizational
goals. In another study conducted by Al-Mzary, Al-rifai, & Al Momany, (2015), they discussed
the need to provide education to the employees, enhancing their work performance. Therefore,
on-job training and educational programs are critical in improving the efficiency and
performance of the employees. Besides that, it also gives job satisfaction to the employees.

Theoretical Framework

Training

Motivation
Employees’ Retention

Development

The above theoretical framework explains that employees’ retention is being used as dependent variable
whereas three independent variables such as Employees’ Training, Employees’ Motivation and
Employees’ Development are also being used in this research to check the relationship among them.

Methodology
Research methodology is a process of gathering, recording, analysing, and interpreting the data.
This chapter deals about research methodology used in this study. The basic objective of this
study is to explore employee retention of sample banks and to find out the relation of retention
and its components. For achieving the objective, the following research methodology shall be
followed in the course of conducting the research.
Population
Population used for the research was all the employees of private banks of Dhaka region of
Bangladesh and therein responses of the employees of few conventional banks and Islami banks
have been considered.
Sample and sampling techniques
A convenience sampling technique was used in this research to get response from the
respondents who are working in the banks now. Finally among all the employees of banks
working in Dhaka, 30 respondents were participated in the questionnaire in the research. We
were selecting close and open ended qualitative questionnaire to conduct the survey.
Instrument used and instrument development
The study was totally based on primary data which will be collected through closed and open
ended questions. A questionnaire regarding the research will be used as data collection tool. The
study uses random sampling technique to capture the response of bankers. The collected data
will be examined and evaluated then.
Variables
In this research four variables are considered, which are actually latent variables require to
measure indirectly through some indicators. Employee retention is the dependent variable
whereas independent variables are employees’ training, employees' development and employees'
motivation. Through these variables relationship among those variables will be checked.