THE IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE RETENTION AT FAYSAL BANK LIMITED

Abstract

Purpose ofthe study: Major puipose ofthis research was to study employee retention which is dependent upon training and development of employees at FBL in Karachi Pakistan. The variables that are intervening for achieving long term retention are T&D and sufficient training budget in the banking sector, prompted to conduct this research. The major key variables are types oftraining programs and duration oftraining. Methodology/sample: The study involved use of questionnaires filled by 66 respondents and data on employee turnover rate and training budget yearly of FBL for the period of 2007-2014 is used for analysis. The respondent individuals belonged to different age groups, and different organizational levels. To analyze the data, Correlation tests was applied. Data from FBL Karachi Head office branch of Pakistan was collected and analysis oftheir training programs, training budget and turnover rate was conducted to determine their employee retention level throughout the year. Findings: The analysis and comparative results clearly suggested that FBL has decreased their turnover rate by increasing facilities provided to them for enhancing their skills and abilities through training and development, while the bank is earning huge profits by retaining their employees. It was also revealed that high profits are being earned by FBL due to lower turnover rates and higher retention by T&D. Practical Implications: The outcomes of the research might help the banking sector of Pakistan, FBL and other related quarters to understand the impact of T&D on employee retention in banking sector and to understand the overall dynamics and mechanism of banking sector in Pakistan.