Understanding The Role Of Compensation In Attracting And Retaining Talent A Comparative Study Of Public, Private, And Foreign Banks

Abstract

In today's competitive business landscape, attracting and retaining top talent is essential for the sustained success of organizations, particularly in the banking sector. Compensation plays a pivotal role in this regard, serving as a key factor influencing employees' decisions to join, stay, or leave an organization. This comparative study examines the role of compensation in attracting and retaining talent across public, private, and foreign banks, aiming to provide insights into effective compensation strategies in the banking industry.

Using a mixed-method approach, this research combines quantitative analysis of compensation packages and employee turnover rates with qualitative investigation through surveys and interviews. The study compares compensation structures, including salary, bonuses, benefits, and incentives, across public, private, and foreign banks. Additionally, it explores employees' perceptions of compensation fairness, transparency, and alignment with their skills, performance, and career aspirations. Key findings from the study shed light on the differential impact of compensation on talent attraction and retention across banking sectors. While competitive compensation packages are crucial for attracting talent, the study reveals that factors such as organizational culture, career development opportunities, work-life balance, and job security also influence employees' decisions. Furthermore, the study examines the effectiveness of various compensation components, such as performance-based incentives, stock options, and non-monetary benefits, in aligning employee interests with organizational goals. The comparative analysis offers valuable insights for banking institutions to design and implement effective compensation strategies tailored to their organizational culture, business objectives, and talent needs. By understanding the unique preferences and motivations of employees in public, private, and foreign banks, organizations can optimize their compensation practices to attract, motivate, and retain top talent in a competitive market environment.

Ultimately, this study contributes to the broader understanding of the role of compensation in talent management and organizational performance in the banking sector. By addressing the complex interplay between compensation, talent attraction, and retention, organizations can enhance their competitiveness and position themselves as employers of choice in the dynamic banking industry landscape