Title of the Project

A Study on Employee
Satisfaction and its Effect
on Retention for
Banking Industry in
Bangalore

Executive Summary
Today, in every organization personnel planning as an activity is necessary. It is an
important part of an organization. Human Resource Planning is a vital ingredient for the
success of the organization in the long run. There are certain ways that are to be followed
by every organization, which ensures that it has right number and kind of people, at the
right place and right time, so that organization can achieve its planned objective.
The objectives of Human Resource Department are Human Resource Planning, Recruitment
and Selection, Training and Development, Career planning, Transfer and Promotion, Risk
Management, Performance Appraisal, Retention, Employee Satisfaction and so on. Each
objective needs special attention and proper planning and implementation. For every
organization it is important to have a right person on a right job.
With reference to this context, this project has been prepared to put a light on Employee
Satisfaction with special reference to retention ratio or intention to stay in the organisation.
Employee satisfaction is the terminology used to describe whether employees are happy
and contented and fulfilling their desires and needs at work. Many measures purport that
employee satisfaction is a factor in employee motivation, employee goal achievement, and
positive employee morale in the workplace.
Cont..

 The first chapter consists of an introduction to the project, meaning,

definition, the objectives, scope of study and the organisational profiles.
The second chapter consists of the literature review giving a brief
about the researches and studies done previously on the same subject.
The third chapter is about the Research Methodology, data collection
approach, sampling method and measurement technique and the
Limitations of the study.
The fourth chapter includes the analysis and the findings revealing
the extent to which employees intention to stay is affected by one of the
four major factors taken into consideration i.e. Work Environment,
Compensation, Training& Development and Opinion about Superiors. It
was found that Compensation is the factor that is most significantly
influencing the employees intention to stay.
The fifth chapter provides with certain suggestions and
recommendations to the current problem in the organisation.
The Sixth chapter concludes the study.

INTRODUCTION
Workforce is a heavyweight component of any organization and
therefore employees are always considered as the greatest asset of
an organization. Without employees, organizations will not be able to
produce business results, achieve organization goals, or meet its
financial objectives. Most organizations recognize the importance of
human resources in realizing the success of their businesses. A profitmaking company may possess the strongest edge, in terms of
technology, depth in funding, market location etc., but without its
strong workforce to execute their respective roles and
responsibilities, the company would not be able to progress to meet
any of its business or organizational goals.
Employee satisfaction is the terminology used to describe whether
employees are happy and contented and fulfilling their desires and
needs at work. Many measures purport that employee satisfaction is
a factor in employee motivation, employee goal achievement, and
positive employee morale in the workplace.
Cont

Employee satisfaction, while

generally a positive in your
organization, can also be a downer if
mediocre employees stay because
they are satisfied with your work
environment.

Scope Of the Study

SCOPE OF THE STUDY

The study was confined to Banking Industry in Bangalore
with special reference to Employee Satisfaction &
Retention (Intention to stay in the organization).
The study is an attempt to determine the Employee
Satisfaction and its effect on retention at different banks
in Bangalore region.
The research was designed to contact the existing
employees including the top management people and
collect data regarding the Level of Job Satisfaction.
The sample size of 60 respondents included both men
and women across age groups.

Findings & Observation

The most significant finding of the study on Employee satisfaction and retention
strategy prevailing in the organization was very effective. The employees were
quite satisfied with the current practices.
Both personal and professional factors affect the Employees intention to stay in
the current organization of work indicating that work-life balance is being focused
upon by the employees.
Out of the four factors (Work Environment, Compensation, Training and
Development and Superior and sub-ordinate relationship) compensation has the
highest mean and thus affects the intention to stay the most.
The policies, rules regarding the company were explained in a well-structured
form.
The study shows that of the employees who have put in long year of service
have recruited via open competition. This shows the transparency of the
recruiting policies of the organization.
68% of the employees have been working in the organization for a long period
which signifies the job security and satisfaction offered by the organization to its
employees. Cont.

 This study shows that 44% of the employees have joined this
organization aiming for career growth, good pay scales, and
more benefits which the company offers. Thus the statistics
shows that the company has a positive outlook towards the
career growth of its employees in addition to the other existing
benefits.
The industry gives utmost importance to its manpower
requirements by identifying it well in advance taking into
consideration the contingencies. The Training & Development
and planning of the manpower requirement is being done in the
light of the business plans or the goals of the industry.
The industry has been trying to infuse new blood in the
organization by appointing fresh graduates and experienced
candidates, to set a competition so as to face the competitive
world.

Recommendations &
Suggestions
The outcome of the study illustrates that BANKING INDUSTRY has an average rating level of
retention where the employees generally retain due to the prevailing environment and supporting
staff. Other important factors includes compensation and benefits given to employess according to
their performance and non- monetary benefits. However the reasons which tends to be the main
factors of employees leaving the organisation are superior- subordinate relations and working
environment. The employees are somewhat satisfied with the culture as for them personal and
professional life affects their intention to stay. It is seen that intention to stay in the organisation is
taken care very seriously by the employers but there is still a scope for improvement. The
following are some of the suggestion and recommendations which enables the company to
enhance its retention ratio.
The organization cannot develop a retention strategy without simultaneously formulating an
employee retention plan. It is one thing to attract workers, but quite another to retain them
H.R Department should be more practical and efficient so that the recruitment and retention
become more effective.
Stress should be given on proper maintenance of database of application for future retention in the
organization.
The company should follow new traits / trends in the retention process.
The stress should be given on employees satisfaction .
More stress should be given to recruit qualification & skills percentage for scrutinizing the
application of prospective candidates so that retention ratio will be minimal.
As compensation comes out to be the most influential factor for the satisfaction of the employees,
so it becomes important for the industry to offer Cont

 compensation at par with the banking industry standards. A fair

and equitable salary structure may be designed for this purpose.
Monetary & Non-Monetary incentives structure can be adopted
by the industries.
The study revealed that the employees were not much satisfied
with the non monetary incentives being offered to them. So non
monetary incentives can be given to increase the satisfaction
and retention level such as:
Opportunity to learn, develop and Advance as an employee.
Flexible hours
Recognition
Timely Redressal of personal problems
Healthy working environment