The respondent has worked within the financial sector for at least five years
The respondent has occupied important positions in the firm (e.g. they are not cleaning staffs)
The respondent has been employed with the current firm for at least twelve months.
5. Analysis of data
The questionnaire revealed throughout the previous section was issued on 50 respondents, from ten different employers in the local financial sector. The responses are revealed in the table below:
a b a b c a b c d e f
When asked about the first reason which stimulated them to remain employed within a position, most of the respondents indicated that the financial packages were the number one cause. This factor weights as such the most in the decision of an individual to get a certain job and it is pegged to the physiological needs of the individual, those of having a shelter and providing for themselves and their families.
Nonetheless, when the non-financial incentives are weak, when the working environment is poor or when they feel too much stress, the employees tend to seek new employment opportunities. This finding is supported by the answers to the second and third questions in which:
60 per cent of the respondents stated that they were satisfied with their salaries, but would seek new jobs if the working conditions were better than the current ones
50 per cent of the respondents stated they would seek better employment opportunities when the working environment is negative.
In other words, the financial factor of the job is a crucial force in attracting the employees and hiring new members. But in order to retain them, the non-financial factors also play a crucial role. As it was revealed in the fourth question, most of the respondents (80 per cent) would remain in a well paid position only until they would be able to find a similar one within a more positive working environment.
In other words, the financial incentives are necessary in hiring an employee, but are insufficient in retaining them. At the level of the non-financial incentives most important to them, the respondents indicated the following (in order of importance):
Opportunities for career development and promotions
Training and development and support for professional advancement
The working environment, including the relationship with the colleagues
Flexible working schedules
Assisted education and support in educational attainment
The relationship with the employer.
The chart below reveals the structure of these non-financial incentives by the importance assigned by the respondents:
One particular interest is raised by the fact that the employees in the financial sector have argued that job stability is one major retention factor. At the final question in the questionnaire, most answers indicated that aside from the incentives included in the previous questions, the element which prompted them to keep a job was the stability of the position. Other factors indicated by the respondents included the nature of the tasks performed or the proximity to the home. The responses are revealed below:
Job stability, 60 per cent
Nature of tasks completed, 30 per cent
Proximity to the house, 10 per cent.
In other words, the employees will remain employed within a firm as long as the firm can guarantee that they would not be let go. This particular factor was not revealed throughout the review of the available literature and it can be as such linked to the recent events in the global economy. The debt crisis and the internationalized economic crisis have reduced the trust of employees in their employers and job stability has become a great incentive. The subsequent conclusion is that the retention factors in the financial sector -- however recurrent in the literature -- are also evolving and changing based on the features in the micro and the macroenvironment.
6. Summary and conclusions
a. Major findings
The employees in the financial sector are not tremendously different compared to other individuals working in other fields. They are motivated by both financial incentives as well as non-financial factors. The financial factors appear to play a more important role in the hiring of employees, whereas the actual retention is more so pegged to non-financial factors.
The current study has commenced at the premises that the employees in the financial sector are motivated by the financial factors, as well as the non-financial incentives and the research conducted proves this initial theory.
The employees in the financial institutions are similar to the employees in other fields and the managerial teams use similar incentives to motivate their performances and retentions. It is concluded that the employees in the financial institutions are driven by basic needs and that the financial factor plays a crucial role in the acceptance of a position. Long-term activation within the respective position is however also conditioned by non-financial factors.
In light of the economic crisis facing the modern day society, an important factor in job retention is the perceived stability of the position. This factor is less commonly addressed within the specialized literature, indicating as such the changing feature of the retention issues and factors.
The limitation of the study is that it relies on the input provided by 50 individuals alone, all of them being employed in firms within the local community. This means that the findings are characteristics of this specific sample and might not apply to the entire community of individuals employed in the financial sector.
d. Recommendations for further investigation
Based on the study findings and its limitations, the recommendation is that of applying the research questions to a wider community. Also, it is recommended that the retention factors be assessed in five years again so that eventual changes are identified and studied.
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