Human Resource issues

The banking industry is the most stable and glamorous industry of Nepal. Most of the graduates tend to pursue their career in Banking industry. This may be due to the stability, compensation and facilities and the respect that those working in banking industry get in Nepalese Society. In one hand banking industry pose numerous career opportunities and in the other the banks are complaining about the human resources produced by the colleges. They claim that the graduate lack the skills and appropriate knowledge to work as a banker. The human resource issues that are related with the banking industries can be discussed as:

1. Turnover
2. Nepotism and Favoritism
3. Skilled Manpower
4. Performance Management System
5. Workplace Safety and Health
6. Professionalism
7. Others

1. Turnover

Turnover means employee leaving the organization. The action may be conducted due to better job offers elsewhere or due to frustration in the current job. There is also an increasing trend of new generation not sticking to the job they are offered. After a person joins a bank, he/she receives better job offer from other banks and tend to hop the job. Also there is increasing problem of people moving out of banking industry.

2. Nepotism and Favoritism

Though banking industries are most regulated and transparent among the industries, it has not been free from nepotism and favoritism. Most of the time internal hiring is done on the basis of nepotism. Favoritism plays major role in promotional opportunities.

3. Skilled Manpower

The supply of manpower in the lower level of banking industry is high, however the number is low in top and middle level of management. The level of job vacancies in the entry level also shows that people are keenly interested to join the industry.

4. Performance Management System

There is a huge gap in the compensation level between the higher level (management) and lower level employees. Research shows that the difference between the CEO’s salary and the salary of lower level employee is more than 25 times in Kumari Bank Ltd. (Shrestha et.al. 2011).

5. Workplace Safety and Health

Healthy employees can have great contribution for the profitability of any organization. However, the banking industry seems indifferent about the workplace safety and health of the employees.

6. Professionalism
Leaking information to other organization, negative communication about organization violating rules and regulations are taken as unprofessional behavior. It is very difficult to ensure that employees are adhering to the code of conduct and maintaining high degree of professionalism.

7. Others
There are various other issues relating to human resources in banking industry. They are

• Lack of organizational citizenship behavior.
• Managing work-life balance.
• Succession Planning.
• Employee Diversity Management.
• Unionism.