Talent Acquisition and Retention in the Banking Industry

 2 . Talent Acquisition in the Banking Sector Talent acquisition is not just the conventional method of recruitment but a tactical mechanism of recognizing, engaging, and employing motivated people with the ability to foster organizational success in the long-term (Vikas, et al., 2024) . This process in banking industry entails developing employer brand that will attract professionals who desire career stability, growth, and innovation. Multi-channel methods of recruitment are employed by most of the major banks including Commercial Bank of Ceylon, Hatton National Bank (HNB) and Sampath Bank. They are digital job portals, LinkedIn hiring, university career fairs and internal referral programs. The Resource-Based View (RBV) theory is in support of such a practice as it acknowledges that human talent is a special resource that produces sustainable competitive advantage (Mailani, et al., 2024) . The knowledge of customer service, financial risk, and compliance cannot be readily dupl...

  3 . Retention Challenges and Employee Turnover in Banking .   Although it is not easy to recruit talent, in the volatile financial industry, it is even harder to retain talent. The result of high employee turnover can be the disruption of service, high costs of training, and loss of institutional knowledge (Mazlan & Jambulingam, 2023) . A 2022 report further showed that staff turnover in Sri Lankan banks increased drastically in the wake of post-pandemic resignations, migration, and cost-of-living pressures (Gunawardhana & Damayanthi, 2019) . According to the Labor Force Survey 2024, unemployment has also decreased marginally to 4.4% and many highly skilled professionals are being underutilized or relocated to better remunerated positions abroad (Census and Statistics, 2024) . Key retention challenges in the banking industry include: ·          Limited career progression for mid-level staff. ·     ...

 4 .Strategies for Employee Retention and engagement  . To retain employees, banks should emphasize on both financial and non-financial incentives. Competitive pay is not a guarantee of loyalty and employees need to have meaningful work, recognition, and development (Sorn, et al., 2023) . Effective retention models have the ability to integrate motivational theories and effective HRM practices. 1. Career Development and Training Banks are putting into incessant professional growth. Promotion opportunities, job rotations, and professional qualifications (such as CFA, ACCA, or MBA sponsorships) are offered clearly to the employees to boost their commitment to the organization. The Human Capital Theory states that this type of investment promotes the productivity of individuals and organizations (Bai, 2024) . 2. Work-Life Balance and Well-Being The pandemic made people change their expectations towards the flexible work model. The new banks offer hybrid working provisions...

 5. Diversity and Inclusion Banks that have diversified cultures are likely to keep a talented workforce. The issue of gender diversity is still present with the female labor participation in Sri Lanka reducing to 29.8 in 2024 (Census and Statistics, 2024) . Both retention and reputation may be enhanced by promoting female leadership, flexible maternity policies and paying equal wages. The Ulrich HR Model helps in aligning HR practices and business strategy as seen internationally. By measuring engagement, turnover rates and productivity with HR analytics, banks can develop more successful retention programs (Somu & Jayavel, 2024) . As an example, HSBC implements predictive analytics to notify about employees who are likely to leave their jobs and intervene before it happens. Commercial Bank and Nations Trust Bank, which are progressive institutions in Sri Lanka, have begun to use similar analytics using HR Information Systems (HRIS). The data they utilize is to comprehend...

6 .Conclusion: Building a Sustainable Talent Culture in Banking .                                                       Talent acquisition and retention is no longer an administrative obligation, but it is a strategic issue in the banking industry. Banks who fail to attract and retain the right individuals experience operational inefficiency, diminished customer satisfaction, and diminished profitability. The issue is especially acute in Sri Lanka where the labor force participation rate is declining, and the skilled migration is high. To be competitive, banks need to shift away to long-term talent management approaches as opposed to short-term recruitment vehicles. This is through incorporation of succession planning, ongoing reskilling, and development of leaders into the HR policy. With the aid of a powerful brand as an employer, which fosters ...