Introduction
Employee turnover rates in the banking sector in the United Arab Emirates have been referred to as alarming. Branham (2012) explains that currently, competition and globalization have made it easier for employees to seek better opportunities all over the world. Several things make employee turnover rates in the banking sector in the UAE high. One major factor is the culture of the people. It is crucial to note that many cities within the UAE do not allow women to work. All over the world, as bias, as it may appear, women are the most hired gender in the banking sector. The premise is especially true about the teller services offered by the banks. UAE also, unfortunately, has a very high turnover of male employees in the banking sector. The essay will present findings realized after a scientific study done to determine first, if there is high employee turnover in the banking sector in UAE, and secondly, some of the reasons for such high turnover.
The target sample
The study involved both men and women. Because many women are not permitted to work in UAE, it was challenging to identify females in the sector who could participate in the survey. After the selection, some females refused to participate in the survey, and since it was a voluntary exercise, such participants were ruled out. In the end, the survey had 33% female and 67% male participants. Also important to note, participants were aged 18 through to 60.
The target population was categorized into four age brackets. The first age bracket, 18-25, made up 385 of the target population while the second bracket 26-34, made 40% of the population, making it the largest age bracket to participate in the survey. The third bracket, age 35-45, made up 20% of the target population, and the last bracket, 46-60 made up only 2% of the population.
The target population was also grouped by nationality. 28%, which was the highest percentage in the said category, were Europeans working in the UAE. 22% were American while 26% were of Asian descent and nationality. Ironically, only 16% of the target population was from the Middle East, where the UAE is, and 8% had African descent. In the same breath, the majority of the target sample were single, 54%, with 46% being married.
50% of the target sample had a Bachelor’s degree and 8% had a Master’s degree. 6% had a PhD while 36% had a high school certificate only. On the same breath, 54% were hired on a part-time basis while only 40% were full time. Additionally, 65 described their work contract as flexible. Also important to mention, 32% of the target population was working at the time of the survey, in the HR department. 24% of the target population worked in the finance department while 14% worked in the accounting department. 16% were in the marketing department and 14% were in the credit and loan department. Income was also considered in the survey. 40% of the participants earned 3,000-5999AED, while 44% earned 6,000-10,999AED. 6% earned 11,000-19,999AED while only 4% earned 20,000-30,000AED. The last 6% earned more than 30,000AED.
Findings
Several things came up during the analysis of the findings of the said research study. Important to note, a structured questionnaire was used to collect the information that will be discussed in the paper. This section will present the different findings in the order of the questions that were presented in the questionnaire.
The first question revolved around expectations. The participants were asked whether the expectations they had while joining the company were met. 34% of the participants ‘strongly agreed’ with the fact that their expectations had been met while 30% just ‘agreed’. 28% were ‘neutral’ while 8% ‘disagreed’. No one ‘strongly disagreed’ with the premise. 34% of the participants ‘strongly agreed’ with the remuneration package they received while 30% ‘agreed’. 28% were ‘neutral’ and 8% ‘disagreed’. No one ‘strongly disagreed’ to the premise.
When asked whether they were satisfied with the position they held in the bank, 28% ‘strongly agreed’, 26% ‘agreed’, 24% were ‘neutral’, and 22% ‘disagreed’. In regards to the work environment, 44% ‘strongly agreed’ that they were satisfied while 22% ‘agreed’. 34% were ‘neutral’ in regards to the same. On the same breath, 48% of the participants ‘strongly agreed’ that the working hours were satisfactory. 22% ‘agreed’ to the same, 26% were ‘neutral’ and the last 4% ‘disagreed’.
44% of the target sample ‘strongly agreed’ that they received family benefits while 22% ‘agreed’. 22% were ‘neutral’ to the question while 4% ‘disagreed’. The same statistics were recorded when the participants were asked whether, in their opinion, their performance was better than the performance of their colleagues. Interestingly, 44% of the sample ‘strongly agreed’ that they were stressed while 22% ‘agreed’ to the statement. 34% of the target was ‘neutral’ and no one ‘disagreed’ or ‘strongly disagreed’ to the premise. On the same note, 34% ‘strongly agreed’ that their job was insecure while 30% ‘agreed’ to the same premise. 28% of the sample were ‘neutral’ and 8% ‘disagreed’ to the premise.
When asked whether they plan to leave the organization in the next 6 months, 54% of the participants said ‘yes’, while 46% said ‘no’. Out of the 54% who said they will leave the organization in the next 6 months, 14% attributed their decision to insufficient payment. 18% said they lacked career advancement opportunities and 6% would leave the company due to the workload. 22% said they were shifting, 18% said the working conditions were not favorable, 14% blamed the location and 8% blamed discrimination. Out of the 46% who had said ‘no’ to quit the organization in the next six months, 30% said they would stay in the company due to medical insurance. 36% said they would stay due to the incentive bonuses they received while 20% said the family benefits they received motivated them to stay in the bank. 14% stated that they were motivated to stay in the company due to the housing allowance they received.
Discussion of Findings
The findings that have been presented reveal several things about employee turnover in the UAE. First, the turnover is high as evidenced by the 54% of participants who would leave the company in the next 6 months. There are several reasons why employees want to leave the company. One such reason is job security (Barnett, Malcolm & Toledo, 2015). From the research study done, 34% of the participants were insecure about their jobs. The premise suggests that they were not sure whether they will still be doing the same job in the next couple of years.
The issue of insecurity is not the only identified concern when it comes to employee turnover. The study also reveals that a lack of career advancement demotivates the employees. Heimler, Rosenberg, and Morote (2012), like many other scholars, argue that the lack of career advancement is felt more by women than it is by men, albeit both genders going through the stated at one point in their careers or another. Women, generally, have a harder time attaining career advancement due to the cultural aspect that had been mentioned. As many of the companies in UAE have to adhere to the cultural obligations set, women find themselves at a crossroads regarding working for the bank, albeit getting good pay, and leaving for better opportunities elsewhere. Shifting is also another top issue that encourages employee turnover. Those people who work in the UAE do not perceive it as their home, thus, they always go back to their countries.
Conclusion
In conclusion, there is indeed high employee turnover in the UAE. The researcher was able to use a structured questionnaire to find out some of the reasons why employees in the banking sector in the UAE leave their jobs. One of the important factors to consider is that many of the employees in the said sector are foreigners. Therefore, after a certain period, they move back to their countries, while at the same time, contribute to the high employee turnover. Other factors that were highlighted by the study include a lack of career advancement and poor working conditions. Arguably, the challenges faced by employees in the banking sector in UAE are also enhanced by the different cultures that the people in that region subscribe to.
References
Barnett, A. H., Malcolm, M., & Toledo, H. (2015). Shooting the goose that lays the golden egg: The case of UAE employment policy. Journal of Economic Studies, 42(2), 285-302.
Branham, L. (2012). The 7 hidden reasons employees leave: How to recognize the subtle signs and act before it’s too late. Washington, DC: American Management Association.
Heimler, R., Rosenberg, S., & Morote, E. (2012). Predicting career advancement with structural equation modelling. Education + Training, 54(2/3), 85-94.