Please note! This essay has been submitted by a student.
OTP Group, as a dominant banking player in the Hungarian and Central European region, provides high quality financial services for its more than 13 million clients in 12 countries through its extensive branches, ATM and POS network, internet, electronic channels, and extensive partner network. OTP Bank Plc has approximately 400 branches with a network of over 3,500 branch-network employees in Hungary and serves 2 million people – ensuring its market prominence and leadership.
In the past 2 decades, the ATM network, call centres, internet banking phone applications have gained importance as customers have migrated to on-line and electronic service models. Banks continue to maintain an organisation structure where the branch dominates, while continuing to the above-mentioned remote channels as alternative channels. The branch network, while admittedly under pressure from alternative channels serving retail customers, is not expected to become entirely obsolete; instead is expected to continue its dominance for the near future.
Increasing competition means that consumer focus will now settle on the quality function: quality of products, processes and service. Manning the branch network and the human resource element has now, more than ever, become important as it is one of the key metrics underpinning client satisfaction and retention. Nevertheless, maintaining current customer engagement and satisfaction requires continual development and improvement of the branch human resource element. Employee turnover or fluctuation is critical at OTP Group member banks in Russia and Slovakia, however there is a room for improvement of the employee engagement in all countries. Work in a bank branch is less popular among the younger population. Players on financial market has a relatively stable, middle-aged front office employee basis with relative low turnover, while the younger staff changes very quickly, which decreases the efficiency, generates significant cost and has a negative effect on client satisfaction. OTP Bank Plc. and the all group member banks are facing towards new challenges in the upcoming years: manage the digital transformation in parallel with developing the physical branch network focusing advisory related, high value added service with excellent staff.
The aim of the planned consulting project is to cover relevant factors of the employee turnover, analyse the data, the connection points and give human resource management proposals finally, focusing on young generation. In parallel, Second goal cost of replacing one employee is to be quantified estimation is required for the cost need of developing different factors of retention toolkit. Main questions: What are the financial effects of developing employee retention tools? What are the relation between employee retention activities and the fluctuation? What is the expected overall cost-saving impact of developing employee retention tools?