1 IMPACTS OF EMPLOYEE BENEFITS ON RETENTION IN THE BANKING SECTOR: CASE OF STANDARD CHARTERED BANK IN THE UK by (Name) The Name of the Class (Course) Professor (Tutor) The Name of the School (University) The City and State Where it is Located The Date

2 Acknowledgement I would want to express my gratitude to each and every individual who has contributed, whether directly or indirectly, to the accomplishment of this project. My first thanks go out to my supervisor, who provided both direction and support all the way through the course. In addition, I would like to express my gratitude to the whole Standard Chartered Bank bank for the fact that despite their packed schedules, they made themselves available and were eager to answer any queries that were asked of them.

4 Executive Summary The primary purpose of this research was to analyze how employees at Standard Chartered in the United Kingdom felt their perks affected their likelihood to stay with the company. Through it’s the UK locations, the bank offers a full range of banking and financial products and services to locals and customers from across the world. Fifty people filled out surveys, with women making up men 52% of the sample. Respondents' ages mostly clustered between 36 and 45. They were responsible for 52% of the respondents who had completed some college. Employee perks were shown to have an impact on retention rates at the financial institution studied. Pension plans, vacation time, flextime, health insurance, and tuition reimbursement are just some of the perks that employees may look forward to. Based on the findings, it is clear that offering better perks to workers may help increase their likelihood of staying with one company. Because of how happy they are working there, this happens. Workers also suggested that benefits be expanded to include transportation and commuting allowances to make it easier to go to work. It is suggested that the government play a more active role in helping to ensure that workers have access to paid time off, that their salaries are increased to improve their pension package, that they have access to health insurance, and that there are opportunities for them to receive training and development.

5 Table of Contents Acknowledgement ........................................................................................................................... 2 Dedication ........................................................................................................................................ 3 Executive Summary ......................................................................................................................... 4 CHAPTER ONE: INTRODUCTION .............................................................................................. 6 Description of the Problem .......................................................................................................... 6 Research Objectives ..................................................................................................................... 6 Research Questions ...................................................................................................................... 7 Relevance of the Research ........................................................................................................... 7 Limitations of the Study ............................................................................................................... 7 CHAPTER TWO: LITERATURE REVIEW .................................................................................. 8 Employee Benefits ....................................................................................................................... 8 Expectation Theory ...................................................................................................................... 8 Various Employee Benefits .......................................................................................................... 9 The Basics of What Medical Insurance Pays ............................................................................... 9 Gains Upon Retiring .................................................................................................................... 9 Took Time Off Work .................................................................................................................. 10 Employee Retention ................................................................................................................... 10 CHAPTER THREE: METHODOLOGY AND RESEARCH DESIGN ....................................... 11 Research Design ......................................................................................................................... 11 CHAPTER FOUR: FINDINGS AND DISCUSIONS ................................................................... 11 Discussion and Analysis of the Results ...................................................................................... 11 A Critical Evaluation of the Impact of Employee Benefits on Recruiting and Retention ......... 12 The Impact of Employee Benefits on the Decision to Keep Employees ................................... 13 Additional Employee Benefits That Contribute to Employee Retention ................................... 15 CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS ............................................. 15 Conclusion ................................................................................................................................. 15 Recommendations ...................................................................................................................... 16 References ...................................................................................................................................... 17

7 iv. To learn how offering training helps keep employees around. Research Questions Is there a correlation between pension benefits and employee loyalty? ii.How do vacation days influence staff turnover? How much do the insurance benefits play a role in keeping employees on board? What effect does the institution's training program have on its ability to retain employees? iv. Relevance of the Research This research will be carried out in the UK at the Standard Chartered Bank. The financial institution will benefit from the findings by better understanding the impact of employee perks on turnover and creating strategies to reduce staff turnover. As a result of this research, human resources divisions in other countries will be better equipped to create public-sector retention strategies. Limitations of the Study Cooperation: It is possible that some workers may not fill out the surveys. Confidentiality: Some people, particularly managers and directors, may feel that their privacy is being invaded. Difficulty Reaching Participants Due to Time Constraints, it may be difficult to get responses from key personnel, such as directors and managers, who would otherwise be willing to fill out the surveys.

8 CHAPTER TWO: LITERATURE REVIEW Employee Benefits The banking sector has been in a state of flux since the 2008 financial crisis. The industry has struggled to recover from the impact of the crisis and its subsequent regulations, which have led to a decline in profitability and increased competition for customers ( Al-dalahmeh, Khalaf, and Obeidat, 2018). The recession has left many banks with depleted resources that are unable to meet rising employee expectations. However, it is important for employers to maintain a high level of employee satisfaction and loyalty if they want to retain skilled workers during periods of economic uncertainty (Chiguvi and Guruwo, 2017). Employee benefits can play an important role in retaining staff. Some studies have found that providing employees with additional benefits can increase their job satisfaction and reduce turnover rates ( Costello and Willcocks, 2018). Benefits for employees are forms of monetary compensation received by workers outside of their base income. Benefits are a kind of compensation provided by an employer to an employee in recognition of that person's performance or the value of the services provided. This is according to research ( Ajmal, Khan, and Fatima, 2018). It is not only the top dogs that get the best perks and bonuses, however; employees at all levels of a business have access to non- performance-based incentive programs and perks. In addition to a regular wage, employees may be eligible for other forms of compensation, such as paid vacation time or sick days. As documented by Kilonzo (2018), it is the goal of all HR procedures and regulations related to employee benefits to create a compensation structure that will both entice qualified applicants and keep talented, long-term workers from looking elsewhere. Employees' commitment to and output for the company may be boosted if the benefits package meets their basic demands for happiness and fulfillment, as stipulated by the rules and procedures in place. Employees should be compensated by their employers for the sake of their welfare, which requires them to get compensations for the purpose of betterment and comfort. Commute plans (particularly for those who live too far away), recreational facilities, and medical facilities are all examples of services that might be of use to workers. Benefits packages for workers may or may not be made available, depending on the state of the job market at various occupational levels. Employee perks play a crucial part in the growth of company-industry ties. According to the two-factor approach, which stresses the importance of cleanliness and inspiration in the workplace, it is crucial to provide enough facilities for workers ( Kumar, Sıshumba, and Kapole, n.d). According to this hypothesis, the cleanliness of the workplace has a direct impact on workers' morale and output. Employee motivation may be measured in a number of ways using the stimulus-response factor, including absenteeism, turnover, and tardiness to work ( Muchada, 2018). The rate of operational errors and the length of time needed to accomplish a job may be used to generate an evaluation of productivity and performance. Management should pay close attention to the stimuli that might impact the motivation and performance of workers, such as cleanliness, even if these aspects rely on the unique characteristics of each worker. Expectation Theory Expectation theory by Vroom is another relevant theory here. Workers have a natural need for tangible and esoteric compensation for their efforts, as stated in this passage. Employee output in terms of both quantity and quality is strongly influenced by the benefits they get from

10 Gains Upon Retiring Pension is another term for retirement income. It is the total amount of money a company pays out to a retiree over a certain time period in installments. To prevent the misuse of pension funds, pensions are often administered by trustees operating under a set of regulations established by law. Taxes that would normally be paid on pension money are postponed to encourage workers to participate in pension plans ( Chishimba, 2017). 401(k) plans and pension funds are only two of the retirement options available at various companies. A 401(k) plan is a kind of retirement savings program in which an employer either significantly contributes to an employee's account or provides a matching contribution up to a certain limit ( Chishimba, 2017). Employers are able to provide for their workers in the event that they are no longer able to work or have reached a certain retirement age thanks to pensions. Retirement savings plans are often implemented via payroll deductions. The evidence suggests that this is the case. The company uses the employee's contributions to fund retirement benefits. Took Time Off Work Vacation Days Annual leave is a perk that all employers must give to their employees. Employees are entitled to be paid for the time they are not working, regardless of how long their yearly leave is. Employees are also entitled to paid time off on officially recognized holidays, in addition to their standard yearly leave ( Muriithi, 2020). While the length of time off may vary, having them around is always a boon to business and the employee's own well-being. It is possible that some workers will cover the cost of their own vacation time, while others won't, prompting legal action in the former case. The parental leaves, both paternal and maternal, are significant as well. The leave, which may be paid or unpaid, acts as an incentive to workers by addressing societal needs ( Agolla, Makara, and Monametsi, 2018). People who have worked for a company for more than a year are usually entitled to paid time off each year. The time off gives workers a chance to investigate and publish findings from their own efforts that may have some bearing on the company's operations. The monotony and tension of working in different environments are also mitigated. Holidays and sick days are examples of vacations, which are distinct from leaves. With few exceptions, employers do not cover the cost of their employees' vacations. Human resources managers or department heads must provide the go-ahead for any employee to take time off. Employee Retention Employee retention is crucial to a company's long-term success. Consequently, it is crucial to create a preventative strategy for dealing with staff retention. It requires time, money, and guts to reduce employee turnover. Research shows that retention rates drop when incentives are offered. This is because perks improve morale in the office and make workers happier in their positions. The most noticeable effect of retention is a decrease in the sum of money spent on staff recruitment and training (Badenhorst, 2018). Unhappy employees are less likely to leave their jobs, thus companies that address workplace issues like salary disparity, lack of advancement opportunities, and sloppy sanitation have a higher retention rate. The human resources division is in charge of keeping employees around. It has to implement measures to recruit top talent, retain it, inspire its workers, and help them grow professionally via education and experience. A company's success depends on its ability to both recruit and retain talented workers. Talent management is the process of identifying and

11 developing outstanding people who have the potential to make a meaningful contribution to an organisation.

13 CHAPTER FOUR: FINDINGS AND DISCUSIONS Discussion and Analysis of the Results The study questionnaire was used to evaluate the respondents' bio-data as well as general information, such as their ages, genders, levels of education, and managerial positions. Age According to the table that follows, the age group about 36 years old had the greatest response rate, while those under the age of 25 had the lowest. Years Percentage Frequencies Below 25 6 5 26-35 21 10 36-45 53 20 Above 45 20 15 Total 100 50 Gender The number of male respondents made up 52%, while the number of female respondents made up 48%. This suggests that the gap between the sexes at the institution is not very severe. Educational Standing (Level) The responder had achieved varying degrees of education, including basic, secondary, and university levels of education. Respondent who had attended an education level up to and including university education made up the biggest number in the institutions and formed 72%, with the primary level making up the least with 10%. Level Frequency Percentage Primary 10 20 Secondary 5 10 Tertiary 35 70 Total 50 100 Management Level According to the data, it is abundantly obvious that a significant proportion of the workers are at the intermediate level, which accounts for 56% of the employees included in the sample. There were more technical officers than there were senior managers, who made up just 16% of the workforce. Work Status Percentage Frequency Senior Managers 16 8 Middle Managers 56 28 Lower Subordinates 28 14 Total 50 100 A Critical Evaluation of the Impact of Employee Benefits on Recruiting and Retention A General Understanding of the Benefits Policy After asking the respondents about their awareness of the availability of employee benefits at the institution, the following conclusions were determined:

14 Percentage Frequency Yes 48 24 No 52 26 Total 100 50 According to the findings, there is just a little difference between knowledge and a lack of information about the employee regulations. More than half of the staff members, or 52% of the staff members, were unaware of the advantages. The presence and existence of the policy has to be communicated to the workers so that they may experience the highest possible level of job satisfaction and experience a reduction in turnover. Benefits and the Retirement Process for Employees The following replies were revealed when asked if the employee benefits discontent would lead to the person abandoning their job: The findings make it abundantly evident that the employees at the financial institution place such a high value on perks that the loss of such benefits would prompt the resignation of eighty percent of the workforce. Only 20% of employees said that they were unable to resign because they were unhappy with the perks, citing the fact that the pay was sufficient remuneration for their position.

16 The statistics make it abundantly clear that the rate of employee retention is directly proportional to the education level of the workforce. Building up the workers' self-esteem and providing them with the necessary skills and experience to run the company successfully requires additional knowledge and talents. The opinion that increasing productivity would be beneficial was held by 90.00% of respondents, whereas the opinion that keeping people with specialist knowledge was held by 86.40% of respondents. The view that education has an effect on the rate at which workers are retained was 79.73% on average. Additional Employee Benefits That Contribute to Employee Retention When asked to supply additional perks that may assist improve employee retention, the advantages that were identified included providing subsidized housing and transportation allowances to make it easier for employees to go to work.

17 CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS Conclusion According to the findings of a research that was carried out at the Standard Chartered Bank in UK, the perks and incentives offered to workers have a significant impact on how long they remain with a business. If employees are unhappy with the perks, this might lead to a greater turnover rate. Pension programs have resulted in a significant drop in employee longevity inside the organisation. Due to the increased sense of safety that a pension offers, workers are more likely to remain loyal to their employers. Taking time off over the year might help alleviate stress and break up the routine of a work. When workers are provided with leave time, they return to their employment feeling inspired, which results in an increase in overall production. Because they have a greater sense of security and are better equipped to cope with unpredictability in their health situations, employees who have health insurance coverage are also more likely to remain with the company. Employees' self-esteem may be boosted via experience and mastery of their responsibilities as a direct result of participation in educational opportunities. The perks include not just paid time off, health insurance, a pension, and educational opportunities, but also housing and transportation allowances that are within the employee's price range. Recommendations For the areas that have been described, the following suggestions for additional action may be put into effect. For the purpose of the pension plan, the financial institution may choose to raise employee pay in order to put them in a situation where they will be able to have a sizable package for their retirement. It is important to have policies in place to guarantee that employees take time off to both recharge their batteries and break up the monotony of their work. As a consequence of this, the workforce returns from the break feeling refreshed and ready to perform. It is also the responsibility of the government to assist in eliminating disparities in the provision of medical coverage for workers at different levels. Employees should be provided training programs and perks in order to ensure that they are able to successfully do the tasks that have been allocated to them. High productivity is directly correlated to a trained workforce and having workers that have higher self-esteem makes it easier to keep them.