THE INFLUENCE OF TALENT MANAGEMENT FACTORS ON EMPLOYEE SATISFACTION IN THE BANKING SECTOR OF SERBIA

Abstract

The current global, as well as national geopolitical situation, somehow threatens companies‘ business operations, no matter how risk-resistant they are. In the case of Serbian banking industry, this impact is primarly reflected in the increase of the reference interest rate of the National Bank of Serbia, from 1,5% in April,2022 to even 5,25%, which is currently rate. A higher reference interest rate causes growth of interest rates on loans that banks offer to citizens and companies, but also a lower demand for loans. In the banking sector, as well as in other industries, accelerated pace of the globalization process has erased the borders on the labor market, and created a single, international labor market, instead of numerous national ones. As a result of that process, some of the biggest challenge in banks‘ business operations are providing new and retaining existing employees. At the same time, in conditions of a potentially lower volume of provided services, banks are forced to adapt their business strategies to the new circumstances, that is, to find a way to achieve savings in business costs. The largest share in the total operating costs of banks is precisely the costs related to employees. A part of these costs certainly refers to the costs of finding and hiring new employees, i.e. the costs that arise when filling vacant positions, but also the costs of training and improving existing employees and the costs of improving the compensation package offered to employees in order to retain them. One of the basic conditions for retaining employees is ensuring their job satisfaction. Therefore, banks that operate around the world, but above all banks that operate in our market, which is rapidly developing in all its segments, should reconsider their previous approaches to human resource management. One of such innovative approaches to human resources management is precisely talent management. The concept of talent management has intrigued the academic community for more than 3 decades, but its practical application is in its infancy. Therefore, this paper aims to point out the importance of talent management as a concept that brings a turnover in the process of human resources management and bring closer the idea of implementing this practice in the HR strategy of banking organizations in Serbia. The aim of the paper is to familiarize decision makers in the banking sector of Serbia with the concept of talent management, as well as to determine whether or not there is a positive relationship between various factors, i.e. components of talent management and employee satisfaction in the banking sector of Serbia. Research hypotheses are empirically verified through a survey that is currently being conducted on the territory of the Republic of Serbia.