Successful employee retention practices: characteristics found in Danish and Icelandic banks

Based on the elements of social exchange theory this study sought to investigate the characteristics uncovered in large commercial banks that have successfully retained talented employees. The qualitative data was collected via 32 interviews and the participants comprised of four stakeholder groups: 1) external recruitment specialists; 2) HR managers in banks; 3) mid-level bank managers; 4) bank specialists. The results reveal that a structured and systematic investment in talent management and strategic human capital has an impact on the retention of specialist. In addition, organisational connections with employees, employee education, inclusive communication, recognition, and management recruitment practices all impact the employees satisfaction with their employer, thereby improve the retention rate. This research contributes to the literature as it validates the importance of investment in talent - supported by corporate strategies - as a way to understand trends and to plan and define retention strategies that back companies' successful retention of specialists.