Tsion Soressa (2024)

21/07/2023

EEBBIFAMTOONNI BARA KANAA HUNDUU BAGA GAMMADDANI

19/07/2023

"Breaking the Cycle of Employee Poaching in
Ethiopian Commercial Banks" Ethiopian commercial banks face a persistent cycle of employee poaching, where banks hire each other's employees by offering better salary and benefits. This creates a retaliatory cycle that hampers stability and growth. To address this, strategic measures must be implemented. In this article, we will conduct a SWOT analysis to identify solutions for minimizing employee poaching in Ethiopian commercial banks. Strengths:

Competitive Advantage: Banks can build a strong organizational culture and attractive employee value proposition. Offering benefits beyond financial incentives, like flexible work arrangements and career development opportunities, reduces the appeal of monetary rewards alone.

Talent Retention Strategies: Implementing talent retention strategies, such as regular evaluations and transparent career progression plans, enhances job satisfaction and loyalty. This makes it harder for employees to be lured away by external offers. Weaknesses:

Limited Financial Resources: Some banks struggle to match competitors' salary scales and benefits due to financial constraints. Non-monetary incentives like equity ownership or profit-sharing can be considered to offset this disadvantage.

Reactive Approach: Banks often respond to poaching incidents by increasing salaries and benefits, perpetuating the cycle. A proactive approach is necessary to address the root causes of turnover and minimize the need for counteroffers.

Opportunities:

Collaboration and Standards: Banks can collaborate to establish industry-wide regulations discouraging aggressive employee poaching. Non-compete clauses or longer notice periods for switching banks can enhance stability. Emphasizing Employee Development: Banks can minimize the need for counteroffers.

Opportunities: Collaboration and Standards: Banks can collaborate to establish industry-wide regulations discouraging aggressive employee poaching.