AN ANALYSIS OF HOW PERFORMANCE MANAGEMENT INFLUENCES EMPLOYEE RETENTION IN BANKS LOCATED IN THIRUVARUR DISTRICT

Performance management plays a pivotal role in driving organizational success, especially in the banking industry, where employee efficiency and retention are crucial to maintaining service standards and customer satisfaction. This research explores the correlation between performance management practices and employee retention in selected public and private banks in Thiruvarur District, Tamil Nadu. The study aims to assess how performance appraisal systems, training initiatives, incentive structures, and organizational culture contribute to employee retention. Adopting a mixed-methods approach, the study utilizes both quantitative surveys and qualitative interviews to collect data from bank staff and managerial representatives. It delves into key aspects of performance management, including goal-setting, feedback systems, rewards, and opportunities for career progression, to understand their impact on employee motivation and job satisfaction. Furthermore, it examines how elements such as work-life balance, job security, and employee recognition influence retention rates within the banking sector. Preliminary results indicate that robust performance management frameworks boost employee engagement, support career advancement, and lower turnover. Public sector banks, known for their structured promotion systems and job stability, show different retention trends compared to private banks, which emphasize performance-linked incentives and growth opportunities. The study also uncovers certain challenges, such as ineffective feedback systems, limited career development options, and dissatisfaction with appraisal methods, which may drive employee attrition. Ultimately, the research offers valuable guidance for banks to enhance their performance management strategies, advocating for a comprehensive approach that blends financial and non-financial rewards, consistent feedback, and clear career development pathways. These insights can aid decision-makers and banking leaders in crafting more effective employee retention strategies, fostering organizational resilience and sustained growth in an increasingly competitive environment.