Human Resources Management Practices of Conventional Private Commercial Banks in Bangladesh: Challenges and Opportunities

This study explores the practices of human resource management (HRM) of conventional private commercial banks (PCBs) in Bangladesh, which holds a dominant position with a 68.54% share of total banking assets and a 68.25% share of deposits as of 2024. This research aims to examine current HRM activities, identify associated challenges and propose actionable recommendations. Employing an exploratory research approach, the study surveyed 231 bankers from 23 conventional PCBs, supplemented by key informant interviews in 2024. The findings reveal that while most banks utilize HR software for workforce management (89.3%), only 28.6% apply such tools for forecasting HR needs. Talent acquisition practices show a preference for fresh graduates and emphasize ethical background checks, yet there are inconsistencies in recruitment policies. In terms of motivation, 58% of banks offer varied salaries for the same positions, and only 16% conduct employee motivation surveys, highlighting dissatisfaction in compensation and retention strategies. Training and development practices, though prevalent, underutilize budgets, with only 46.57% of training funds spent. Performance management heavily relies on traditional methods like Annual Confidential Reports (44%), with limited focus on modern performance metrics and succession planning. Grievance management policies are in place in most banks, though gaps exist in dedicated grievance handling mechanisms. Key challenges identified include skill shortages, limited career growth opportunities, uncompetitive compensation, and insufficient leadership development. The study recommends enhanced training programs, datadriven performance management, modern HR technologies, diversity and inclusion initiatives, and robust leadership succession frameworks to overcome these challenges.