COMPANY INTRODUCTION
General Information about Retail Banking
Retail banking refers to banks that serve individual customers by offering a wide range of services, including savings accounts, loans, and credit cards These banks function as comprehensive financial service providers, enabling clients to access various financial products conveniently in one location.
According to Mr Rahn Wood, Head of Retail Banking at VIB Bank, the evolution of retail banking in Vietnam, which began in 2014, reflects a natural trend driven by the country's economic growth With a developing economy marked by low average incomes and a primitive banking system, the demand for financial and payment services is rapidly increasing Consequently, the retail banking market in Vietnam is poised for significant growth over the next decade.
In recent years, Vietnamese banks have increasingly prioritized retail banking, recognizing a significant opportunity for growth in this sector The 2015 Vietnam Banking Industry report highlights that corporate lending dominates the market, comprising nearly 50% of total loans, while individual loans account for just 28% Furthermore, the State Bank of Vietnam indicates that only 20% of the population holds a bank account, underscoring the vast potential for banks to expand their retail banking services and reach a larger customer base.
Local banks in Vietnam are aggressively competing to enhance their market share through various strategies, including expanding their branch networks, improving online banking and telephone services, and prioritizing financial services for VIP customers However, a significant challenge they face in the retail market is the lack of professional and synchronized human resources To overcome this, Vietnamese banks must focus on recruiting and training staff to build a team of professionals equipped with the necessary qualifications, retail banking knowledge, and effective communication skills.
Vice president of Retail division
Vice president of other divisions
Personnel administration Synthetic department customers They also create a good working environment for employees to promote the capacity and enhance the cohesion of employees with the bank (5).
Company background
VietinBank - X Branch in Ho Chi Minh city was established in April 30, 1985 It has a wide network with the headquarters in X District and eight transaction offices in 8, 10 and 11 District
VietinBank - X Branch offers a wide range of banking products and services, including savings accounts, loans, and banking guarantees With over 30 years of experience, the branch has achieved a total outstanding loan amount of 1.110 billion VND for retail customers, representing 12.98% of the area's total loans Additionally, it has mobilized capital of 3.855 billion VND, accounting for 18.61% of total deposits in the region As a result, VietinBank ranks third in market share for credit and holds the largest market share for deposits in the area.
VietinBank enhances customer management by categorizing its clientele into two distinct segments: Retail and Wholesale The Retail division focuses on delivering banking products to individuals and micro enterprises with revenues below 20 billion Dong In contrast, the Wholesale division caters to organizations and enterprises that generate over 20 billion Dong in turnover, ensuring tailored services for each customer segment.
The organizational model of VietinBank – X Branch is described as follows:
Figure 1: Organizational model of VietinBank - X Branch
The X Branch is overseen by the Directors of Branch and three Deputy Directors, and it comprises six distinct departments, each with specific functions As of June 30, 2018, the branch employed a total of 78 staff members, with the Retail division employing 57 individuals, which represents approximately 73% of the total personnel, primarily consisting of Credit Officers and Tellers.
In recent years, the business results and the personnel situation of the retail division at
X Branch is experiencing a troubling decline, marked by low employee satisfaction and a rapid increase in resignations, leading to persistent personnel shortages Additionally, the branch's business results have been on a continuous downward trend for several years This analysis aims to identify the underlying issues and propose effective solutions to enhance the overall situation at VietinBank – X Branch.
The Symptoms
1.3.1 The first symptom: High turnover rate of employees
The below chart will show the number of employees of VietinBank - X Branch from
Figure 2: Compare the actual number of employees and the minimum number
Source: Human Report 2015, 2016, 2017, 2018 in VietinBank - X Branch
Each year, based on the size and business network of each Branch, VietinBank will
The actual number of employees
The minimum number of employees in human resources is essential for the smooth operation of a business Each year, Vietinbank's Head Office evaluates the size, transaction volume of each branch, and evolving personnel policies to determine the necessary minimum staffing levels This assessment is conducted in the first quarter of the year to ensure that each branch is adequately staffed to meet its operational needs.
X Branch is facing a persistent personnel shortage, typically ranging from 6 to 11 employees In recent years, recruitment efforts have become increasingly challenging, with a significant decline in both the number of applications and the quality of candidates, resulting in an inability to fill necessary positions Additionally, the high turnover rate among existing staff exacerbates the issue, as new hires fail to replace those who leave, leaving the branch understaffed.
Figure 3: The number of labors classify based on the work time
Source: Human Report 2016,2017, 2018 in VietinBank - X Branch
The chart illustrates the distribution of employees at VietinBank - X Branch based on their tenure In 2018, 46% of workers had less than one year of experience, while 23% had between one to two years This indicates that the majority of retail staff are newly recruited, with a relatively short duration of employment at the bank, primarily ranging from one to two years.
Figure 4: The rate of personnel quitting the job
Source: Human Report 2015, 2016, 2017 in VietinBank - X Branch
The rate of employees quit the job in Retail department very high and always higher substantially than the other department and average rate of VietinBank - X Branch
1.3.2 The second symptom: Low job satisfaction
Table 1: Results of the satisfaction survey of personnel in 2016, 2017
Year X Branch Average of region
Source: Human Report 2016, 2017 at VietinBank – X Branch
In 2016, VietinBank conducted its inaugural employee satisfaction survey to gain a comprehensive understanding of employee engagement To ensure independence and objectivity, the bank collaborated with Aon Hewitt Singapore, encouraging staff to provide honest feedback Aon Hewitt developed a concise questionnaire featuring 12 key questions focused on critical personnel aspects, including remuneration, leadership, and the working environment, while also soliciting employee suggestions on personnel policies The survey was distributed online via email to all VietinBank employees.
The employee satisfaction survey at VietinBank has provided valuable insights into the organization's health, revealing employee aspirations and engagement levels across various age groups, departments, and branches Additionally, the survey has garnered numerous feedback and contributions, amplifying the "voice" of the employees.
Over the past two years, employee satisfaction at X Branch has shown a slight improvement; however, it remains significantly below the regional average This overall score is particularly indicative of the retail division, which comprises 73% of X Branch's total workforce, highlighting the low satisfaction levels among employees in this sector.
1.3.3 The third symptom: Low key performance indicators
The Key Performance Indicators (KPIs) for VietinBank - X Branch, outlined in the attached appendix, encompass over 13 diverse indicators categorized into four main areas: Financial Factors (F), Customer Factors (C), Process/Operations (O), and Human Elements (P) Notably, the Financial Factor constitutes 62% of the total KPI, making it the most critical component in the overall performance assessment of X Branch.
Details of some key financial indicators of the Branch are as follows:
Source: Business Report 2015, 2016, 2017, 2018 at VietinBank - X Branch
From 2015 to 2016, the growth of outstanding loans and capital mobilization of branches is negative: The balance of loan reduce 19% and the balance of capital reduce 9.1%
Figure 6: Completion rate of business targets in VietinBank - X Branch
Source: Business Report 2015, 2016, 2017, 2018 in VietinBank - X Branch
Due to the decline in sales, in recent years VietinBank - X Branch has not completed its business target, the level of completion from 75% to 93%
Figure 7: The Profits of retail division at VietinBank - X Branch
Source: Business Report 2015, 2016, 2017 in VietinBank - X Branch
1.3.4 The fourth symptom: Low job performance
At VietinBank's retail division, employee performance is evaluated monthly based on the average gross income generated by each staff member, which includes earnings from loan interest, deposit interest, and cross-selling fees such as bank guarantees, money transfers, and insurance This income-based metric is utilized to gauge job performance because it directly correlates with business profitability To ensure an objective assessment and minimize the influence of regional variances and job position disparities, performance evaluations are conducted separately for different roles and locations.
The average income of personnel at Vietinbank – X Branch from 2016 to 2018 As follows:
Table 2: The average income of personnel
Compared with the regional average
Compared with the regional average
Compared with the regional average VietinBank - X Branch
VietinBank - Hồ Chí Minh region
Source: Business Report 2015, 2016, 2017, 2018 in VietinBank - X Branch
The average annual income of a Teller at VietinBank – X Branch has decreased from 0.74 billion dong to 0.52 billion dong, reflecting a nearly 30% drop, while the regional average saw only a slight decline Similarly, the yield per Teller at X Branch fell from 85% to 61% compared to the regional average The income of Credit Officers at X Branch followed a similar trend, declining from 1.01 billion dong to 0.83 billion dong, which is also below the regional average As Tellers and Credit Officers are key contributors to the retail profit of the branch, the decline in their productivity has directly impacted the profitability of X Branch.
Recent analysis reveals that VietinBank X Branch has experienced significant negative changes, including a marked decline in revenue and profit, alongside low job satisfaction and performance levels These issues are primarily attributed to personnel changes and disruptions in business development, compounded by the inexperience of new staff, which has adversely affected sales effectiveness.
PROBLEM IDENTIFICATION
Problem mess
Following the symptom analysis presented in Chapter 1, an in-depth interview was conducted to gather data from VietinBank - X Branch The objective of this research is to identify the primary issues contributing to these symptoms Consistent with the previous section, each identified problem and its underlying causes will be validated through relevant theories.
This study utilized in-depth interviews as a qualitative research method, allowing participants to feel at ease and candidly express their views on sensitive topics This approach not only fosters open communication but also enables the collection of detailed and comprehensive information.
This study conducted a multi-dimensional assessment of the personnel situation at VietinBank X Branch by interviewing five employees from various positions within the retail department, as detailed in Appendix 01 (Part 1) The selected interviewees each have a minimum of one year of experience in the retail division, ensuring they possess adequate knowledge and insight into the personnel dynamics at X Branch.
Details of the 5 selected interviewees are as follows:
The initial interviewees for the study included a Customer Relationship Officer and a Teller from VietinBank - X Branch The Customer Relationship Officer has nearly two years of experience, while the Teller has over two years in their role.
3 years working at the current position The opinions of these two interviewees represent the views of existing employees working at X Branch
The study included interviews with two former employees of VietinBank - X Branch, who had over two years of experience in the retail department before transitioning to other banks Their departure from VietinBank provides an objective perspective on the working environment at X Branch, as well as insights into the reasons behind employee turnover and comparisons of workplace conditions between VietinBank - X Branch and their new employers.
This study included interviews with a manager from X Branch, which has experienced the highest employee turnover recently The aim was to gather insights on the reasons behind the significant employee departures and to understand how personnel uncertainty affects the overall business operations at the transaction office.
The interview process involves 9 to 10 open-ended questions tailored to the interviewee's job position, as outlined in the attached interview guide (Appendix 1) Resigned employees will focus on evaluating the pros and cons of the X Branch workplace, comparing it with their current job environment, and discussing their reasons for leaving In contrast, managers will address the effects of employee turnover on their division and share their insights on why many employees in their department have chosen to resign.
Based on the opinions of the interviewees, the study draws some key limitations about the personnel situation at VietinBank - X Branch as follows:
All five interviewees indicated that their typical work hours range from 9 to 10 hours per day, exceeding the standard 8-hour workday This suggests that employees are generally expected to work an additional 1 to 2 hours of overtime each day.
Mrs Tran Thi Phuong Loan, a Teller at X Branch, expressed concerns about the additional weekend meetings that disrupt staff rest and family time With her daughter starting grade 1 next year, she may need to seek a new job for better work-life balance Similarly, Mrs Nguyen Thi Thanh Nhan, a former Teller at X Branch, resigned from her position at VietinBank to dedicate more time to her children's care.
Mr Tran Cao Nguyen, a Customer Relationship Officer, emphasizes the importance of having sufficient time for personal hobbies like traveling and socializing Similarly, Manager Truong Van Cuong notes that work-life imbalance is a significant factor contributing to employee resignations With an average work schedule of 9-10 hours per day, often extending into weekends, employees at X Branch are experiencing detrimental overworking conditions.
The concept of standard working hours has various interpretations According to Allan, Brosnan, and Walsh, the traditional working week is defined as 9am to 5pm, Monday through Friday In contrast, Rutenfranz et al suggest that standard work hours are those that respect workers' premium social time, ensuring that evenings and weekends remain free from work obligations.
Kodz et al identified that perceptions of Work-Life Balance vary, with some individuals prioritizing flexible schedules while others seek reduced working hours Dow-Clarke expanded on this definition by considering factors such as family life, income, and the life cycle, noting that all focus groups discussed Work-Life Balance in terms of work hours Insights from interviewees at VietinBank – X Branch indicated that long working hours disrupt the balance between work and personal life Additionally, a study by Joanne White MSc and Johanna Beswick highlighted that extended working hours negatively affect various aspects of home life.
Mr Tran Cao Nguyen expressed significant stress from managing a large customer base and a credit balance exceeding 80 billion Dong, leading to difficulties in focusing on work and impacting his performance Similarly, Mr Le Truong Man, a former Customer Relationship Officer at VietinBank - X Branch, experienced overwhelming pressure related to business goals, contributing to his resignation Mrs Nguyen Thi Thanh Nhan, a Teller, reported daily stress from serving 60-70 customers, requiring speed and accuracy From a managerial perspective, Mr Truong Van Cuong acknowledged that high work pressure is a primary reason for staff turnover at the branch.
All respondents at X Branch identified "Pressure" and "Stress" as key issues affecting their work environment, highlighting significant aspects of "Job Stress." The National Institute for Occupational Safety and Health (NIOSH) defines job stress as the detrimental physical and emotional reactions that arise when job demands exceed the workers' capabilities, resources, or needs.
Numerous studies have explored the connection between job stress and job satisfaction Research by Landsbergis and Terry et al indicates that elevated levels of work stress correlate with decreased job satisfaction Additionally, Cummins highlights that job stressors can predict job dissatisfaction and an increased likelihood of employees leaving the organization.
Tentative problems
To find out the central problem that X Branch is facing, this study will analyse in detail about the tentative problems as follows:
2.2.1 The first tentative problems: Work overload
The analysis indicates that the company may be facing significant work overload issues Key factors contributing to this problem include excessive working hours, high job stress, unrealistic targets, and insufficient time for coaching and feedback.
The arguments that verify work overload maybe is the problem leads to these variables are as follows:
Excessive working hours have been linked to employee burnout, with numerous studies highlighting the detrimental effects of work overload Notably, Uehata's research on over 200 karoshi victims revealed that two-thirds were logging 60 or more hours weekly, with over 50 hours of overtime each month prior to their incidents Additionally, many victims reported experiencing heightened stress due to increased workloads Similarly, Sparks et al found that rising job demands are driving individuals to work longer hours.
Job stress is defined by Tolman and Rose as a hypothetical state influenced by environmental factors, manifesting through various physiological, psychological, and social reactions Thompson's research identifies psychological consequences of stress, including depression, anxiety, helplessness, frustration, fear, and despair The literature highlights work overload as a significant contributor to stress, leading to anxiety, poor work performance, decreased job satisfaction, and declining profits Additionally, Dow-Clarke's study on work-life balance indicates that workload is a common stressor acknowledged by all groups.
At X Branch, the unrealistic targets set for staff exceed their capabilities, leading to an overwhelming workload Ksenia highlights that such an environment can trigger negative reactions, including nervousness, anxiety, frustration, and annoyance, ultimately threatening employee well-being.
In an interview with Mr Truong Van Cuong, a manager, he revealed that time constraints have hindered his ability to provide adequate coaching and feedback to his staff Research consistently demonstrates that effective coaching and feedback significantly enhance job performance, enabling employees to manage their workloads more efficiently and alleviating workplace pressure.
2.2.2 The second tentative problems: Ineffective leadership
The arguments that verify ineffective leadership maybe is the problem leads to these variables are as follows:
Insufficient coaching and feedback can hinder employee development, as numerous studies highlight the effectiveness of personalized coaching in enhancing learning experiences tailored to individual needs Moen and Allgood emphasize that when implemented correctly, coaching not only boosts employee performance but also increases the efficiency and effectiveness of managers in their leadership roles, ultimately leading to greater career satisfaction.
Inconsistent of management style: This is analyzed in section 2.1.5, the inconsistent of manager can produce a lack of trust in his direction
2.2.3 The third tentative problems: Incompatible compensation policy
Sections 2.1.6 and 2.1.7 of the compensation policy analysis reveal that most employees at VietinBank - X Branch find the current compensation policy unappealing and not reflective of their contributions This suggests that an inadequate compensation structure may be a significant issue at X Branch.
Lawler emphasized that an organization's compensation system communicates its values to employees Research indicates that an ineffective compensation policy can lead to confusion, resulting in breaches of procedural justice, which may lower employee productivity and commitment Procedural justice and equity are vital for enhancing employee performance Consequently, managers must ensure that their compensation systems align with the organization's culture, as a misaligned system can foster perceptions of injustice.
Excessive workload can severely impact both physical and emotional health, leading to stress-related issues such as heart problems, high blood pressure, insomnia, and loss of appetite As a result, companies may experience increased health insurance costs and decreased employee productivity The adverse health effects stemming from high workloads often outweigh any potential benefits of maintaining elevated output levels Research by Zulfiqar emphasizes that employee working hours should align with their capacity, highlighting the importance of prioritizing health and safety to prevent negative impacts on job performance.
Research indicates that excessive overtime negatively impacts job performance, particularly in cognitive function A study by Proctor et al revealed that automotive workers experienced significant declines in attention and executive function due to increased overtime Additionally, a survey conducted by the Institute of Management found that 68% of managers believed long working hours hindered their productivity Furthermore, a US poll highlighted by Jeuness showed that 62% of managers felt shorter working hours could enhance worker productivity.
This research highlights the relationship between employee compensation, contribution, turnover rates, and job performance, revealing that perceived inequity significantly impacts motivation and organizational outcomes According to Equity Theory, employees assess their contributions against their returns and compare these ratios with peers both within and outside the organization When employees perceive inequity, they may respond by quitting or reducing cooperation, which can harm the organization Additionally, the study indicates that compensation levels directly influence job performance.
To validate the new findings at Vietinbank – X Branch, a second round of in-depth interviews was conducted with all five respondents from the initial interview The specific results from this follow-up are detailed below.
Work overload at X Branch has a detrimental impact on employee health, as highlighted by Mrs Nguyen Thi Loan Phuong, who experiences persistent pain due to long hours of sitting and intense work demands Similarly, Mr Le Truong Man reports that the pressure to meet business targets has led to sleepless nights, headaches, and significant stress.
Over working hours leading to decrease job performance: Share about this relationship,
Mr Tran Cao Nguyen and Mrs Nguyen Thi Thanh Nhan believe that working late leads to mental distractions during regular work hours, as employees often focus on tasks they plan to complete after hours This distraction significantly impacts overall staff productivity.
The disparity between employee compensation and their contributions significantly impacts job performance and retention rates Mr Truong Van Cuong emphasizes that adequate compensation serves as a crucial motivator for employees to enhance their productivity At VietinBank Branch X, numerous employees have faced layoffs despite their hard work, primarily due to insufficient income levels Similarly, other respondents highlight that higher income directly correlates with increased labor productivity.
Based on the literature review and the data collected in the subsequent round of interview, the study updated cause-effect map as follows:
Figure 9: The updated cause - effect map of VietinBank – X Branch
This research selects “Work overload” is the central problem of VietinBank - X Branch for the following reasons:
Problem definition
Work overload is commonly defined as the perception among employees that their workload exceeds their capacity to complete tasks within a specified timeframe Jex describes this phenomenon as the feeling of having more work than one can manage Additionally, Ippolito et al suggest that work overload occurs when job demands surpass an individual's limits, leading to excessive workloads or extended working hours that can overwhelm both physical and mental well-being.
Work overload can be categorized into two types: quantitative and qualitative overload Quantitative overload occurs when employees feel overwhelmed by the sheer volume of work, often leading to pressures of working too quickly or managing excessive tasks In contrast, qualitative overload arises when employees believe they lack the time or skills necessary to deliver high-quality results.
Problem existence
X Branch is currently facing a significant challenge with employee workload, as evidenced by the sample KPI sets for Customer Relations Officers and Tellers outlined in Appendix 4 Each employee's KPI set comprises 13 diverse indicators, each carrying a specific weight in the overall scorecard However, given the limited time available to staff, it becomes challenging to effectively concentrate on all these indicators, highlighting the need for a more manageable workload.
The secondly, you can see obviously about the over work load situation of personnel at VietinBank X - Branch through the following figures:
For Customer Relations Officer position
Table 3: The work load of a Customer Relations Officer
Criteria Average credit balance / employee (billions dong)
The average number of customers / employee (Customer)
Source: Business Report 2017, 2018 in VietinBank - X Branch
From 2017 to 2018, each Customer Relations Officer at VietinBank X Branch managed an average credit balance of 41-43 billion dong, aligning with the regional average However, the number of customers per employee at X Branch exceeded the regional average by 1.3 times, indicating that the workload for credit employees at X Branch is significantly higher than that of their counterparts in the area.
Table 4: The work load of a Teller
The average number of transactions at the counter/ employee/ a Day
Source: Business Report 2017, 2018 in VietinBank - X Branch
The table illustrates the daily transaction volume that a Teller is required to manage at the counter It highlights the varying number of transactions a Teller handles each day, emphasizing the workload and efficiency needed in this role.
X Branch has a positive change from 2017 to 2018, decrease 8 transactions per day However, the volume of work that a Teller at X Branch must perform is always higher than the regional average
In section 1.4 of the analysis, it is evident that numerous employees at VietinBank X Branch have expressed concerns regarding excessive workloads, including long hours, job-related stress, and a lack of work-life balance Current staff members have indicated that without a reduction in workload, they may consider leaving the branch.
An analysis of the work overload issue at VietinBank - X Branch reveals that all respondents in the initial depth interviews reported excessive workloads To emphasize the significance of this problem, further theoretical insights and additional interviews were conducted The first question gathered demographic information from the interviewees, while the second explored their perceptions of the work overload situation The third question addressed the consequences of this issue, and the fourth examined its underlying causes and their impacts at the X Branch Finally, the fifth question sought their suggestions for potential solutions to alleviate the problem.
The literature and results of interview show that’s, if this problem is not resolved quickly, it will bring some main serious consequences as follows:
Low job satisfaction and employee engagement are often linked to work overload, which significantly contributes to stress among employees Research by Paktinat and Rafeei indicates that factors such as excessive workload, job insecurity, and poor work relationships negatively impact job satisfaction Additionally, Vimala highlights that stress, primarily resulting from work overload, poses a major challenge for organizations.
Work overload significantly contributes to employee anxiety and stress, leading to a notable decline in job satisfaction Research consistently identifies work overload as a prevalent factor in job-related stress, which ultimately diminishes overall employee satisfaction.
Increased employee turnover is a growing issue that leads to heightened stress and work-life conflict, ultimately diminishing employee morale This decline in morale negatively impacts performance and reduces overall job involvement among employees.
At VietinBank – X Branch, employees report that a heavy workload leads to significant stress, with Mr Truong Van Cuong noting that prolonged overwork results in depression and high turnover rates Colleagues Mr Truong Man and Mrs Nguyen Thi Thanh also left the bank due to work overload Job satisfaction scores from 2016 to 2017 indicate a troubling decline at X Branch, falling well below the regional average This low employee engagement not only contributes to staffing shortages and decreased profitability but also raises recruitment costs and negatively impacts employee performance and customer satisfaction These issues will be further explored in the following section.
Low job performance of employees:
Research indicates that a high workload can adversely affect job performance While employees may opt to work faster in the short-term to manage increased demands, this approach can lead to negative consequences for their performance over time Additionally, studies reveal that elevated workloads can harm both overall system performance and the individuals within the system.
Job performance is defined in various ways, with Motowidlo describing it as the total expectations an organization has from individual behaviors over a specific time period Rashidpoor views it as a set of behaviors related to a person's job, reflecting the efficiency gained through training, production, or service Babu et al equate job performance with an individual's efficiency in fulfilling their legal tasks, highlighting the effort and success involved Ultimately, job performance is influenced by factors such as training, production, service quality, and employee job satisfaction This research indicates that a lack of experience and low job satisfaction can negatively impact job performance, leading to multidimensional consequences for organizations.
At VietinBank – X Branch, Mr Tran Cao Nguyen expressed that the overwhelming workload has left him feeling exhausted, resulting in decreased productivity Similarly, Mr Truong Van Cuong noted that excessive workload not only places pressure on employees and jeopardizes their health but also significantly diminishes their work efficiency.
Enhancing customer satisfaction is crucial for organizations, especially in the service sector, leading to extensive research on the topic Studies reveal a strong connection between employee satisfaction and customer satisfaction According to Spiro and Weitz, satisfied employees significantly influence customers' perceptions during business interactions Hatfield et al highlight that content employees positively impact those around them, fostering a pleasant environment Additionally, research by Schlesinger and Zornitsky indicates that employees with higher job satisfaction are more confident in their ability to provide excellent service.
Interviewees consistently reported that work overload leads to delays in customer service, resulting in dissatisfaction Mr Tran Cao Nguyen expressed frustration over his inability to fully meet customer needs despite his efforts, which often leads to customer anger Similarly, Ms Nguyen Thi Loan Phuong and Ms Nguyen Thi Thanh Nhan noted that high customer volume prevents tellers from addressing requests promptly, causing long wait times and dissatisfaction Mr Truong Van Cuong highlighted that customers frequently compare VietinBank to competitors like Vietcombank, ACB Bank, and Sacombank, citing their faster transaction processing times and simpler procedures as advantages.
Work overload is a significant issue at VietinBank - X Branch, leading to serious consequences that affect service quality and customer satisfaction As banks compete to enhance their service offerings, prolonged work overload can exacerbate these issues, ultimately harming the branch's reputation and profitability.
ALTERNATIVES ANALYSIS AND POSSIBLE SOLUTIONS
Potential causes of the problem
Based on the literature, this study develops a list of potential causes of the problem as follows:
Work overload is often manifested through long working hours, which can be attributed to several key factors According to Professor Drew Dawson and colleagues, employees tend to work extended hours primarily for three reasons: to increase their monetary gain, to meet organizational or occupational expectations, and to enhance personal satisfaction Understanding these motivations is crucial for addressing the issue of work overload in the workplace.
Monetary gain is a primary motivation for working long hours, as highlighted by Belgum, who argues that the desire for increased earnings drives employees to extend their work hours Hecker supports this perspective, noting that longer work hours typically result in higher income Consequently, many employees feel compelled to take on additional work, often leading to work overload.
Many organizations still assess employee value based on the number of hours worked, leading some individuals to put in long hours to uphold a professional image While some employees willingly extend their work hours as a sign of commitment, others perceive it as an implicit requirement for promotion or job security.
Personal satisfaction: Various studies indicate work has a large influence over self-esteem
Individuals may only work to prove their personal worth This is true even when longer hours have no impact on salaries or professional promotion
According to Katherina Kuschel, work over load due to advances in technology, Family/Non-Work Commitments (23)
Advancements in technology have significantly contributed to the rise in work overload and burnout among employees The proliferation of the Internet, email, laptops, and smartphones has led to constant connectivity, enabling work to be performed anytime and anywhere As a result, employees often feel compelled to work more hours, making it increasingly challenging to disconnect from their jobs and achieve a healthy work-life balance.
Conflict with Family/Non-Work Commitments:
Many individuals experience overload due to conflicting roles, particularly as the number of working mothers, dual-career families, and caregivers for elders or disabled individuals rises While all workers face time pressures, working parents are especially impacted by the demands of balancing work and home life Research indicates that working women often endure time famine and exhaustion, as they continue to shoulder the majority of household responsibilities and childcare, despite gradual shifts in traditional gender roles.
Organizational support, encompassing colleague and supervisor support as well as the demand-control model, plays a crucial role in mitigating work overload Specifically, support from leaders acts as a buffer against the pressures of excessive workload Conversely, insufficient support can exacerbate the impact of factors leading to work overload on work-family conflict (WFC).
Staff shortages significantly contribute to long working hours, especially when unpaid, primarily due to the overwhelming volume of work Factors driving this increased workload include new organizational initiatives such as flattening structures from de-layering, a rise in project-based work, heightened customer focus, a culture dominated by meetings, and ongoing staff shortages This research indicates that personnel shortages not only disrupt working schedules but also diminish the efficiency of existing staff due to the immense pressure they face.
Unreasonable job assignments can lead to significant work-related stress, as excessive demands often overwhelm employees While challenging tasks are essential for maintaining motivation and skill development, it is crucial that these demands remain manageable Workers are better equipped to handle demanding workloads when they receive adequate support from supervisors and colleagues, and when they have a suitable level of autonomy in their roles.
The initital cause-effect map as follows:
Figure 10: The updated cause - effect map of VietinBank – X Branch
Organisational and/or occupational expectation
Conflict with Family/Non-Work Commitments
Lack of organizational Support Advances in technology
Poor physical and emotional health
Verify causes of the real problem
Based on a list of potential causes, the researcher conducted in-depth interviews, as detailed in Appendix 02 (Part 3), with five respondents from Part 1 regarding the reasons for work overload at VietinBank - X Branch The results of these interviews confirmed the applicability of the previously identified causes and revealed additional factors contributing to the work overload specific to this branch.
The interview results reveal that work overload at VietinBank X Branch stems primarily from staff shortages, unreasonable job assignments, and conflicts with family or non-work commitments In contrast, factors such as technological advancements, lack of organizational support, monetary incentives, and personal satisfaction do not contribute significantly to this issue Additionally, respondents identified three critical factors exacerbating work overload: a high number of unskilled new employees, an inefficient workflow system, and insufficient training Specifically, four out of five respondents noted that the influx of unskilled new hires leads to poor job performance, increased stress in customer interactions, and unrealistic business targets Mrs Nguyen Thi Loan Phuong and Nguyen Thi Thanh Nhan highlighted that the staffing shortage forced new employees to begin work immediately, bypassing the usual month of training Consequently, experienced staff members, like Mrs Phuong, are burdened with the responsibilities of new hires, resulting in heightened pressure on them.
Mr Truong Van Cuong acknowledged that the majority of newly recruited staff lack advanced skills, requiring an investment of one to two years of training to build their confidence in performing their job effectively.
Numerous studies indicate that a lack of experience significantly hampers job performance A 2016 study by Globofore, which surveyed over 23,000 employees across 45 countries and various industries, highlighted the correlation between employee experience and work performance The findings revealed that employees with higher employee experience index scores tend to report superior work performance compared to those with lower scores.
Figure 11 : Employee experience is positively associated with work performance
Source: WorkTrends™ 2016 Global sample for the IBM/Globoforce
The inefficient workflow system at VietinBank - X Branch is primarily caused by a cumbersome and illogical process that burdens employees with excessive manual tasks Mrs Nguyen Thi Loan Phuong, a teller at the branch, highlighted that the current workflow is time-consuming and lacks accuracy due to its many manual steps In contrast, competitors like Sacombank and Vietcombank have streamlined and automated their transaction processes, significantly reducing transaction times for customers and alleviating employee workloads Mr Truong Van Cuong further emphasized that the credit workflow is suboptimal, as processing both small and large loans requires similar time and effort, resulting in wasted staff resources and low job performance.
Workflow systems, as defined by Bul, are essential for organizations to specify, execute, monitor, and coordinate work processes in a distributed office setting A workflow process consists of a predefined sequence of work steps These systems significantly influence organizations in three key areas: operational, cultural/organizational, and economic Numerous case studies indicate that efficient workflow systems enhance operational performance by reducing throughput, waiting, and cycle times, while also increasing overall work volume.
Top 25% highest Employee Experience Index scores
Bottom 25% lowest Employee Experience Index scores
Interviewers have noted that a lack of training contributes significantly to work overload at VietinBank's X Branch Mr Truong Van Cuong highlighted that due to a personnel shortage, many new employees had to start their roles immediately after recruitment, without the usual month-long training As a result, most staff members are inexperienced and not fully trained, which leads to inefficiencies as they spend time searching for instructions Furthermore, the inadequate training creates psychological stress and fear of making mistakes, adding pressure when performing their duties.
The final cause-effect map as follows: Figure 12: The updated cause - effect map of VietinBank – X Branch
Low key performance indicators ow
Poor physical and emotional health
Organisational and/or occupational expectation
Root cause
The retail division at VietinBank - X Branch faces work overload due to several factors, with three key issues standing out: lack of training, unskilled new employees, and an inefficient workflow system These challenges significantly impact the overall performance of the division, necessitating a closer examination of their underlying causes.
The primary reason for work overload at VietinBank – X Branch, as identified in interviews, is an inefficient workflow system Additionally, a significant number of respondents, specifically four out of five, highlighted that a lack of training and the presence of unskilled new employees contribute to this issue.
Staff shortages, unreasonable job assignments, and conflicts with family or non-work commitments stem from three primary issues Addressing these core problems can lead to significant improvements in these areas Research indicates that effective training enhances employee commitment, boosts job performance, and ultimately increases company revenue and profits.
Finally, the reason related to staff shortages, unreasonable job assignment and conflict with Family/Non-Work commitments are personal problems, hard to interfere to improve.
Tentative solutions
The analysis identified three key issues contributing to the main problem: inadequate training, unskilled new employees, and an inefficient workflow system Drawing from literature and successful practices in various branches in Hồ Chí Minh City, this research aims to enhance training programs and promote internet banking as an alternative system for customers These solutions are essential for addressing the current challenges faced by human resources at X Branch, offering significant benefits to improve overall performance.
Training is a systematic process aimed at enhancing an employee's knowledge, skills, and attitudes for current or future job roles According to Blancher and Thacker, it involves a methodical approach to develop essential competencies, which can range from basic literacy to advanced computer applications Ultimately, the goal of training is to facilitate meaningful changes in an employee's skill set and overall professional development.
The advantages of training programs are that these have the important and positive effect on the job satisfaction, job performance A study conducted by Siebern-Thomas, analysing
A study involving 13 countries in the European Community Household Panel revealed that job satisfaction is notably higher when employees have access to workplace training This training not only enhances workplace performance by increasing output per worker but also positively affects wages, reflecting the marginal productivity of labor Given that 79% of the staff at VietinBank - X Branch have less than two years of experience, effective training is crucial for developing the skills and capabilities of these relatively inexperienced personnel.
To enhance workflows, banks must invest in technology, as emphasized by Neil Austin Institutions that neglect this investment will fall behind innovative competitors that prioritize client-facing technologies and services To deliver effective digital services, banks need to digitize their internal processes and workflows, leading to the automation of a substantial portion of back and middle office roles, estimated at 35%.
Inefficient workflows at VietinBank Branch X significantly contribute to increased employee workload and stress Interview respondents highlighted that the current processes are overly cumbersome, manual, and involve illogical, time-consuming steps Implementing workflow optimization solutions can alleviate employee burdens while enhancing the bank's competitiveness and improving customer satisfaction.
In Vietnam, various branches are prioritizing the enhancement of internet banking services, which significantly reduces counter transactions Research indicates that internet banking not only lowers transaction costs for banks but also alleviates administrative burdens, automates processes, and boosts labor productivity Additionally, it facilitates globalization and the expansion of operational networks For customers, internet banking offers substantial benefits, including time and cost savings by eliminating the need for in-person transactions, making banking fast and convenient Therefore, this study focuses on implementing internet banking as a complementary system to the existing framework at Vietinbank – X Branch.
One of the main reasons I opted for internet banking is the significant potential for service development at X Branch Specifically, during the first six months of 2018, the transaction volume at VietinBank - X Branch showcased this growth potential.
Figure 13: The number of counter transactions
Source: Business Report 2018 in VietinBank - X Branch
The chart illustrates that over 72% of counter transactions involved interbank money transfers, intra-system money transfers, state budget fund collections, and bill payments (such as electricity and water bills) conducted through internet banking.
Base on the actual situation of VietinBank – X branch as above analysis, this research chose internet banking is the solution to limit the impact from the process
To effectively address work overload at VietinBank - X Branch, it is essential to select the appropriate training type based on the unique characteristics of the organization and its trainees The two primary training methods are On-The-Job and Off-The-Job Training, which can be tailored to meet specific needs and enhance overall performance.
Interbank money transfer Money transfer in the same system Collection of state budget funds Pay the bill (electric bill, water bill, etc)
Set solution 1: On-The-Job training and using the alternative system by internet banking
Set solution 2: Off-the-job training and using the alternative system by internet banking
Set solution 3: Combined On-The-Job Training and and Off-the-job training and using the alternative system by internet banking Please see figure 14 for more information
Figure 14: The chart of solution
Conflict with Family/Non-Work Commitments
Job training and using the alternative system
Set solution 2: Off-the- job training and using the alternative system
Set solution 3: Combined on and off- the-job training and using the alternative system
To identify the most suitable training solutions for the retail division personnel at VietinBank – X Branch, the researcher conducted a brief interview with 20 employees The interview comprised three key questions: the preferred type of training, the favored training method, and their thoughts on alternative systems for developing internet banking This approach aimed to gather diverse opinions from participants, ensuring that the resulting training solutions are more effective and aligned with their needs.
3.4.1.1 Set solution 1: On-The-Job training and using the alternative system by internet banking
On-the-job training is a structured and planned approach to skill development that occurs primarily at the trainee's workplace, often in designated training areas During this process, managers, supervisors, trainers, and colleagues dedicate significant time to guide trainees in acquiring specific skill sets.
On-The-Job refer to practical and learning by performing, it is suitable for the manufacturing firms The main training method of On-The-Job training is as follows: (38)
Figure 15: The on-the-job training methods
The training method implemented at Vietinbank X – Branch is particularly effective for the Retail division, where many employees lack experience This approach involves experienced supervisors guiding trainees through specific tasks, such as efficiently executing money transfers and assessing customers in the Credit Office to identify potential risks By following the supervisors' instructions, trainees can effectively learn and perform their responsibilities.
The result of interview on 20 personnel showed that, there are 4 participant select the on- the-job training type, it account 20% of total
The alternative system by internet banking
Internet banking, a key innovation in the banking sector, allows customers to access their accounts and information about bank products online However, its growth in Vietnam has been limited; as of 2014, only 6 million users, or 17% of internet users in the country, utilized this service, significantly below the Asia-Pacific average of 39%.
Internet banking has significantly benefited both banks and customers, leading to fierce competition among banks to expand their market share in this service To enhance their internet banking offerings, this research highlights two effective strategies implemented by VietinBank branches: developing a registration channel at the counter and utilizing the staff channel for enterprise customers Specifically, the teller force is incentivized through a motivation program that rewards 15,000 VND for each successful registration at the counter Additionally, for enterprise customers, branches have introduced a similar motivation program, offering gifts valued at approximately 20,000 VND for successful registrations.
At VietinBank – X Branch, interview results reveal that a majority of employees prefer to utilize both methods, with 55% of participants—11 individuals—opting for this approach, while only 4 to 5 participants chose a single method.
3.4.1.2 Set solution 2: Off-The-Job training and using the alternative system by internet banking