COMPANY INTRODUCTION
General Information about Sacombank
Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) was established in
Established in 1991, Sacombank is now one of Vietnam's leading joint stock banks, boasting a charter capital exceeding 14 trillion VND It ranks among the top ten largest private banks in the country in terms of capital Sacombank operates 448 transaction offices across various locations, including major cities like Hanoi, Da Nang, and Ho Chi Minh City, as well as smaller rural areas such as Cu Chi.
Sacombank offers a wide range of banking services to a diverse clientele, including individuals, exporters, importers, and small to medium enterprises As a member of the Visa Card network and various reputable financial institutions, Sacombank has established a strong presence in the banking sector With approximately 13,000 employees and its headquarters located in downtown Ho Chi Minh City, Sacombank is increasingly recognized as a valuable choice for both businesses and individuals seeking reliable banking solutions.
A preliminary assessment of Sacombank's financial report, detailed in Appendix 2, was conducted to identify existing issues Key managers and employees participated in a survey, with findings presented in Appendix 1, indicating that customer profiles and preliminary assessments are crucial (Sacombank, n.d.) The financial report reflects employee performance, revealing a decrease in credit growth compared to previous quarters Notably, the gap between borrowing and lending has widened, despite Sacombank's product advantages (Sacombank, n.d.) While these advantages are significant, the sales team's performance has shown improvement in credit growth Additionally, a client survey was conducted to gain a comprehensive understanding of the problems faced (Sepehri & Akram-lodhi, 2005).
In addition, after several survey and deeply research with the clients or the supervisors,
The Ky Hoa Transaction Office has been facing significant challenges, including low productivity and employee dissatisfaction, which have negatively impacted its operational profits and growth compared to other transaction offices A recent client survey highlighted various issues, revealing that customer feedback has been undervalued, leading to subpar service standards The overall performance of employees has not met expectations, with many expressing concerns about the quality of work and the effectiveness of performance metrics Interviews with Sacombank's chief operational officers further emphasize these challenges, indicating a need for improvement in both employee commitment and service delivery.
Research indicates that low employee performance significantly affects a bank's revenue, primarily driven by strategic management and professional services (Tu, Ha & Yen, 2015) This issue is particularly pressing in Vietnam's competitive and dynamic economic landscape, impacting sustainable growth (Chinh & Anh, 2008) Therefore, I aim to investigate this phenomenon at the Ky Hoa Transaction Office to enhance employee productivity, which is essential for the vitality of any banking system Assessing performance levels is crucial for understanding and evaluating employee contributions effectively.
Company details
Address: 266 - 268 Nam KY Khoi Nghia Street, Ward 8, District 3, HCMC
PROBLEM IDENTIFICATION
Problem context
According to Coudert and Pouvelle (2010), a strong workforce is crucial for enhancing bank profitability in the era of globalization This emphasis on employee strength has become a fundamental aspect for banks in Vietnam to reach their objectives, driven by support from the banking sector.
Vietnamese domestic banks are struggling to manage human resources amid a dynamic economy and uncertain monetary market The Ky Hoa Transaction Office, located in a bustling area of Ho Chi Minh City, has experienced significant growth over the years but is currently facing challenges, particularly low employee performance in its credit department These issues pose a potential barrier to future growth and may undermine employee commitment This paper aims to address these performance-related challenges and explore solutions to enhance banking services at the Ky Hoa Transaction Office of Sacombank.
This thesis aims to identify effective strategies to enhance employee engagement at the Ky Hoa Transaction Office It involves collecting data to analyze the underlying issues contributing to low employee engagement, such as company policies, career development opportunities, and the working environment By pinpointing these root causes, the study proposes actionable solutions tailored to improve workplace commitment Utilizing qualitative methods like interviews and surveys with managers and employees, along with references to relevant journal articles and theories, the research seeks to determine the core challenges and optimal solutions for fostering a more engaged workforce at Ky Hoa Transaction Office.
The following step was executed to find the problem of this transaction office:
The predefine symptoms of Ky Hoa is its profit rate is not as good as management team expected
Interview with Ky Hoa management team and Sacombank authorities to understand the situation of Ky Hoa
Further study of Ky Hoa accounting data and literature suggested that the main reason for this low profit rate is the extreme low credit growth rate
Review with competitors and industry data to confirm the problem with Ky Hoa transaction office
General symptoms
A Key Performance Indicator (KPI) is a measurable value that reflects how effectively a company meets its key business objectives Organizations utilize KPIs at various levels to assess their success in achieving targets, with high-level KPIs focusing on overall enterprise performance and low-level KPIs concentrating on specific departmental processes such as sales, marketing, or call centers This research paper examines the KPIs of Sacombank to illustrate its current performance indicators.
2.2.1 The first symptom: High employee turnover rate
Employee attrition, or turnover, refers to the number of individuals who exit a company over a specific timeframe due to various reasons such as retirement, death, redundancy, dismissal, transfer, or resignation Organizations often aim to minimize turnover rates, particularly for high-performing employees who have gained from the company’s training programs.
High employee turnover can present opportunities for career advancement when experienced staff depart, but it also risks diminishing the quality of products and services offered to customers (Baum, 2006) Organizations must address staff attrition, as replacing employees incurs significant costs, including recruitment, administration, and selection expenses Additionally, the remaining employees may face increased pressure to meet company targets, which can be detrimental in a competitive market To mitigate high turnover rates, it is crucial for HR managers to focus on retaining existing talent.
Furthermore, HR department reports also demonstrated the increasing of turnover rate in
In the first half of 2015, the turnover rate at Ky Hoa office reached 33%, significantly higher than the 25% recorded in 2014 Mr Dai, the deputy manager of Ky Hoa Transaction Office, identified this increase as a serious concern, particularly given the small size of the office.
Total of Employees who Left 3 4
The high turnover ratio of this top branch significantly contributes to Sacombank's profitability, especially when compared to the average turnover ratio observed in the first half of the year.
In 2014, the employee turnover rate was around 25%, highlighting a concerning trend over the past two years Research indicates that high turnover can lead to various negative impacts on organizations, including decreased productivity, increased recruitment and training costs, and diminished future performance Consequently, a consistently high turnover rate poses significant challenges for any organization, signaling a need for urgent attention and intervention.
2.2.2 The second symptom: Decreasing in profit
The Director of Ly Thai To Branch, Mr Le Van Houl, highlighted a concerning trend for the transaction office: the significant decline of Ky Hoa in recent years.
The Ky Hoa Transaction Office, a crucial component of the Ly Thai To Branch, has demonstrated a relatively low profit generation capability compared to other similar transaction offices under its management, as indicated in Table 2.
Unit: billion VND Ky Hoa Average Lowest Highest
Table 2: Some financial information between Ky Hoa and others transaction office in Ly Thai
The table reveal that even though Ky Hoa is one of the top transaction office of
Sacombank's transaction office continues to face challenges in profitability, despite overall business growth A comparison over two years reveals a decline in profit from 29 billion to 21 billion, falling short of the market average This downturn is attributed to significant workplace issues that are impacting the bank's financial performance.
The head office of Sacombank also shared the same point of view of Ky Hoa situation
As the sole purpose of any company is profit, the reducing trend of Ky Hoa profit signal that there is a problem in this transaction office.
Identifying and Diagnosing Tentative Problems
To identify the underlying issues causing the aforementioned symptoms, the writer is analyzing various studies and research to clarify the reasons behind them A primary cause is often a lack of skills, which can stem from internal processes and personal challenges Additionally, issues may arise from both technical and relational aspects Furthermore, deficiencies in technical skills can lead to complications in recruitment processes (Matly & West).
In 2005, it was highlighted that assessing an individual's ability to learn new skills is crucial, particularly in relation to the time available and the capacity for learning The effectiveness of additional training largely depends on the company's prior investment in the employee and the individual's willingness and ability to acquire these new competencies.
Employee interviews reveal a lack of confidence in their abilities, unclear job expectations, and an overwhelming workload To enhance job performance and ensure employees are well-prepared, comprehensive training is essential before they take on their responsibilities.
After analyzing the existence and importance of Ky Hoa transaction office problems, the potential causes of the problems were listed as following:
- Job security and promotion opportunity
- Relationships with other employees and supervisors
2.3.1 The first potential problem: Low satisfaction in training and development opportunity
Interviews with supervisors at the Ky Hoa transaction office revealed a significant deficiency in employees' professional skills and work engagement This issue may stem from individual factors, including both technical and interpersonal skills A lack of technical expertise often points to recruitment challenges (Matly & West, 2005) It's crucial to assess whether employees have the time and capacity to acquire necessary skills Depending on the company's prior investments and the employee's ability to learn, additional training could prove beneficial (Yong-Ki et al., 2006).
According to Ms Hanh, deputy manager of the Human Resource Department at Sacombank Head Office, finding the ideal staff for banking positions can be challenging To ensure high-quality personnel, it is crucial to establish an effective training system and a rigorous recruitment process A supportive workplace environment can alleviate employee stress and enhance performance, while beneficial policies can motivate staff to excel Conversely, a poor operational system significantly contributes to low productivity Therefore, focusing on these foundational aspects is essential for attracting and retaining skilled employees in the banking sector.
2.3.2 The second potential problem: Low satisfaction in salary, compensation, and
The third potential problem: Low satisfaction in job security and promotion opportunity
While salary is a significant factor in job satisfaction, it is not the sole reason for employee contentment Chaita (2014) suggests that individuals may initially feel satisfied with a high salary and attractive compensation, but this satisfaction is often short-lived Employees ultimately seek opportunities for career development, as this fosters a sense of security, achievement, and recognition, leading to greater long-term job satisfaction.
Banking jobs were once highly sought after for their lucrative salaries and promising career growth However, with the recent slowdown in the global economy, many banks are now confronting insolvency risks and workforce reductions As a result, bankers are increasingly feeling stressed about their future career prospects.
The fourth potential problem: Low satisfaction in relationships with other
Employee job dissatisfaction often stems from ineffective communication and weak relationships among colleagues and between managers and staff According to Dotan (2007), fostering good workplace relationships can enhance employees' comfort, support, and security Research by Lee and Ok (2011) highlights that friendships at work contribute to trust and effectiveness among employees Furthermore, improved communication within the workplace is linked to lower turnover rates and absenteeism, demonstrating the importance of strong interpersonal connections in enhancing organizational performance.
The real problem: Low job satisfaction
The Ky Hoa transaction office has faced significant challenges, primarily marked by low employee satisfaction, which adversely affects the operations of various divisions and places additional pressure on the human resources department Analysis of potential issues reveals that employee performance is heavily influenced by training and development policies, while a negative correlation exists between job satisfaction and employee turnover, suggesting that enhancing job satisfaction could lower turnover rates Furthermore, research indicates that job satisfaction directly impacts sales performance, ultimately affecting profitability Additionally, there is a strong link between job satisfaction and customer satisfaction, which is often supported by effective management In summary, factors such as training programs, salary, promotion policies, and managerial communication are critical determinants of employee dissatisfaction.
Verifying the importance of job satisfaction
According to Susan (2003), effective services stem from well-functioning systems that prioritize quality employee development to enhance job satisfaction Research indicates that a profitable business relies on motivated and effective staff, as poor employee performance can lead to decreased customer satisfaction and lower company profitability Additionally, negative outcomes may result in higher turnover rates and increased absenteeism within the organization.
Low profitability is a significant indicator of job dissatisfaction among bankers, as productivity and profit are closely linked The human resources in banking are crucial for delivering quality services (Pablo, Yolanda, & Javier, 2006) When performance levels are low, banks experience reduced profit margins, leading to operational challenges Consequently, banks must carefully evaluate their strategic goals and may need to adjust their plans to foster growth during tough times.
Low productivity is closely linked to low motivation among workers, leading to increased absenteeism and turnover rates in banks (Pablo et al., 2006) Employees who lack motivation often perceive their roles as less valuable, resulting in frequent sick calls Additionally, high operating costs associated with unproductive workers can diminish the quality of benefits offered, ultimately impacting income results negatively (Yong-Ki, Jung-Heon, Park & Lee, 2006).
(2003) stated that low motivation in work might lessen employee’s working effort and wiliness for the future of company
Employee dissatisfaction can lead to increased turnover rates as unhappy workers seek new job opportunities or accept offers from competitors This not only results in mistakes and decreased productivity but can also prompt companies to downsize, often through layoffs While cutting labor costs may seem like a solution, it typically fails to enhance productivity and leaves remaining employees with low morale due to lost colleagues and job insecurity Consequently, the expense of training new staff usually outweighs the benefits of retaining existing employees.
Verifying the existence of real problem: Low job satisfaction in Sacombank
Mrs Uyen highlighted that Sacombank offers exceptional training and development programs for both junior and senior employees, which encompass on-the-job training and personalized self-development plans Employees are required to complete Sacombank’s banking skills tests on a quarterly and yearly basis to ensure their professional skills remain current Research indicates that organizational support is crucial for enhancing employees' skills and knowledge, which in turn fosters improved working attitudes and behaviors, ultimately leading to increased sales performance and profitability for the business (Lancaster & Milia, 2014).
Employee surveys revealed significant insights, with 58.33% of Ky Hoa staff indicating that training and development plans are not personalized for their needs While the programs are well-structured, employees perceive them as burdensome assignments Additionally, many staff members expressed that the lack of interactivity in self-development courses diminishes their interest in participating.
This thesis recognizes the significance of employee perception in evaluating the effectiveness of training programs, as highlighted by Sahinidis and Bouris (2008) Regardless of a company's investment in training and development, employee perceptions play a crucial role in determining outcomes Effectively designed programs can enhance employees' skills, motivation, and overall satisfaction within the organization.
Job satisfaction, as defined by Statt (2004), refers to the intrinsic value that employees derive from their work, encompassing both physical and spiritual rewards This satisfaction serves as a motivation for employees to complete their tasks and remain engaged in their roles Kaliski (2007) highlights that job satisfaction stems from a sense of accomplishment, which may include job promotions, higher wages, power, authority, or recognition Various factors influence job satisfaction, which can be categorized into hygiene factors, such as company policies and supervision, and motivators, including achievements, responsibility, and growth, as identified by Herzberg (1976).
The employee questionnaire focused on five key elements: working conditions, salary and promotion opportunities, work relationships, skills and abilities, and job activities Results revealed that the majority of employees expressed satisfaction with their work location and compensation for vacation and sick leave, although 8.33% of respondents reported dissatisfaction with their experience in these areas.
In the Ky Hoa transaction office, working conditions are increasingly regarded as a key factor influencing job satisfaction, as highlighted by Spicer (2010).
The survey revealed significant employee dissatisfaction regarding salaries and promotion opportunities, with 16.67% of staff expressing dissatisfaction with their pay and 50% believing they have limited chances for advancement Additionally, benefits such as insurance and membership in special clubs failed to meet employee expectations The findings also highlighted a strong demand for recognition and reward systems for employee achievements.
Maintaining harmony in the workplace is essential for fostering positive relationships among co-workers and supervisors At Ky Hoa, staff generally hold neutral views on their work relationships, highlighting the significance of social interactions in enhancing job satisfaction However, approximately 41.67% of employees express dissatisfaction with their supervisors and other divisions, indicating that negative relationships can lead to a lack of harmony and weaken organizational strength (Koys, 2001).
Job satisfaction is significantly influenced by employees' perceptions of their opportunities to develop and utilize their skills, which they associate with potential promotions and higher salaries However, a notable 41.67% of employees expressed disappointment regarding their chances to learn new skills and effectively use their talents within the organization.
A significant 58.33% of staff reported receiving inadequate training and development opportunities Additionally, Mr Dai highlighted a concerning trend of increasing absenteeism rates in voluntary training programs each year Based on the analysis of interviews and survey results, it appears that employee job satisfaction at Ky Hoa Transaction Office is a pressing issue.
Causes and Effects chart of real problem: Low job satisfaction in Ky Hoa
Cause and Effect Map of employee’s job dissatisfaction
Table 1 Cause and Effect map
The cause and effect map highlights the issue of employee job dissatisfaction at the Ky Hoa transaction office, identifying various potential causes and their impacts This analysis serves as a foundation for developing effective solutions to address the problem, which is recognized as a significant concern within the organization.
According to literature review, some causes which are training and development opportunity, salary, compensation, and benefits, job security and promotion opportunity,
Employee’s job dissatisfaction in Ky Hoa transaction office
Job security and promotion opportunity
(Juan Pablo, Yolanda, & Fco Javier, 2006)
Relationships with other employees and supervisors
According to Dotan (2007), relationships among employees and supervisors significantly impact job satisfaction, a challenge currently faced by the Ky Hoa Transaction office Mr Dai and Mrs Uyen acknowledged that addressing these relationship issues is crucial for maintaining quality and service within the office.
In 2015, Sacombank's human resources identified the critical role of relationships between staff and supervisors across all branches through balanced scorecard assessments This highlighted that interpersonal relationships are a significant factor influencing employee satisfaction Understanding these key issues is essential for developing effective solutions Consequently, targeted programs and plans will be implemented to enhance employee satisfaction at the Ky Hoa Transaction office.
ALTERNATIVES ANALYSIS AND POSSIBLE SOLUTIONS
Justify the importance of the causes
Every employee is a unique individual, and the factors negatively impacting them in the workplace can vary significantly Issues such as a poor job fit, lack of necessary skills, substance abuse, extreme job dissatisfaction, ineffective management, or a weak work ethic can all contribute to low productivity Additionally, some employees may engage in fraud or theft To enhance workforce effectiveness, organizations must identify the underlying causes of these behaviors and their relationship to productivity, enabling them to develop targeted strategies for improvement.
Ineffective management practices can significantly reduce a company's productivity by creating inefficiencies in overall strategy When managers fail to identify and implement the most productive methods for task completion, individual employees struggle under poor leadership Lacking proper coaching and the freedom to excel, these employees are unable to reach their full potential Additionally, when employees feel unrecognized by their superiors, their motivation to perform at their highest capacity diminishes.
Many companies still rely on outdated methods that hinder productivity, such as manual data collection For instance, a company using automated software for data tracking will outperform another that collects data by hand, as manual processes limit employee efficiency By automating and streamlining their operations, companies can significantly enhance productivity and reduce the workload on their employees.
Dissatisfied employees tend to be unproductive, whereas passionate and happy employees effectively complete their tasks People naturally prioritize tasks they enjoy, so an employee who loves their job is more likely to focus on work rather than distractions like chatting or daydreaming Hiring the right person for the job fosters employee satisfaction, leading to a happier workforce and increased productivity for the company.
Employees facing personal issues tend to exhibit lower productivity compared to their unaffected peers, with poor health and stress being significant contributors to this decline High absenteeism rates often accompany these challenges To address this, companies can offer on-site counseling services to alleviate stress and assist employees in resolving personal issues that impact their work performance Additionally, organizations should encourage employees to utilize sick leave when necessary, as neglecting their health can lead to more serious consequences, including the risk of spreading illness to colleagues.
The employees in an organization are the most valuable asset to the organization
Motivating and engaging employees is essential for fostering a productive workforce While some individuals consistently perform at their best without external incentives, others may require occasional encouragement to boost their productivity By effectively addressing these needs, organizations can enhance employee morale and achieve higher levels of productivity.
Solution 1: Increasing employee motivation by improving workplace harmony
Motivating employees to achieve optimal performance is not a one-size-fits-all approach; each individual in an organization may face unique challenges and exhibit different attitudes toward their work To enhance employee performance, it is essential to understand each employee's strengths and desires Once this understanding is established, tailored solutions can be implemented effectively to foster a motivated and high-performing workforce.
To enhance collaboration among all employees, including managers, Ky Hoa transaction office should appoint the most proactive individual as the event leader This leader will establish a club or event organizing team, which will receive compensation to motivate effective performance The primary responsibilities of this club will include planning and executing successful events.
Encourage employees all the time before, during, and after the work Promote fun and happiness at the workplace
Starting the workday with a favorite or popular song can significantly boost motivation, especially during lunch breaks or on special occasions like birthdays Additionally, sending entertaining emails to staff on quieter workdays can enhance morale; these could include fun stories, engaging videos, self-help articles, or inspiring success stories of notable individuals.
Recognize and reward by informal ways
Giving recognition and reward for employees’ achievement by informal ways such as informal appraisals from co-workers and managers, small party in lunchtime or after work
Confidential conversation between managers and employees
Allowing employees to privately express their concerns to supervisors is essential for effective problem-solving This can take place in a meeting room or outside the office, ensuring a comfortable environment for open dialogue It is crucial to maintain confidentiality during these conversations to foster trust and encourage honest communication.
Solution 2: Increasing employees’ professional skills and career development through
To enhance employee satisfaction and performance, Sacombank must expand its training programs beyond just sales and technical staff, incorporating interpersonal skills such as communication and management By offering comprehensive learning opportunities, the company can provide valuable non-monetary compensation that addresses current low satisfaction levels These training initiatives will not only help employees master their current roles but also keep them updated with industry developments It is crucial for Sacombank to implement year-round training programs that align with both organizational goals and employee needs, fostering growth and adaptability within the workforce.
Implementing this solution necessitates significant attention from upper management, as it relies on the company's investment of time and resources in employee development Although the process of restructuring existing courses may be lengthy, it should be viewed as a long-term strategy that addresses the challenges faced by the Ky Hoa transaction office and supports other branches of the bank A successful implementation can enhance the bank's brand reputation and attract more customers To execute this solution effectively, managers at Ky Hoa should follow a structured approach.
- Firstly, scheduling more training workshops in Ky Hoa transaction office
Supporting employees through interactions with senior staff and managers is a highly effective learning approach in the banking sector Engaging lecturers from various branches and departments enhances the workshops, ensuring they capture the attention of all staff members.
Trainees Times of training class Trainers Content
Experts in the banking industry in Vietnam
Experts in the banking industry in Vietnam
Managers, supervisors, outsource trainers Experiences, soft skills, supporting documents
To enhance employee development, directors should prioritize updating training and self-learning programs regularly, ensuring the library is frequently refreshed with relevant news and documents tailored for all employee levels, from junior to senior A well-structured training program is essential, encompassing initial onboarding for new hires, skill development for all staff, and advanced training for supervisors and managers Implementing a robust learning and training policy not only boosts job satisfaction but also positively influences productivity and overall business performance.
Solution 3: Motivating employee by a better performance and reward system
Bonus and commission plans are essential incentive compensation strategies for companies, designed to motivate employees, attract talent, and retain a skilled workforce However, creating an effective compensation plan poses significant challenges, such as finding the right balance between base pay and commission, and determining if a commission-only structure suits the entire organization To develop a successful system, companies should conduct employee surveys to identify valued incentives, clearly communicate how the incentive structure operates and the performance levels required, and regularly check in with staff to gauge satisfaction with the plan Additionally, exit interviews can provide insights into whether the incentive program influences employees' decisions to leave, while seeking advice from upper management can help assess the effectiveness of the implemented plan.
Table 5: Step to build up a better performance and reward system
How the employees would value How the incentive work
What level of job performance to be beneficial
Check the plan regularly How employees satisfy on the plan
Advice from upper-management How the applied plan is working on
Motivating employees to achieve optimal performance is not a one-size-fits-all approach; it requires an understanding of individual needs and a tailored performance system To enhance employee performance, it is essential to implement a variety of strategies that cater to diverse motivations and work styles Here are some general recommendations for developing an effective performance system that drives results.
Encourage employees all the time before, during and after the work
Recognize and reward a job well done
Effective leadership hinges on understanding the importance of employee recognition and engagement Leaders should actively create opportunities to acknowledge employee contributions, as even a modest increase in monthly income can significantly boost employee satisfaction when recognized by supervisors (Dotan, 2005) The value of acknowledgment is substantial, as the cost of increased paychecks is relatively low compared to the positive impact on morale Employee commitment serves as a crucial foundation for management to develop long-term strategies centered on timely and authentic recognition Therefore, managers must prioritize reward systems to enhance the quality of employee contributions.
At Sacombank's Ky Hoa transaction office, employees prioritize a competitive rewards package as recognition for their contributions To address this, management should research industry income ranges to ensure their offerings are attractive Currently, Sacombank's policies fall short compared to other banks in Ho Chi Minh City regarding incentives, allowances, financial rewards, bonuses, and holiday activities Therefore, it is essential to enhance these packages to better meet employee expectations and improve overall satisfaction.
Employees can be rewarded flexibly through various means, such as recognition during meetings, personalized thank-you letters, or internal awards like Employee of the Month Sharing outstanding employee stories across the company fosters a culture of appreciation Timely and appropriate recognition serves as a powerful motivator, encouraging employees to enhance their contributions to the organization.
Recognizing employee achievements, both small and large, is essential for motivation and loyalty Simple acknowledgments like "great job" or "thank you" can effectively reward minor accomplishments without the need for elaborate ceremonies For significant achievements, practical rewards such as holiday trips, health insurance, bonuses, or training opportunities are crucial Providing desired training, like English classes, not only enhances employees' skills but also fosters loyalty to the company By implementing a balanced reward system that includes both monetary and non-monetary incentives, managers can boost employee motivation and ultimately benefit the organization.
SUPPORTING INFORMATION
Questionnaires of employees’ satisfaction
A STUDY OF JOB SATISFACTION IN KY HOA TRANSACTION OFFICE
Using the scale shown below, rate your level of satisfaction with the following aspects of your job
1=Highly dissatisfied, 2=Dissatisfied, 3=Somewhat satisfied, 4=Satisfied, 5=Highly satisfied
1b Paid amount for vacation or sick leave
2c Benefit package (Insurances, club member…)
4b Skills and talents fully utilizing
4c Suitable training and education development
5b Job content as previously described
Using the scale shown below, rate your level of satisfaction with the following aspects of your job
Paid amount for vacation or sick leave 8.33% 25.00% 33.33% 16.67% 16.67%
Skills and talents fully utilizing 16.67% 25.00% 25.00% 16.67% 16.67%
Suitable training and education development 25.00% 33.33% 25.00% 8.33% 8.33%
Job content as previously described 8.33% 16.67% 33.33% 25.00% 16.67%
Customers’ interviews
The question list of customers’ interviews as below:
- How long have you used Sacombank services? How many transaction do you make monthly (at Ky Hoa)?
- Have you been satisfied for every transactions/services you made at Ky Hoa transaction office?
- Do you think our staffs (in Ky Hoa) are helpful to you? If not, please advise the reason
- How long does it usually take for your simple transaction (deposit/withdraw/payment)? Would you like to recommend your family members or your friends to use Ky Hoa services?
Table 4 Result of Customer interview
Question/Customer Customer 1 Customer 2 Customer 3
How long have you used Sacombank services? How many transaction do you make monthly (at Ky
4 years already I’m making about 10 transactions monthly
Only 2 years I mostly use ATM for withdrawing money so only makes about
About 3 years I come to Ky Hoa office once or twice a week
Have you been satisfied for every transactions or services you made at
I’m okay Some of them were done slowly so I had to wait
Not really, but it’s quite okay
Sometimes not, I had to go to another office!
Do you think our staffs
(in Ky Hoa) are helpful to you? If not, please advise the reason
I don’t really think that but they are doing not too bad
Yes However, they made mistakes sometimes! It wasted my time
No, some of them were slow
How long does it usually take for your simple transaction
Would you like to recommend your family members or your friends to use Ky Hoa services?
How long have you used Sacombank services? How many transaction do you make monthly (at Ky
1 year I got my loan from Sacombank so
I just come there once a month for making payment
Ky Hoa office every week
Have you been satisfied for every transactions or services you made at
Do you think our staffs
(in Ky Hoa) are helpful to you? If not, please advise the reason
Sometimes they made me wait for hour and tell me they cannot solve it
How long does it usually take for your simple transaction
About 15 minutes 15 minutes or longer
Would you like to recommend your family members or your friends to use Ky Hoa services?
Manager’ interviews
The Q&A interviews with Ky Hoa transaction office managers and branch manager:
Mr Dai – Ky Hoa’s deputy manager
- As a deputy manager of Ky Hoa’s transaction office, how do you think about its performance?
From 2014 to mid-2015, our performance has been satisfactory; however, the disparity between borrowing and lending remains greater than anticipated This issue may be attributed to a slowdown in economic activity and credit growth Compared to other offices in the region, I have concerns about our overall performance.
- Do you think your employees are getting their desires at work? How is longest working time of the most senior staff in your office?
The current satisfaction levels among employees in the office appear to be low, as indicated by the HR department's report on rising turnover rates and absenteeism Notably, the longest-serving employee has been with us for just two years, highlighting a significant issue with employee retention in this transactional office.
Mrs Uyen – HR branch manager
- I got your reports for high turnover rate and absenteeism of Ky Hoa’s transaction office How do you think about it?
The slowdown in banking jobs in Vietnam is not perceived as a major issue; however, it is essential to keep the rate within a manageable range I recommend that the board develop a plan to further investigate the transactions at Ky Hoa's office.
- I did a questionnaire for employees’ satisfaction The result showed a problem of job dissatisfaction Can you explain what is happening in this office?
Our preliminary investigation indicates a significant issue with job satisfaction within the office, as the current data suggests that employees may feel undervalued and believe they are not receiving adequate compensation or recognition from the company.
- Does job satisfaction affect to the performance? Can it be a reason of our low profitability?
Job satisfaction is crucial for organizational success, as employees who are not satisfied are less likely to be committed to the company's future For instance, if an employee earning five million is unhappy in their current role, the prospect of a six million offer from a nearby competitor can lead to a quick decision to leave This scenario illustrates why turnover rates are on the rise in many organizations.
Recruiting new personnel is essential to ensure that each position is filled effectively, which incurs significant costs such as advertising, management time, and training expenses These recruitment costs, along with the potential loss of sales and customers, can greatly impact our overall profitability.
- Do you think the company providing enough and good training to our staffs?
Yes I believe that Sacombank invested lots of money for those training programs The staffs can even study online themselves
Research indicates that the staff at Ky Hoa express a lack of interest in the current educational programs, with some stating that the courses do not meet their specific needs What are your thoughts on this situation?
A small group may only represent a limited perspective within our team If they express this view, it suggests that their managers may not be providing effective coaching It is essential for the managers and staff at Ky Hoa to collaborate in order to identify a more effective approach.
Are our bank's compensation and benefits competitive enough to retain staff? With a high turnover rate and increased absenteeism, it raises questions about whether our current budget is sufficient to motivate employees effectively.
We offer competitive salaries that align with industry standards, suggesting that employees who are passionate about their roles and the company may not need to seek new opportunities However, it's important to recognize that increased compensation and benefits can significantly enhance job satisfaction among employees.
The results of the focus group interview to justify the main causes
To understand the factors contributing to low staff engagement at the Ky Hoa Transaction office, a mini focal point group was formed, consisting of five selected personnel Three of these staff members were chosen for their valuable experience and current key roles, enabling them to provide significant insights to the team.
1 What do you suppose “Reward and Performance system of our company” affect the level of worker engagement? Please give some more elements of your opinion
2 What do you assume “Training and profession job promotion” affect the degree of employee engagement? Please explain extra detail of your opinion
3 What do you think “Working environment” affect the stage of worker engagement? Explain more details your opinions
4 What do you suppose “Perceived organizational and managerial level support” have an effect on the level of employee engagement? Please explain more detail your opinion
5 What do you assume “Job Characteristic” affect the stage of employee engagement? Explain extra element your opinion
6 Which elements have an effect on the level of low worker engagements that no longer listing in this discussion?
7 Please arrange the factor that have an effect on the level of low worker engagement according to the level of importance, give element provide an explanation for your choice?
8 What do you think about any contributions to decorate the stage of low employee engagement in Ky Hoa Transaction Office?
1 What do you suppose “Reward and Performance system of our company” affect the level of worker engagement? Please give some more elements of your opinion
Ky Hoa's transaction office has faced disappointing business results, prompting the implementation of policies aimed at reducing bonuses and minimizing salaries These changes have negatively affected employee satisfaction, leading many to leave the bank.
Income and financial gains are essential motivators for employees to perform at their best If a company fails to meet my financial needs, I would consider seeking opportunities elsewhere Although I may continue to work there, my level of engagement and commitment would diminish significantly.
In my opinion, the perceived value of pay is crucial for an organization and varies among employees A key factor in employee satisfaction is competitive salary offerings, as individuals often seek better compensation from rival companies Therefore, it is essential for organizations to provide attractive benefits to retain talent.
To retain employees and encourage them to invest more effort into their work, it is essential to offer suitable reward packages that reflect their exceptional performance If these incentives are not provided, employees may seek opportunities elsewhere, especially if higher offers are available Focusing on rewarding results will help align their efforts with the company's goals.
2 What do you assume “Training and profession job promotion” affect the degree of employee engagement? Please explain extra detail of your opinion
Yes I think that career development is important for employees after few years of working In my case, just wanted to work for a company, where I can use my
Yes If employee’s profession developed with the bank development, the worker will locate the engagement with that place I am appreciating the enterprise that spends
Yes, the financial institution wishes to improve learning opportunity for their staff, so they can follow extra new understanding have true salary
I focus on enhancing opportunities for promoting growth by training employees to strengthen their skills and perform effectively Through educational programs, I aim to improve my capabilities while ensuring customer retention In turn, this allows employees to explore new abilities and pursue their career paths.
3 What do you think “Working environment” affect the stage of worker engagement?
Explain more details your opinions
I desire a creative and flexible role within my job scope Currently, in my bank, major clients primarily communicate with my supervisor However, I look forward to having opportunities for direct communication with them to enhance collaboration and service.
In a professional setting, managers empower employees to perform their roles effectively and engage directly with major clients when they have confidence in their skills and capabilities Trust among team members is essential for fostering a productive and successful work environment.
No ideas them to show my ability I do no longer desire to do everything my manager requires
Besides, taking responsible for very own choice with assist and worker increase belonging feeling to the bank relationship
4 What do you suppose “Perceived organizational and managerial level support” have an effect on the level of employee engagement? Please explain more detail your opinion
Yes I suppose if the employee receive help from organization, especially from their manager, is proved that their supervisor take care of their employees Timely manager’s focuses on workers
Employee engagement is significantly impacted by guidance from supervisors and collaboration with coworkers, as well as the organizational facilities available Currently, ACB is not satisfied with the outcomes achieved.
Yes Staff can't work without guide from colleague and manager I assume that advantageous relationship with them is very necessary That relationship is the
Conducting honest performance assessments brings me joy in my role, despite some managers still exhibiting bias Issues related to quality, parking facilities, and employer support remain unresolved, which hinders the creation of an ideal company reputation and impacts my motivation to go to work.
5 What do you assume “Job
Characteristic” affect the stage of employee engagement?
Explain extra element your opinion
In my view, staff prefers to understand what their jobs and responsibilities, and how the job is run
Job characteristics have affected the engagement with employees’ working
Job characteristics significantly impact my engagement A lack of understanding of client demands or clarity about my role and responsibilities can easily lead to mistakes Therefore, how I perform my job is crucial for success.
I do not suppose so, when employees practice for work, they might know about the job characteristic It may affect the job deciding on however no longer for engagement
6 Which elements have an effect on the level of low worker engagements that no longer listing in this discussion?
No comment No comment No comment
7 Please arrange the factor that have an effect on the level of low worker engagement according to the level of importance, give element provide an explanation for your choice?
-Perceived organizational and supervisor support
- Perceived organizational and supervisor support
- Perceived organizational and supervisor support
8 What do you think about any contributions to decorate the stage of low employee engagement in Ky
Provide advantage bundle for all staff, not solely for the experienced
Develop a training graph fit with character improvement plan
Support employees whilst they are becoming a member of the classification
Clear career path for every position
Let the center management stage in choice making process
Have an captivating income range
Succession planning for manageable sources
Clear job description and career course for all position Cash out bonus timely
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SOLUTION FOR CREDIT GROWTH IN KY HOA TRANS 1
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SOLUTION FOR CREDIT GROWTH IN KY HOA TRANS 2
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Appendix 1 Total Asset balance Sheet updated June in 2015 of Ky Hoa Transaction Office of Sacombank
NGAN HANG TMCP PHUONG NAM
TAI SAN CO 31/12/2014 30/06/2015 TAI SAN NO 31/12/2014 30/06/2015
1/ Cho vay cac T/chuc kinh te 655,637 674,692 1/ Von va cac loai quy
A.Ngan han 660,528 679,532 A Von dieu le
- Trong do : No Qua Han B Thang du von co phan
B Trung han - Dai Han 204 169 C.Co phieu quy
- Trong do : No Qua Han D Von khac
C Cac Khoan No Cho Xu Ly E Cac quy cua TCTD
D Du phong rui ro (5,095) (5,009) 2/ Tien gui cua khach hang 969,044 1,081,334
2/ Cho vay cac TCTD khac - Tien gui thanh toan 29,782 54,312
3/ Hun von, Mua Cp, Ldoanh - Tien gui tiet kiem VND 908,908 1,009,584
- Voi Cac To Chuc Kinh Te - Tien gui tiet kiem ng.te 30,354 17,439
- Voi Cac To Chuc Tin Dung - Chung chi huy dong vang
Cvon cho Cty truc thuoc - Tien gui ky quy
4/ Mua Ban TPKB, Chung khoan, CP - Giay to co gia
5/ Tien Gui O Nh Nha Nuoc 3/ Tien gui cua cac TCTD
6/ Tien Gui Tai Cac TCTD Khac 4/ Vay Ngan Hnag Nha Nuoc
7/ Cong cu tai chinh phat sinh 5/ Vay cac TCTD khac
8/ Von Uy Thac Dau Tu 6/ Von uy thac dau tu
9/ Ngan Phieu Thanh Toan 7/ Cac khoan no khac 13,546 17,062
10/ Tien Mat, Ngoai Te, Vang 2,771 2,826 8/ Du phong rui ro khac
- Tien Mat 2,166 2,249 9/ Cong cu tai chinh phat sinh
- Ngoai Te 605 577 10/ Chenh lech ty gia
- Chung tu Co G/tri Nte 11/ Chenh lech danh gia tai san
- Vang 12/ Lai/lo nam truoc
11/ Tai san co dinh 818 720 13/ Lai/lo nam nay 28,280 14,496
- Trong do: Nguyen gia Tscd 1,241 1,241
BANG TONG KET TAI SAN
Appendix 2 Financial Report updated June in 2015 of Ky Hoa Transaction Office of