COMPANY INTRODUCTION
General Information about Sacombank
Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) was established in
Established in 1991, Sacombank has become 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, reflecting its substantial financial strength With a network of 448 transaction offices, Sacombank serves a wide range of customers across major cities and rural areas, including Hanoi, Da Nang, Ho Chi Minh City, and 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 other reputable financial institutions, Sacombank has established itself as a trusted banking partner With approximately 13,000 employees, the bank's head office is situated in downtown Ho Chi Minh City, making it an increasingly popular choice for both businesses and individuals seeking reliable financial services.
A preliminary assessment of Sacombank's financial report, as shown in Appendix 2, was conducted to identify existing problems Key managers and employees participated in a survey, revealing insights beyond customer profiles and initial assessments (Sacombank, n.d.) The financial report indicated employee performance, highlighting a decrease in credit growth compared to the previous quarter Additionally, the gap between borrowing and lending has widened, despite Sacombank's strategies aimed at creating unique selling points to establish sustainable competitive advantages (Sacombank, n.d.) Although these advantages are notable, improvements in the sales team's performance and credit growth remain essential To gain a comprehensive understanding of these issues, a client survey was conducted for a 360-degree perspective (Sepehri & Akram-lodhi, 2005).
In addition, after several survey and deeply research with the clients or the supervisors,
The Ky Hoa Transaction Office has faced significant challenges, including low productivity and employee dissatisfaction, leading to underperformance in potential value and operational profit compared to industry benchmarks A recent client survey highlighted numerous issues, revealing that customer feedback is often undervalued, and overall service quality fails to meet standards Negative responses indicate that employee performance does not meet expectations, with work quality reflecting these shortcomings Furthermore, the benchmarks for measuring employee performance appear to be inadequate, resulting in prolonged work durations and lower than average commitment levels These insights are based on interviews with the chief operational officers of Sacombank.
Researching employee performance reveals its critical role in generating bank revenue through strategic management and professional services (Tu, Ha & Yen, 2015) This issue is particularly significant in Vietnam's competitive and dynamic economy, where it greatly influences sustainable growth (Chinh & Anh, 2008) Therefore, I aim to conduct research on this topic.
To enhance the effectiveness of the Ky Hoa Transaction Office, it is essential to assess employee performance, as productive employees are crucial to the success of any banking system By evaluating their performance levels, we can better understand and improve the overall work environment.
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 profits in the era of globalization In Vietnam, this has become a fundamental element for banks striving to meet their objectives, supported by the encouragement of 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, situated in a bustling area of Ho Chi Minh City, has experienced significant growth over the years but now faces challenges, particularly low employee performance in its credit department This decline in performance poses a serious threat to future growth and undermines employee commitment This paper aims to address these issues by evaluating current staff performance and identifying existing problems, with the goal of enhancing banking services at the Ky Hoa Transaction Office of Sacombank.
This thesis aims to identify solutions for enhancing employee engagement at the Ky Hoa Transaction Office It involves collecting and analyzing data to determine the root causes of low engagement, which include company policies, career development, and the working environment Based on these findings, potential strategies to improve employee commitment will be developed and proposed to the office for effective implementation The research will utilize qualitative methods such as interviews and surveys with managers and employees, alongside relevant journal articles and theories, to pinpoint key issues and optimal solutions.
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 indicates how effectively a company is meeting 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, also known as turnover, refers to the number of individuals who exit an organization within a specific timeframe due to various reasons such as retirement, redundancy, or resignation (Secord, 2003) Muller-Camen et al (2008) define turnover as the count of employees leaving during a designated period Organizations aim to minimize turnover rates, particularly for high-performing employees who have gained from the company's training initiatives.
High employee turnover can present opportunities for promotion and career development, but it also risks compromising the quality of products and services offered to customers (Baum, 2006) Organizations must address staff attrition, as replacing employees incurs significant costs, including recruitment and administrative expenses Additionally, existing employees may face increased pressure to meet targets during the transition, which can negatively impact morale and productivity To mitigate high turnover rates, HR managers should focus on employee retention strategies, ensuring a stable workforce in a competitive market.
Furthermore, HR department reports also demonstrated the increasing of turnover rate in
In the Ky Hoa office, the turnover rate surged to 33% in the first half of 2015, significantly exceeding the 25% rate recorded in 2014 According to Mr Dai, the deputy manager of the Ky Hoa Transaction Office, this alarming increase poses a serious challenge for the relatively small office.
Total of Employees who Left 3 4
The high turnover ratio of this top branch significantly contributes to Sacombank's profitability, especially considering that it surpasses the average turnover ratio observed in the first half of the year.
In 2014, the employee turnover ratio reached approximately 25%, highlighting a concerning trend over nearly two years Research indicates that high turnover rates can lead to negative impacts within organizations, including decreased productivity, increased recruitment and training costs, and diminished future performance Consequently, a consistently high turnover ratio 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 the Ly Thai To Branch, Mr Le Van Houl, has highlighted a concerning trend: the decline of Ky Hoa in recent years, which should raise alarms for the transaction office.
The Ky Hoa Transaction Office, a key component of the Ly Thai To Branch, demonstrates comparatively lower profit generation than similar transaction offices under its management, as illustrated 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 generating profit, despite overall business growth Over the past two years, profit at Ky Hoa has declined from 29 billion to 21 billion, falling short of the market average This decline is attributed to significant workplace issues that may be impacting profitability.
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 causes of the observed symptoms, the writer is examining various studies and research to clarify why these issues occur A primary reason identified is a lack of skills, which can stem from internal processes and human factors Additionally, potential problems may originate from the individual, encompassing both technical and relational aspects Furthermore, deficiencies in technical skills can lead to recruitment challenges (Matly & West).
In assessing an employee's potential for skill acquisition, it is crucial to evaluate both the available time and the individual's capacity for learning The decision to invest in additional training should consider the company's prior investment and the employee's ability to absorb new skills effectively.
Employee interviews reveal a lack of confidence in their job capabilities, unclear task expectations, and an overwhelming workload for a single individual This underscores the necessity for comprehensive training to ensure they can perform their duties effectively.
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 attention, stemming from both technical and relational issues A lack of technical skills may indicate underlying recruitment problems (Matly & West, 2005) It is essential to assess whether employees have the time and capacity to acquire the necessary skills The effectiveness of additional training will largely depend on the company's investment in employee development and the individual's ability to learn new competencies (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 enhance the quality of their workforce, banks must establish a robust training system and a rigorous recruitment process, which are essential for attracting high-caliber candidates (Juan Pablo et al., 2006) Additionally, a supportive workplace environment can alleviate employee stress, enabling better performance Implementing beneficial policies for employees serves as a motivation for them to excel; without such measures, productivity tends to decline A poorly functioning operational system is a significant factor contributing to low productivity (Yong-Ki et al., 2006).
2.3.2 The second potential problem: Low satisfaction in salary, compensation, and
The third potential problem: Low satisfaction in job security and promotion
While salary is a significant factor in job satisfaction, it is not the sole reason employees feel fulfilled Chaita (2014) suggests that high salaries and attractive compensation packages may provide short-term satisfaction, but individuals ultimately seek opportunities for career development This focus on growth and recognition fosters a sense of security and achievement, leading to greater overall job satisfaction.
In the past, banking jobs were highly sought after and offered attractive salaries, leading many individuals to pursue careers in this field for promising professional growth However, with the recent slowdown in the global economy, numerous banks are grappling with insolvency risks and workforce reductions, resulting in increased stress and uncertainty for bankers regarding their future career prospects.
The fourth potential problem: Low satisfaction in relationships with other
Employee job dissatisfaction often stems from ineffective communication and low-quality relationships among colleagues and between managers and staff According to Dotan (2007), fostering positive workplace relationships enhances comfort, support, and security for employees Research by Lee & Ok (2011) highlights that friendships at work lead to greater trust and effectiveness among team members Additionally, improved communication within the workplace is linked to reduced turnover rates and absenteeism, benefiting overall organizational health.
The real problem: Low job satisfaction
The Ky Hoa transaction office has faced significant challenges, primarily characterized by low employee satisfaction, which adversely affects operational efficiency across various divisions and increases pressure on the human resources department Analysis of potential issues reveals that employee performance is heavily influenced by training and development policies Research indicates a negative correlation between job satisfaction and employee turnover, suggesting that enhancing job satisfaction can effectively lower turnover rates Additionally, studies demonstrate that job satisfaction impacts sales performance, ultimately affecting profitability Furthermore, there is a strong link between job satisfaction and customer satisfaction, significantly influenced by managerial support In summary, key factors contributing to employee dissatisfaction include inadequate training programs, unsatisfactory salary structures, unclear promotion policies, and poor communication from management.
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, while poor employee engagement can negatively impact customer satisfaction and company profitability Additionally, these challenges can lead to higher turnover rates and increased absenteeism within the organization.
Low profitability is a key indicator of job dissatisfaction among bankers, as productivity and profit are closely linked The human resource in banking is crucial for delivering quality services (Pablo, Yolanda, & Javier, 2006) When performance levels are low, the bank's profit margins suffer significantly, leading to operational challenges Consequently, banks must carefully reassess their strategic goals and, in some instances, adjust their plans to foster growth during challenging periods.
Low productivity in the workplace is often linked to a lack of motivation among employees, leading to higher absenteeism and turnover rates, particularly in banking sectors (Pablo et al., 2006) Unmotivated workers may frequently take sick days, undervaluing their roles and responsibilities Additionally, elevated operating costs, classified as fixed expenses in banking systems, can exacerbate management costs and negatively impact the quality of services offered These increased costs can significantly diminish overall income results (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 workers seek new job opportunities or accept offers from competitors This turnover not only results in mistakes and low productivity but can also prompt layoffs as companies attempt to cut costs However, such layoffs often leave remaining employees with low morale due to lost relationships and job insecurity Ultimately, the expenses associated with training new staff typically exceed the costs of retaining existing employees.
Verifying the existence of real problem: Low job satisfaction in Sacombank
Mrs Uyen emphasized that Sacombank offers exceptional training and development programs for both junior and senior employees, which include on-the-job training and personalized self-development plans To ensure that staff maintain up-to-date professional skills, employees are required to pass Sacombank's banking skills tests on a quarterly and yearly basis Research highlights the significance of organizational support in enhancing employees' skills and knowledge, which in turn fosters improved work attitudes and behaviors, ultimately boosting the organization's sales performance and profitability (Lancaster & Milia, 2014).
Employee surveys revealed significant insights, with 58.33% of Ky Hoa staff expressing that the training and development plans do not feel personalized While the program is fundamentally beneficial, many employees perceive it as an overwhelming burden Additionally, some staff noted that the majority of self-development courses lack interactivity, leading to decreased engagement and interest in the programs.
This thesis highlights the significance of employee perception regarding the effectiveness of training programs, as noted by Sahinidis and Bouris (2008) Regardless of the company's investment in training and development, employee perception plays a crucial role in determining the 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 tasks and remain engaged in their jobs Kaliski (2007) emphasizes that job satisfaction is also linked to employees' sense of accomplishment, which can manifest through promotions, increased wages, authority, and recognition Various factors contribute to job satisfaction, which can be categorized into hygiene factors, such as company policies and supervision, and motivators, including achievements, responsibility, and opportunities for growth.
The writer conducted an employee questionnaire focusing on five key elements: working conditions, salary and promotion opportunities, work relationships, skills and abilities, and job activities The results revealed that a majority of employees expressed satisfaction with their work.
20 location, paid amount for vacation/sick leave while 8.33% of responses felt dissatisfied with Ky Hoa’s working conditions Besides, working conditions also affect to employee’s motivation.
While working conditions are often considered a significant factor in job satisfaction, they are not the primary concern at the Ky Hoa transaction office, as highlighted by Spicer (2010).
A recent survey revealed significant employee dissatisfaction regarding salaries and promotion opportunities, with 16.67% expressing dissatisfaction with their pay and 50% feeling they had limited chances for advancement at Ky Hoa Additionally, employees reported dissatisfaction with company benefits, such as insurance and membership in special clubs The findings highlight a strong demand for improved recognition and reward systems for employee achievements.
Maintaining harmony in the workplace hinges on fostering positive relationships among co-workers and supervisors At Ky Hoa, staff generally hold neutral views regarding their work relationships, highlighting the significant impact of social interactions on job satisfaction However, approximately 41.67% of employees express dissatisfaction with their supervisors and other divisions, which can lead to a lack of harmony and ultimately weaken organizational effectiveness (Koys, 2001).
Job satisfaction significantly hinges on employees' perceptions of their opportunities to develop and utilize their skills Many believe that possessing specialized skills enhances their chances for promotions and higher salaries However, a notable percentage of employees (41.67%) expressed disappointment regarding their opportunities to learn new skills and effectively use their talents within the organization.
Significantly, 58.33% staffs responded that they were receiving unsuitable training and education development Furthermore, Mr Dai stated that the absenteeism rates in voluntary training programs
27 were noticeable and increasing every year After evaluating interviews and surveys results, the write considered that job satisfaction of Ky Hoa’s employees might be one of current problems at
Employee’s job dissatisfaction in Ky Hoa transaction office Decrease in profit index
Job security and promotion opportunity
(Juan Pablo, Yolanda, & Fco Javier, 2006)
Relationships with other employees and supervisors (Dotan, 2007)
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 contributing factors and their impacts This analysis serves as a foundation for developing effective solutions to address the problem, emphasizing that low job satisfaction is a significant concern within the organization.
A literature review identifies several factors influencing employee job satisfaction at the Ky Hoa Transaction office, including training and development opportunities, salary and compensation, benefits, job security, promotion prospects, and relationships with colleagues and supervisors Mr Dai and Mrs Uyen acknowledge that addressing these challenges is essential for maintaining the quality of service within the office.
In 2015, Sacombank identified the critical role of relationships between staff and supervisors across its branches through balanced scorecard assessments, highlighting that these interpersonal connections are significant factors affecting overall performance Recognizing these key issues is essential for addressing challenges effectively Subsequently, the article will outline programs and plans aimed at enhancing 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 may stem from a poor job fit, lack of necessary skills, substance abuse, extreme job dissatisfaction, challenges with management, or a weak work ethic Additionally, some employees may engage in fraud or theft To enhance productivity, organizations must identify the root causes of these behaviors and develop strategies to improve their workforce.
Ineffective management practices can significantly decrease 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 Without proper coaching and the freedom to reach their full potential, employees are unable to maximize their output Additionally, when employees feel unrecognized by their superiors, their motivation to perform at full capacity diminishes.
Outdated methods can hinder a company's productivity, as seen when one organization uses automated software for data tracking while another relies on manual collection The latter's productivity suffers significantly since employees are limited in their capacity to perform other tasks By automating and streamlining processes, companies can enhance productivity and reduce the workload on employees, leading to more efficient task completion.
Dissatisfied employees tend to be unproductive, while passionate and happy employees excel in their work Individuals naturally prioritize tasks they enjoy, meaning that those who love their jobs focus on their responsibilities rather than distractions like chatting or daydreaming Hiring the right person for the job is crucial, as it fosters employee satisfaction and contributes to a more productive company.
Employees facing personal issues tend to exhibit lower productivity compared to their peers Specifically, factors such as poor health and stress significantly impact productivity levels and contribute to increased absenteeism To mitigate these effects, companies can offer on-site counseling services to help employees manage stress and resolve personal challenges that hinder their work performance Additionally, organizations should encourage employees to utilize sick leave when necessary, as coming to work while unwell can exacerbate their condition and pose health risks to others.
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 naturally perform at their best without external incentives, others may require occasional encouragement to boost their performance By effectively addressing these needs, organizations can enhance employee morale and significantly improve overall productivity.
Solution 1: Increasing employee motivation by improving workplace harmony
Motivating employees for optimal performance is not a one-size-fits-all approach, as individuals within the same organization may face unique challenges and exhibit varying attitudes towards their work Understanding each employee's strengths and desires is crucial for fostering their potential Once this insight is gained, effective solutions can be implemented to enhance their performance and satisfaction in the workplace.
To enhance collaboration among all employees, including managers, the 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 organizers in their roles The primary responsibilities of this club will include planning and executing engaging events.
• Encourage employees all the time before, during, and after the work Promote fun and happiness at the workplace.
Incorporating a favorite song at the start of the workday, during lunch, or on special occasions like birthdays can significantly boost workplace inspiration and morale Additionally, sending entertaining emails featuring fun stories, videos, self-help articles, or success stories can engage employees during quieter workdays, fostering a positive and motivating work environment.
• 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
Offering employees a private platform to express their concerns allows supervisors to address issues effectively This can take place in a confidential setting, such as a meeting room or outside the office, ensuring that discussions remain discreet and secure.
Solution 2: Increasing employees’ profession al skills and career development through
To enhance employee satisfaction and performance, Sacombank should implement comprehensive training programs that extend beyond just sales and technical skills By focusing on interpersonal skills such as communication and management, the company can provide valuable non-monetary compensation that addresses the current low satisfaction levels among staff These training initiatives will not only help employees master their current roles but also keep them updated with industry developments Developing year-round training programs is essential for meeting the evolving needs of both the organization and its employees, fostering a better working environment, cultivating skilled personnel, and driving profitable business activities.
This solution necessitates increased focus from upper management, as it relies on the company's investment of time and resources in employee development While restructuring previous courses may be time-consuming, it should be viewed as a long-term strategy that addresses the challenges faced by the Ky Hoa transaction office and benefits other branches of the bank Successful implementation can enhance the bank's brand and attract more customers To execute this solution effectively, Ky Hoa's managers should follow a series of strategic steps.
- Firstly, scheduling more training workshops in Ky Hoa transaction office
Supporting employees through interaction with senior staff and managers is a highly effective learning strategy in the banking sector Engaging lecturers from various branches and departments can enhance the workshops, ensuring a comprehensive learning experience It is essential for all staff members to actively participate and focus during these sessions to maximize their benefits.
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 The library of resources must be frequently refreshed with relevant news and documents, catering to all employee levels from junior to senior An effective training program should be well-structured and meaningful, incorporating initial training 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 impacts productivity and overall business performance.
Solution 3: Motivating employee by a better performance and reward system
Bonus and commission plans are essential incentive compensation tools used by companies to motivate employees, attract talent, and retain a skilled workforce However, creating an effective compensation plan poses significant challenges, particularly in balancing base pay with commission structures and determining if a commission-only model 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 outline the performance levels required for benefits Regular check-ins with staff during implementation are crucial to assess satisfaction, and exit interviews should be conducted to understand if the incentive program influenced any departures Finally, seeking advice from upper management can provide insights into the effectiveness of the compensation 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 straightforward science, as there is no one-size-fits-all approach Understanding each employee's unique strengths and needs is essential for developing an effective performance system Here are some general recommendations to enhance your performance management strategy.
• Encourage employees all the time before, during and after the work.
• Recognize and reward a job well done.
Leaders and managers must understand the crucial role of employee recognition in enhancing job engagement By consistently creating opportunities to acknowledge employee contributions, they can significantly boost satisfaction, especially when monthly income shows even a slight increase The impact of recognition from supervisors on employee morale is profound, highlighting the immense value of acknowledgment in the workplace (Dotan, 2005).
Investing in employee recognition is a cost-effective strategy that significantly enhances commitment and performance By prioritizing rewards, managers can establish a strong foundation for long-term strategies that are timely and authentic This approach not only improves the quality of employee contributions but also fosters a motivated workforce, ultimately driving organizational success.
At Sacombank's Ky Hoa transaction office, employees prioritize a competitive rewards package that reflects their contributions To address this need, managers should research industry income benchmarks, as current policies are perceived as less attractive compared to other banks in Ho Chi Minh City regarding incentives, allowances, financial rewards, bonuses, and holiday activities Recommendations for improvement are essential to enhance employee satisfaction and retention.
Employees can be rewarded flexibly through methods such as recognition in meetings, personalized thank-you letters, or internal accolades like Employee of the Month Sharing outstanding success stories company-wide fosters a culture of appreciation Timely and appropriate rewards serve as a powerful motivator, encouraging employees to enhance their contributions to the organization.
Recognizing employee achievements is crucial for motivation, with simple gestures like a heartfelt "thank you" being effective for small accomplishments For significant achievements, practical rewards such as holiday trips, health insurance, bonuses, and training opportunities are essential Providing desired training, like English classes, fosters employee loyalty and enhances job performance By implementing both monetary and non-monetary rewards, companies can create a robust reward system that benefits both employees and 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% 1c Weekly worked hours 0.00% 16.67% 41.67% 25.00% 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 was relatively strong; however, the gap between borrowing and lending remains larger than anticipated This discrepancy 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 HR department has reported a concerning increase in turnover rates and absenteeism within the office Currently, our most senior employee has only been with us for two years, highlighting the significant issue of 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?
While the slowdown in banking jobs in Vietnam is not viewed as a significant issue, it is essential to keep the rate within a manageable range I recommend that the board develop a plan to conduct a thorough investigation into Ky Hoa’s transaction 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?
Upon further investigation, it is evident that there is a significant issue with job satisfaction within the office The current data suggests that employees may feel undervalued and believe they are not receiving adequate compensation or support 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 lack satisfaction are less likely to commit to the company's future For instance, if an employee earning five million is unhappy in their current role, the allure of a six-million offer from a nearby competitor can easily tempt them to leave This scenario illustrates the rising turnover rates in many organizations, highlighting the importance of fostering a positive work environment to retain talent.
Recruiting new employees is essential to ensure the right fit for each position, 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.
- My research is showing that Ky Hoa’s staffs are not interested in those educational programs
Some of them said that the courses are not tailored for them How do you think about this?
A small group may only represent a limited perspective within our organization, suggesting 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 suitable approach for improvement.
Concerns have arisen regarding our bank's compensation for staff, as evidenced by a high turnover rate and absenteeism This raises questions about whether our budget for employee benefits and compensation is sufficient to effectively motivate our workforce.
We offer competitive salaries that align with industry standards, emphasizing that job satisfaction and loyalty to the company can thrive without the need for frequent job changes Additionally, it is important to recognize that increased compensation and enhanced benefits contribute significantly to employee satisfaction and overall workplace happiness.
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, comprising five personnel Three of these selected staff members bring significant experience and play crucial roles in their current positions, ensuring valuable insights for the team's discussions.
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 not met expected business results, leading to new policies aimed at reducing bonuses and minimizing salaries These changes have negatively impacted employee satisfaction, resulting in many staff members leaving the bank.
Income and benefits are crucial for motivating employees to perform at their best If a company fails to meet my financial needs, I would consider seeking employment elsewhere Although I may continue working there, my level of engagement and productivity would diminish significantly.
In my opinion, the perceived pay potential is crucial for organizations and should be evaluated in relation to each employee A key factor in employee satisfaction is the competitive salary offered, 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 focus on their work, it's essential to offer competitive reward packages that reflect their outstanding performance This approach not only motivates them to invest more effort into achieving the company's goals but also reduces the likelihood of them leaving for better opportunities elsewhere.
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 knowledge, and
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 effort to strengthen
Yes, the financial institution wishes to improve learning opportunity for their staff, so they can follow extra new understanding whilst looking for have true salary
Focusing on enhancing opportunities for employee development is crucial for organizational growth Providing training helps staff strengthen their skills and perform effectively By investing in educational formats, employees can expand their capabilities, which not only aids in retaining customers but also allows them to explore new skills 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 job within my professional scope In my current role at the bank, major clients primarily interact with my supervisor However, I aspire to have direct communication with them to foster quicker responses and build stronger relationships.
In a professional setting, a manager empowers employees to perform their tasks and engage directly with major clients when they have confidence in their skills and capabilities Trust among team members is essential for fostering a positive and productive 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 coworkers, as well as the quality of organizational facilities Currently, ACB employees are dissatisfied with the elevator situation, which further affects their overall experience at work.
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 only purpose for
Honest performance assessments bring me joy about my supervisor, despite some managers exhibiting bias Issues related to quality, parking facilities, and employer challenges remain unresolved, which hinders the establishment of an ideal company reputation and affects 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 influence my engagement A lack of understanding of client demands or clarity in my role 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 positionCash 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
BANG TONG KET TAI SAN
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
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 sa n
- 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
Appendix 2 Financial Report updated June in 2015 of Ky Hoa Transaction Office ofSacombank