CHAPTER 2: CURRENT SITUATION OF EMPLOYEE MOTIVATION AT
2.2.2. Analyzing the situation of motivate employees at BIDV
By the survey, the author has collected employee‘s opinion about hygiene and motivation factors. This will disclose what they think, what they need and what they expect from the bank. The questionnaires were sent to 50 employees in all departments at BIDV – head office and all questionnaires were valid.
2.2.2.1. Hygiene factors a) Working conditions
Figure 2.6: Employee's assessment about BIDV’s working conditions Source: Data analysis of the researcher’s survey (2018) It can be seen that there is also a small difference of the assessment marks in the result of average assessment marks with the work variables.‖
The location and working environment also give the result of good satisfaction of employees. According to the observation of the researcher after a period of time working for the bank, BIDV's head office is located 35 Hang Voi street, Ly Thai To wards, Hoan Kiem district, Hanoi, therefore, it can be seen that BIDV chooses a good and convenient location for transportation and for the security of employees.
According to the statistic, 20 respondents remained neutral, while 25 agreed and 5 strongly agreed with BIDV‘s location and infrastructure. The mean of this factor is 3.7, which is highest.‖
Besides, with a long and a good financial resource, as BIDV always try to supply all necessary tools and equipment to help their employee complete the tasks in the most efficient way. 24 respondents felt neutral, while 18 agreed and 8 strongly agreed with the company‘s working tools, equipment and facilities. The mean of this factor is rather high at 3.68.‖
3,70 3,68
3,04 3,54
0,00 0,50 1,00 1,50 2,00 2,50 3,00 3,50 4,00
The working environment at my
workplace are safe, do not have harmful factors to
health.
The bank’s equipment and
facilities are equipped and provided fully.
My workload is reasonable and working time is
flexible.”
The bank continuously finds way to improve its working conditions.”
Moreover, 10 respondents felt disagree, 28 neutral and 12 agreed with the statement that the working time is quite flexible and the daily workload is also suitable for them. The mean of this factor is 3.04. In banking sector, the working time is fixed from 8.00 am to 5.00 pm, especially retail banking department. They always have to work overtime.
Nevertheless, BIDV is always trying to improve working environment by taking a part of the capital fund from the annual interest for the replacement and repairs of machine and equipment. This leads employee even more and more feel motivated by the working condition. According to survey results, 27 respondents felt neutral, 19 agreed and 4 strongly agreed with the statement. The mean of it is 3.54.
b) Supervision
Figure 2.7: Employee's assessment about BIDV’s supervision
Source: Data analysis of the researcher’s survey (2018) Looking at the table we can see that the motivation level of employees about supervision factor is at moderate mean = 2.96 ≈ 3, in which all variables have reached from 2.96 to 3.28. This mean the current supervision motivation of BIDV just stop at normal level. During the in-depth interview, the researcher is received both of compliments and complains about this factor. Specifically, when being asked, Mr. Nguyen Thanh Trung shared: ―Superiors are people with long term working experiences in banking sector. Moreover, they are also chosen by the bank
3,28
3,22
2,96 2,96
2,8 2,9 3 3,1 3,2 3,3 3,4
My rights are always protected by my direct
supervision.
My performance is evaluated quite fairly.
I feel free to ask for advice/support from my
superiors.”
My direct supervisor gives me regular feedback for my work.”
to join comprehensive training sessions. Therefore, it can be said that they are quite knowledgeable and skillful‖. He also shared that he got support and regular feedback from superiors in his work, his work is evaluated fairly by superiors as well. According to the observation of the researcher, every 6 months, all employees are required to fill an evaluation form, in which there are both personal evaluation and feedback from their superiors.‖
Beside those compliments above, ―the number of supervisors at the company is relatively so few compared to the number of employees hence sometimes they cannot help or care all employees in the best way.‖, Mr. Le Manh Hung complained. Nevertheless, with motivation level only reaching 2.96, it is clearly shown that employees are not highly motivated with supervision factor. Therefore, BIDV needs solution to enhance motivation level of employee toward this factor.‖
c) Salary
Figure 2.8: Employee’s assessment about BIDV’s salary
Source: Data analysis of the researcher’s survey (2018) At BIDV, the salary is included basic salary and allowance based on turnover of each month. The board of director will make a plan of turnover about deposit, ATM card, debit card, loans and other products of bank monthly. Based on this plan, human resources and administration department will evaluate the working effective of each employee and calculate the payrolls. The calculation of salary of BIDV is
3,82
3,54 3,5
3,3 3,4 3,5 3,6 3,7 3,8 3,9
My current salary is suitable with my talents and contribution in work
My salary and other monetary benefits are fair and are applied reasonable for the real situation and my
responsibilities.
The payroll calculation method is suitable and
effective.”
quite clearly and fairly, the salary is paid under the working results of labor. The income of employees includes basic salary (which is calculated under the seniority and position coefficient) and turnover salary (which is determined under the employee‘s work performance). This salary calculation has support BIDV to create the fairly competition between the employees in the bank as well as encourage them to complete the target. Among the banks in Vietnam, BIDV has provide the stable income for employees. According to the research data of Vietnambiz, with an average income of 26.5 million dong per month, BIDV‘s staff income is the sixth of highest earner in the survey group.
Unit: million dongs
Figure 2.9: Comparison of average income of banks during the first 6 months of the year 2018
(Source: Vietnambiz,2018) Despite the decrease in income in the year 2018, BIDV is still the third highest performing bank with each employee generating 100 million dongs net profit / person / month and VND 33.5 million before tax / person / month. Thus, at BIDV, the employee‘s salary is a motivational factor for employees to complete their tasks and is suitable for target plan.
However, the way of determining the employee‘s income also have many difficulties. It requires that the managers have to build appropriate and scientific
38,5 31
28 26,6 26,5 26,5 26,2 26,1 24,8
0 5 10 15 20 25 30 35 40 45
Vietcombank Vietinbank Techcombank VIB Tp bank BIDV Bac A Bank ACB MB bank
Average income in 6 months of the year 2018
KPI system. That the evaluation employees‘s working result is not exactly or wrong will affect on the salary and benefit of employees directly as well as the truth of employees with the managers of the bank.
Look at the survey finger about BIDV‘s salary, almost of the employees are satisfied with their current salary. This mean of factor is rather high at 3.82.
d) Policy and administration
Figure 2.10: Employees’ assessment towards BIDV’s Policy and administration Source: Data analysis of the researcher’s survey (2018) Being able to capture the importance of administration and policy factors, currently BIDV is executing various policies to help motivate their employees. Reward policy is needed to mention at first. 5 respondents disagreed, 22 felt neutral, 12 agreed and 11 strongly agreed with the statement. The average mean of this factor is 3.58. The reward policy of the company covers: reward in holidays and festivals, giving the 13th salary in Lunar New Year, in which bonus in holidays such as Labor Day or Vietnamese National Independence Day (September 2nd) and Lunar New Year, etc.
On the welfare issue, BIDV currently has two main kinds of welfare benefits:
compulsory welfare and voluntary welfare. Compulsory welfare is the ones the company has to warrant following the government‘s requirements such as social insurance, unemployment insurance. It can be said that the company meets all these
3,58
3,26
3,64
3,2
2,9 3 3,1 3,2 3,3 3,4 3,5 3,6 3,7
The bank’s reward policy is fairly, appropriate and
public.
I feel motivated with the bank’s wage policy.”
Welfare and other policies (insurance, travel, annual leave, etc.) in the bank are
suitable and reasonable.
My bank’s administration and working procedure is efficient and smooth.”
requirements under the law of the state – in which employees pay 10.5% out of their total income and enterprises pay 24% out of the sum of their remuneration.
Voluntary welfare includes picnic trips, company‘s holidays, extra activities and activities to foster mental life of the employees (presents given at weddings, cases of sickness, funerals, children‘s day, mid-fall festivals, women‘s day, etc.) Moreover, each month the employee has one day off and the maternity leave is guaranteed properly 100% according to the Labor law. With such welfare policies, BIDV has effectively boosted working motivation of employees. 2 respondents disagreed, 20 respondents felt neutral, 22 agreed and 6 strongly agreed with the statement. The mean of this factor is 3.64 which is quite high.
However, besides these above policies which bring positive results, there exist some issues such as wage policies, or more specifically, the policy of the wage enhancement policy for employees which only reaches inadequate level. The mean for this indicator is only 3.26: 7 disagreed, 23 felt neutral and 20 agreed with the statement.
Referring to the administrator mode at the company, the employee said that they are quite motivated for this element. According to HR Department Head, the company has always tried to ensure good management as well as management style to ensure that employees are working in a professional modern and comfortable work environment. According to statistical data, 8 respondents disagree, 30 respondents felt neutral, 6 agreed and 6 strongly agreed with the statement. The mean of this factor is 3.2.
e) Interpersonal relations
Figure 2.11: Employees’ assessment towards BIDV’s interpersonal relations Source: Data analysis of the researcher’s survey (2018) According to the investigation about the level of motivation and relationship between employees at the bank; between employee and superiors, it can be said that the satisfaction level of employees about the relationship elements have a small difference and in a relatively good level.‖
According to the information of HR Department Head, the bank sees that constructing a healthy relationship between not only employees but also employees and managers is very important. Therefore, BIDV always tries to make employees feel homey when working in the offices. Employees are considered to feel like each other‘s family member. Currently there are many policies and activities to help deepening the connection between employees and superiors such as extra curriculum activities, picnic trips, sports clubs such as football club, badminton club.
For criterion: ―My colleagues at the company are friendly, helpful and sociable.‖, the mean is 3.56. 11 respondents disagreed, 12 felt neutral, 15 agreed and 12 strongly agreed with the statement. Criterion: ―My colleagues have mutual respect in work‖ has mean at 3.68. 6 respondents disagreed, 15 felt neutral, 18 agreed and 11 strongly agreed with the statement. Criterion: ―My colleagues often
3,56
3,68
3,48
3,7
3,35 3,4 3,45 3,5 3,55 3,6 3,65 3,7 3,75
My colleagues at the bank are friendly, helpful and
sociable.”
My colleagues have mutual respect in work
My colleagues often communicate and share
experiences in the whole bank
I feel satisfied with my relationships with
managers.”
communicate and share experiences in the whole bank.‖ has mean of 3.48. 8 respondents disagreed, 18 felt neutral, 16 agreed and 8 strongly agreed with the statement. Last but not least, for criterion: ―I feel satisfied with my relationships with managers.‖, the mean is high at 3.7. 20 felt neutral, 25 agreed and 5 strongly agreed with the statement.‖
f) Job security
Figure 2.12: Employee's assessment towards BIDV’s job security
Source: Data analysis of the researcher’s survey (2018) Similar to Interpersonal relations factor, job security is also one of the factors helping the bank personnel feel motivated. There is inconsiderable difference of motivation level between employees. According to the figures in the table above, we can see 46 out of 50 employees reveal that they do not worry about the stability of the company. 15 respondents felt neutral, while 14 agreed and 17 strongly agreed with the statement. The mean of this factor is 3.88.
Besides, the employees of the bank feel pressure about the nature of work. Working in banking sector has a high legal risk. In recent times, there has been no shortage of bank officers to appear in court for violations in lending and credit operations. Look at the finger of survey about ―I have no fear about the risks in my work‖, the mean is very short at 2.46 in which 9 respondents totally disagreed, 18 respondents disagreed, 14 respondents felt neutral and 9 agreed.
3,88
2,68
3,82
0 0,5 1 1,5 2 2,5 3 3,5 4 4,5
I feel optimistic about the future and stability of the bank.”
I have no fear about the risks in my work
I have signed long-term labor contract with the bank.”
In addition to that, most surveyed employees shared that they already sign long term working contract or non-term contract with the bank. There are only a few cases sign a trial 3 months contracts due to still being in trial working period. 10 respondents disagreed, 10 felt neutral, 9 agreed and 21 strongly agreed with the statement. The mean of this factor is 3.82.
2.2.2.2. Motivation factors a) Achievement
Figure 2.13: Employee's assessment toward BIDV’s achievement
Source: Data analysis of the researcher’s survey (2018) Achievement is an important factor to motivate for employees to work better and contribute for the success of the company. Achievement shows successful completion of work, having a good idea or solutions to problems, made revenue for the company…
Achievement is at the fourth level in Maslow hierarchy of need, after the physical, safety, and social needs, but it is internal esteem need. So, it is necessary for all company to makes their employees get achievement in working progress.
The above figure indicates that surveyed employees feel pretty motivated when they finish their work with excellent result and they can confidently say that they contribute significantly to company‘s goals and achievement somehow. Mrs. Le Thi Thanh Yen shared that during the time working for company, she had achieved a lot of goals and achievement in work and they make her inspired to work somehow.
3,72
3,86
3,65 3,7 3,75 3,8 3,85 3,9
My boss and colleagues recognize my contribution fairly and appropriate.
I usually complete my tasks on time with excellent results.”
For this criterion, 2 respondents disagreed, 15 felt neutral, 28 agreed and 5 strongly agreed with the statement. The mean of it is 3.72.
―For criterion: ―I usually complete my tasks on time with excellent results.‖, 2 respondents disagree, 16 felt neutral, 19 agreed and 13 strongly agreed with the statement. The mean of this factor is 3.86.
From this finding, the manager should consider achievement as the important issue.
BIDV should encourage employees and help them to get achievement in working.
b) Recognition
Figure 2.14: Employees’ assessment towards BIDV’s recognition
Source: Data analysis of the researcher’s survey (2018) The above figure recognition statistics group expresses the motivation of all surveyed employees on recognition. From the table above, we can see that the mean of recognition only reaches 3.36, showing that workers in the company do not really feel motivated about recognition issues. Specifically, 12 out of 50 employees said they do not receive compliments frequently from their managers. 23 respondents felt neutral and 10 shared agreeable ideas with the statement. The mean of this factor is 3.06.‖
For criterion: ―I get respected and admired from my colleagues.‖, 24 out of 50 participants interviewed said that when they do a good job, they just receive a
3,06
3,3
3,36
2,9 2,95 3 3,05 3,1 3,15 3,2 3,25 3,3 3,35 3,4
My boss gives me compliments when my works are well done.”
I get respected and admired from my colleagues.”
I feel appreciated when I achieve or complete an important task.”
moderate level of admiration. 7 disagreed, 24 respondents felt neutral, while 16 agreed and 3 strongly agreed with the statement. The mean of this factor is 3.3.
Therefore, it leads to the fact that only 20 out of 50 employees feel lightly appreciated in the bank. 7 employees felt disagreeable, and 23 respondents felt neutral with the statement. The mean of the factor is 3.36.
c) Advancement
Figure 2.15: Employees’ assessment towards BIDVs advancement
Source: Data analysis of the researcher’s survey (2018) When being asked, an amazing 9 employees out of 50 supposed that they hardly find the promotion opportunities. 27 respondents felt neutral, 8 agreed and 6 strongly agreed with the statement. The mean of this factor is 3.22.‖
For criterion: ―I will choose monetary incentives advancement rather than career.‖, 30 out of 50 people doing the survey think that earning a lot of money is not as important as chances to develop their career. 12 respondents felt neutral and 8 disagreed with the statement. The mean of this factor is lowest at 2.26.‖
Last but not least, 10 out of 50 respondents reflects that promotion opportunities are not fairly provided for everyone, 23 respondents felt neutral, 12 agreed and 5 strongly agreed with the statement. This factor has mean of 3.24.
3,22
2,26
3,24
0 0,5 1 1,5 2 2,5 3 3,5
I can see promotion opportunities when working at the bank.”
I will choose monetary incentives advancement rather than career.”
Promotion opportunities are given fairly to all employees at the
bank.”
d) Work itself
Figure 2.16: Employees’ assessment towards BIDV’s work itself
Source: Data analysis of the researcher‘s survey (2018) Work itself is one of the most important factors to motivate employees in working.
Almost people like an interesting and challenging job instead of a boring job. In the face of competition in interest rates, services, preferential treatment of commercial joint stock banks with a network of employees and a wide network of collaborators has made us headache in the marketing of customer development. as well as retaining old customer. Ms Le Thi Hong Nhung said that ―My work is challenging and interesting because it requires me both knowledge and finesse to create the truth of customers, persuade customers using the products of BIDV. Moreover, I have many opportunities to meet a lot of people and enterprise.‖
For criterion: ―My current job is challenging and interesting.‖, the mean is 3.8. 3 respondents disagreed, 19 felt neutral, 13 agreed and 15 strongly agreed with the statement. Criterion: ―My job requires me to apply specialized knowledge and expertise.‖ has mean of 3.72. 2 respondents disagreed, 20 felt neutral, 18 agreed and 10 strongly agreed with the statement. Last but not least, criterion: ―I need to be creative and dynamic to finish my work perfectly.‖, the mean is 3.78. 3 respondents disagreed, 18 felt neutral, 16 agreed and 13 strongly agreed with the statement.‖
3,8
3,72
3,78
3,68 3,7 3,72 3,74 3,76 3,78 3,8 3,82
I feel interested in my current job My job requires me to apply specialized knowledge and
expertise.”
I need to be creative and dynamic to finish my work perfectly.”
e) Personal growth
Figure 2.17: Employees’ assessment towards BIDV’s personal growth Source: Data analysis of the researcher’s survey (2018) Personal growth is also one of the factors making employee really feel motivated.
Personal growth means mention about opportunity employees want to continue to grow and develop job and career enhancing skills. Thus, by training and development BIDV can enhance employee motivation strongly.
For criterion: ―I have chance to improve specialized and language knowledge.‖, 26 felt neutral, 24 agreed with the statement. The mean of this factor is quite low at 3.48. This result in little improvement of deep professional knowledge. 5 disagreed, 22 felt neutral, 21 agreed and 2 strongly agreed with the statement. The mean of this factor is only 3.4.‖
According to HR Department Head, new employee being recruited also have the opportunity to get training by former employees. The training lasts for 3 months during their trial working period. At the end of the training, interns must take an exam before becoming official employees and qualified enough to work independently. However, from the researcher‘s personal observation, the training for new employees has not been properly concerned. Some former employees do not support the trainees, partly because they see no benefits training new
3,48
3,4
3,36 3,38 3,4 3,42 3,44 3,46 3,48 3,5
I have chance to improve specialized and language knowledge.”
I have chance to enhance working skills (communication skills, teamwork skills, etc.), experience and expertise.”