Rationale
In a competitive market economy, businesses must not only invest in modern infrastructure but also prioritize the optimization of human resources, as people are the key to success Leaders aspire to build a loyal and dedicated team, recognizing that a committed workforce is essential for achieving sustainable growth and development.
In today's workplace, it is increasingly common for employees to change jobs frequently, often leaving their current positions after feeling dissatisfied This trend significantly impacts organizational structure and business development One of the primary reasons for this turnover is that companies fail to provide adequate compensation and working conditions, which ultimately undermines employee motivation and engagement.
Banking plays a crucial role in the economy, requiring employees to be passionate, creative, and adaptable to change The Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) has consistently worked to uphold its leadership in the industry, thanks in large part to its dedicated staff In the banking sector, the quality of products and services is largely influenced by the suppliers and the employees who directly interact with customers.
With over 60 years of establishment, BIDV has emerged as one of Vietnam's three largest joint-stock banks, renowned for its technological advancements and rapid growth, serving a vast customer base Employing more than 24,000 staff across over 180 branches and 800 transaction offices, the role of tellers is crucial, as they interact with customers daily to manage various transactions, including cash handling, checks, and account services Tellers not only function as salespeople promoting cross-services but also enhance the bank's brand image and service quality, contributing to capital growth However, BIDV faces a high employee turnover rate of approximately 22% among tellers, attributed to demanding work hours exceeding 8 hours daily, lower income compared to other positions, and limited opportunities for advancement, leading to decreased motivation among staff.
For many above reasons, the author decided to choose the topic “Improving
This article examines the motivation levels of tellers at BIDV's Transaction Center 1, identifying key factors influencing their job satisfaction It aims to analyze the current state of teller motivation and proposes actionable solutions to enhance their workplace engagement while minimizing turnover intentions in the teller role.
Literature review
Research on employee motivation in banks, both in Vietnam and globally, has been extensive, focusing on strategies to enhance motivation within the workforce Numerous studies have been conducted to identify effective methods for improving employee engagement and satisfaction in the banking sector.
The 1977 study on the quality of employment emphasizes the significance of understanding the factors that influence workers' motivation and work drive, particularly as individuals dedicate substantial time to their jobs Recognizing these elements is crucial for enhancing overall job satisfaction and productivity.
In his 2001 book "Are You Happy at Work," Andrew Oswald defines work motivation as the extent to which employees find enjoyment in their jobs, shaped by their perceptions—either positive or negative—of their work environment Essentially, when the workplace aligns with the needs, desires, values, and personalities of employees, their motivation and overall job satisfaction significantly increase.
In 2007, Boeve conducted a study on the motivational factors for teachers in medical school assistant doctor faculties in the US, utilizing Herzberg's theory and the job description indicators developed by Smith, Kendall, and Hulin He categorized these motivational factors into two groups: internal factors, which include the nature of the work and opportunities for training and promotion, and external factors, which encompass salary, support from senior management, and interpersonal relationships.
In June, 2010, Quang Truong, Beatrice JIM and Chris Rowley showed their viewpoint and research results on human government in Vietnam in the research
“Globalization, competition and human government in transition economy: The Case of
Vietnam” According to the article, companies in Vietnam generally only have a General
The Administration Office is primarily responsible for overseeing administrative tasks and personnel management, handling paperwork and human resource-related duties However, its scope is generally limited to day-to-day operations, excluding strategic human resource decisions such as workforce planning, recruitment, employee training and development, and talent retention.
Bui Thi Minh Hong (2015) studied about “Improving employee motivation in
The study examines employee motivation at the Thang Long Branch of the Vietnam Technological and Commercial Joint Stock Bank, focusing on a theoretical framework and analyzing current motivation levels through personnel documents and questionnaires The findings aim to propose effective solutions to enhance employee motivation across the entire branch.
Nguyen Si Hung (2016) studied about “Creating employee motivation in Joint
This article focuses on the Stock Commercial Bank for Foreign Trade of Vietnam, known as Vietcombank Kon Tum It presents a comprehensive theoretical framework on employee motivation, analyzes the current motivation levels among staff, and offers recommendations to enhance their working motivation effectively.
A study conducted by Nguyen Khac Toan in 2010 identified five key factors influencing employee motivation at the Asian Commercial Bank's Hue Branch: working environment, wages and benefits, nature of work, job excitement, and development prospects The findings indicate that most sales staff express satisfaction with these motivational factors; however, the research also highlights several shortcomings in human resource management that the bank must address to enhance employee motivation further.
While previous studies have focused on employee motivation within banks, there has been a notable lack of research specifically addressing the motivation of bank tellers, particularly at BIDV – Transaction Center 1 This gap in the literature highlights the necessity and uniqueness of this research topic, prompting the author to explore it further.
Aims of research
For the above research rationale, there are some main objectives the thesis should cover as follows:
- To clarify the theories of motivation, then propose the most appropriate motivation model
- To analyze and find out strengths and weaknesses of tellers’ motivation at BIDV – Transaction Center 1
- To propose recommendations for improving motivation for tellers at BIDV – Transaction Center 1.
Objects of research
Research object: Thesis focuses on identifying all factors related to improving motivation for Teller at BIDV – Transaction Center 1
Object: 240 tellers in BIDV – Transaction Center 1.
Scope of research
- Time: Secondary data: was collected from 2016 to 2018
- Location: BIDV – Transaction Center 1, Vincom Tower, No 191 Ba Trieu Street,
Le Dai Hanh Ward, Hai Ba Trung District, Hanoi City.
Research methodology
The thesis uses collection methods of secondary data and primary data
The collection of secondary data will involve both internal and external sources External sources will include online resources, newspapers, articles, and agencies focused on employee motivation, while internal sources will comprise BIDV's annual reports from 2016 to 2018 and the employee effectiveness survey conducted in 2019 to gather relevant information on employee motivation.
The author employs both qualitative and quantitative methods for collecting primary data The qualitative approach involves conducting in-depth interviews with two key individuals: the Director of Human Resources and the Chief Accountant at BIDV – Transaction Center 1 The interview with the Director will focus on staff motivation and the effectiveness of motivation plans aimed at enhancing employee satisfaction at the branch Meanwhile, the discussion with the Chief Accountant will center on the bank's salary policy, particularly regarding the compensation of tellers at BIDV – Transaction Center 1.
This study will utilize a quantitative approach by gathering primary data through structured questionnaire surveys The questionnaires are specifically designed to assess employee perceptions regarding their work conditions, environment, personal objectives, and alignment with organizational goals while employed as tellers at BIDV – Transaction Center 1.
- Respondents: Tellers who are working at BIDV – Transaction Center 1
To ensure the objectivity of the survey data at Transaction Center 1, which employs over 240 tellers, a random sampling method will be utilized, encompassing the entire sample size of all 240 employees.
The questionnaire is designed to assess motivational factors based on Herzberg’s two-factor theory, utilizing a 5-point Likert scale for measurement Respondents can express their level of agreement with statements ranging from 1 (Strongly Disagree) to 5 (Strongly Agree), allowing for a nuanced understanding of their motivational drivers.
Research results are as follows:
Qualitative data will be examined through various techniques, including critical incident technique and content analysis, while quantitative survey data will be analyzed using descriptive statistics such as percentages, frequencies, and means.
The data processing method involved pre-processing using Microsoft Excel for Windows XP and the SPSS software for frequency, reliability, and correlation analyses The SPSS package enabled the author to effectively illustrate the study with a variety of useful charts, diagrams, and pie charts.
Besides introduction, conclusion, references and appendix, the research includes three main parts as follows:
Chapter 1: Theoretical background on employee motivation
Chapter 2: Assessing the situation of teller’s motivation at BIDV – Transaction Center 1
Chapter 3: Proposal on solution for improving teller’s motivation at BIDV – Transaction Center 1
THEORETICAL BACKGROUND ON EMPLOYEE MOTIVATION
Overview of employee motivation
Motivation, derived from the word "motive," encompasses the demands, expectations, desires, and drives that influence individual actions It represents the internal factors that propel people to act and modify their behaviors, serving as the driving force behind their decisions and actions Understanding motivation is essential for recognizing what inspires individuals to pursue their goals and aspirations.
Motivation is a complex internal process that influences individual behavior, comprising three key components: the driving forces behind actions, the direction of those actions, and the factors that sustain them Each employee's unique characteristics, including self-concept, attitudes, values, interests, feelings, personality, and life experiences, make it challenging for organizations to meet their diverse needs To foster motivation, organizations must create a positive climate that encourages and supports employees effectively.
Motivation is defined as the internal force that arouses, directs, and sustains behavior (Bagraim et al., 2007) Effectively motivating employees involves not just a process, but also the methods and artistry behind it Managers play a crucial role in helping employees understand how their personal responsibilities and goals align with the organization's objectives, fostering intrinsic motivation that drives the achievement of organizational aims.
Motivation is a fundamental psychological process that initiates behaviors aimed at achieving specific goals According to Luthans (1998), it begins with a physiological need that drives individuals to take action Effective motivation not only energizes and directs behavior but also enhances job satisfaction and commitment among workers While financial incentives are commonly recognized as motivators, other factors can also play a significant role in stimulating individuals to perform at their best.
Motivation is defined as the internal force that energizes, directs, and sustains an individual's behaviors It plays a crucial role in explaining both actions and behaviors.
Understanding motivation is essential for evaluating and enhancing work performance, as it encompasses internal and external factors influencing human behavior Drummond (1990) defines motivation as an intricate internal process that drives, steers, and maintains individual behavior Each employee's unique characteristics, including self-concept, attitudes, values, interests, feelings, personality, and life experiences, complicate the challenge of satisfying their needs To foster motivation, organizations must cultivate a positive climate that encourages and supports employee engagement.
Intrinsic motivation arises from internal desires, leading to personal satisfaction upon task completion In contrast, extrinsic motivation is driven by external rewards, such as money or valuable incentives, influencing individuals to focus on the benefits of completing a task Enhancing work motivation is crucial for guiding employees to exert maximum effort in achieving set goals.
Nguyen Van Diem and Nguyen Ngoc Quan in “Human Resource Administration”
(2003) defined employee motivation is the aspiration and voluntary of employees towards achieving organizational goals
According to the textbook of organizational behavioral of Bui Anh Tuan in
According to the "Textbook of Organizational Behavior" (2003), employee motivation is driven by intrinsic factors that encourage individuals to perform in environments conducive to productivity and efficiency This motivation manifests as a willingness, effort, and passion to work towards achieving both organizational objectives and personal growth.
Ho Ba Tham in “Motivation and Creating motivation for society development”
Employee motivation, as defined in 2004, refers to the eagerness and readiness of employees to enhance their efforts in pursuit of organizational objectives This personal motivation arises from a combination of various factors interacting within individuals and their work environments.
Employees are expected to assert themselves and strive for success, aiming for high income to enhance their personal lives However, individuals in various positions possess distinct psychological traits and desires, necessitating tailored management approaches Effective motivation is crucial, as it encourages positive and productive behaviors among employees, while a lack of motivation can lead to the opposite effect.
Employee motivation is a crucial system of measures and policies that enhances job satisfaction and drives individuals to achieve both personal and organizational goals It involves encouraging activities that align with employees' needs, fostering positive behavioral changes that support the organization's objectives For businesses to thrive, managers must implement effective strategies and tools that inspire enthusiasm and creativity among their workforce Understanding employees' needs is essential for developing solutions that stimulate motivation, ensuring a dynamic and engaged workplace.
Employee motivation is intrinsically linked to the specific job, organization, and working environment, as well as the individual employee This indicates that motivation is not universal; each person has unique characteristics, performs their tasks differently, and is influenced by varying working conditions and personal attitudes, all of which affect their work effort.
Employee motivation varies among individuals and fluctuates over time While motivation may be high at certain moments, it can also diminish under different conditions Managers play a crucial role in influencing and enhancing employee motivation, allowing them to boost their workforce's productivity and engagement By understanding these dynamics, leaders can effectively intervene to foster a more motivated and committed team.
Employee motivation is inherently voluntary, influenced by each individual's comfort and interest levels People naturally prefer to take proactive approaches rather than being passive Within an organization, individual initiative must align with established frameworks, and managers should recognize this aspect to foster optimal labor motivation It is essential for leaders to possess the skills to enhance employees' willingness to engage actively in their work.
Employee motivation plays a crucial role in enhancing individual labor productivity and overall business efficiency, especially when other factors remain constant It acts as an internal drive that encourages employees to work harder and persistently However, it's essential to recognize that motivation is a contributing factor rather than the sole source of increased productivity, as it heavily relies on the qualifications and skills of the workforce, as well as the availability of adequate facilities, equipment, and machinery.
Theories on employee motivation
F Herzberg introduced two-factor theory of job satisfaction and motivation He divided the elements of job satisfaction and dissatisfaction into two groups:
Group 1 encompasses essential elements that drive motivation and job satisfaction, including achievement, recognition of accomplishments, the intrinsic nature of the work, responsibility, and opportunities for promotion When these fundamental needs are fulfilled, they foster both motivation and overall job satisfaction among employees.
Figure 1.1: Herzbergs Two-Factor Theory of Motivation
Source: Motivation to Work, Herzberg 1959
Group 2 encompasses elements of the organizational environment, including company policy, administration, direct supervision, income, interpersonal relations, and working conditions Herzberg suggests that while positive factors in this group can help prevent job dissatisfaction, their mere presence is not enough to foster motivation and job satisfaction.
Herzberg's theory posits that job satisfaction and dissatisfaction stem from different factors, meaning that addressing dissatisfaction alone won't inherently motivate employees Managers can stabilize the workplace by improving elements like company policies, supervision, interpersonal relations, working conditions, and salary; however, these improvements may only prevent dissatisfaction rather than foster motivation To truly motivate employees, emphasis should be placed on aspects such as achievement, the nature of the work, responsibility, and opportunities for promotion.
To effectively motivate employees, it is crucial for managers to first address hygiene factors, which are essential for preventing dissatisfaction Once these basic needs are met, managers can then focus on motivators that enhance job satisfaction The uniqueness of this theory lies in the clear distinction between factors that contribute to satisfaction and those that detract from it Many managers mistakenly prioritize motivators without ensuring hygiene factors are adequately addressed, leading to ineffective motivation strategies.
Herzberg’s theory has both advantages and disadvantages as follows:
The theory is supported by substantial empirical data and is referenced in additional research that reinforces the original hypothesis It offers practical solutions for corporations and organizations alike, and its application spans all levels and departments within an organization.
The research methodology of Herzberg's theory has faced criticism for its lack of consideration for individual personality differences in relation to motivator and hygiene factors Additionally, the theory fails to assign specific motivational values to each motivator, limiting its applicability Herzberg's research primarily emphasized job satisfaction while neglecting the impact on productivity, raising questions about the reliability and overall effectiveness of the theory in understanding motivation in the workplace.
Numerous authors have utilized Herzberg’s theory to examine employee satisfaction and motivation, with a notable case study focusing on Tesco This analysis, titled “Motivational Theory in Practice at Tesco,” reveals how Herzberg’s principles can be applied to understand employee motivation within the company The findings suggest that even external factors, such as restaurant menus, can influence the motivation levels of Tesco staff.
Employees thus become motivated in making choices that will increase their use of the restaurants
Abraham Maslow's Hierarchy of Needs is a prominent model in the study of personal motivation, proposing that individuals possess a complex system of five need groups that range from basic to advanced.
Physiological needs represent the foundational tier in Maslow's hierarchy, encompassing essential requirements such as air, sleep, and hydration These fundamental needs are prioritized by individuals, as they are crucial for survival and well-being, driving people to seek fulfillment of these basic necessities first.
Once physiological needs are met, safety needs emerge, prompting individuals to react to potential threats to their well-being Employees typically prefer safer working environments, as dangerous conditions can lead to decreased motivation and productivity Prioritizing safety in the workplace is essential for fostering a secure and efficient atmosphere.
Figure 1.2: Maslow's Hierarchy of Needs
Love and belonging needs, also known as social needs, play a crucial role in fulfilling our emotional well-being These needs encompass the desire for love, friendship, and a sense of community, highlighting the importance of social connections in our lives.
Esteemed needs encompass the desires for high-value automation, stimulation, and the respect of others According to Maslow, these needs are divided into two categories: the pursuit of power, achievement, and faith, as well as the longing for independence and freedom.
Self-actualization needs emerge when lower-level needs are satisfied, leading to new feelings of dissatisfaction and anxiety These higher-level needs vary among individuals and can arise at different times, reflecting the unique circumstances of each person While the fulfillment of basic needs is essential, it is important to recognize that not everyone experiences these needs simultaneously; instead, individuals are motivated to pursue self-actualization once their foundational needs are met.
+ Each individual worker has a system of different needs and it is satisfied in different ways and means
+ In principle, people need to be satisfied with the needs at a lower level before being encouraged to meet higher level needs
+ Managers need to pay attention to the needs of employees From there, there are measures to satisfy that need properly
Therefore, in principle, managers need to know how their employees are on the demand ladder so that they know how to work to create the highest motivation
Maslow's theory shows both strengths and weaknesses as follows:
- The theory’s advantage is that it stimulates individuals to change fundamental needs for higher needs, providing the clear information for personal growth
- In contrast, the theory fails to clarify why people prefer to ignore lesser needs in searching process of higher ones
Cathy H.C Hsu and Songshan Huang explored the application of Maslow’s theory in their research titled “Travel Motivation: A Critical Review of the Concept's Development.” Their study highlights the evolution of travel motivation concepts over the years and examines additional factors that influence travel motivation According to Hsu and Huang (2008), Maslow’s theory serves as a valuable framework for understanding various aspects of tourism research.
Dr Nyameh Jerome (2013) explored the impacts of Maslow's theory on organizational culture, employee performance, and human resource management His analysis highlights the crucial role this theory plays in organizations striving for success and excellence However, it also indicates that neglecting these aspects can have detrimental effects on organizational culture, human resource management, and overall employee performance.
Employee motivation in banking sector
This research focuses on the motivation policies implemented at BIDV - Transaction Center 1, as shared by the Director of Human Resources The bank prioritizes enhancing teller competencies through targeted training, promotions based on performance, and clear job descriptions for recruitment Key motivational factors identified for tellers include income, promotion opportunities, training and development, working conditions, and direct supervision The bank's goals for 2017-2018 emphasize significant income increases for staff, aligning with Maslow's and Herzberg's theories of employee motivation, which the author believes are particularly relevant for assessing teller motivation at BIDV.
06 key factors including work itself, income, working conditions, promotion, training and development and direct supervision and 01 factor of overall satisfaction
Figure 1.3: Proposed model of employee motivation for tellers at BIDV -
- Work itself/ Nature of work: This factor reflects the appropriateness levels of the
Proper job placement aligns employees' capacities and desires, enhancing productivity and job satisfaction The suitability of work is evident in various aspects, including alignment with employees' skills and expertise, clarity of job responsibilities, and the motivation it generates A well-matched job fosters dedication, creativity, and challenges that showcase individual capabilities, while also providing stability and safety, ultimately benefiting both the employees and the organization.
In banking sector, motivation of work itself could be follows:
The society shall be proud and respect their job
Banking staff must apply more professional knowledge
Their current job influences much on other individual in the bank
The current job is challenging and interesting
Banking staff must be creative for meeting job’s requirements
Income is the remuneration that employees receive from their jobs, fulfilling their basic and physiological needs as outlined in Maslow's hierarchy of needs Generally, employees experience greater job satisfaction with higher income levels, and fair compensation is highly valued Key considerations regarding income include the alignment between pay and employee contributions, the ability of workers to sustain their livelihoods on their current salaries, and the equitable distribution of additional allowances.
In banking industry, income could involve the following:
Income is paid properly for their contribution
They can have a good life for current income
Salary is paid fully and timely
They are given the appropriate allowance
The bank always has the regime for bonus giving at Tet, holidays, etc
Income is competitive comparing with other banks
Working conditions significantly impact employee satisfaction and performance, encompassing aspects like working hours, workplace safety, and the availability of protective equipment When employees enjoy favorable working conditions, they are more likely to evaluate their work positively Conversely, poor working conditions can lead to dissatisfaction, anxiety, and fear, ultimately diminishing their overall productivity.
In banking industry, working conditions could be:
Staff work in the modern and safe working environment
The bank’s corporate culture is clear and friendly
The Bank has suitable regime for the staffs’ working and relaxing time
The Bank equips me with full and suitable facilities at work
Promotion plays a crucial role in demonstrating an organization's commitment to providing equitable career growth opportunities for all employees According to Herzberg's theory, promotions serve as a motivating factor, enhancing job satisfaction and engagement By implementing fair HR development policies, organizations create pathways for employees to advance their skills and professional capabilities, ultimately fostering a more motivated and skilled workforce.
Promotion in banking sector could be involved:
Banking staff are given many promotion and development opportunities
The bank always depends on employees’ capacity, seniority and contributions to work to give promotion
The bank always give the right promotion opportunities for right position and right duty
The bank’s promotion policy is clear enough
Training is an essential investment for individuals and organizations, as highlighted by Wetland (2003), which emphasizes the importance of onboarding new employees promptly to enhance their knowledge, skills, and attitudes For existing employees, training serves to fill knowledge gaps and improve overall performance Key aspects of training include professional development opportunities and support for skilled individuals Additionally, organizations, such as banks, should ensure that they provide suitable development opportunities for all staff to foster growth and proficiency.
Traning and developmet could be:
Training courses are helpful for employees’ daily work
When attending training courses, I am funded
Training knowledge can be applied effectively for my daily job
For meeting current job requirements, staff are supported with favorable conditions to enhance their qualifications
Effective leadership supervision enhances employee satisfaction through fair treatment, respect, and support Skilled leaders play a crucial role in motivating their teams, as knowledgeable and approachable supervisors foster a positive work environment Conversely, a lack of support during challenges can lead to employee dissatisfaction and decreased motivation, ultimately hindering job performance.
Superiors always encourage and motivate their subordinate
Managers always listen and respect employees’ opinions
When facing with difficulties, the subordinate are always directed and instructed by their direct superiors
Staff feel satisfied with their superiors’ leadership and management style
Employee motivation experience in some banks
1.4.1 Employee motivation experience of Technology and Commercial Joint Stock Bank
Techcombank, established on September 27, 1993, is one of Vietnam's largest and fastest-growing urban commercial banks It offers a wide range of competitive financial products and services designed to meet the needs of both individuals and businesses Committed to customer satisfaction, Techcombank aims to create added value for shareholders, foster employee development, and contribute to community growth.
Technology and Commercial Joint Stock Bank, a large-scale enterprise, has established a payroll policy in accordance with state regulations Each month, the branch tracks daily attendance for every employee, recording workdays and days off At the end of the month, this information is compiled by the timekeeper and forwarded to the accounting department for payroll processing.
Wages are paid in accordance with to the agreement between the Bank and employees, ensuring the interests of the Bank and employees in accordance with the provisions of law
Employee salaries and allowances are established according to their responsibilities, roles, skills, and accomplishments, while also taking into account the Bank's overall performance, policies, and strategies.
To attract, motivate, and retain highly qualified employees for the Bank, it is essential to ensure that wages and allowances are fair internally and competitive within the labor market.
Bonuses not only fulfill material needs but also carry significant spiritual value Recognizing and rewarding employee achievements fosters excitement and motivation in the workplace.
At Techcombank, employee bonuses are determined by a year-end reward fund, which is established by deducting 2.5% from the added value The Board of Directors allocates these funds to reward its members, while the General Director recommends bonuses for other managers and employees based on their performance, as assessed by the Bank's performance evaluation system.
The bank offers a range of allowances, including seniority, hazardous, expensive, capacity, and mobile allowances, to recognize and support employee contributions These allowances acknowledge employee loyalty and commitment while assisting those working in hazardous environments, such as cashiers and vault keepers This approach effectively motivates employees and fosters a positive organizational culture.
- Creating motivation through benefits and services
In recent years, the Bank has prioritized employee welfare and services, recognizing their crucial role in enhancing motivation and directly impacting business performance.
Bank officers and employees may participate in tourism and entertainment activities organized by the bank, typically scheduled on weekends, holidays, or during anniversaries of the bank or branch establishment, when conditions allow.
1.4.2 LienViet Post Joint Stock Commercial Bank (LienVietPostBank)
LienVietPostBank is leveraging modern technology and strong financial capabilities, supported by a professional and dedicated team, to establish itself as a leading commercial bank in Vietnam, with ambitions to evolve into a robust financial and banking group.
LienVietPostBank views human resources as its most valuable asset and a key competitive advantage The bank's HR policy focuses on fostering a strong relationship between the organization and its employees, prioritizing their satisfaction and interests This approach aims to align employee development with the overall growth of LienVietPostBank, ensuring a mutually beneficial environment.
LienVietPostBank's employment policy ensures equitable and just opportunities for all employees, tailored to individual capabilities in various areas such as recruitment, training, promotions, salary evaluations, and reward assessments.
Salary at LienVietPostBank is paid on the principle of fairness, reasonableness, suitable to the qualifications, capabilities, performance, work quality, spirit, attitude and responsibility assigned tasks of each employee
At LienVietPostBank, employees receive a competitive salary along with various allowances tailored to their job roles, including attractive, expensive, and toxic allowances Additionally, staff benefit from support for expenses such as gasoline, phone bills, and lunch The bank also implements a Senior Allowance program to acknowledge and reward the loyalty and long-term commitment of its dedicated employees.
LienVietPostBank implements a comprehensive bonus policy alongside its salary and allowances to motivate employees across the organization This initiative aims to encourage dedication and effort in every role, contributing to the continuous growth and development of the bank Outstanding individuals and teams are recognized and rewarded promptly and fairly, following transparent regulations that balance both material and spiritual incentives.
LienVietPostBank's training courses include both domestic and foreign training, especially LienVietPostBank focusing on training children of the Bank’s shareholders and employees
Training enhances employees' knowledge, professional qualifications, and skills, ultimately creating significant value for both the individuals and the Bank Additionally, this training process enables staff to align their personal development goals with the Bank's strategic objectives.
ASSESSING THE SITUATION OF TELLER’S MOTIVATION AT BIDV – TRANSACTION CENTER 1
Introduction of BIDV - Transaction Center 1
2.1.1 History and development of BIDV - Transaction Center 1
Established on March 28, 1991, Transaction Center 1 (SGD1) operates as a key business unit of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), following Decision No 76 QD/TCCB Its primary role is to effectively implement strategic tasks while specializing in capital allocation for construction investments Over the years, Transaction Center 1 has evolved into a significant entity within BIDV, known for its innovative product experimentation, exceptional customer care, and as a training ground for managers and professionals Additionally, it leads the way in deploying advanced technology systems and modernizing banking operations, reinforcing its status as a pioneer in the banking sector.
Since its inception, Transaction Center 1 has undergone many stages, including some of the following development milestones:
In March 2011, marking its 10th anniversary, the Transaction Center achieved significant milestones, with total assets reaching VND 9,900 billion and outstanding loans amounting to VND 4,846 billion Additionally, the center generated service fees in the tens of billions, with service structure contributing 16.27% to the profit before tax These early achievements have established a robust foundation for future growth and development.
Between 2008 and May 1, 2012, BIDV underwent significant transformations alongside Transaction Center 1 The bank adopted the TA2 operating model, which restructured credit activities into distinct steps, clearly delineating the roles and responsibilities of each department This strategic shift aimed to minimize risks within the bank's operations.
In 2009, following the State Bank's directive allowing each commercial bank to operate only one transaction office, Transaction Center 1 was rebranded as the Branch of Transaction Center 1, maintaining its organizational structure During this time, the branch successfully separated one member unit, Hoan Kiem Branch, from BIDV and established three additional transaction offices: Transaction Center 8, Transaction Center 9, and Transaction Center 10.
On May 1, 2012, BIDV marked a significant milestone by transitioning from a fully state-owned entity to a joint-stock enterprise, which initiated a comprehensive renovation of its organizational structure and operations This transformation led to the establishment of the Transaction Center 1 branch, as formalized by Decision No 30/QD-HĐQT issued by the Board of Directors.
The Transaction Office 1 has achieved significant success, earning the First-class Labor Medal from the President for the period of 2006-2010, the Second-class Labor Medal for 2001-2005, and the Third-class Labor Medal for 1997.
2001, Title of Labor Hero for the period 1997-2006 and many other noble awards These are encouraging results, the pride and honor of all employees of the Transaction Office 1
* Organizational structure of Transaction Center 1
The Board of Directors is comprised of 1 Director and 7 Deputy Directors, following the TA2 organizational model This model organizes Transaction Center 1 into five key blocks: Customer Relationship, which includes departments for corporate and individual management; Risk Management, encompassing credit risk management and internal control; Operations division; Internal management division; and Subsidiary units, which consist of transaction offices and savings funds.
Figure 2.1: Organizational structure of Transaction Center 1
2.1.2 Human resources of BIDV - Transaction Centehr 1
Up to now, BIDV - Transaction Center 1 has 08 transaction offices under with 240 staffs, including 20 management staffs, 45 Relationship Business offices (RBO), 29 Relationship managements corporations, 118 tellers, 7 international payment specialists, 21 Cash Vaults
111 Risk Management 2 Credit Management Intern Payment Depart
Market Planning Depart Financial Accounting
Table 2.1: Staff’s qualification at BIDV - Transaction Center 1
The bank prioritizes hiring staff with Bachelor’s degrees over those with Associate degrees, as evidenced by the higher percentage of Bachelor’s degree holders BIDV - Transaction Center 1 employs a recruitment strategy focused on attracting candidates with the necessary skills that align with job requirements.
Table 2.2: Staff’s gender at BIDV - Transaction Center 1
BIDV - Transaction Center 1 boasts a female staff representation of 73%, surpassing the male staff rate of 27% Despite this gender disparity, the bank is committed to providing equal training opportunities for all employees, ensuring there is no sex discrimination in their workforce.
Table 2.3: Staff’s age at BIDV - Transaction Center 1
According to the data presented, employees aged 26-35 make up 57% of the workforce, bringing youthful energy and valuable experience that effectively meets the needs of both the bank and its customers.
22 – 25 is the age accounting for 30% Although most of them just graduated, the bank has recruited them and trained them to be suitable with the work requirement
Table 2.4: Staff’s seniority at BIDV - Transaction Center 1
Customers increasingly prefer staff with 3 to 5 years of experience, as those with over 3 years tend to exhibit better behavior and provide a warm welcome To meet these high expectations, BIDV - Transaction Center 1 ensures that its staff are well-equipped with the necessary knowledge Currently, 16% of the staff have more than 5 years of experience, while 12% have between 1 to 3 years, and 3% have less than 1 year.
The teller position plays a crucial role in the banking sector, as it involves a substantial number of staff whose performance directly impacts the branch's business outcomes Additionally, tellers frequently interact with customers, making this department vital to shaping the bank's image and ensuring high service quality.
Over the past 25 years, BIDV has worked diligently to establish its brand and reputation in today's competitive financial markets In this globalized era, the employees of BIDV - Transaction Center 1 are recognized as invaluable assets essential for the bank's sustainable growth This understanding led to the early establishment of the Human Resources Department, aimed at training and motivating qualified staff through effective HR policies These policies are crucial in achieving the bank's core objectives and business strategies, significantly contributing to BIDV's stable development.
BIDV - Transaction Center 1 recognizes the significance of its employees by prioritizing their development through diverse training opportunities, enabling them to serve as "brand ambassadors" for the bank In 2018, the bank launched the "Human Resource Development" initiative, which includes structured and practical programs aimed at enhancing the skills and unlocking the potential of its workforce Over the years, BIDV - Transaction Center 1 has strived to cultivate a professional and supportive work environment that encourages employees to contribute their talents towards the bank's sustainable growth Additionally, the bank offers various human resources policies that empower employees to voice their ideas and opinions while safeguarding their rights.
BIDV - Transaction Center 1 prioritizes the qualifications and capabilities of its employees, striving to recruit candidates who meet diverse requirements in terms of skills, experience, and attitude for each position Following the recruitment process, the leadership focuses on implementing various training activities to enhance the candidates' skills, ultimately transforming them into professional staff.
Job description and human policies applied for tellers at BIDV - Transaction Center
* Job description of Tellers at BIDV - Transaction Center 1
To secure a position as a bank teller at BIDV - Transaction Center 1, candidates must understand the key responsibilities and requirements of the role Bank tellers play a crucial role in delivering customer services and ensuring efficient and accurate transaction processing.
Receive retail and commercial deposits, loan payments, process checking and saving account withdrawals
Identify customers, validate and cash checks
Maintain an adequate cash drawer at all times, including buying and selling currency
Balance cash drawer in accordance with the bank procedures and regulations
Process credit card cash advances
Assist in ordering, receiving, verifying and distributing cash
Answer customer inquiries in relation to checking and savings accounts and provide customers with the proper service area for issues that cannot be dealt with at the teller line
Provide additional products consisting of Cashier’s Checks, Personal Money Orders
Promote the bank’s products and services
Represent the bank in a manner that maintains and expands positive relations with all customers, potential customers and co-workers
Make a great contribution to fulfill the bank’s objectives and goals
Comply with all department and company policies, procedures and regulations
Explain, advise and promote bank products and services to customers
Record all transactions promptly, accurately and in compliance with bank procedures
Excellent customer service skills, attentiveness, information retention, tact and diplomacy in resolving both customers and employees
Strong communication and organizational skill
Competence with computer, telephone and other office machines
Ability to work in a fast-paced working environment and under pressure
Be familiar with retail banking regulation and teller roles as well as responsibilities
Previous teller experience preferred but not required
High school diploma or equivalent
Knowledge of customer service principle
Accuracy and attention to detail
Good listening and communication skills
* Human policies applied for tellers at BIDV - Transaction Center 1
To attract top talent, BIDV - Transaction Center 1 prioritizes competitive salary and bonus policies Recognizing that fair treatment and special attention foster employee motivation, the organization offers a 13th month salary, along with professional and hazardous work allowances This commitment ensures that employees are encouraged to work diligently and effectively.
Employees at BIDV - Transaction Center 1 are rewarded with additional salary for exceptional performance, fostering dedication and significantly contributing to the bank's sustainable development This approach not only motivates staff but also positions the center for rapid growth and high earnings potential for those pursuing a career within the organization.
BIDV - Transaction Center 1 has achieved remarkable recognition as one of the top workplaces in the banking sector, ranking among the top three in the industry and 24th in Vietnam's top 100 best workplaces in 2014 This success is attributed to the comprehensive employee motivation strategies implemented by the bank, as highlighted by the Director of Human Resources The center provides a robust package of incentives for its tellers, including competitive salaries, allowances, bonuses, benefits, opportunities for development, strong leadership, quality work environment, and favorable working conditions Additionally, the Chief Accountant emphasized that the bank prioritizes the well-being of its tellers and continuously enhances motivational efforts, significantly contributing to employee retention.
Analyzing current employee motivation at BIDV - Transaction Center 1
The survey was distributed to 240 tellers working at BIDV - Transaction Center 1
To establish suitability and trust, the author distributed questionnaires via email to all 240 tellers at BIDV - Transaction Center 1 over a two-week period Through diligent follow-up and reminders, the author successfully collected 240 valid responses, achieving a 100% response rate from the tellers.
Figure 2.2: Gender of tellers at BIDV - Transaction Center 1
The demographic data indicates that the majority of tellers at BIDV - Transaction Center 1 are female, highlighting a significant representation of women in this role.
In BIDV - Transaction Center 1, females dominate the teller position, comprising 88.24% (212) of the workforce, while males account for only 11.76% (28) This gender distribution is understandable, as the teller role often aligns better with the qualities typically associated with women, such as greater patience and interpersonal skills.
In a recent analysis of marital status among participants at BIDV - Transaction Center 1, it was found that 35.29% of tellers are single, totaling 87 individuals, while 64.71%, or 153 tellers, are married This data suggests that a significant majority of tellers prefer the stability that comes with being married, reflecting their desire for a more secure life at work.
Figure 2.3: Maritualstatus of tellers at BIDV - Transaction Center 1
Figure 2.4: Age of tellers at BIDV - Transaction Center 1
About age, looking at the following figure, we can see that most of tellers in BIDV
Transaction Center 1 boasts a youthful workforce, with the majority of tellers under 60 years of age Specifically, 25% of the tellers are between 22 to 25 years old, while 57.35% fall within the 26 to 35 age range, totaling 138 and 42 tellers respectively This youthful demographic is a significant advantage for the bank, as younger employees tend to be more dynamic, enthusiastic, and adept at quickly grasping new knowledge and technology.
Figure 2.5: Education of tellers at BIDV - Transaction Center 1
BIDV, particularly BIDV - Transaction Center 1, is renowned for its high-quality human resources The bank prioritizes the continuous education and development of its employees, emphasizing qualifications from graduate levels and above Recruitment processes are rigorous, particularly for teller positions, which serve as the bank's frontline representatives Research indicates that all 240 tellers meet the bank's high standards for service excellence.
Post graduate 26-35 22-25 graduate It is good result They have enough education to take on the job and do their job in the most effective way
Figure 2.6: Major of tellers at BIDV - Transaction Center 1
The majority of participants in the study are tellers, with 201 individuals, representing 83.82%, graduating from economics Additionally, 7 tellers, or 2.94%, have a finance background, while 32 tellers come from various other majors such as communication, social sciences, and languages, with no tellers graduating from accounting This distribution indicates that the recruitment process for tellers is rigorous, ensuring they are well-aligned with their professional roles and capabilities Overall, the quality of human resources at BIDV, particularly in Transaction Center 1, is commendable.
Figure 2.7: Seniority of tellers at BIDV - Transaction Center 1
Recent demographic data reveals that 66.18% of employees at BIDV - Transaction Center 1 have been with the bank for 3 to 5 years, while 17.65% have over 5 years of service, 13.23% between 1 to 3 years, and only 2.94% have less than 1 year Ms Pham Vu Minh Dan, Director of the Human Resource Department, notes that the average tenure of staff at the center is 4.73 years, reflecting a 5% increase and significantly surpassing the 3-year average typical in the service industry This positive statistic underscores the strong employee retention and commitment within the bank, aligning well with its current human resource strategy.
Age, gender, marital status, seniority, and education significantly influence teller motivation The majority of tellers are young and predominantly female, which contributes to their active and energetic nature; however, they also face increased financial demands Many are married and seek stable, high-income jobs to support their families and children Additionally, those with longer tenures in the bank expect compensation that reflects their contributions and dedication Ultimately, each of these factors plays a distinct role in shaping motivation levels among tellers.
2.3.2 Analyzing current employee motivation at BIDV - Transaction Center
The table below presents data collected from 240 valid responses regarding employee satisfaction related to the "work itself" dimension at BIDV – Transaction Center 1 It is evident that the nature of work significantly impacts employee satisfaction This dimension is further divided into seven distinct attributes, as illustrated in the accompanying figure and table, highlighting the research findings for this key area.
Table 2.5: Work itsefl of tellers at BIDV - Transaction Center 1
WI1 WI2 WI3 WI4 WI5 WI6 WI7
A significant attribute with a mean score of 4.21 is the pride and respect employees feel from their work, particularly as bank tellers at BIDV – Transaction Center 1 To excel in this role, candidates must possess a university degree from reputable institutions, ensuring they meet the bank's rigorous recruitment standards This dedication not only leads to well-paying jobs but also fulfills the diverse responsibilities required of a bank teller For many young individuals, securing a position at a leading bank like BIDV is a cherished aspiration The qualified staff at BIDV - Transaction Center 1 effectively meet customer needs, contributing to the bank's sustainable growth Furthermore, societal respect enhances employee motivation, encouraging greater dedication to their roles The reliability of the high mean score of 4.21 is underscored by a low standard deviation of 0.890, indicating strong consistency in employee satisfaction.
Figure 2.8: Work itself of tellers at BIDV - Transaction Center 1
My current work makes me proud and respected by the society
My current work requires me to use a large amount of professional expertise
My current work affects on other individuals’ works in the organization
My current work is challenging and interesting
My current work requires me to be always innovative
My current work fills me with the feeling of completion and success
My current work makes positive contribution to the general sales objectives of the organization
The attribute "My current work requires me to be always innovative" received a mean score of 3.68, highlighting the necessity for BIDV - Transaction Center 1 to foster innovation among its employees As Tellers are the primary representatives of the bank, their ability to innovate is crucial for maintaining competitiveness in a rapidly evolving market Recognizing this, the leadership at BIDV - Transaction Center 1 is committed to implementing best practices and training programs that encourage employee innovation Initiatives such as international travel opportunities, extracurricular activities for networking, and access to modern technology are designed to enhance employees' skills and motivation However, the high standard deviation of 0.984 indicates variability in responses, suggesting a need for further evaluation of this attribute's impact on employee performance and satisfaction.
Employees at BIDV - Transaction Center 1 rate their work as both challenging and interesting, with a score of 3.66 As bank tellers, they handle various tasks that require flexibility and proactivity, particularly in managing money, where even minor errors can lead to significant consequences Despite the challenges, tellers find their roles engaging due to the opportunity to interact with diverse customers, which enhances their soft skills, including communication, time management, problem-solving, and persuasion Consequently, the teller staff express satisfaction with their current work environment, appreciating the blend of challenges and interesting experiences it offers.
1.002 It’s quite high and indicates that the mean score is not really reliable It is necessary to reexamine the attribute
3.65 is the mean score that 240 respondents taking part in the survey scored at the attribute of “My current work affects other individuals’ works in the organization” It can be said that every organizational business is an entity that consist of many different departments, employees and jobs However, those jobs have a close relationship and each department performs a different job There is no doubt that bank tellers are the first employees who interact with a great deal of customers, so in addition to specific job requirements, their main duties are to also give advice, guidance and provide information in relation to the products and services of the bank Thanks to these advices, customers will be able to choose services and products that may not belong to responsibilities of tellers, but to other colleagues in the field More importantly, just a little bit of confusion in the working performance of the tellers can greatly affect the next job performance of other departments Therefore, tellers always try to work carefully to avoid making unexpected mistakes With the mean 3.65, when comparison with other standard deviations, the standard deviation is high 1.004 Therefore, the reliability of this attribute is not really high The author should reconsider this evaluation of this attribute
The attribute with a mean score of 3.59 highlights the necessity for employees to utilize significant professional expertise in their current roles In today’s job market, mental positions demand a blend of expertise, knowledge, experience, and skills To enhance job satisfaction, leaders must recognize the importance of aligning employees with responsibilities that match their capabilities and background For instance, tellers at BIDV - Transaction Center 1 are expected to possess essential skills and expertise, as their roles involve extensive professional knowledge when interacting with customers and conveying information about banking products and services However, the high standard deviation of 1.026 suggests that the reliability of this mean score is low, indicating a need for a thorough reevaluation of this attribute.
Summary of finding of tellers’ motivation at BIDV - Transaction Center 1
2.4.1 Overall assessment of tellers’ motivation at BIDV - Transaction Center 1
A comprehensive survey involving 240 respondents achieved a 100% response rate, assessing the motivation levels of tellers at BIDV - Transaction Center 1 The evaluation focused on seven key dimensions: work itself, income, working conditions, supervision, training and development, promotion, and overall satisfaction.
After analyzing 40 attributes of 07 dimensions, the following results were achieved:
Table 2.12: Overall assessment of tellers’ motivation at BIDV -
The evaluation of seven dimensions indicates that tellers at BIDV - Transaction Center 1 experience overall job satisfaction, with the exception of working conditions, direct supervision, income, and training and development To enhance teller satisfaction, the bank should focus on improving salary structures, implementing better policies, and upgrading working conditions.
My current work makes me proud and respected by the society
At BIDV - Transaction Center 1, most tellers express high job satisfaction, reflecting the esteemed status of banking as a coveted profession in Vietnamese society Working in a bank is admired and respected, as it requires meeting rigorous standards of knowledge, skills, and professionalism BIDV - Transaction Center 1, known for its reputable image and strict recruitment process, attracts many aspiring candidates The selection process is challenging, involving IQ tests and direct interviews, which adds to the pride that tellers and staff feel about their roles in the banking sector As a private bank, BIDV - Transaction Center 1 has garnered significant respect and positive impressions from customers and the community.
My current work requires me to be innovative
In today's highly competitive banking environment, attracting customers requires not only enhancing the quality of products and services but also leveraging a strong business culture, particularly through the pivotal role of tellers Tellers are essential in fostering innovation, enabling them to address customer issues swiftly and effectively Their interactions with customers shape the bank's image; dissatisfaction can tarnish the bank's reputation, while positive experiences can enhance it Tellers engage with numerous customers daily, facing diverse situations that demand innovative and adaptable problem-solving skills Without innovation, tellers may struggle to meet customer needs, leading to frustration and increased turnover intentions.
The Bank always has the regime for bonus given at Tet, etc
BIDV - Transaction Center 1 aims to establish itself as a leading enterprise in Vietnam by offering competitive salaries and comprehensive welfare policies that promote sustainable development and job satisfaction Employees benefit from various fixed allowances, including gasoline, telephone, and overtime, alongside bonuses during holidays based on seniority and contributions The bank's reward system includes a 13-month salary policy and performance-based bonuses, ensuring that high achievers are recognized Additionally, welfare programs encompass AON insurance, child allowances, pension support, and healthcare, catering to the diverse needs of employees Overall, staff express a high level of satisfaction with the bank's compensation and welfare offerings.
BIDV - Transaction Center 1 emphasizes the importance of human resources alongside technological advancements in its development strategy as a leading enterprise in Vietnam The bank actively encourages employees to identify their skill gaps and propose training, ensuring that all staff have access to relevant banking courses for professional growth Exceptional performers and those with managerial potential are promoted to leadership roles, with clear promotion policies outlined on the bank's website to foster transparency and minimize envy among employees Additionally, BIDV - Transaction Center 1 supports staff pursuing higher education through a tuition assistance program, facilitating career advancement With a focus on sustainable growth and network expansion, the bank provides young employees with opportunities to showcase their abilities and advance their careers.
Besides many achievements, current tellers’ motivation at BIDV - Transaction Center 1 still exists some typical limitations as follows:
Income is not enough for them to cover their everyday needs and lower than other positions at BIDV - Transaction Center 1 and other banks
Tellers at BIDV - Transaction Center 1 face demanding working conditions, often exceeding 12 hours a day, significantly surpassing state regulations They are required to arrive early and stay late to manage transactions, leading to work hours extending until 7 or 8 p.m Despite their extensive hours and responsibilities, including accuracy in handling customer transactions, tellers receive a low average income of only VND 5 to 7 million, which barely covers basic needs, particularly for those with families The unclear salary structure and lack of overtime compensation further contribute to their dissatisfaction and diminishing motivation, as the bank has not prioritized fair compensation for tellers This situation highlights the pressing need for the bank to address income disparities and improve working conditions for its tellers.
The bank has not promoted the right person for the right duty and the right position, especially for the talented staffs
BIDV - Transaction Center 1 emphasizes the importance of promoting and developing talented employees; however, opportunities for advancement in teller positions are limited While tellers who meet targets and maintain high customer satisfaction may be considered for internal promotions, the actual chances for advancement are low, and many are unable to transition to other roles due to a lack of qualifications Consequently, successful tellers often find themselves accumulating experience only to seek better positions at other banks This situation may stem from the bank's insufficient focus on the potential of tellers, leading to the appointment of inexperienced staff in critical roles, which ultimately hinders effective promotion and development within the organization.
The bank has failed to provide adequate promotional opportunities and supportive policies for its staff Employees strive for professional growth, including salary increases, bonuses, and promotions, yet tellers are often overlooked compared to their counterparts in other departments Despite their significant contributions and efforts, these staff members receive little recognition, whether material or through acknowledgment, with their accomplishments primarily reflected in meeting sales targets and key performance indicators.
Key Performance Indicators (KPIs) and Key Result Areas (KRAs) are often assigned to managerial and teller positions from headquarters, rather than promoting from top-performing tellers This practice can lead to dissatisfaction and demotivation among staff, as there are limited opportunities for tellers to showcase their abilities and advance their skills To enhance employee morale and performance, banks should consider creating more avenues for teller development and recognition.
The bank has not assigned working time properly and flexibly
Tellers at banks face demanding work schedules, often exceeding eight hours daily, which leads to fatigue and demotivation Despite their long hours, their compensation typically excludes overtime pay and allowances, resulting in a perception of inadequate remuneration for their efforts The banks' failure to implement a shift system that accommodates the needs of tellers exacerbates the issue, leaving them with little time to rest and recover after their strenuous shifts.