Introduction
Company Background
The Bank for Investment and Development of Vietnam JSC – Ho Chi Minh City Branch (BIDV.HCMC), established in 1976, is one of the oldest branches of BIDV and has grown to be one of its largest units, boasting total assets of approximately VND 20,000 billion and contributing about 10% to BIDV's overall profit after tax as of 2017 BIDV.HCMC primarily serves individual clients and large corporate customers across various sectors, including construction, high technology, building materials, agriculture, and commerce Additionally, it is recognized by BIDV's head office as a key training ground for developing future leaders within the organization.
Table 1: The size of debt and deposit from 2014 to 2016
Table 2: The income of credit, deposit and other services from 2014 – 2016
BIDV.HCMC stands out as a key player in both domestic and international business networks, thanks to its adherence to quality management systems certified by the International Organization for Standardization (ISO 9001:2015) As one of the experimental branches, it is selected to implement various international standards, such as Basel, and to test banking products prior to their rollout across the entire system Additionally, BIDV.HCMC serves as a crucial payment intermediary for numerous domestic and international organizations, including those involved in Foreign Direct Investment.
Internal managementRisk management Operation Customer management Transaction offices
Financing and planning Risk management Customer ServiceCorporate banking
The branch’s structure and general goals
BIDV.HCMC's organizational structure aligns with the BIDV policy of a standardized branch model, featuring a Board of Directors and five key operational divisions: Customer Management, which encompasses Corporate Customer Management (CCM) and Individual Customer Management (ICM); Risk Management; Operations, including the Credit Administration, Customer Service, and Vault Service Departments; Internal Management, comprising the Financing and Planning, Organization, and Human Resources Departments; and subsidiary units, also known as Transaction Offices The current employee count across all levels at BIDV.HCMC is detailed in the accompanying table.
Table 3: The total number of employee at all levels in BIDV.HCMC in 2018
Internal management Financing and Accounting 15 6%
Source: Department of human resource management
Between 2017 and 2020, BIDV aimed to maintain its leading market share and scale while effectively regulating the domestic financial market The BIDV system, particularly BIDV.HCMC, focused primarily on traditional banking services such as credit, guarantee issuance, deposits, international payments, trade finance, and various banking products like internet banking and card services This emphasis on traditional banking underscores BIDV's commitment to prioritizing these core areas of operation.
Between 2017 and 2020, Mr Van Dinh Hai, Director of BIDV.HCMC, emphasized the crucial role of corporate banking during a Corporate Banking Meeting in March 2017 He stated that while retail banking and related products are the future trend, corporate banking remains vital to the bank's performance BIDV.HCMC has successfully attracted a significant number of large and small to medium-sized enterprise (SME) customers, which constitute about 80% of the bank's income Therefore, maintaining these corporate customer relationships is essential for long-term success, highlighting the importance of the front-office division in driving business operations.
Problem context
The CCM departments at BIDV.HCMC play a crucial role in developing and maintaining customer relationships, appraising credit proposals, and collaborating with other departments to enhance business operations With approximately 20 percent of the branch staff dedicated to these income-generating activities, the CCM departments face complex challenges related to laws, finance, communication, and diverse customer characteristics As a result, despite competitive remuneration, employees in customer management must be skilled, well-regulated, and committed to lifelong learning to effectively navigate these complexities.
The CCM departments are essential to the branch's business operations, contributing around 76% of the total branch income in 2016.
Table 4: The income of debt, deposit and other services of BIDV.HCM by category of CCM and ICM departments from 2014 to 2016 (BIL VND)
Departments DEPOSIT CREDIT OTHER SERVICES TOTAL
BIDV.HCM's performance is primarily focused on three service groups: deposit services, credit services, and additional offerings such as domestic and international payments, trade finance, internet banking, and insurance The evaluation of performance hinges on two key factors: size, represented by debt and deposit balances, and efficiency, measured by income from these service groups From 2014 to 2016, both debt and deposit balances grew significantly, with increases of 37% and 28%, respectively, indicating a year-on-year expansion However, this growth in size is not mirrored in efficiency, as income growth rates declined during the same period Notably, income from credit services fell by 6% and 13% in 2015 and 2016, respectively, culminating in an overall decrease of 18% throughout the surveyed period.
Analysis of total income from CCM and ICM departments reveals significant declines during the 2014-2016 period, particularly in the corporate customer sector Specifically, credit services experienced a 10% decrease from 2014 to 2015 and a 15% drop from 2015 to 2016 Additionally, other services saw reductions of 4% and 2% in the same respective years Consequently, it is evident that the overall decline in total income during the surveyed period primarily stemmed from the CCM departments.
Table 5: The growth of net income of loan, deposit and other services classified by departments from 2014 to 2016
The decline in income from corporate clients has been accompanied by various subjective and objective factors contributing to the decreasing performance of BIDV.HCMC.
BIDV faces significant challenges in performance due to rising competition from numerous commercial banks, particularly those with foreign direct investments like HSBC, ANZ, and Hong Leong Bank in Ho Chi Minh City These competitors not only offer a wide range of banking services similar to BIDV but also provide specialized products tailored to evolving customer needs Major rivals include Vietcombank and Vietinbank, alongside foreign entities such as ANZ and HSBC A common strategy among these banks is to attract corporate customers by offering competitive pricing, making it increasingly difficult for BIDV.HCMC to negotiate with and retain existing clients while also reaching out to new ones The market share and credit growth data as of June 30, 2018, clearly illustrate the intensifying competition that BIDV, particularly its Ho Chi Minh City branch, is currently experiencing.
Table 6: The market share of credits amongst banks in 30/6/2018
The growth rate of credits
113 No of domestic branchs of the entire BIDV
No of branches in HCMC
Table 7: The growth rate of credits amongst the selected banks in 30/6/2018
(Source: The mid – annual reports of banks in 30/6/2018)
- Another objective reason could be derived from the internal competitions between BIDV branches as a result of the expansion of new branches (See table 8).
Table 8: The development of BIDV branches in the period of 2010 – 2017
(Source: the BIDV annual reports)
Particularly, BIDV.HCMC is one of the main branches that are responsible for expanding the network of BIDV in Ho Chi Minh City In the period of 2014 –
In 2017, BIDV.HCMC expanded by opening five new branches, leveraging its customer base, debt and deposit balances, and human resources This growth not only increased the size and income of BIDV.HCMC but also fostered internal competition among its branches in Ho Chi Minh City However, this expansion has led to a shortage of experienced personnel, as skilled staff were reassigned to new positions in the newly established branches While the BIDV network has grown and the brand has gained recognition, these developments have significantly impacted the overall performance of BIDV.HCMC.
The high turnover rate among BIDV.HCMC officers, particularly in the CCM departments, is a significant concern, as highlighted in tables 9 and 10 According to Price and Mueller's Causal Model of Turnover (1981), turnover rate refers to the percentage of employees resigning within a specific timeframe Table 9 clearly illustrates the number of officers leaving their positions across various departments, revealing that the CCM departments experience the highest turnover.
Table 9: The number of BIDV.HCMC officers leaving job in 2014 – 2017
No The number of officers leaving their jobs 2014 2015 2016 2017
(Source: the BIDV.HCMC annual reports)
Employee turnover at BIDV.HCMC has significantly increased since 2014, raising concerns among managers about maintaining human resources as a competitive advantage and achieving business goals Various subjective and objective factors, such as employee expectations, company culture, promotion opportunities, professionalism, individual development, and internal communication, impact job satisfaction, organizational commitment, and turnover intentions Recent statistics indicate a substantial rise in resignations among CCM staff over the past four years, highlighting the urgency of addressing these underlying issues.
Table 10: The number of staff leaving their CCM duties from 2014 – 2017
2 Number of people leaving job 2 3 6 12
(Source: the BIDV.HCMC annual reports)
High turnover rates significantly impact organizational performance, as they lead to workforce shortages and operational declines (Borda & Norman, 1997) From a managerial perspective, rising turnover can be costly, as departing employees often exhibit decreased productivity prior to their exit, which signals potential resignations and disrupts team dynamics Additionally, the resignations place increased pressure on remaining staff, resulting in a work-life imbalance and lowering morale, ultimately heightening the risk of further turnover (Borda & Norman, 1997; Coomber).
Long-term vacancies in critical positions can lead to significant negative impacts on organizational outcomes, making the process of filling these roles both time-consuming and resource-intensive Consequently, it is essential for management to prioritize strategies aimed at reducing turnover rates to maintain organizational effectiveness.
The decline in BIDV.HCMC outcomes can be attributed to various factors, including high competition from other banks and branches, which represent systematic risks, and a rising turnover rate among CCM departments, seen as a non-systematic cause This turnover indicates underlying issues that need to be analyzed, as it often stems from fluctuations in job satisfaction Job satisfaction is recognized as a crucial factor influencing organizational commitment, with research indicating that dissatisfaction can lead to increased turnover While definitions of job satisfaction vary, it is generally viewed as the alignment between personal expectations and work outcomes To address the alarming turnover rate and related issues, managers must first identify the root causes and then implement appropriate strategies to enhance the work environment The following section will theoretically explore the factors affecting job satisfaction and classify the elements impacting CCM staff satisfaction at BIDV.HCMC based on in-depth interviews and theoretical analysis.
The classification of initial causes leading to the decrease of job satisfaction
The theoretical initial cause and effect map
Intellectual capital, as defined by Longo & Mura (2011), represents the key assets organizations leverage for competitive advantage, encompassing human, structural, and relational capital Notably, relational capital plays a crucial role in this framework.
The adequatesness of intellectual capitals:
Employee attitudes and morale can vary significantly, influencing factors such as turnover and aspiration levels Employee satisfaction reflects the internal and external relationships fostered by the organization through its workforce, including collaboration with suppliers, customers, and other stakeholders Human capital encompasses the collective skills, knowledge, experience, and expertise of employees, which are essential for generating both tangible and intangible assets that provide a competitive advantage Additionally, structural capital includes the knowledge embedded in databases, patents, procedures, and systems Research indicates that intellectual capital is a key driver of corporate performance, enhances innovative capabilities, and supports the transfer of skills and knowledge within organizations.
2006; Subramaniam & Youndt, 2005) Therefore, based on the findings of Longo &
According to Mura (2011), there is a strong positive relationship between the adequacy of intellectual capital and employee satisfaction, which can lead to various outcomes such as career success, improved attitudes, and reduced turnover intentions.
Figure 2: The conceptual cause – effect model of the thesis
The factual cause and effect map
From the perspective of BIDV.HCMC, in-depth interviews revealed various factors contributing to the decline in job satisfaction among CCM employees These factors can be systematically categorized into three main groups: human capital, structural capital, and relational capital.
11), then lists them into the initial cause – effect map (see figure 3), as below:
Table 11: A variety of reasons acquired through the interviews
The lack of democracy at work and the internal communications are negatively influenced due to the large power distance.
The inexperienced - leadership skill managers The inefficient feedbacks and knowledge sharing
The personal relationships and the feeling - based judgments
Unfair promotions The shortage of human capital
The incapability of time arrangement and balancing between work and life
The high uncertainty and the overlapped rules and procedures
The shortage of intellectual capital The shortage of structural capital
The low empowerment and the conplicated working procedures The delayed and late working processes
The lack of internal democracy at work The shortage of relational capital The large power distance
The internal procedures are somewhat complicated and the empowerment is low, this fact leads to the lateness in solving the customers’ needs.
Due to the overlapped rules and procedures, the higher managers tend to avoid the uncertainty by shifting the responsibilities onto the lower levels.
The inexperienced – leadership skill managers implicitly make their subordinates incapable due to inefficient feedbacks and knowledge sharing.
Unfair promotions are based on personal relationships, and feeling – based judgments The workers are incapable in arranging time and balancing between work – life lead to work – life imbalance
Figure 3: The initial cause – effect map
This section of the thesis analyzes the cause and effect relationship derived from interview practices, highlighting their negative impact on the satisfaction of CCM officers These practices, whether individually or collectively, contribute to adverse outcomes such as discouragement and turnover intention, which are closely linked to fluctuations in job satisfaction Job satisfaction emerges as a central issue influenced by various independent variables, commonly referred to as intellectual capitals The analysis reveals that a lack of intellectual capitals is implicitly reflected in unfavorable workplace practices, including ineffective internal communications and unfair promotions.
In the following section, this thesis will analyze the impact of the shortage of intellectual capital, drawing on insights from interviews It will connect relevant literature to practical factors influencing job satisfaction, including the working environment and work-life balance.
The literatures for the elements affecting to the job satisfaction and the connections of these
Working environment
Job satisfaction significantly influences employee behavior in the workplace, shaped by their perceptions and beliefs about their roles This satisfaction can vary widely due to numerous internal and external factors Employees have distinct perspectives on various elements of their jobs, including the nature of their tasks, relationships with colleagues and supervisors, and compensation These factors collectively create a work environment that profoundly impacts individual job performance, attitudes, and overall satisfaction.
Numerous empirical studies in human resource management indicate a strong positive correlation between the working environment and job satisfaction (Leiter and Laschinger, 2006; Aiken et al., 2001; Anitha, 2014; Raziq and Maulabakhsh, 2015) A motivated work environment enhances employee performance and job satisfaction, particularly in human capital-intensive industries such as financial services, healthcare, and education (Marin – García et al., 2011) The term "working environment" encompasses various definitions and factors that influence employee morale and performance It can be theoretically defined as a combination of three key elements: technical, human resource, and organizational (Kohun, 1992; Opperman, 2002) The alignment of these elements within the context of BIDV.HCMC will be explored in subsequent sections.
Physical working conditions encompass the technical facilities that companies invest in to enhance employee performance These include essential elements such as tools, equipment, office layout, ventilation, lighting, noise control, and technological infrastructure By optimizing these factors, organizations can create an environment that supports staff in effectively carrying out their responsibilities.
Research indicates that a well-designed workstation positively influences job satisfaction (Newsham et al., 2009; Tomovska-Misoska et al., 2014; Brill & Weidemann, 2001; Wineman & Adhya, 2007) In the banking sector, where employees spend considerable time indoors, an adequately equipped workplace is crucial for enhancing comfort, productivity, and overall employee well-being, leading to benefits such as cost savings and health protection However, at BIDV.HCMC, the impact of workplace conditions on job satisfaction seems minimal, primarily due to its advantageous location on Nguyen Cong Tru St., District 1, HCMC.
The "Wall Street of Saigon" significantly enhances income-generating activities for staff, such as transactions and notary-related tasks From a Vietnamese perspective, investing in the branch's physical appearance is seen as a key strategy to build trust and attract more customers, prompting the board of directors to prioritize creating a more convenient workplace This includes regular testing and maintenance of tools, equipment, and the internal computer network to ensure high-quality services Employee perceptions of the branch's physical factors are largely positive; however, findings from in-depth interviews indicate that technical elements do not significantly influence staff satisfaction at BIDV.HCMC.
Interactional justice, a key aspect of human resources, focuses on fostering positive social relationships and effective support among employees and their peers within the workplace (Colquitt, 2001) This concept is comprised of two main components, which are essential for ensuring fair and respectful interactions in professional environments.
Interpersonal justice involves how employees are treated with politeness, fairness, dignity, and respect by their managers during various work activities, while informational justice focuses on the reasons provided to staff about procedural decisions and outcomes For organizations to maintain a cohesive and loyal workforce, management must prioritize interactional justice at all levels Failure to promote this justice can lead to serious issues, including decreased job satisfaction and productivity In the case of BIDV, an official code of conduct outlines clear job expectations for employees, who are encouraged to uphold these standards in their interactions However, factors such as power distance and uncertainty avoidance may contribute to perceived interactional injustice, particularly in internal communication and decision-making regarding promotions and business objectives Interviews reveal that this perceived injustice adversely affects satisfaction among CCM staff and contributes to higher turnover rates.
Finally, organizational element refers to: (1) internal systems, policies, procedures, and
Organizational cultures and philosophies play a crucial role in shaping internal systems, policies, and procedures that foster distributive and procedural justice According to Adam (1965), distributive justice is defined as the fairness of outcomes and the impartiality of decision-making processes.
The allocation of resources, encompassing both tangible short-term rewards like salaries and bonuses, as well as intangible long-term benefits such as promotions, plays a crucial role in fostering perceptions of distributive justice among employees (Adam, 1965) Procedural justice, defined by Leventhal (1980), refers to the fairness and transparency of the processes that yield these outcomes, which are enhanced when employees have a voice in decision-making and when procedures exhibit consistency, accuracy, clarity, ethicality, and impartiality In the context of BIDV.HCMC, the examination of distributive and procedural justice will be informed by staff perceptions of the current remuneration status, with a focus on how organizational culture influences procedural justice, particularly in relation to uncertainty avoidance.
The term "remuneration" refers to the compensation and promotion policies offered in exchange for services rendered In terms of short-term remuneration, findings from BIDV.HCMC indicate that most CCM staff are satisfied with their current compensation levels Therefore, it is clear that compensation is not the primary factor contributing to the declining satisfaction among CCM staff.
Mr Tran Hoai Nam states that with three years of experience, his monthly income averages around 30 million dong, making it highly competitive compared to his peers in other banks.
Mrs Ha Ngoc Giang expresses her complete satisfaction with the compensation provided by her bank, stating that it is well-deserved and notably higher than what most banks in Ho Chi Minh City offer.
According to empirical research published by Navigos Group, a leading human resource services firm in Vietnam, BIDV employees rank third in average income compared to employees in other banks.
Vietinbank Vietcombank BIDV Techcombank VIB MBBank ACB
Table 12: the average income per head (in VND million) of several surveyed banks in 2016 – 2017
Promotion in the workplace signifies significant advancements in an employee's career, leading to higher hierarchical levels with increased responsibilities and more attractive remuneration packages (Malik, Danish, and Munir, 2012) At BIDV.HCMC, statistical data indicates that the average salaries for higher-level positions are nearly double those of lower-level roles The following table provides a detailed overview of the average salaries for various positions, ranging from substitutes to department heads, while excluding the salaries of deputy directors and directors for this thesis, specifically for the year 2018.
Table 13: The average salaries of some positions at BIDV.HCMC in 2018
A newly appointed officer can expect an average salary of approximately 20 million VND per month at Level 5 class 1 Following every three years of service, their salary will increase as they progress to higher ranks, such as Level 5 class 2, 3, and 4 To qualify for these advancements, employees must possess a minimum of one year of experience and be responsible for more complex tasks compared to their Level 5 peers.
These levels are only assigned to the deputy – of – head positions
These levels are only assigned to the head – of
Position Level Class Notes department 10 65 68 71 74 – department positions
(Source: the department of human resource management)
Work – life balance
In today's fast-paced world, individuals face conflicting pressures between work and personal life, leading to challenges in maintaining work-life balance, which significantly impacts employee turnover, job satisfaction, and overall productivity Research indicates that a positive work-life balance correlates with higher quality of life and job satisfaction, while its conflict is linked to increased anxiety and depression As a result, work-life balance has become a critical issue in human resource management, necessitating attention from policymakers, organizations, and employees alike This thesis will explore the sources of work-life conflict, drawing on various studies that examine time-based and strain-based conflicts.
Employees often juggle multiple responsibilities throughout their day, with specific time commitments tied to their primary job role that cannot be easily transferred to other personal roles, such as being a spouse, parent, or student This time-based conflict arises from two main factors: the pressure of job-related duties and the demands of various personal roles (Pleck, Staines, and Lang, 1980; Kahn, Wolfe, Quinn, Snoek, and Rosenthal, 1964).
Time pressures faced by employees, such as business trips and tight deadlines, can hinder their ability to meet demands from other roles, leading to work-family tension Research indicates that long working hours and frequent overtime contribute significantly to this conflict (Burke, Weir, and DuWors Jr, 1980; Keith and Schafer, 1980; Pleck, Staines, and Lang, 1980; Bohen and Viveros-Long, 1981).
Mrs Nhan acknowledges a significant rise in resignation rates, primarily due to work-life conflict Unlike previous generations, today's workforce, especially younger employees, seeks careers that align with their personal values and priorities, ensuring a better work-life balance and job satisfaction Many employees, particularly women, prioritize family care, personal development, social relationships, and health alongside their jobs This trend of resignations has adversely affected current staff across both front and back departments, leading to a shortage of personnel in front-facing roles and necessitating the reassignment of employees from back departments.
Work-life conflict often arises in family practice roles due to the significant time commitments required, leading employees to become preoccupied with non-work responsibilities even while fulfilling job duties (Bartolome, 1972) Research by Herman and Gyllstrom (1977) indicates that married employees experience greater work-family conflict compared to their unmarried counterparts Similarly, Greenhaus and Beutell (1985) suggest that parents may encounter more work-family tension than those without children.
Mrs Ha Ngoc Giang, a credit officer in the CM department, expressed her concerns about the increased workload following the resignation of younger colleagues, which has forced her to take on their unfinished tasks and extend her work hours until 7:00 or 8:00 PM With the recent implementation of new ISO standards at BIDV, she now has only two days to complete credit reports instead of three, leaving her with little time for family and personal care This mounting pressure has led some colleagues to feel fatigued and envious of the better circumstances of former staff who have moved on.
Role-produced strain represents the second type of work-life tension, characterized by strain-based conflict This conflict arises when negative emotions, such as fatigue, irritability, or depression, from one role negatively impact the performance in another role Consequently, individuals may struggle to fulfill the demands of their various responsibilities, highlighting the interconnectedness of roles in work-life dynamics.
1985) There are also two explainable dimensions for this form of conflict, including work – related stress, and family disapproval.
Unfavorable working practices significantly contribute to work-related stress, negatively impacting employees' morale, job satisfaction, and commitment Factors such as role ambiguity, low supervisor support, poor job-personal capacity fit, and unmet expectations are closely linked to work-life conflict, leading to increased tension and dissatisfaction among employees (Jones and Butler, 1980; Kopelman, Greenhaus, and Connolly, 1983; Bartolomé and Evans, 1979).
Mr Dang Cong Duy, a former CCM officer, cites work-related stress as a key reason for his resignation, particularly due to a client nearing bankruptcy, which resulted in bad debts with BIDV.HCMC He faced significant challenges from the Department of Risk Management and Credit Administration, who required explanations and credit profiles, leading to time-consuming issues that adversely affected both his professional responsibilities and personal life.
Conflicts within families can arise when spouses exhibit unsupportive and unsympathetic behaviors, often stemming from differing career orientations or fundamental beliefs about gender roles and equity Such behaviors contribute to a tense family environment and increase work-life conflict Research by Hall (1972) highlights these dynamics, emphasizing the impact of individual differences on family relationships.
Low job satisfaction High turnover rate
Other roles time - based conflict
Non - work strain - based conflict Work strain - based conflict
Strain-based conflict arises when married women, juggling multiple roles, face challenges in achieving work-life balance A husband who embraces feminist attitudes can help mitigate this work-life conflict, providing essential support to his wife as she navigates her various responsibilities.
Figure 5: the cause and effect map
Cause validation
A comprehensive analysis, including in-depth interviews with eight respondents and secondary data from the HRM department, reveals that the primary factors contributing to high staff turnover at BIDV.HCM are promotion opportunities, management style, and work-life balance It is crucial for BIDV to implement effective strategies promptly to address these issues.
The promotion process faces significant challenges due to procedural and distributive justice concerns Biased candidates often meet all official requirements, yet personal issues such as close relationships and discrimination lead to subjective judgments by the board of directors, resulting in unfair promotions Addressing these social issues is a daunting task that exceeds the scope of this thesis Additionally, while some biased promotions contribute to staff dissatisfaction at BIDV, this issue remains complex and unresolved.
Deputy head positions play a crucial role in overseeing technical controls within departments, ensuring that internal operations align with business targets and objectives.
Defining targets requires higher-level competencies beyond technical skills, typically determined by senior management such as department heads and board members The promotion of board members is evaluated independently by various stakeholders, including the current board, human resources committees, and local branches of the State Bank of Vietnam, ensuring a more democratic and transparent selection process for candidates Ultimately, while some candidates may not be the most exceptional, many still fulfill the essential job requirements despite biases.
While work-life balance is often cited as a reason for resignations at BIDV, it does not fully explain the high employee turnover The bank's ongoing business growth increases work pressure, and the Head Office's profit thresholds dictate the maximum number of employees, making recruitment decisions critical BIDV's human resource policies focus on training that enhances both specialist knowledge and productivity while promoting work-life balance Ultimately, work-life balance is a personal responsibility for each employee, as BIDV can only implement general policies related to training and remuneration.
It can be seen that organizational culture, especially in uncertainty avoidance and power distance are considered as principles behind the levels of workers’ satisfaction.
Uncertainty avoidance significantly impacts employee satisfaction within BIDV's workforce, a challenge closely tied to the official laws and regulations of both BIDV and the State Bank of Vietnam Addressing this issue requires long-term involvement from various stakeholders, making it complex and beyond the scope of this thesis Consequently, this thesis will focus on the issue of power distance, which contributes to the high turnover rate at BIDV.HCM for three primary reasons.
The primary factor contributing to high employee turnover, as revealed by in-depth interviews with selected participants, is largely attributed to power distance, characterized by a lack of democratic decision-making and insufficient respect for personnel at all levels Additionally, uncertainty avoidance plays a significant role, as employees often evade responsibility by shifting it to others.
Mrs Le Thi Kim Nhan – the head of human resources management admits that:
High power distance hinders democratic decision-making, particularly in setting business targets Additionally, uncertainty avoidance makes it challenging for substitutes to obtain timely support from managers Consequently, this leads to unmet business goals and a lack of empathy, resulting in employee dissatisfaction and feelings of depression.
Mr Tran Hoai Nam, a CCM officer, emphasizes the importance of managerial involvement in overcoming business challenges He advocates for managers to actively facilitate and participate in resolving ambiguous situations, rather than merely assigning blame without offering constructive advice.
Employee salaries are directly impacted by the performance of their branch, leading to a decline in risk appetite among substitutes This decrease is attributed to overwhelming business goals and insufficient support from management.
In other words, the hunger for loans causes the employees to accept the riskier debts.
Prolonged exposure to the adverse effects of bad debts can significantly diminish a branch's profitability and employee incomes, ultimately leading to a detrimental impact on organizational commitment.
Ms Tran Thi Thanh Thao, a CCM officer, expressed concern about her salary growth, noting that it only increased by 5% in 2018, compared to 10% in 2017 and 15% in 2016, primarily due to the provision of significant bad debts She fears that this minimal increase may not keep pace with inflation, especially as the provisions are set to be allocated steadily from 2018 to 2023.
Interviewees experiencing work-life balance issues identified power distance and uncertainty as significant contributing factors In the context of BIDV.HCM, high power distance is evident through a lack of democratic decision-making and centralized authority, as well as instances of limited interactional justice in extreme cases.
Ms Truong Thi Minh Hieu, a former CCM officer at BIDV, expressed her struggles in a challenging work environment characterized by a lack of respect and support from management Despite her dedication, she faced verbal aggression and discrimination when making mistakes, leading to confusion and stress due to ambiguous instructions from her superiors The increasing workload made it difficult for her to balance her professional and personal life, often requiring her to work late into the evening Ultimately, she chose to leave BIDV.HCMC in search of a more manageable job that would allow her to better care for her family.
BIDV.HCM has identified organizational culture issues as a key factor contributing to its high employee turnover rate In response, the board of directors has implemented various strategies, such as recruiting new staff to replace those who resign and requesting the BIDV Head Office to extend the provision period for bad debts from five to ten years This aims to stabilize employee income growth and includes considerations for increasing bonuses during significant holidays like Lunar New Year and Independence Day, as well as enhancing allowances for business trips, health, hazardous conditions, and overtime However, the effectiveness of these solutions has not met expectations, suggesting they may lack persuasiveness for several reasons.
Alternative solutions
The first alternative solution: training the management skills for the managers at all levels
Ineffective leadership and poor communication skills among supervisors can hinder interactions with employees Research by Green, Miller, and Aarons (2013) indicates that training managers in transformational leadership enhances employee engagement and satisfaction while reducing emotional exhaustion and turnover intentions Mrs Le Thi Kim Nhan, Head of HR at BIDV.HCM, emphasizes the importance of improving communication skills among managers at all levels to foster a more democratic work environment.
An annual short-term management skills training course is offered at the school, but its effectiveness is limited due to the brief two-day duration, which makes it challenging to cover a substantial amount of management knowledge.
Completing the course is a crucial step in the promotion process; however, trainees, particularly managers, often overlook it due to the easy final examination and competing priorities such as job responsibilities and business demands.
Mr Le Thanh Tra, head of one of the CM departments, expressed concerns about the challenges of completing a management course required for his promotion at the end of his three-year term He noted that the course's short duration and inconvenient scheduling hinder his ability to effectively transition his responsibilities to other managers This situation makes it difficult for him and other trainees to focus on the lectures, as they often need to leave the class to address daily duties via their cell phones.
Mrs Le Thi Kim Nhan, head of human resource management, emphasizes that the company not only allows employees to attend standard internal courses to enhance their professional skills but also invites lecturers to provide after-work training sessions at the branch office Annual surveys indicate that employees prefer this format over traditional schooling due to its numerous benefits, including higher quality training, time efficiency, and reduced costs related to accommodation and transportation.
On the basis of advantage of holding training courses in the branch office, the training course in management skills should be considered and held at the earliest.
The training course quality is significantly enhanced when conducted at the branch office, offering multiple advantages over general courses Firstly, it is more cost-effective; participating in a general course incurs a minimum expense of five million VND per manager for training, excluding additional costs like transportation and accommodation In contrast, hiring lecturers to train managers on-site at BIDV.HCM allows for simultaneous instruction across all management levels Secondly, the quality of training improves, as general courses cater to a wide range of managers from various BIDV branches in southern Vietnam, resulting in a lack of focus on specific urgent management issues.
The board of directors emphasizes the importance of motivational skills, talent retention, and effective communication in private seminars With hundreds of trainees in general courses, individual interaction with trainers can be challenging However, the private courses at BIDV HCMC provide an excellent opportunity for around 50 managers to express their opinions, allowing lecturers to make tailored adjustments and orientations to meet their needs.
To minimize the shortcomings of power distance in leadership, managers should adopt more participative and empathetic approaches to address employee work issues By effectively applying their leadership skills, they can foster long-lasting relationships with their staff, ultimately enhancing employee satisfaction and improving overall branch outcomes.
The total cost for a five-day leadership skills training course is VND 75,000,000, based on recent classes conducted at the BIDV HCM office.
Table 14: The costs for private courses of training in leadership skills
1 Hiring lecturers/trainers (five – day training) 50,000,000
4 Other additional costs (i.e electricity, salaries for class management staff, etc.)
The second alternative solution: the team – building/extracurricular activities
Research by Amos, Hu, and Herrick (2005) indicates a positive relationship between team-building activities and improvements in communication and job satisfaction among managers and staff Engaging in these activities encourages collaboration to tackle challenges, fostering efficient and cohesive teams through enhanced internal communication and interpersonal relationships Additionally, Grohar-Murray and DiCroce (2003) highlight that cohesive teams lead to increased productivity, quality improvements, cost reductions, conflict resolution, and greater flexibility among team members Ultimately, team-building initiatives inspire employees to meet their goals and remain committed to their responsibilities From the perspective of BIDV.HCM, maintaining a stable workforce is essential for delivering high-quality services and achieving business objectives.
Building a strong team is essential for fostering a positive work environment at BIDV.HCM and throughout BIDV To achieve this, ongoing team-building activities and training initiatives are crucial components of our strategy.
Mrs Le Thi Kim Nhan, head of Human Resources, announced that the board of directors is evaluating a proposal to enhance employee satisfaction by increasing the frequency of sightseeing tours and team-building activities from once to twice a year Additionally, they will continue to organize various annual outdoor and indoor events, such as sports and professional competitions Notably, the outcomes of these competitions serve as crucial indicators for identifying talent, enabling the company to implement effective strategies for retention, education, training, and development of these individuals.
- Inspiring the attendance and cooperation of staff and their managers at all levels.
Effective communication fosters mutual understanding and the exchange of ideas, information, and experiences This is particularly beneficial for managers, as it enables them to better grasp the strengths and weaknesses of their team members, leading to more appropriate and relevant work assignments.
- In association with the recreational activities (i.e sightseeing tours, collective sports and other physical activities, etc.), the team – building/extracurricular activities can help to relieve work – life conflict amongst employees.
Cost: the cost of holding several team – building/extracurricular activities is estimated at VND 3,200,000,000 based on the reference cost of other recent held activities:
Table 15: The cost of holding several team – building/extracurricular activities
1 Holding sightseeing tours combined with other team – building activities at least twice a year (total persons of approximately 250 in 2018 and VND
2 Holding sports and other physical outdoor activities 200,000,000
3 Holding professional competitions (i.e credit profession, accounting profession, etc.)
4 Other smaller event costs (i.e birthday, retirement, etc.)
The third alternative solution: developing a democracy working environment
Research indicates a strong correlation between employees' perceptions of organizational communication and their job satisfaction and productivity (Pincus, 1986; Bhatti and Qureshi, 2007) Specifically, aspects of internal communication, such as effective supervisor-staff interactions, an open dialogue environment, and constructive personal feedback, play a significant role in enhancing job satisfaction (Downs, 1977) Notably, Pincus (1986) emphasizes that dialogue between staff and their immediate managers is particularly influential in determining employee job satisfaction.
Employee participation is essential for fulfilling self-actualization needs as outlined in Maslow's hierarchy Implementing participatory management practices fosters a balance between leaders and staff involvement, ultimately boosting employee motivation and productivity.
To enhance performance, morale, and satisfaction, it is essential for managers to collaborate with their employees in setting shared goals This collaborative approach empowers staff to contribute to the development of business objectives, as well as the improvement of policies and procedures.
To enhance employee satisfaction and job performance at BIDV.HCM, it is essential to foster a more democratic work environment, as highlighted by the reviews.
Mrs Nguyen Thi Thu Giang, the deputy head of director, announced that starting in 2019, the company will hold monthly meetings to discuss business activities, requiring each department to report on their progress and challenges Departments will also provide feedback on inter-departmental collaboration and support from the board of directors While business goals are influenced by various factors, all departments must present their planned objectives to the board for consideration before finalizing decisions at the beginning of the year The company encourages ideas and initiatives aimed at improving working practices.
- Helping the managers at all levels to detect and correct timely arising problems to run smoothly the business operations on the right tracks.
Fostering open communication and reducing power distance between managers and employees cultivates a democratic work environment This culture encourages constructive feedback and thoughtful support, significantly enhancing employee engagement, experiences, and overall capabilities.
- The cost of implementing this solution is evaluated at VND 260,000,000 based on the reference cost of other recent held meetings:
Table 16: The cost of developing a democracy working environment
1 Arranging internal communication practices (i.e monthly meetings, other dialogue events, etc.)
2 Encouraging all ideas and initiatives in improvement of working practices
Organization of actions
The high staff turnover rate at BIDV.HCM is a critical issue that requires prompt action from leadership at all levels While employee resignations are a common challenge in organizations, reducing turnover should be a key objective for managers to maintain effective business operations Given the associated costs and long-term benefits, it is essential for BIDV.HCM to implement several immediate strategies to address this concern.
To enhance employee satisfaction and workplace morale at BIDV.HCM, it is essential for all staff, including supervisors and their teams, to engage in surveys conducted by the Human Resources Department The insights gathered from these surveys, along with annual employee satisfaction assessments, will enable the HR Department to advise the board of directors on improving management skills and addressing knowledge gaps among branch supervisors Additionally, collaboration with the BIDV School will further support the development of these competencies.
49 institution of BIDV to hire relevant lecturers to train BIDV.HCM’s managers at all levels in the selected management skills.
The Human Resources Department is responsible for organizing the schedule of internal dialogue events, including professional competitions, objectives, attendees, venues, timings, and speeches.
The Department of Finance and Planning oversees the payment of all potential costs, while the Department of Organization and Administration is tasked with negotiating and coordinating with external service providers, such as travel agencies and suppliers of stationery and transportation, to effectively facilitate these programs.
- The remaining departments, especially the front – office units, encourage the participation and collaboration of all subordinates to create chances for networking and sharing personal feedbacks.
The table 17: An action plan timeline which consumes 12 months from December
Conclusions
Organizations view human resources as a vital asset essential for achieving business goals In today's competitive global market, sustained employee efforts, morale, and commitment are crucial for survival and growth Consequently, employee satisfaction significantly influences organizational productivity and outcomes At BIDV.HCMC, the rising turnover rate has negatively impacted performance, highlighting an urgent issue that needs immediate attention The thesis titled “The Ongoing Decrease of Job Satisfaction Amongst Corporate Credit Officers in Bank for Investment and Development of Vietnam JSC – Ho Chi Minh City Branch: Causes, Impacts, and Solutions” addresses key factors contributing to this decline.
- Firstly, the status of low satisfaction amongst CCM officers in BIDV.HCMC has been indicated through several statistics of data derived from BIDV.HCMC.
The rising resignation rates at BIDV.HCMC can be attributed to several factors, including competition, work environment, and work-life balance Notably, the work environment—particularly aspects such as power distance and uncertainty avoidance—has emerged as a significant contributor to this trend.
To address the power distance issue, various alternative solutions have been evaluated for their benefits and costs Prioritizing the enhancement of management skills through private training courses at BIDV.HCMC emerges as the most cost-effective option among the three proposed solutions, promising a significant positive impact on improving the current situation.
Due to time constraints and resource limitations, this thesis has certain unresolved shortcomings Legal restrictions and official BIDV regulations hinder the ability to improve uncertainty avoidance Additionally, the limited timeframe makes it impractical to explore further aspects related to satisfaction issues.
Investing additional time and resources into literature studies could have broadened the scope of this thesis and influenced its findings Future research should focus on the effects of age on employee attitudes and expectations, as well as its impact on turnover intentions Furthermore, exploring organizational elements related to individualism versus collectivism and masculinity versus femininity presents valuable opportunities for future investigations.
Supporting information
This thesis utilizes two distinct types of data collection: secondary and primary The secondary data is sourced from credible resources, including official annual reports from BIDV and BIDV.HCMC, labor market research, relevant online literature, management books, and various theses and dissertations This data supports the ideas and solutions presented in the thesis, which are derived from raw data collected through interviews and the current status at BIDV.HCMC In contrast, primary data is obtained through qualitative research, primarily through comprehensive interviews, with interviewees categorized into two main groups.
- First group (group A): Workers who vacated from their positions in BIDV.HCMC.
- Second group (group B): Managers at all levels and their subordinates who are currently working for BIDV.HCMC
- Third group (group C): People who have been working for BIDV.HCM but have intended to quit job.
The interviews are designed to collect raw data and insights from respondents regarding the turnover rate at BIDV.HCMC, exploring the underlying causes and proposed solutions Each group of respondents has been asked a series of targeted questions to uncover their perceptions and experiences related to employee turnover.
Group (People have already A who
Group People have working Question quitted job)
Introduce themselves and their current job Doyouthinkthattheoperationof BIDV.HCMC is running well? If not, can you name the problems? Share your opinion about the turnover in
BIDV.HCMC? Good or bad phenomenon? Causes and effects? Does turnover make the results of BIDV.HCMC go worse year by year?
Employees at BIDV.HCMC often consider quitting due to factors such as limited career advancement opportunities, inadequate compensation, and a lack of work-life balance Additionally, workplace culture and management practices play a significant role in their decision-making process Those contemplating resignation may hesitate due to emotional attachments to colleagues, fear of uncertainty, or the potential impact on their professional reputation To reduce turnover rates, BIDV.HCMC should focus on enhancing employee engagement through competitive salaries, clear career development pathways, and fostering a supportive work environment Implementing regular feedback mechanisms and recognizing employee contributions can also significantly improve retention.
Research Object: To explore the ideas, feeling and points of view of employees about turnover rate in BIDV.HCMC.
Duration: 15 – 20 minutes per each interview.
The Bank for Investment and Development of Vietnam, JSC – HCMC Branch is located at 134 Nguyen Cong Tru Street, Nguyen Thai Binh Ward, District 1, HCMC, serving Groups B and C Meanwhile, The Coffee House, catering to Group A, can be found at 223 Vo Van Tan Street, Ward 5, District 3, HCMC.
Group Code Participant Age Gender Education Department Position
Binh (Mr) 28 M Master CCM Officer 3
Hieu (Ms.) 35 F Master CCM Officer 10
(Mr) 32 M Master CCM Head of
(Ms.) 37 F Master HRM Head of
Cảm ơn anh Bình đã dành thời gian cho buổi trò chuyện này Hiện tại, tôi đang nghiên cứu các vấn đề ảnh hưởng đến hoạt động của BIDV.HCM, và một trong những thách thức lớn nhất mà ngân hàng đang đối mặt là tỷ lệ nghỉ việc cao trong bộ phận Quan hệ khách hàng Với kinh nghiệm từng làm việc tại BIDV.HCM, anh có thể chia sẻ quan điểm của mình về vấn đề này không ạ?
A1 Dĩ nhiên rồi Ngọc Anh, anh rất sẵn lòng.
Hình như anh đã nghỉ việc được một tháng tại BIDV.HCM, đúng không ạ? Xin hỏi thời gian anh làm việc ở đó là bao lâu và hiện tại anh đã tìm được công việc mới chưa ạ?
Anh vừa nghỉ việc tại BIDV.HCM sau 3 năm làm việc và hiện tại đang là cán bộ thẩm định tín dụng cho VP Bank Công việc này thuộc bộ phận back office, do đó anh không phải chịu nhiều áp lực.
Trong suốt thời gian làm việc tại BIDV, anh nhận thấy rằng BIDV là một trong bốn ngân hàng lớn nhất Việt Nam về quy mô, mạng lưới, nền khách hàng và hiệu quả kinh doanh Chi nhánh BIDV.HCM cũng nằm trong top ba chi nhánh hàng đầu của hệ thống Mặc dù quy mô của ngân hàng không ngừng tăng trưởng qua các năm, nhưng hoạt động của BIDV.HCM không còn hiệu quả như thời điểm anh mới bắt đầu Nguyên nhân có thể xuất phát từ nhiều yếu tố như chính sách, quy trình chung, nhu cầu khách hàng hoặc tình hình nhân sự tại chi nhánh.
NA Vậy anh có thể nói rõ hơn về những điều theo anh nghĩ đang là vấn đề ảnh hưởng đến hoạt động của BIDV.HCMC?
Theo quan điểm cá nhân, tôi nhận thấy có hai vấn đề lớn khi làm việc tại BIDV Thứ nhất, quy trình làm việc tại BIDV còn quá phức tạp; ví dụ, khi thực hiện hồ sơ tín dụng cho khách hàng, tôi phải trải qua nhiều bước và tốn nhiều thời gian, điều này ảnh hưởng đến năng suất và sự hài lòng của khách hàng Thứ hai, vấn đề về nhân sự cũng rất nghiêm trọng, khi tôi thấy sự thay đổi nhân sự diễn ra quá nhanh và thường xuyên, đặc biệt là ở bộ phận QHKH.
Nghỉ việc trong ngành ngân hàng, đặc biệt tại các chi nhánh, đang trở thành một hiện tượng đáng chú ý Điều này đặt ra nhiều câu hỏi về nguyên nhân và tác động của việc này đối với cả nhân viên và tổ chức Việc hiểu rõ vấn đề này là cần thiết để cải thiện môi trường làm việc và giữ chân nhân tài trong ngành.
Con người đóng vai trò quan trọng trong mọi tổ chức, đặc biệt là trong ngành Ngân hàng Tuy nhiên, trong 5 năm qua, tình trạng nghỉ việc của nhân viên ngân hàng ngày càng phổ biến, không chỉ tại BIDV mà còn ở nhiều ngân hàng khác Nhiều người bạn của tôi và cả tôi cũng nằm trong số đó.
NA Vậy theo anh nguyên nhân là gì?
A1 Nếu nói chung chung thì có thể do nền kinh tế có những thay đổi và ngành ngân hàng không còn
Trong thời kỳ hiện nay, ngành tín dụng đang trải qua nhiều thách thức, đặc biệt là đối với cán bộ tín dụng Họ không chỉ phải đối mặt với áp lực lớn về chỉ tiêu mà còn phải đối diện với những rủi ro tiềm ẩn trong công việc của mình.
NA Còn lý do của riêng anh, lý do anh quyết định nghỉ việc tại BIDV là gì ạ?
Áp lực công việc và sự không hài lòng chủ yếu xuất phát từ cách quản lý và phong cách làm việc của lãnh đạo phòng cũng như lãnh đạo cấp trên.
NA Anh có thể nói rõ hơn không ạ?
A1 cảm thấy không hài lòng với cách phân công công việc vì phải quản lý quá nhiều khách hàng cùng lúc, dẫn đến áp lực khi không thể đáp ứng nhanh chóng nhu cầu của họ Sự thiếu hỗ trợ từ lãnh đạo, cùng với việc bị la mắng, đã làm giảm động lực làm việc của anh Anh ưa thích sự sáng tạo trong giải quyết vấn đề hơn là chỉ nghe theo chỉ đạo một chiều, vì nhiều lần phương pháp của sếp không mang lại hiệu quả Một ví dụ điển hình là khi anh cảnh báo về tình hình tài chính xấu của một khách hàng và đề xuất giảm cho vay, nhưng lãnh đạo không đồng ý Cuối cùng, khách hàng gặp khó khăn tài chính, ảnh hưởng đến kế hoạch kinh doanh và thu nhập của chi nhánh Khi bị trách mắng vì không kiểm soát tốt, anh cảm thấy thất vọng và quyết định nghỉ việc để tìm kiếm cơ hội khác ít áp lực hơn.
NA Vậy anh có thể chia sẻ một số giải pháp cho cấp quản lý để hạn chế tình trạng nghỉ việc này không ạ?
BIDV.HCMC là một ngân hàng có chế độ đãi ngộ tốt và nền khách hàng vững mạnh Tuy nhiên, để giữ chân nhân viên, đặc biệt là cán bộ QHKH, quản lý cần cải thiện phương pháp quản lý Công việc trong bộ phận QHKH có tính chất đặc thù và áp lực cao, do đó, lãnh đạo cần phân công công việc hợp lý để tránh tình trạng quá tải cho nhân viên Nếu không thể tránh khỏi việc giao nhiều công việc, quản lý cần hỗ trợ và chia sẻ nhiều hơn với nhân viên, giúp họ không cảm thấy cô đơn và chán nản trong công việc.
NA Vậy anh có thể cụ thể hóa những giải pháp này bằng cách đưa là các hành động cụ thể được không ạ?