Employee Motivation Factors in Banking Sector
The early approaches of motivation emphasize on the needs of the individuals explaining their tendency to be motivated and the efforts exerted in order to satisfy those needs. There were some other approaches which highlighted on the employees’ goal setting. Simons and Enz (2006) says now the employees perform the task not only to fulfill the basic needs but also to increase their values, become successful and satisfied from their performance.
In the banking sector in which I am employed in, the success of the organization mainly reflected by the hard works of employees. Therefore, to achieve the organizational goals employee should be motivated by the external and internal factors.
According to Kumari, et. al (2020) was to investigate motivation factors, and variation of the impact of demographic determinants on job satisfaction across public and private banking sectors in Sri Lanka. The results indicated that the majority of the employees considered job satisfaction as the top motivator among bankers. A number of dependents, education level and distance to the workplace are significant factors on job satisfaction of private sector bankers whereas age and experience had a significant impact on job satisfaction of public sector employees which implies that demographic determinants on job satisfaction vary with the banking sector
Ahmad, et.al (2014) suggest Ways of motivating employee to ensure better performance as illustrated figure 1.0
figure 1.0: Ways of motivating employee to ensure better performance
Communication is always an effective way to improve motivation and enhance productivity. There should be two-way communication between managers and staff that generate feedbacks on the performance (Ahmad, et.al,2014).
Participation scheme
Participation scheme enables staff to become a member of decision-making team and express their Job views on organizational decisions. This leads staff to be responsible to increase their efficiency and productivity at work (Ahmad, et.al, 2014).
If an organization can retain the employees by providing them with the fringe benefit. This prevents turnover if effectively use and increase the productivity (Ahmad, et.al, 2014).
job satisfaction refers to employee’s satisfaction with the general work characteristics and it affects the morale of workers. It also relates to the expectations of an employee on the job, the degree of happiness derived from the condition of service. Employee satisfaction is major among several factors that determine the effectiveness of an organization. Employee satisfaction is primary to organizations that are effective (Ademodi & Akintomide 2015; Benrazavi & Silong 2013; Bhatti & Qureshi 2007; Bibi et.al 2012; Bockerman & Ilmakunnas 2012; Dauda et.al 2013; Maithili & Navaneethakrishnan 2014; Parvin & Kabir 2011; Sageer et.al 2012; Yaya et. al 2016; Idiegbeyan-ose et.al 2018).
For the success and survival of company in the competitive market, the most prioritized work of managers is to retain the skilled employees and motivate them to give their best performance. Nevertheless, employees are more interested in doing different jobs at the same time and are not willing to keep long term relationships with organizations. To add up, they are unlikely to be motivated as they use to be before (Ahmad, et. al 2014).
Most of the empirical studies found motivation and job satisfaction to be positively correlated, while hostile work environment is seen as a demotivational factor in the work place (Babalola & Nwalo 2013; Kian et al 2014; Oni-Ojo et al 2015).
The result of the research on: Factors
Affecting Employees Motivation in Banking Sector of Pakistan: Akhtar, et.al (2014) provide an innovative attempt investigate
the Factors Affecting Employees Motivation in Banking
Sector as illustrated figure 2.0
figure 2.0: Factors Affecting Employees Motivation in Banking Sector
Source :(Akhtar, et.al 2014)
The result suggests that there is positive relationship between financial rewards and employee’s motivation. The firms with higher level of financial rewards are more motivated than others. The results also suggest that the relationship between job design and employee’s motivation is also significant. There is a relationship between supervision and employee’s motivation which is further tested by applying regression analysis. The significant result shows a positive relationship between them. There is relationship between good pay and employee motivation which is tested and proved by statistical analysis. With the help of significant results of regression, it was shown that there is a relationship between personal characteristics and employees’ motivation.
The analysis of the study Drivers of Employer Motivation in Banking Sector - A Radar Design Approach Subramanyam (2019) shows that factors namely “Fair wages and Promotion”, “Health and other services” , “Work environment” , “Job Specification”, “Prestige and Request” , “Management Policies and Style” , “Non-Cash Benefits”, “Sports” and lastly “Setting and Defining Goals” “Company Policy” , “Quality Supervision”, “Relation with worker” , “personal life”, “rate of pay”, “job security” and working conditions” play a significant role in motivating employees in the banking sectors. The result of this study correlates with the previous conducted study such as Ruthankoon and Ogunlana (2003), Mc Clelland (1975), Naylor (1999), Leach and Westbrook (2000) according to whom the factors cited above motivate employees to perform better thus helping banking sectors to direct their attention to the above motivating factors in order to achieve organizational success.
List of References
Ahmad, N, Ahmad, RR, Mangi, R, Paleishah and Susan, A 2014, ” Factors Motivating Employees in Public Sector Banks", European Academic Research, 2(5), pp 6005-6021.
Akhtar, N, Aziz, S, Ali, A and Salman, M 2014, ” Factors Affecting Employees Motivation in Banking Sector Pakistan”, Journal of Asian Strategy, 4(10), pp.63-81.
Baldoni, J 2005, Motivation Secrets. Great Motivation Secrets of Great Leaders. [Online] http://govleaders.org/motivation_secrets.htm
George, JM & Jones, GR 2005, “Understanding and managing organizational behavior”, (4th ed.). Upper Saddle River, NJ, Pearson Prentice, New York: McGraw-Hill.
Graham, S 1999, what employers must do to Motivation. in African Americans.
Idiegbeyan, J, Aregbesola, A, Owolabi, SE and Eyiolorunshe, T 2019, “Relationship between Motivation and Job Satisfaction of Staff in Private University Libraries, Nigeria.”: Academy of Strategic Management Journal,18(1).
Kumari, KWSN, Jayasinghe, GJMSR and Sampath, JKH 2020,” Employee Motivation Factors in Banking Sector: A Study on Qualitative and Quantitative Analysis”, Journal of Social and Political Sciences,3(1).
Subramanyam, MJ 2019, “Drivers of Employer Motivation in Banking Sector - A Radar Design Approach”, International Journal of Business from Bharatiya Vidya Bhavan's M P Birla Institute of Management, Bengaluru.13(1) pp 48-78.
employee motivation has to be looked into from the top level. It works both ways and the employees should be satisfying for them to reach the specified goals (Harter et al., 2002)
ReplyDeleteKreitner and Kinicki (2004) assumed that motivation incorporate those psychological processes that create the arousal, direction and persistence of voluntary actions that are goal oriented.
DeleteHRM and SHRM principles and practices in Leadership and management styles can affect employee motivation (AMA 2019).
ReplyDeleteReward and recognition enhance the performance of employees. Promotion, bonus, increment and appreciation method should implement to retain high performance employees (Ali and ahmed, 2009).
DeleteIn the banking industry, frontline service employees such as tellers play a critical role as they serve as intermediaries between banks and the public (LeBlanc & Kelloway, 2002).As per my experience we can see the most employee turnover in bank is from segment. The bank should more focus on frontline employee’s motivation.
ReplyDelete"Happy employees make happy costumers"(HNB Bank PLC).
DeleteSurvey results show that a good salary is the most important motivating factor. This is very clear in any environment that experiences low macroeconomic indicators. Getting a good salary becomes the number one priority for people (Mohamed, 2020).
ReplyDeleteReward and Recognition have great impact on motivation of the employees.Motivated employees can increase organizational competitiveness and profitability (Danish and Usman,2010).
Delete. Organizations that follow a strategic approach to creating this balance focus on the three main components of a rewards system, which includes, compensation, benefits and recognition. The most common problem in organizations today is that they miss the important component of Reward, which is the low-cost, high return ingredient to a well- balanced rewards-system. A key focus of recognition is to make employees feel appreciated and valued. Employees who get recognized tend to have higher self-esteem, more confidence, more willingness to take on new challenges and more eagerness to be innovative. ( Pratheepkanth, P., 2011)
ReplyDeleteA study conducted by Khan et.al. (2018) provides conclusions that employee motivation is increased by benefits, recognition, empowerment, and job environment. He further explains that the factors not only enhance the employee motivation as well as the factors also enhances their moral and social behavior that tends to improve their work performance.
DeleteMotivation is perhaps the one staple feature of every successful workforce. It’s what gets the best out of your employees, enables productivity, boosts morale and keeps your most skilled with you. But it’s also one of the hardest to maintain and requires ongoing effort (Timely blog, 2020)
ReplyDeleteEmployee motivation is what drives organisations to achieve their goals. Not only ability of doing things but also the motivation to do the job are the main two factors in an organization which sets the productivity levels high (Rajasekar and Premkumar, 2017).
DeleteBalhaji (2008), identifies the characteristics of motivation: (1) Motivation is based on human needs and is generated within an individual; (2) Motivation is whole. An individual cannot be motivated by fulfilling certain of needs partially; Motivation is a continuous process; If one need is satisfied, new need arise; (4) Motivation causes goal directed behaviour; a person behaves in such a way that can satisfy inviduals goals or needs; (5) Motivation is a complex process: there is no universal theory or approach to motivation and individuals differ in what motivates them.
ReplyDeleteMotivation factors such as recognition, achievement, responsibility, growth, opportunities and promotion make high motivation and high satisfaction further, Hygiene factors include salary, Working Conditions, Job Security, personal life, Company policies and administration create general satisfaction (Kim, 2006).
DeleteStudy of Amrizal (2016), state that there is a positive impact of achievement, recognition, work itself, responsibility and advancement with the job satisfaction of banking employee’s. Further, most of the employees were less satisfied with the working hours, sometimes they had to work until midnight to finish their daily works. Officers have to work long hours with fewer payments which causes demotivation about work, although staff assistants are paid well for overtime works. Female workers highly demotivated with long working hours than male workers and they were in very difficult situation since they have to pay more care to their children and family than male workers.
ReplyDeleteThat the best mechanism for an organization to attain its strategic goals is nothing more than good motivational packages that really meet the needs of the employees. It is undisputable fact that, motivation plays a very significant role for any organization which wins competitive advantage. Therefore, an organization without motivational packages is bound to bankruptcy(Sarpong, 2016).
DeleteThe motivation factor further evaluates the motivational level in the company, assured by the remuneration system, personal development and promotions and find a very significance in a company’s success(Lee & Raschke, 2016).
ReplyDeleteHi Kalum, agree with you. It’s really important to keep the employees well motivated. Personnel characteristics, advancement, achievement, working conditions, needs for status, responsibility, autonomy, and salary and other fringe benefits and organizational characteristics moderately impact on level of employee motivation in service organizations in Sri Lanka (Weerasinghe, 2006)
DeleteMotivational factors are meant to meet all the employees` needs. As soon as their satisfaction is fulfilled, the employees will tend to outline an independent relationship between their involuntary wish of performing the professional activity and their mood, finally achieving the Job satisfaction(Neil & Selesho, 2014).
ReplyDeleteAs you mentioned it is very important to motivate employees where organization able to earn long term benefits by having motivated employee. Organization may motivated employee financially and non financially. According to (Yousaf et al., 2014) Financial recognition ways are by balanced paying balanced pay, good bonus, Paid vacation and providing health benefits and insurance.
DeletePsychologist Frederick Herzberg developed the two-factor theory based on the analysis of the happy and unhappy periods with the jobs of 203 accountants and engineers in Pittsburgh in 1950s and those factors which contributed to their happiness were identified as intrinsic factors of motivation and Herzberg called it as motivation and the factors which contributed to made them unhappy were identified as extrinsic factors of motivation are called as hygiene factors (Althea & Michael, 2014).
ReplyDeleteAdding more to the post, The two-factor theory is closely related to Maslow’s hierarchy of needs, but it introduces more factors to measure individuals are motivated in the workplace. This theory holds that lower levels of demand will not motivate them to work hard, but only prevent them from being dissatisfied. In order to motivate employees, a higher level of demand must be provided(Robbins, 2009)
DeleteMotivation is what moves the employees from dullness to interest. It is just like the steering of the vehicles that directs and shapes employees’ activities. Motivation has been defined as the “Drive or energy that compels people to act with energy and persistence towards some goal” (Berman, Bowman, West, & Wart, 2010, p. 180). “Motivation is a goal-directed behavior which involves taking a course of action which leads to the attainment of a goal or a specific valued reward” (Armstrong, 2006, p. 252). Rewards distinguishes into three main types that individuals seek from their organization i.e. extrinsic, intrinsic and social rewards (Williamson et al. 2009).
ReplyDeleteFurther elaborating on your definitions of employee motivation, it can thought of as the willingness to expend energy and the impulse an individual has in his job to achieve organizational goals (Thompson, 2018). Employee motivation is directly related to an employee's level of engagement and empowerment towards his job (Thompson, 2018).
DeleteDifferent factors including financial rewards, personal characteristics, high salary plan, supervision and job design on employee’s motivation specifically in banking sector (Akhtar,2014).
ReplyDeleteHere designing job content which are more interesting in
Deletenature is critical, job enrichment could be one strategy to motivate employees (Fred and Lunenburg, 2011).
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ReplyDeleteAccording to Barber & Bertz (2000), Reward management system helps the organizations to attract, capture, retain and motivate employees with high potential and in return get high levels of performance. Reward management system consists of both extrinsic and intrinsic rewards, where former involves financial rewards (salary, bonuses) and the later includes non-financial rewards like recognition, security, title, promotion, appreciation, praise, decision making involvement, flexible working hours, workplace comfort ability, feedback, work design, social rights (Yang, 2008).
ReplyDeleteYes, I agree, It should also be realized that the employee performance is also negatively affected by stress at work place, hence it is of significant value to evaluate the current processes and practices which are responsible for creating stressful situation in order to not to effect the performance (Kakkos et al, 2010).
DeleteIt has been long thought that learning new things and competency development opportunities raises the morale and satisfaction of the employees but it is also realized that the significant effect on the motivation and job satisfaction is created by goal achievement (Lather and Jain, 2005).Also the managers and the supervisors support towards encouraging employee participation, mutual commitment, and understanding of the diversity issues play a significant role in motivating and enabling performance(Snyder et al, 2004).
ReplyDeleteYes, Job satisfaction is a fulfilling or optimistic expression consequential of the consideration of one’s activity (Azash et al, 2011).
DeleteWell in today's world, besides the technical and work related skills , a manager should also primarily have a strong grasp on organizational behavior and psychology. Positive reinforcement,high expectations, Effective discipline and punishment, Treating people fairly, Satisfying employees needs, Setting work related goals, Restructuring jobs, Base rewards on job performance are few a manager should exert towards the employees to keep them motivated ( Ganta, V 2014).
ReplyDeleteYes, Also One of the most important functions of management is to create willingness amongst the employees to perform in the best of their abilities. Therefore the role of a leader is to arouse interest in performance of employees in their jobs (Parshetty, 2019)
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