Enhancing the level of employee engagement of credit officer staffs in asia commercial bank (ACB) phu lam branch

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

Tran Thi Minh Thuy

ENHANCING THE LEVEL OF EMPLOYEE ENGAGEMENT OF
CREDIT OFFICER STAFFS
IN ASIA COMMERCIAL BANK (ACB) –
PHU LAM BRANCH

ID: 22130078

MASTER OF BUSINESS ADMINISTRATION
SUPERVISOR: DR. NGUYEN THI NGUYET QUE

Ho Chi Minh City – April 20th, 2016


ENHANCE THE LEVEL OF EMPLOYEE ENGAGEMENT OF CREDIT OFFICER

TABLE OF CONTENTS
ABSTRACT ...........................................................................................................1
CHAPTER 1: PROBLEM IDENTIFICATION ................................................2
1.1.

Company background ................................................................................ 2

1.2.

Problem symptom ...................................................................................... 3

1.3.

Justifying the existence of the central problem .......................................... 7

1.4.

Justifying the importance of the central problem ..................................... 10

1.5.

List the potential causes of the problem ................................................... 13

Conclusion ............................................................................................................. 14
CHAPTER 2: ALTERNATED SOLUTIONS .................................................15
Introduction ........................................................................................................... 15
2.1.

Justify causes ............................................................................................15

2.2.

Alternative Solution .................................................................................21

Solution 1: Developing a supportive work environment that typically displays
concern for employees’ needs and feelings within credit department of Phu Lam
branch 21
Solution 2: Improving reward and recognition programs for employee ............... 23
Solution 3: Develop employee’s knowledge base and skills through training
programs ................................................................................................................ 25

Conclusion ............................................................................................................. 26
CHAPTER 3: SELECTED SOLUTION AND CHANGE PLAN DESIGN ........ 28
Introduction ........................................................................................................... 28
3.1.

Selected the suitable solution ................................................................... 28

3.2.

Implementation plan ................................................................................. 33

Conclusion ............................................................................................................. 37
CHAPTER 4: SUPPORTING INFORMATION .................................................. 38
4.1.

Interview Transcript to get information about the symptom of problem: 38


ENHANCE THE LEVEL OF EMPLOYEE ENGAGEMENT OF CREDIT OFFICER

4.2.

The Employee Engagement Questionnaires (Ibrahim, M., & Al Falasi, S.

(2014) 40
4.3.

Interview Transcript to identify the existence of the problem ................. 40

4.4.

Literatures review - The potential causes influencing the central problem47

4.5.

The result of question in the focus group to justify the main causes: ...... 50

REFERENCES ....................................................................................................59
APPENDIX ..........................................................................................................65
Balance Score Card of Credit Department in 2014 .........................................65
Balance Score Card of Credit Department in first half of 2015 .....................66
TABLE .................................................................................................................68
Table 1: The overall turnover rate in 2014 and the first half year in 2015 ............ 68
Table 2: Evaluation Criteria of Balance Score Card ............................................. 68
Table 3: Percentage of credit officers in accordance with the evaluation criteria
BSC

68

Table 4: The Comparison among these solutions based on four criteria .............. 68


ENHANCE THE LEVEL OF EMPLOYEE ENGAGEMENT OF CREDIT OFFICER

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ABSTRACT
Phu Lam branch has emerged as key contributor to the profit and the
development in ACB. However, the low employee engagement in credit department
is creating the significant effects on all employees’ spirit and company. Far, this

problem also gives the potential consequences to the future developing status of the
bank when the low employee engagement problem cannot find the good way to
solve. The low employee engagement are step by step making the employees feel
weary, stress and the certainly results of this problem are low commitment and high
turnover rate.
The main purpose of this thesis is identifying the solutions to enhance the level of
employee engagement of credit department in ACB - Phu Lam Branch. It includes
collecting the symptoms, analyzing the important of the problem; identify the root
causes of low employee engagement at Phu Lam Branch which are Reward and
Recognition, Training and career development, Work Environment. In addition,
based on the root causes of the problem, the potential strategies to enhance the level
of employee engagement at the workplace also are found out. From the potential
solutions, the efficient solutions will be built and proposed to ACB - Phu Lam
Branch so that the corrective action can be followed. The thesis use the qualitative
method that is face to face interviewing the Credit Department Manager and staffs,
and reference the literature from the theories and previous academic papers to
determine the symptoms, problem as well as proper solutions.


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CHAPTER 1: PROBLEM IDENTIFICATION
1.1.

Company background
Asia Commercial Bank (ACB) was established in May 1993. Today, ACB is

one of the leading joint stock commercial banks in Vietnam. It is developing with

the branch network system nationally with nearly staff of 10,000 employees and
many different products and services. The major activities of Asia Commercial
Bank and subsidiaries is to mobilize short, medium and long-term funds in the form
of term deposits, demand deposits; to receive entrusted investment and development
funds from domestic credit institutions; to borrow from other financial institutions;
to grant short, medium and long-term loans; to discount commercial papers, bonds
and other valuable papers; to contribute capital and to invest in joint-ventures in
accordance with the law; to provide settlement services to customers; to trade
foreign currencies, gold; to provide trade finance services; and to provide other
banking services. In the next 5 years, the position of ACB is the position of a
leading bank established in 5 fields; and in 2015, ACB is the bank operating with
main targets: stable growth, professional management, suitable income, and
reasonable profit. As of December 31, 2014, ACB develops network system
nationally with nearly of 346 branches and sub-branches in 47 provinces and cities
nationwide
Phu Lam branch has emerged as key contributor to the profit and the
development in ACB, which may not be possible without extraordinary
performance of the satisfied employees. Phu Lam Branch was established in June
1995 with approximately 12 employees, and now it has growth with about 120
employees. For this reason, it is in top of contributor to the profit in ACB.


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Company Structure

Credit officers examine, evaluate and process applications for credit or loans
and, in commercial enterprises, control and process accounts. Credit officers is

known as Sale Staff in ACB – Phu Lam branch which divide into two major,
include credit officer for corporation and credit officer for individual customer.
Credit officer is one of the most important staff in ACB business process because
this staff makes a main profit for bank in general.
1.2. Problem symptom
To have the initial subjective and general information about currently
company personnel status of Phu Lam Branch, the writer collect secondary data
from HR Division report and conduct to preliminary short interviews with credit
department manager. Based on the interview results (Refer to Chapter 4 - part 4.1),
initially, the writer can get some basic information on currently status of the
company. Although, Phu Lam branch is one of the largest branches in ACB system
and has emerged as key contributor to the profit and the development in ACB,
however, Phu Lam Branch also encountered many personnel problem with the sale
staff such as low commitment, low employee productivity and high turnover rate.


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ENHANCE THE LEVEL OF EMPLOYEE ENGAGEMENT OF CREDIT OFFICER

Firstly, these employees worked at different position in the sale department
such as relationship assistant (RA), relationship officer (RO), relationship manager
(RM), Personal Financial Consultant 1(PFC-1), Personal Financial Consultant 2
(PFC 2). According to the Human resource report, the turnover rate has been
increased significantly, 28% only for 6 first months 2015, compare with the rate of
16% for the whole 2014. There were 4 out of 24 people in 2014 and 10 out of 32
people in the first half year in 2015 left the company that account about 16 to 28
percent out of total employees. In fact, this number is considered as a high turnover
ratio for a one of big branch which contribute large profit for ACB. Since the
average turnover ratio in the first half year in 2015 is approximately 10% in ACB.

Phu Lam branch is one of the top in ACB, this figure will be a source for instability
alarm of the branch, must resolve this matter quickly. The result of statistical in
Table 1 showed that the comparison of employee leaving ratio in nearly two year.
According to Huselid (1995), he researched that a high turnover rate extremely have
negative effects in organization such as low productivity, higher cost in recruiting
and training new employee (Rousseau, 1984) and low future performance as well
(Baron, Hannan and Burton, 2001). Therefore; this is a bad symptom for any
organization if the high turnover ratio become more enlarges and develops
consistently
Table 1: The overall turnover rate in 2014 and the first half year in 2015 (Data
is provided from Phu Lam Branch - HR Division)
YEAR

The first half

2014

year in 2015
Compulsory turnover

0

1

Voluntary turnover

10

3

Total of Employees who Left

10

4

Total of Employee

32

24

Employee Turnover rate

28%

16%


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Secondly, from secondary data, up to now Phu Lam Branch hasn’t achieved
many targets of three quarters of year 2015. Balanced Scorecard is software to
evaluate the complete working results for each employee. BSC system used to
assess the productivity of employee based on four main criteria. Each evaluation
criteria of this software are shown in the following table 2:
Table 2: Evaluation Criteria of Balance Score Card (Data is provided from
Phu Lam Branch - HR Division)

Measure Total Score

Weight

F

FINANCE

60%

F7

Credit Scale

30%

F6

Deposit Scale

15%

F13

The debt ratio from group 2
to group 5
Net income

35%

C

CUSTOMER

25%

C4

The number of customers
increased
The average number of
products used per customer

Score
BSC

20%

F15

C12

Target Actual

30%

20%

P

Internal processes

10%

L

Labor

5%

In general, 50% staffs in Phu Lam Branch have low level of Balance Score
Card (BSC) below 80% level in the first half year in 2015. In 2014, 53% staffs in
Phu Lam Branch have low level of Balance Score Card (BSC) below 80%.
According to the bank's standard regulations, the credit employees must get more
than 80 points of BSC score will be standard. The statistics are presented in Table 3


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ENHANCE THE LEVEL OF EMPLOYEE ENGAGEMENT OF CREDIT OFFICER

for the sale staff are working at ACB - Phu Lam branch, the writer has its own
method to find out over the current situation of the working employees.
Table 3: Percentage of credit officers in accordance with the evaluation criteria
BSC (Data is provided from Phu Lam Branch - HR Division)

The first half year in 2015 2014

Employee have

Number

Rate

Number

Rate

11

50%

9

47%

11

50%

10

53%

standard BSC Score
Employee have BSC
Score under 80%
Total number

22

19

Finally, according to Ms. Mai Xuan - Credit Department Director, she is
worried about the present employee's problem such as lack of enthusiasm, customer
dissatisfaction and loyalty, lack of personal initiative on the job, lack of building
passion, commitment and alignment with the organization's strategies and goals. In
2012, ACB has gone through a crisis; banks caused the crisis led to reduced
business scope of the company. ACB has implemented plans to cut costs as the
effect of the crisis. Moreover, since the revenue reduction, it is necessary to find a
way to keep business operations continue, ACB decided to freeze some benefits to
optimizing operating costs such as Growth bonus program, reduce the rate of wage,
etc. What makes companies less competitive than other banks such as Vietcombank,
Arigbank, VP Bank, etc.? Recently, the salesperson receives many invitations to
recruit from the HR department of VP Bank. They offer a very competitive salary
and appointment as a high place, some employees have resigned and applied to
other banks. This issue will affect the psychology of the other employees.
Especially recently, branch received a lot of customer criticism about bad morale of
salespeople, salespeople do not take good care of customers. Managers have to


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apologize to customers by reducing loan interest rates and fee, which reduces the
profitability of the branch. Besides, about 50% of sale staff does not have the spirit
to work and learn more knowledge about new product and sales skills. Ms. Xuan
noticed that work ethic of employees is not high; they do not have a clear plan to

find new customers. For existing customers, they do not plan to exploit additional
needs of borrowers, deposits and fees. Such a behavior creates opportunities for
other competitors to market new products with many privileges. In fact, the Phu
Lam branch has lost many good customers. In meetings with employees every
month, sale staff has lack of enthusiasm in the contribute to the business strategy of
the branch, when asked about problems at personal work, the employee is not
available to share difficult to solve but actually the manager knows they're difficult
in solving customers' bad debt. This issue will affect the psychology of the other
employees and the company strategy.
Based on the awareness of the limitation of time, money and responsibilities,
the low level of employee engagement is proposed as the central problem in this
project. Solving this problem not only get employees involve in implementing
company policies, support their manager to overcome and continue develop
company business, bit also play an important role in reducing turnover rate.
1.3. Justifying the existence of the central problem
Definition of Employee Engagement
Engagement experts Frank, Finnegan, and Taylor (2004) stated: "Employee
engagement is emerging as the one of the greatest challenges facing organizations
in this decade and beyond". Engagement was defined in many ways, including
employee involvement, empowerment, workforce engagement (McManus, 2007),
commitment, and job satisfaction (McBain, 2007). Employee engagement occurs
when employees feel they have ownership in the organization's strategic direction
and are optimistic and motivated; however, they are not going to make quantum
changes that move the organization forward. Employees that are truly involved will


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be the part which are active in the business, participate in change and own
initiatives.
McBain (2007) commented that although there are numerous definitions of
engagement, the most important elements found in these definitions were (a) a value
on alignment between the company's targets and brand, (b) that alignment involving
both rational and emotional features, and (c) employees voluntarily going the extra
mile to achieve results. Towers Perrin concurred that engagement is the voluntary
choice of an employee to offer the organization extra time, energy, and brainpower.
Finally, there are many definitions of employee engagement; however, the common
theme prevalent in the articles researched is employee engagement as an alignment
to one's work role that involves an individual's emotional, physical, and cognitive
being. It is a rational and voluntary choice made by the individual that goes above
and beyond work expectations to assist an organization in meeting its goals.
Justify the existence of the central problem
In order to understand deeply the real problem that happens at the company,
the writer would like to reveal the symptom and critical evidences as the following.
We have an in- depth interviews with five employees who are working in
different position including Relationship Assistant (RA), Relationship Officer (RO),
Relationship Manager (RM), Personal Financial Consultant 1(PFC-1), Personal
Financial Consultant 2 (PFC 2). They were invited to answer a series of statement
that represent possible feelings that they have about the company. The interview
questionnaires are based on the employee engagement questionnaire, which is
studied and developed by Ibrahim, M., & Al Falasi, S. (2014). All the interviewees
aware that their identify is kept confidential, and there is not any judgment for their
answers. Therefore, the interview result are objective and without bias.
There are five interviewees said that they do not find what is expected of them
at work. The staff do not see the bright career path for their future since the bank
does not have a visibly promotion roadmap for long – term employees, so that they
do not know how to climb up their career ladder. Currently Phu Lam Branch has not

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had a clear promotional path for staff to make efforts that is especially essential for
sales force. The staffs have do not clear standards as goals or experience for staffs
to be promoted so staffs find it is difficult to plan their goals to achieve, which lead
to staffs’ looking for new chances in other banks. In some cases, the result does
depend mostly on reviewer’s feeling; so they assume that if they have a good
relationship with their reviewer, the review result will be good. However, not
everyone can has enough conditions; in fact, there a lot of high performances
employees feel that this company will forbid their career path if they continue
working. The results of the work productivity of employees in the bank are
ineffective.
When being asked about recognition or praise for doing good work, the
interviews said this case does not occur in Phu Lam Branch. The sale staffs feel that
they are pressure when they must get high business targets; they need the support of
the managers - who have experience. Everyone has tried to seek new customers, but
in today's competitive environment, finding a good customer is not easy. They feel
sad when they do not complete credit indicators, but some reach other indicators
well. They think that their manager do not noticed staff’s efforts, the manager just
focus on credit growth. Sharing this with the manager is very difficult; they think
the employee do not have ability. Award ceremonies and the assignment of
employees to big customer are forms of recognition.
When being asked about "Is there someone at work who encourages my
development", there are four interviewees said that they did not feel satisfied with
the job because the manager does not know how to help employee complete target.
One respondent said the supervisor did not make her feel comfortable to share any
urgent. Her work has too much pressure but her always willing to assist other

officers when they have encountered particular problems. But she thinks her
manager did not recognize her true capacity. When she has trouble with customers,
the manager does not support her to solve problems quickly and efficiently. When
the result is not good, the supervisor do not spend time to understand the reason


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clearly, they blame and are not satisfied with the way she solve. Another think the
manager does not make a positive work environment for their employees. There
five interviewees said that they are not allowed to involve in decision making
process for some policy relating to employees benefit or operation procedure; so
they cannot understand and support the managers in implementing the process. This
leads to some policies do not have any meaning and get the result as the ACB - Phu
Lam expected. Employees feel that the manager do not care about their
contributions in the meeting and solving their issues; the manager just do things
what they think and do not put themselves in their employees’ feelings.
When being asked about opportunities the staffs get to learn and grow, four in
five employees said that the bank does not give staff the opportunity to join a
management course to improve my knowledge and skill. At Phu Lam branch, the
manager does not care about this issue. Sale staff's job requires good skills and wide
knowledge to help them during seeking client. More updated information and new
knowledge is essential. They often have to learn by themselves. However, they
would become more professional if they take part in an advance class.
In conclusion, sale staff has lack of enthusiasm in the contribution to the
business strategy of the branch. The low level of employee engagement is the most
important problem in Phu Lam Branch. In meetings with employees every month,
the report informed that Phu Lam branch has lost many good customers. When

asked about problems at personal work, the employee is not available to share
difficult to solve but actually the manager knows they're difficult in solving
customers' bad debt. This issue will affect the psychology of the other employees
and the company strategy. The low employee engagement are step by step making
the employees feel weary, stress and the certainly results of this problem are low
commitment and high turnover rate. Last but not least, Phu Lam - Branch must have
strategy to enhance the employee engagement.
1.4. Justifying the importance of the central problem


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There is previous experienced studies on employee engagement such as by
Abraham (2012); Echols (2005) and Right Management (2009), they noticed that
the more satisfactory customer service, creation, productivity, low staff turnover,
dedicated workforce, great sense of work commitment, willingness to put more time
in work, and pleasure in their work is the result of high employee engagement. The
study by Swaminathan and Rajasekaran (2010); Right Management (2009) have
also linked employee engagement to numerous organizational outcomes as
summarized below:
-

Increased profits (profitability)

-

Productivity and performance gains

-

Increasing customer satisfaction, customer loyalty and sales

-

Personal initiative on the job

-

Motivation to carry out the highest

-

Increased employee retention

-

More creativity and innovation

-

Apply creative energy to their work.

-

Raised passion, alignment and commitment with the company's strategies
and target.

-

Increases employees' responsibility in the company

-

Improves a feeling of loyalty in a competitive environment

-

Provides a high-energy working environment

-

Boosts business growth

-

Improve their benefit in their company's success
Engagement has received a lot of attention by many researchers. According to

Vance (2006), employees who are joined in their work and alignment to their
company provide their organizations with competitive advantages, such as higher
productivity along with lower employee turnover. The engagement in the company
has been acknowledged as important all over the world because the engagement of
its employees is one of the basic of the performance of any organization; Mohsan


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(2011) claims that the more the staffs engage, the better the performance of the
company. In fact, employee engagement is suggested as the main factor that decides
the success of organizations in modern business which is known as the increasing in
competition and the technological advancements. Nowadays, companies need to
attract and retain skilled and loyal employee staff for increasing its competitiveness
in business (Mohsan et al., 2011). Engagement is also impressed as a key to
improved productivity (Mohsan et al., 2011).
In the given case of ACB – Phu Lam branch, first of all, this is the high
turnover rate, the turnover rate has been increased significantly, 28% only for 6 first
months 2015, compare with the rate of 16% for the whole 2014. There were 4 out of
24 people in 2014 and 10 out of 32 people in the first half year in 2015 left the
company that account about 16 to 28 percent out of total employees (provided by
ACB – Phu Lam Branch - HR division). Laddha et al., (2012) stated, “Employee
turnover is one of the largest though widely unknown costs an organization faces”
The increasing in turnover rate is the result of two main factors; receiving higher
offer from other company and individual reason. While company has been lost
many core employees to other competitors, identifying resources from outside the
company is not easy. The employee turnover is costly to a company in all sectors
from recruitment, training and development of employee.
Moreover, according to Cohen (2003), the shortage of engagement with the
company is also emphasized as an explanation of reduced effort expenditure, theft,
job dissatisfaction and unwillingness to find another company. There are only the
employees with a high level of engagement will tend to spend greater efforts to
perform, and invest their resources in an organization they working for (Saal &
Knight, 1988) and low employees engagement either leave the organization or
waste their capabilities in defeating organizational goals (Schein, 2003).
After the scandalous arrests of some ACB executives in August 2012, there
are the number of employees have understood the situation and supported the
managers, but on the other hand, there are also a big group of employees fell

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unhappy and worry that the situation will even become worse. There are a lot of
rumors during this time; one of them is this time will be the end date of ACB, and
they need to change company as soon as possible. The bank’s CEO also has many
communication meetings with the middle management team and above to reassure
employees’ feeling but until now there is just a little bit improvement.
Generally, while the company has been through the difficult period, it is
required as many employees’ contribute as they can. Therefore, low level of
engagement now is stated as the most critical problem, which is needed to
concentrate on.
1.5. List the potential causes of the problem
After finding out the existence and important of problem, to identify accuracy
the potential causes of central problem, the writer lists out the potential causes
based on conducts to review the communication literatures. Literature has been
proved that there are many factors affect to employee engagement. They are:
-

Reward and Recognition Programs

-

Training and career development

-

Perceived organizational and supervisor support

-

Job Characteristic

-

Work environment

Details of the potential causes of central problem are shown in the Chapter 4:
Supporting Information – Part 4.


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Cause and Effect Map of the Low Level of Engagement of Credit Officer Staffs
in Asia Commercial Bank – Phu Lam Branch

Conclusion
This chapter clarifies that the low credit staffs's engagement is the real
problem in ACB - Phu Lam Branch. Through the literature review results and
collecting information from in-depth interview of credit staff, the writer find out the
potential causes considered: Reward and Recognition Programs, Training and
career development, Perceived organizational and supervisor support, Job
Characteristic, Employee Empowerment, Work environment, that affecting to credit
staffs's engagement. Identifying the main cause will be the basis to devise suitable
solutions in the next chapter. The next chapter will answer question was, what

programs, or activities could be developed and provided by ACB - Phu Lam Branch
to encourage and enhance employee engagement within organizations?


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CHAPTER 2: ALTERNATED SOLUTIONS
Introduction
From chapter two, the writer find out the potential factor affecting to credit
officer staff’s engagement in ACB - Phu Lam branch, the Reward and Recognition
Programs, Training and career development, Work environment, Perceived
organizational and supervisor support, Employee Empowerment. This chapter will
give identify the main cause and give alternative solutions to solve main factors.
This research study sought to answer the question: What services, programs, or
activities could be developed and provided to enhance employee engagement. The
alternative solution and implementation strategies are presented under the following
headings: Develop positive relationships within organizations, Improve reward and
recognition programs for employee, Develop employee’s knowledge base and skills
through training program.
2.1.

Justify causes

In order to evaluate which causes has important effect to the low level of credit
officer’s engagement in ACB – Phu Lam Branch, a group of six employees has
been chose to join the mini focus group. These six interviewees were selected as
they could give appropriate contribution to the focus group thanks to their working
experience and now playing a key role in their current projects. A scale of potential

causes is also explained to them make sure all the respondents could understand
clearly about the causes. Each of them understands that their answers will be served
only for the project purpose, and there is not any assessment on their opinions. They
are free to discuss and answer nine questions to verify the root causes, which affect
the level of employee engagement in the company. Furthermore, due to personal
privacy, they request not to include their name in the paper.
A summary of all opinions is shown in the Chapter 4: Supporting Information
– Part 4.4, showing that the interviewees were able to prove the link between the
Reward and Recognition Programs, Training and career development, Work
environment.


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Reward and Recognition Programs
Financial rewards have positive factor on employees’ loyalty. Financial
rewards are strong incentive for employees. It makes employees feel safer in
employment. They increase the loyalty of employees in job. It is a vital motivator to
encourage the employees towards goal attainment. Rewards are not only vital in
incentivizing employees to deliver high quality of performances but also important
in motivating those when dealing with high pressure during working process
(Farrell and Rusbult, 1981). Analysis found that an organization’s reward structure
can have an impact on employee satisfaction and organization commitment as well
(Brown & Peterson, 1993). In reality, motivation may come from financial and non
– financial elements. Specifically, financial and non – financial motivation must be
grown base on their job levels, for instance paying them bonuses and commissions,
or educational development of job trainings and some special course.
According to Bernthal et al., (1999), employees prefer to be acknowledged for

their contribution. It is interesting that many employees are still ambitious for more
recognition, even though their organizations bring formal rewards and recognition
programs for employee’s contributions. Employees are expected to be more
committed with organization when they are listened to, recognized and supported
for employee’s contributions.
This is consider as one of the most important factor affect the employee
engagement to any company not just only ACB - Phu Lam Branch. When an
employee engagement applies into a company, the first thing they care about is how
much they will be paid for their work. Is there any benefit beside the basic salary? Is
there any social insurance, financial support, responsibility bonus, company trip,
etc., which are included in the salary package? One respondent said that she always
consider about financial goals before accepting any job offer. As her experiences,
companies have attractive salary package will attract many good employee than
other company, since the good reward and remuneration will make the employees
fell to be financially secure. The same with her opinion, other employee said that


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good benefit would keep employees stay and contribute to the company. To answer
for the question, why there are a large number of employees leave the company and
move to the competitor, he stated that because that company has a better benefit,
pay higher salary. According to other respondents, pay means perceived worth to
the organization, or worth compare to other individuals, so how much he is paid is
very important. If the company cannot offer the reasonable rate, satisfy employees,
it is very easy for the employees to leave. Another idea is high salary and benefit
package is the faster recognition for employee’s contribution, reward timely with
generous number can encourage them to keep spending more and more effort to the

company, and create a strong connection with the company.
In order to emphasize the most important effect of the reward system over the
employee engagement, all the interviewers agreed that when company had cut down
bonus, commission and decreased salary rising rate, they have felt unhappy and
worried about their future if continue staying with the bank. They start looking
around and ask their friend about the other companies’ benefit, and most of them
think that other companies have better benefit and working environment than ACB
– Phu Lam Branch.
Work environment
Work environment in respect of both communication and physical
environment is regarded as the most significant factor that influences
engagement levels of employees (Miles, 2001; Harter et al.,2002). According to
Deci and Ryan (1987), employers who create a supportive work environment policy
typically display concern for employees’ needs and feelings. Given the importance
of work environment to the employee, employers must establish positive
communication and feedback system as well as informing employees of
organizational objectives and targets towards success. Positive workplace
environment will increase confidence and ownership of the organization among
employees thereby increasing engagement levels and improve performance
(Robinson, 2006). One respondent said that she felt no longer interested in her


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18

work. The supervisor did not make her feel comfortable to share any urgent. Her
work has too much pressure but her willing to assist other officers when they have
encountered particular problems. But she thinks her manager did not recognize her
true capacity. When she has trouble with customers, her manager do not support her

to solve problems quickly and efficiently. When the result is not good, the
supervisor do not spend time to understand the reason clearly, they blame and are
not satisfied with the way she solve.
Foxon (1993) and Nijman (2004) stated that if the supervisor is having a
very good communication skill especially during the training program, the
employees will probably increase job performance. In order to gain the employees
performance, both party in between the employees and supervisor needs to play
their part which is to commit with the relationship. If full commitment is given, it
will leads to positive result to the performance from the employees (Blau, 1964).
Enhancing employees’ behavior are such as sharing information, giving
support, feedback, recognition and reward. Meanwhile, supervisor also supports the
employees in making the resources for the employees. The examples of the
resources are such as the time, tool and providing training.
Training and career development
Training and opportunities for career development is yet another means of
engaging employees to achieve and improve high performance levels. Training
improves service effectiveness and accuracy in the work. When employees are
trained professionally and become competent in their jobs, their confidence and
motivational levels increase as well, which drives them towards discretionary
efforts and involves them further in many aspects of their job, thus driving
performance.

Therefore, Adlerfer(1972) argues that when organizations

present growth opportunities to their employees, it is seen as an equivalent
to rewarding them for their efforts. Training and development are essential
interventions that should be part of an organization’s policy to increase employee
level of competence, ability to cope with job demand, and motivation to perform

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19

better. According to Muthuveloo, Basbous, Ping, T. A., & Long (2013), their
finding of research demonstrate that employee engagement is very vital to the
organization, the finding shows that employee development is the most contributor
antecedents to employee engagement. Thus, it is very necessary for the organization
that tries to improve the level of engagement among their employees to invest in
employee development. It is very benefit for the company to invest more on
programs that improve the skills of the employees and plan suitable workshops and
training programs that enhance the abilities and kills of the their employees.
On the first working day at ACB, all new employees will join the Orientation
session, which covers company overview (history, structure, vision and mission),
career path for each position, introduction training program and some wellness
activities within the company. For sale staff, the list of detail skill requirement for
junior level to Managers position is published in the Business Title system.
Supporting to that system, training team has offer some professional training score,
such as Customer evaluation, financial statement analysis, etc., beside English
course and soft skill course like: Time Management, Problem solving, decision
making or how deal with business client. The employees are encouraged to attend
the training class, which will help them to learn new products and apply to the job.
Al of the interviewees said that they are appreciated the internal training program.
They agree that joining these courses help them to improve hard skill, and
performed the job better. When conduct the usually performance review, their
manager also instruct and consult them which skills they need to improve, or which
course is suitable for them. All of this effort helps them have a clear picture for
what they do need to do to be developed or promoted to higher position. They also
feel that the company cares about their employees and work to invest them, support
them to pursuit their career path. In return, the company can have the high skilled

employees, who can provide and satisfy all clients’ requirement. This creates a
“win-win” situation, where company has a good staff and the staff wants to stay
with the company until they keep the same direction, same development plan.


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However, this factor does not play an important role into the employee
engagement for all the interviewees, as the sharing of one respondent. He thinks that
although the training program is free and useful for his job, but he also can learn by
himself or register external courses. In addition, almost the class is just for basic
level, and if he wants to research more to get higher level, there is not any class
match with his needs. So although this factor has affect his engagement to ACB –
Phu Lam branch, but not play an important role when compare with first factor
above
One respondent worked at ACB – Phu Lam Branch since 2008. He said that
the turnover intention and the low level of employee engagement happen due to
lack of motivation and employee opportunity for the sale staff from the bank. In
fact, the staff do not see the bright career path for their future since the bank does
not have a visibly promotion roadmap for long – term employees, so that they do
not know how to climb up their career ladder.
Another respondent worked at ACB – Phu Lam Branch since 2007. He said
that, Nowadays, business environment becomes more competitive between banks.
Each employee must to learn more knowledge and develop their soft skills, which
makes employees feel more confident to find and consult new customers in the best
way. However, credit staff just only learn about 1 -2 classes during period of time
they work. His friend working at foreign bank, they are interested in staff
development issues for employee; they will organize a lot of programs to improve

soft skills for their employees and many additional classes to introduce the new
bank's products. These programs help employee have more new knowledge and the
comparisons between their bank's strengths and the others. He said that the low
levels of management in improving the knowledge and skills for employees will
reduce the bank's competitiveness; makes employee's productivity of employees is
not high. Staff will not achieve the targets and values of bank.
Among five potential causes, which are list above? Employee empowerment has
minimum impact and perceived organizational and supervisor support no impact to


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21

the level of employee engagement. As mentioned by a respondent, he needs to be
empowered to perform project task. He feel comfortable if the manger let him free
to identify the best way to complete daily task, just make sure he follows the
project procedure and client’s requirement which is set up at the project’s
beginning. For two other respondents, they agreed that employee empowerment is a
proof that manager believe in their staff. In return, staff will continue contributing
their effort into work and commit with that manager and the company in general. In
spite of its meaning with the employees, this element just ranks the fifth position in
other of important level on employee engagement in ACB- Phu Lam branch. For
Perceived job alternatives elements, this is not considered as a cause of employee
engagement in the company. The reasons in this case there a lot of other job
opportunities, the employee still stay with the company until they fell not
dissatisfied with the salary and benefit package, or not have potential career
development plan, or not perceived the support from their supervisor anyone, as
shared by three respondents. Even if there are not any job alternatives, they can
leave the company if they feel dissatisfied with the company. That means, for

employees Perceived job alternatives does not have any role on their engagement.
From the result of the focus group, the rank of three justified causes in order of
importance is:
- Reward and Recognition Programs
- Training and career development
- Work environment
2.2.

Alternative Solution

Solution 1: Developing a supportive work environment that typically displays
concern for employees’ needs and feelings within credit department of Phu
Lam branch
Work environment in respect of both communication and physical
environment is regarded as the most significant factor that influences
engagement levels of employees (Miles, 2001; Harter et al.,2002). According to


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22

Deci and Ryan (1987), employers who create a supportive work environment policy
typically display concern for employees’ needs and feelings. Given the importance
of work environment to the employee, employers must establish positive
communication and feedback system as well as informing employees of
organizational objectives and targets towards success. Positive workplace
environment will increase confidence and ownership of the organization among
employees thereby increasing engagement levels and improve performance
(Robinson, 2006).

This solution included phrases includes transparency, focusing on employee or
humanistic approach respect and trust each other. The most remarkable suggestion
of this project is for credit department in ACB - Phu Lam Branch to inform and
assist it employee in improving positive relationships within credit department.
These positive relationships need to happen in the credit department at all levels of
position. The suggestion is such as programs, advantage and leadership. The first
suggestion to improve positive relationship is to create specific programs.
The solution suggests four separate programs which are include: get to know
information the employee and colleague, appoint a peer, and give question to ask
the manager, and develop outside activities and celebration. There are three
programs which are operated through an internal site created by department.
The creation of an intranet website will be an environment for employees to
share their information and the way to solve risk cases in work. The development of
website could help in improving positive relationships. It would be a central place
for credit staff to understand the co-worker's job. This program will be particularly
effective for credit department that have more difficulty connecting employees.
This program would need to be voluntary from each member, but could help
bring employees closer together in a positive way.
In part of the internal website, each member of credit department can create an
assign a peer program. Employees could access into the website and assign their
coworker for doing a good job or providing a favors. They would comment the