Employee Engagement in Banking Sector
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Banking industry leaders are facing significant challenges to
manage their talent. According to Quantum Workplace research, only 50 percent
of employees in the banking sector are highly engaged and 35 percent are a
retention risk.
Attracting, retaining, and engaging skilled employees has proved
difficult amidst the low unemployment rates currently experienced in the job
market. (Ryba, 2021)
Importance of
Employee Engagement in the Banking Industry
According to recent annual reports of a few Licensed Commercial
Banks in Sri Lanka, the Employee Turnover rate is higher than 15% and even
closer to 20%. This is mainly due to the ‘brain drain’ in Sri Lanka over the past
couple of years with the uncertain economic situation.
Though the main reason remains unchanged, there are some other reasons
such as Increased work pressure in the workplace, fewer rewards due to strict
cost management, poor leadership and communication, and lack of work-life
balance, etc.
However, it is vital to have high Employee Engagement in the
banking industry among all other industries.
Banking is a service industry in which the employees will act as
the representatives of the bank. Employees will leave the first impression of
the bank, and it matters because negative impressions will not lead customers
to invest their hard earn money in such a place.
On the other hand, positive engagement will improve customer
satisfaction, trust, and loyalty.
Current Employee Engagement
Activities In The Banking Industry
Companies nowadays
are increasingly developing innovative and effective means to engage their
employees for better results.
In the post-pandemic
world, the Banking sector has been seen making use of online measures in order
to ensure employee engagement.
Thus the employee
engagement practices that are being followed in the banking sector include:
- Virtual team meet‐ups
- Virtual learning and development
- Online sessions for managing anxiety and stress
- Online team-building activities
- Live sessions for new‐skill training
- Online communication exercise
- Online recognition and acknowledgment of
employees
- Online employee feedback
- Social interactions in the virtual office
The above-mentioned
engagement activities are essentially digital. However, they not only help to
boost employee morale but also help develop a committed and motivated team for
any banking business. (Bravo, n.d)
Suggested Employee Engagement Activities
for The Banking Industry
- Clearly outline job duties and
required professional skills in the interviewing process.
- Regularly check in with employees
and ask for feedback to understand their perceptions.
- Leverage transparent
communication about available growth opportunities.
- Invest in your employees’
skills, development, and career growth.
- Recognize both teams and individuals.
- Highlight your employees’ value to the company.
(Ryba, 2021)
Conclusion
While there are
investments already made for the improvement of Employee Engagement in the banking
industry, it is vital for the management to understand the fact that not only
the senior leaders but also line managers’ involvement in the same is of utmost
importance.
The reason is that if the employees’ relationship with their manager is strong, their motivation, productivity, and engagement will be increased. Also, the same will reflect in day-to-day operations in the bank and then in the final business outcome.
References
Bravo,(n.d.)
The Future Of Employee Engagement In The
Banking Industry [online] Bravo. Available from: https://getbravo.io/the-future-of-employee-engagement-in-the-banking-industry/
[Accessed on 20th April 2023]
Hi Thilini, your blog post provides a good overview of the importance of employee engagement in the banking sector and highlights some effective engagement activities.
ReplyDeleteA couple of questions for you, firstly the rise of FinTech and "challenger banks" is happening worldwide, these organisations are by definition more like tech companies than traditional banks, how do you think HR leaders in traditional banks can adjust their internal processes to meet this challenge?
Also on a more personal note, since you are working for a local bank, how applicable are some of the global strategies to the Sri Lankan context in a practical sense?
Thank you & best regards, Nithila
Hi Nithila, Thank you for your valuable comments and suggestions.
DeleteAs you correctly mentioned, with the rise of FinTech and "challenger banks" happening worldwide, there is a possible theft of traditional banks. Because of their lower overhead costs, challenger banks can offer more competitive pricing than traditional banks. To compete in the industry it is important to have proper cost management. And from the HR managers' point of view, it is vital to attract and retain only top talents to avoid an employee becoming a cost but an asset to the bank.
Also, 'banking' being an international trade, the most modern global strategies are applicable in Sri Lankan context as well such as Improve Employee Relations, Employee Development and Training, Legal and Ethical Compliance, Automated HR functions(Payroll, KPIs) etc... However, the Country's economical situation has a negative impact on People-Centric practices due to the increased staff turnover and stress at work.
Hi Thilini, Good article, this activities also to encourage employee engagement, To properly recognize employee initiatives, keep up to speed on them, Utilize both public and private acknowledgment, be clear and concise when expressing your appreciation for the work of your staff, stress the importance of your staff to the business, Honor both groups and specific people, Praise, promotions, or raises, as appropriate, are ways to express your gratitude.
ReplyDeleteDear Asanka, agree with your valuable comment. As in all other industries in Banking industry too, it is required to encourage employee engagement.
DeleteI completely agree with the importance of employee engagement in the banking sector, as highlighted in this blog post. The banking industry faces unique challenges in terms of employee retention and engagement, and it is crucial for leaders to address these issues in order to create a committed and motivated team.
ReplyDeleteAccording to Briscoe, Schuler, and Tarique (2012), employees in the service industry, such as banking, act as representatives of the company and leave a lasting impression on customers. Positive engagement not only improves customer satisfaction, but also leads to increased trust and loyalty. Additionally, Marchington and Wilkinson (2020) emphasize the importance of line managers' involvement in employee engagement, as a strong relationship with managers leads to increased motivation and productivity.
The suggested employee engagement activities mentioned in the blog, such as regularly checking in with employees and investing in their skills and development, align with the recommendations provided by Lawler and Boudreau (2015) for global trends in human resource management. Overall, it is essential for banking leaders to prioritize employee engagement in order to create a successful and sustainable business.
Thank you Hassan for your valuable input to the post.
DeleteHi Thilini, A well defined article regarding employee engagement. How ever rather having online discussions it will be more effective to have face to face chat at least once a week. Regular team meetings, one to ones will help to understand employee concerns and appreciations, discussions about staff growth, having some entertaining event will help to improve the staff motivation and thus improve the level of engagement.
ReplyDeleteHi Gayathri, agree with you. it is better to have regular face-to-face meetings. But if it is practically not possible, better to have regular feedback sessions even through online platforms.
DeleteAs you have mentioned in your article, specially in banking sector employee engagement is essential in current context. After Covid 19, virtual activities were introduced as a practice for employee engagement. Banking employees need to have mental relaxation rather than a booster through these employee engagements. Therefore, it is necessary to have physical employee engagement while having it in virtual platform too. Banks can organize major events such as dinner dances, Christmas carols, Awurudu Uthsawa, Sports days and etc to have fun & relax with their collogues and refresh their minds. The branches / departments of the bank can also celebrate employee birthdays, promotions, special days like women's day, men's day, employee appreciation day by keeping the office work for a moment. These activities motivate, reduce the work stress and improve the productivity of the employees.
ReplyDeleteHi Kavindi, Agree with your comment. To reduce the work stress and for relaxation these kind of activities are essential. It will help to improve the engagement level of employees.
ReplyDelete