Job satisfaction in sacombank binh thanh branch

The low employee satisfaction is step by step making the employees feel stress and the certainly results of this problem is low commitment and high turnover rate... They are: - Positive

- NGUYEN THI TUAN ANH

Contents

Contents 2

CHAPTER 1: PROBLEM IDENTIFICATION 4

1.1 Company Background 4

1.2 Problem symptoms 5

1.3 Analyze the existence of the problem 8

Definition of Job Satisfaction 8

Outcomes of Job Satisfaction 9

Analyze the existence of the problem 10

1.4 Analyze the importance of the problem 14

1.5 List of the potential causes of the problem 17

CHAPTER 2: ALTERNATIVE SOLUTIONS 22

2.1 Analyse main causes 22

2.2 Alternative solutions 27

Solution 1: Develop positive relationships between employees and managers 27

Solution 2: Improve compensation and benefits for employees 28

Solution 3: Develop career opportunities for employees 30

CHAPTER 3: SELECTED SOLUTION AND CHANGE PLAN DESIGN 34

3.1 Selected the suitable solution 34

3.2 Implementation plan 38

Limitation and Recommendation 44

Conclusion 44

CHAPTER 4: SUPPORTING INFORMATION 45

APPENDIX 1 48

APPENDIX 2 60

LIST OF REFERENCE 61

CHAPTER 1: PROBLEM IDENTIFICATION

1.1 Company Background

SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK (hereinafter shortly referred to as Sacombank) is a commercial joint stock bank, which may manage all banking operations and other business transactions Sacombank was established in December 1991 They have built outstanding contribution and strong strategic partnerships with many

generations of more than 15,000 full time staffs, customers, partners, shareholders and

investors The mission of Sacombank is to optimize modern and multi-utility financial

solutions package for customers; bring the value of the banking profession and prosperity to staff and accompany along with Corporate Social Responsibility (sacombank.com.vn, 2009) The major business activities of Sacombank and subsidiaries are to strenghthen retail banking and enhance corporate banking; to receive entrusted investment and development funds from domestic credit 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 and gold; to provide trade finance services; and to provide other banking services In 2020, Sacombank development strategy is in Top 10 Indochina Bank; and in 2015, Sacombank is the bank operating with main targets: stable growth, professional management, suitable income, and reasonable profit As of December 31, 2014, Sacombank developed

branch network development with nearly of 428 transaction offices including 8 transaction

offices in Cambodia, 3 transaction offices in Laos and 417 transaction offices nationwide

Sacombank - Binh Thanh Branch is one of the largest branches in Sacombank The branch was established in November 2007 and located at 270B Bach Dang Street, Ward 24, Binh Thanh District The branch has four transaction offices: Binh Hoa, No Trang Long, Thi Nghe, Thanh Da and one main branch Over 8-year development, Binh Thanh Branch has recorded a significant performance in 2011-2013 The financial results proved a company maintained a trajectory growth path in business development The financial performance overcame other branches of comparable size In addition, the company achieved many

prestigious awards like Excellent Unit Reward - Sacombank 2011, Best Young Unit Reward - Sacombank 2012, Best Unit Reward in many years

1.2 Problem symptoms

To have the initial general information about currently company status of Binh Thanh Branch, the writer collects secondary datas from HR Department and conducts to preliminary interviews with employees Based on the answers of employees, the writer can get some basic information on currently status of the company Although Binh Thanh Branch is one of the largest and most effective branches in Sacombank, the branch also copes with many problems with policies and staff such as high turnover rate, low commitment, low employee

productivity

According to HR Department report, the turnover rate has been increased significantly, 22% only for 9 first months in 2015, compared with the rate of 12% for the previous year In

2014, there were eight new employees after four-month trial work, seven long-term employees leaving company and three supervisor transferred job to another branch But in the first three quarters of 2015, the amount of turnover has increased drammatically with five seniors and nearly thirty employees In fact, this number is considered as a high turnover ratio compared to other branches in Sacombank This turnover ratio was considered as a alarm sign of the

company The result of statistical in Table 1 in Chapter 4 showed that the comparison of

employees who left out in 2014 – 2015 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 employees (Rousseau, 1984) and low future performance as well (Baron, Hannan and Burton, 2001) Therefore, this is a negative symptom for any

organization which the high turnover becomes more larger and develop

Secondly, from secondary data, up to now Binh Thanh Branch has not achieved many targets of three quarters of year 2015 Balanced Score Card intergrated to Core Banking T24 is the software to evaluate the complete working results for each employee According to the bank's standard regulations, the credit employees must get more than 80 points of BSC score will be standard The statistics in Table 2 in Chapter 4 for the sale staff are working at Binh Thanh Branch showed the current situation of working employees

Finally, according to Mr Tuan Anh - Credit Department Director, he is worried about the present employee's problem such as lack of enthusiasm, customer low satisfaction and loyalty, lack of personal initiative on the job, lack of building passion, commitment and alignment with

the organization's strategies and goals The branch has built the good relationship with some huge clients, for instance: Golden Lotus Trading and Manufacturing Co., Ltd, Asian Rubber Co., Ltd, Anh Long Co., Ltd, Kham Thien Co., Ltd, etc They brought profitable transactions and had effect to the company‟s business However, started from the beginning of 2014, with the economic has become very competitive, both competitors and other branches in

Sacombank have forced to gain high productivity as well as profit Worldwide rubber prices fell 21 per cent from May to November, going from usd94 to usd74 per pound

(phnompenhpost.com, 2014) The vast amounts of land have been effected for rubber

plantations in Binh Phuoc, Dong Nai, Tay Ninh by two of company‟s largest clients, Golden Lotus and Asian Rubber This leads to decrease the business corporation with company, and so profit has been reduced Moreover, since revenue fell, it was needed to adjust plans to keep the business running effectively, the Board of Director (BOD) have decided to cut welfare buget, reduce salary of middle managers and employees, rise business sales and KPI, etc Besides, all

of employees have tried to find as many new potential clients as possible What makes the branch less competitive than other branches in Sacombank? Recently, the employees receives many invitations to recruit from the HR department of many banks 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 and consultants – the key employee Besides, about 50% of sale staff do not have the spirit to work

and learn more knowledge about new product and sales skills, especially new employees and trial-work employees Mr Tuan Anh noticed that work ethic of employees is not high; they do not have a specific plan to find new customers For existing customers, they do not plan to develop favourable policies for potential customers such as reducing fees or low deposits In fact, Binh Thanh Branch has lost many good customers

Based on the awareness of company‟s symptoms, the low level of employee satisfaction

is proposed as the central problem in this project Therefore, the critical purpose is increasing the level of employees satisfaction, getting people taking part in solving company‟s issue and overcoming the obstacles together

1.3 Analyze the existence of the problem

Definition of Job Satisfaction

Job satisfation has been defined by Beer (1964) as employees‟ emotions and thoughts about organization, workplace and management and colleagues The connection between employee job satisfaction and labor efficiency has already demonstrated by many researchers

in the past The advantages of job satisfaction for a company are to minimize complaints and injustice regarding employees, concentrate and successfully accomplish the work within

requirement time Al-Zoubi (2012) implied that employees‟ performance appreciation is an implement to further improve the motivation level of the employee Once employees feel satisfied, they will have real more work motivation, thereby their performance results in profit increase and higher further development

Sahnawaz and Juyal (2006) proved the impact of job involvement and job satisfaction

on organizational commitment It was considered to be the key important outcomes of human resoure plans to achieve competitive performance While Diaz-Serrano and Cabral Vieira

(2005) stated that employees with low paid are likely have low quality jobs and less job

satisfaction Baron et al (2006), reports have generally implied there is a relationship between job satisfaction and employee absence and turnover They tend to absent from work or resign and seek other job chances

Singh and Kohli (2006) indicated that organizational factors such as pay, growth

opportunities, job security, etc., influence an employee‟ perception of job satisfaction Green and Heywood (2008) studied opportunities related pay allows employees optimize their

motivation to increase satisfaction with pay and job security

Finally, there are many definitions of employee job satisfaction in the literature, however the common subject in the articles researched is employee satisfaction as an connection to one's work role that involves an individual's emotional, physical, and perceiveness 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

Outcomes of Job Satisfaction

There are a number of effects brought about by low job satisfaction Lowly satisfied employees tend to have worse physical and mental health, learn the new task more difficult, have more job stress and unrest

The two outcomes of job satisfaction were studied by Baker (2011) – absenteeism and turnover He indicated low job satisfaction cause absence He also investigated many factors influencing employees leave the company These are tenure, salary, promotions and family commitment When satisfaction is high, absenteeism is low and when satisfaction is low, absenteeism is high Job satisfaction has also been found to have a connection with turnover (Cotton and Tuttle, 1986) Managerial concern is mostly for the turnover which increases because of low level of job satisfaction We can say thay there is an important role played by job satisfaction in employee turnover

When employees are dissatisfied with their jobs, they tend to be more experience accidents They can not have attention on the task at company and lead directly to accidents (Barling, Kelloway, E K., & Iverson, 2003)

Gruneberg (1979) proved that less skilled employee‟s productivity was positively related to satisfaction with his job and supervisors The employee‟s productivity was rated by his manager and showed the results that highly skilled employees places a higher value on their job and freedom to perform their work than production

Analyze the existence of the 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 two employees who are working in different departments, Salesman and Risk Supervisor They were invited to answer series of statement

that represent their feeling about company situation The interview questionnaires are based on the employee satisfaction questionnaire which is created and developed by Taylor and Weiss (1972) 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 They said that they do not find what is expected of them at work When asked about their salaries and benefits policies, employees answered their salaries do not pay enough their living costs Similarly, when employees achieved their targets, they felt no satisfied with their rewards They also do not see the bright career path for their future Currently Binh Thanch Branch does not have a clear promotion path for sale force The staffs do not have clear standards as goals or experience to be promoted so they find it is difficult to plan their goals to achieve, which lead

to staffs‟ looking for new chances in other banks

To deeply investigate the situation, the writer gave more 10 surveys to employees from different departments and levels There are almost responses said that their job satisfaction is quite low More specifically, employees are awared about clear job description for their

positions as well as company‟s follow-up training However, new employees said that it is hard

to communicate to supervisor for assisting them to carry out duties Furthermore, there is few recognition by their supervisor for their accomplishments Alternatively, long-term employees feel that they received ineligibility benefits, low rate of pay for work, low paid time off they received There are six out of ten employees underlined that they feel obstructive how to find the way for their career development because the company does not have a clear opportunities

for advancement This leads to some business plans do not have positive impact in increasing level of job satisfaction In other side, employees feel that weekly business meetings do not bring effectiveness, evenly the managers cause stress to employees by forcing many KPIs for salesmans and punishment When being asked about satisfaction with the company, there are ten interviewees implied that they are feel very little satisfaction Although they still work for company‟s future and their own life, but that also means that they are tired and bored about work as well as passion

In addition, when the writer asked about the relationship between employees and

managers, there are four responses said that it is difficult for new employees or even long-term employees have a good relationship to managers There is an unfairness in supervision and employment opportunities, especially for salesmans more chances than back-office employees Employees feel that feedback and evaluation regarding their performance are quite late and incorrect This results to they can skip many chances for promotion Furthermore, there are six answers said that they felt negative relationship among colleagues They have many conflicts when arguing to make decisions or debating solutions for businesses This causes negative effect with job satisfaction and worse situations

When being asked about recognition or praise for doing good work, the interviews said they received little reward The employees, especially salesman feel that they are much

pressure when they must get high business targets, they need the support of the experienced managers It is difficult to seek new customers and feel sad when they do not complete KPI

When employees have trouble with customers, the manager does not support her to solve problems quickly and efficiently These five interviewees said that they are not allowed to involve in decision making process for some policy relating to employees benefit or operation procedures so they can not understand and support managers in implementing the process Employees feel that the manager do not care about their contributions in the meeting and to solve their issues

When being asked about opportunities to learn and grow, most employees said that the bank does not give the opportunity to join a management course to improve the knowledge and skill At Binh Thanh Branch, managers do not care about this issue Employees jobs require good skills and widen knowledge to help them during seeking client Updating more

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, employees has lack of enthusiasm in the contribution to the business strategy of the branch The low level of employee satisfaction is the most important problem in Binh Thanh Branch In meetings every week, the report informed that Binh Thanh Branch has lost many good customers When asked about problem at personal work, the employee is not available to share difficult to solve but actually the manager knows they are difficult in solving customers' bad debt This issue will affect the psychology of the other employees and the company strategy The low employee satisfaction is step by step making the employees feel stress and the certainly results of this problem is low commitment and high turnover rate Last

but not least, Binh Thanh Branch must have strategy to enhance the employee engagement

1.4 Analyze the importance of the problem

Literature review identified the low level of job satisfaction is considered to be

associated with the rate of turnover intention and absenteeism (Morrow, 1993) In the case of Sacombank - Binh Thanh Branch, in the nine months of 2015, turnover is 22%, rose 10% than the same period in 2014 The high rate of turnover comes from salesmans and consultants – two positions bring main revenue for the company In 2014, there were eight new employees after four-month trial work, seven long-term employees leaving company and three supervisor transferred job to another branch But in the first three quarters of 2015, the amount of turnover has increased drammatically with five seniors and nearly thirty employees There are two main reasons: getting more benefits and personal reason While the company lost core team and new potential employees, improving resources for company is the issue to be solved High turnover

is related to low level of satisfaction and financially costly to the business because it needs to spend time and resources filling the position and training the new employee (Rousseau, 1984)

In addition, high turnover can lower employee morale and more stressed out to fill in the gaps until a new employee is hired and trained In fact, this number is considered high for a banking industry tend to have a very high turnover ratio

Furthermore, the low level of job satisfaction of employees is also emphasized as an explanation of reduced organization commitment (Cohen, 2003) Organizational commitment has been described by Mowday et al (2013, p.27) as including three parts: “an identification

with the goal‟s and values of the organization, a desire to belong to the organization and a willingness to display effort on behalf of the organization” The shortage of commitment or loyalty with the company causes reduction of effort utilization, job satisfaction and

unwillingness to relocate There are only seniors or high level managers with eligibility

benefits will tend to firm commitment (Mohammed and Eleswed, 2013) and invest their

resources in company they worked for Mr Duy Thong - the Director of Binh Thanh branch said that he had worked for different positions before he has been appointed for this position When having worked as the director of the branch, he felt that there are many pressure and obstacles, but he had a strong acceptance because of the company‟s values and relationship among the colleagues better than other companies His willingness to stay is not his

responsibilities but he wants to Otherwise, new employees and even employees who worked for a short time tend to leave the organization anytime Some employees said that they felt more compression in the peak season, they must have find more customers to achieve their KPI Some employees implied the supervisory relationship affected their commitment both positively or negatively A negative supervisory relationship can destroy work-related practises like performance management and employees‟ attitude Mr Anh Tuan, has worked for 6

months, found the supervisory relationship not to be fair in his practises His manager does not encourage his involvement and satisfy his desire for empowerment and demand for his strong commitment to organizational goals The negative effect showed that the level of employees commitment is low They with a low level organizational commitment tend to be unproductive

and some become lazier at work

Beginning from July of 2014, BOD decided to increase rate of pay and bonus for best employees in operations However, with the high effort from managers, organization

commitment still stays at low level There are many employees have perceived the situation and tried to support the managers, but there are also a big group of employees fell unhappy and worry the situation will even become worse Employees have a little bit belief in company‟s achievements and not ready to be willingness to exert high levels of effort

There is a significant correlation between job satisfaction and work performance

(Argyle, 1989) Low level of job satisfaction leads less morale and less productivity The effect of low level of job satisfaction results in bad goal If employees do not satisfy with their job, they tend to feel angry, unappreciated, defeated and hopeless This is proved by the figure

of revenue after tax of company was appoximately 25 billions VND in 2011, and decreased nearly 1,5 billions VND in 2013

After the crisis from Sacombank leadership system in the end of 2013, employees have understood the situation and supported their managers, but on the other hand, there are also a number of employees fell unhappy and worry about the situation will even become worse The bank‟s CEO also has many communication meetings with the middle management team and reassure employees‟ feeling but until now there is just a little bit improvement

Generally, while the company has been through the most difficult period, it is required

as many employees‟ contribution as they can Therefore, low level of satisfaction now is stated

as the most critical problem, which is needed to concentrate on

1.5 List of 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 a variety of factors affect to employee satisfaction They are:

- Positive relationship between employees and managers

- Compensation and benefits

- Training and career development

- Management/Supervision

- Job content

In the reality, there were many factors influencing to jos satisfaction Literature has been

proved that there are a variety of factors affect to job satisfaction

Positive relationship between employees and managers

The supervisors plays a important role in guiding and promoting employees to achieve goals Their roles apparently affects the productivity of team If the supervisors are so tightly treated and so centrally controlled, employees will be stressful (Kahn and Katz, 1952) There is

an unfairness in some relations between supervisors and employees The poor internal

relationship leads to work inefficiency and negative effect with job satisfaction (Randall,

1990)

Compensation and benefits

DeCenzo and Robbins (2006) believed that low satisfaction from the job and increased absenteeism rate are the effects from in the insufficient and inadequate benefits Among Men, Money, Machine and Material, men are the most important thing To keep them happy, it is vital to keep satisfaction and give them more money in the forms of wages

Rizwan (2010) considered that more companies try to integrate employee commitment and the performance of any companies To maintain the employees‟ self-esteem and worth elevated, rewards are the most attractive factors that used by management of the company The performance evaluation and rewards are the two factors which are considered to be the core for performance evaluation programs

Employees working in any companies can demand more safety, power and authority and responsibilities that they can perform in their work statements (Ali & Ahmed, 2009) They emphasized that there is a connection between organizational performance and employee performance Employees performance is strenghtened when organizational performance is more strenghthen

Pays and benefits are the most important factors that affect to job satisfaction (Hayat et

al 2010) Satisfied employees are happy with their job and they are the source of high profits for a company

Career development

Shujaat, Sana, Aftab, & Ahmed, (2013) studied the relationship between the effect of

career development on employee satisfaction In banking industry, it is faced problems of skill shortages, attrition rate, employee retention So, the impact of variable - career development on satisfaction is important

The impact of employee development programs on job satisfaction with regard to

business success (Shelton, 2001) Human resource is the key asset for any organization so organizations should have to invest in their employees as well as career development activities

Training and development programs show the care from organizations for their

employees to give opportunities to learn and develop themselves (Ashar, et al 2013)

Management/Supervision

The writer focused on management/supervision contained various parts of the main areas of management: planning, organising, people management, recruitment, leadership, and control (Kim, S 2002)

Perceived organizational support is defined as “employees” formation of global beliefs pertaining to how much the organization cares about their well-being and values their

contributions (Eisenberger et al., 1986)

Cumbey and Alexander (1998) pointed out the relationship between jobsatisfaction and effective supervisory In their researches, they proved that the effective supervisory on

employee is positively effect on job satisfaction Moreover, study by Karasek and Theorell (1990) finds that poor supervision caused the dissatisfaction of employees‟ work and turnover

Through the period of doing surveys, the writer may conclude the Cause and Effect map

of low level of Job Satisfaction

Cause and Effect map of low level of Job Satisfaction

Turnover and Absenteeism (Morrow, 1993)

Career development

(Schaufeli & Salanova,

Positive Relationship

(Randall, 1990)

Compensation and benefits

(Igalens & Roussel, 1999)

This chapter clarifies that the low jos satisfaction is the real problem in Sacombank - Binh Thanh Branch Through the literature review results and collecting information from in-depth interview of employees, the writer finds out the potential causes considered: Positive relationship between employees and managers, Compensation and benefits, Training and career development, Management/Supervision and Job content, that affecting to staffs's satisfaction Identifying the main cause will be the basis to devise suitable solutions in the next chapter The next chapter will answer question about company‟ activities could be developed and provided

by Sacombank - Binh Thanh Branch to encourage and enhance employee engagement within organization?

CHAPTER 2: ALTERNATIVE SOLUTIONS

In this chapter, the writer finds out the potential factors affecting to employees in Binh Thanh Branch: Positive relationship between employees and managers, Compensation and benefits, Training and career development, Management/Supervision and Job content This chapter will identify the main causes and give alternative solutions to solve main problem This research study will answer the question about services, programs, or activities could be

developed and provided to enhance employee engagement The alternative solutions and

implementation strategies are presented under the following headings:

- Develop positive relationships between employees and managers

- Improve compensation and benefits for employees

- Develop career opportunities for employees

2.1 Analyse main causes

In order to evaluate the importance of causes affects to the low level of job satisfaction

in Binh Thanh Branch, a group of ten employees has been chosen to join the mini focus group These interviewees are selected as they can give efficient contributions to the focus group based on their working experience and current projects A scale of potential causes is clearly explained to them for making sure 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 basic causes, which affect to the level of

employee satisfaction in the company

A summary of all opinions is shown in the interview transcript in Chapter 4, showing that the interviewees were able to prove the link between the Positive relationship,

Compensation and benefits, Training and career development

Relationship between managers and employees

Regarding Mr Phi Tuan who worked as salesman in Sales Department, he said that relationship with immediate supervisor in department is unhappy He felt nearly difficult and even be stressful when working together under supervision He avoided making conflict to supervisor The supervisors plays a important role in guiding and promoting employees to achieve goals Their roles apparently affects the productivity of team If the supervisors are so tightly treated and so centrally controlled, employees will be stressful (Kahn and Katz, 1952) There is an unfairness in some relations between supervisors and employees Although Mr Phi Tuan has spent more time performing well to supervisor, he does not make a better impression

to his supervisor Closeness of supervision is an interesting duty of skilled supervisors The relationships in one group are also important as well as relationships with managers, Ms Ngoc Chau implied Employees really felt a part of their work group, or department and would prefer their present jobs to identical jobs in other groups tended to be high in satisfaction with job and company The poor internal relationship leads to work inefficiency and negative effect with job satisfaction (Randall, 1990) Mrs Thuc Quyen who has worked as a Manager of Accounting Department said that the lack of ineffective relationship have led to problems including low level of job satisfaction, stress or conflict, etc An positive relationship provides

more accurate and encourage the working placement more interesting and enlarge the

employees‟ organizational loyalty

Compensation and benefits

The respondents were asked about their views regarding compensation and benefits, covering factors such as salary amount, rate of pay, pay time regularity, overtime

arrangements, bonuses and benefits While most respondents agreed that the timing of their pay (date 14th and 28th each month) and benefits for health and detal insurance were

satisfactory, approximately a half of employees surveyed indicated that overtime and reward for high performance pay were unsufficient In terms of answers of employees‟ views of their rate of pay for work with their roles and responsibilities associated with their positions, four employees rated their pay fair and six employees felt poor policy regarding for their pay

According to Mrs My Le, the Deputy Manager of HR Department, many employees complained the rate of pay for their work They said that their salaries are ineligibility for paid time A lot of employees also expressed a feeling of low level of satisfaction towards benefits Employees who consider this type of compensation as inciting tend to be less motivated with regard to their work Individually, employees expressed dissatisfied when receiving fixed pay and no bonuses, evenly in the case they are paid fixed pay rises but no bonuses Employees are motivated in their work when they find benefits inciting (Igalens and Roussel, 1999) Making benefits attractive can favour satisfaction, but employees are more satisfied with their job if company offers benefits that match to their expectations The more employees feel that they

are treated fairly, compared to other employees outside the company, the more they are

satisfied with regard to their job Pay rises represent the most sensitive form of pay

administration Pay rise means satisfaction of employees is positive and employees have a strong motivation for their work Therefore, this confirms the interest of pay rise and well benefits belongs to HR and Accounting Department strategies regarding work satisfaction

Career development

Career development provided chances that can be beneficial for both employees and employers Employees who have joined in follow-up training, continuing external and internal education and other forms of professional development can receive and refine new skills that would help advance their career (Schaufeli and Salanova, 2007) A more knowledgeable employee many access into various advanced opportunities in future Mr Nam Long, Ms Huyen Phuong, Mr Manh Tien, who have dedicately worked for more 5 years in core sales team and Ms Ngoc Chau, who is middle manager in Risk Management Department, all of them have Master degree, said that they do not see the broaden bright career development for employees in company They feel that there are to be had opportunities for personal or

professional growth Consequently, the employees may lose their satisfaction in working before they have decisions leaving company

The high turnover made the company lack of employees, so managers recruited more employees but some of new employees are not guided enough knowledge and skills for

working They must have to find out themselves and ask for more information from

colleagues

Opportunities for career development is another means of satisfying employees to achieve and sustain high performance levels When employees are well trained 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 various aspects of their work, thus driving performance Therefore, Adlerfer(1972) argues that when organizations present growth opportunities to their employees, it is seen as an equivalent to reward 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 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

From the result of the focus group, the rank of three justified causes in order of

importance is:

- Develop positive relationships between employees and managers

- Improve compensation and benefits for employees

- Develop career opportunities for employees

2.2 Alternative solutions

Solution 1: Develop positive relationships between employees and managers

Table 3: Demographic characteristics refers to chapter 4 summarizes the participants characteristics according to the working experience in the current position This table shows that 41.6% were male and 58.4% were female Most of the employees‟ working experience were within 5 years (50%), 6-10 years experience accounted for 33.33% and 16.67% were

above 10 years experience

While career development rated as the top important factor of satisfaction and

compensation, benefits came up the second one, networking can be figured out by 16.67% of interviews While Mr Phi Tuan is a new employee and has difficulty to communicate to middle manager, Ms Nguyen has been working for 2-3 years Both of them want to improve their networking in working environtment While 50% of employees reported being highly

dissatisfied, and 33.33% were satisfied with the relationship among different departments

The relationship of employee with his manager is core element to the connection to company one of the features of a good positive relationship is effective communication By open communication, managers might respond more effectively to the demands and problems

of employees In addition, management‟s recognition of employees‟ performance results in awards and promotions is the best way of making employees loyalty and productivity

There are many previous research proved the correlation between relationship and job satisfaction Moghimi (2005) gave the fact of word communication represented information and transfer people‟s thoughts and behaviors to other person Communication in organization measures activities and evaluate effectiveness for satisfaction Argenti (2009) pointed out that effective internal communication bring to communication satisfaction among employees in company which leads to job satisfaction

A good solution is implementation of company strategy is managers put more emphasis

on communicating to employees It may be concluded that effective internal communication can be beneficial in building a long term relationship between managers and employees,

thereby achieving brighter future profit for the company

Solution 2: Improve compensation and benefits for employees

Employees were asked whether how they felt satisfied with the salary and incentives that they are received from company According to the table 4: General findings related to job satisfaction, most of the employees of company were low satisfied for salary, rewards system and benefits respectively 66.67%, 41.67% and 66.66% On the other hand, 16.66%, 50% and 33.34% were satisfied Among the low satisfied employees, most of them were salesman and front-office employees In constrast, most of employees felt satisfied for working condition, company‟s policy According to the fact, we can evaluate that employees are less satisfied with compensation and benefits

According to the table 5: The dissatisfying aspects of employees‟ current job refered to

chapter 4, compensation and benefits was rated as “second important” by 33.3% of employees

in surveys doing by the writer Compensation can be defined as the reward of employees from the job Employees could be satisfied with competitive rate of pay and they could be satisfied with it when comparing their salary packages with those of others who are working in

competitors

However, many employees have saved salaries or minimal consumption to limit costs About much more half of answers were dissatisfied with their salary, and they proposed their salary should be risen basic wage Employees in customer service sector that felt less satisfied with their earnings with their positions and responsibilities

Pertain to Ahmed and Uddin (2012), they implied that officers in bank strongly

disagreed with their present salary as well as present promotion policy Bendes and Van De Looj (1994) also proved younger employees have a numerous tendency to quit job and turnover than olders, but they also take part in working overtime Therefore, younger employees also tend to be less satisfied with their salary

Salary is the vital and most important factor affecting to satisfaction of employees It should be high enough to maintain the living standard of employees Ms Thanh Ngan thinks about that salary rate and benefits should be reasonable and comparable with competitors and other similar institutions The economic is tough to people, employees earnings do not consume for personal demands Employees‟ welfare measures should be given utmost importance, so that employees‟ turnover may be decrease (Chahal et al, 2013)

Company improves the pay treatment to employees by improving the overall wage level

of employees or annually base salary (Hossain, 2014) Essential reward is such a reward which motivates employees through recognition of their work, also monetary reward like benefits, compensation, pay for excellent performance

Solution 3: Develop career opportunities for employees

Although many employees strongly emphasizes compensation and benefits as it

associates with job satisfaction, a meaningful percentage also plays an importance on career development

Career development gives opportunities that can be advantageous for both managers and employees Employees who participate in job training, advanced education and other

professional development can process and require further skills that could help progress their career Six out of twelve (50%) employees persented that career development opportunities in the company were very extremely important to their job satisfaction (Table 3: The dissatisfying aspects of employees‟ current job) This aspect has rapidly gained in importance over 3 years From 2014, many employees felt that it was a contributor to their job satisfaction They faced difficulties to seek out new opportunities to advance their career in the economic recession as

well as struggle with co-worker in department

The impact of employee development plans on employee possession and job satisfaction related to business success It was explained that human resource is vital asset for company successful It is very important to enough fulfill employees financial demands, their satisfaction

has been affected with career development programs According to Shelton (2001), there is significant positive correlation between training perception and employee commitment as well

as the negative relationship between commitment and employee turnover It was explained that retention is very significant and might be gone through employee job satisfaction (Walia and Bajai, 2012) They analyzed from their research that career development and working condition show the greatest relationship with satisfaction That means employees desire to work at good and friendly working environtment, which they can get support from managers and colleagues and also can find development for their future Lack of training and knowledge sharing is the main cultural impediment among knowledge management, and information overload is a huge issue for the retention of knowledge (Shani and Divyapriya, 2013)

While 58.33% of employees reported being highly dissatisfied, and 33.34% were

satisfied with the ladder of development Failure to see a bright future with company may negative affect to employee loyalty and organizational culture Company has considered

improving movement program that contains practices such as internal recruitment, mentoring, leadership development and succession planning If movement is possible, job rotation might

be decrease and make employees loyalty The result of interview conceived of availability of career development programs to their employees is evidently associated with commitment, because commitment will only be done when employees will be satisfied with their work, depending on employees‟ opinion, when employees have been given opportunities to develop their career According to six people that interested to career development, they have graduated

from the top-tier universities and have more 6 years experience Most of them have also

achieved Master degree, but some employees do not want to stay at one job for life time They expressed opinions to leave the company without climbing the ladder of future career

development Working in joint stock banking sector has caused much more stress in

development business They must have faces to the current fluctuation in economic and

competition Umer (2011) pointed out that company provides chances for growth by supporting training courses and educational job-specific programs make employees more satisfied

Respondents said they want to be mentored by direct seniors because they knew deeply their employees This might increase not only work experience and also positive relationship

Ms Bao Tam, represented for some of employees, said that professional development brings to organization‟s commitment Expanding and improving employees‟ skills and

knowledge by professional development leads to employees supervise their work and duties in the current position She has worked for over 8 years and stayed in same position without development She must to study the second degree to apply for part-time job and find a better career path Mr Manh Tien gave point that catching opportunities such as training and

performance of certifications encompasses professional development Managers reported that it

is strongly difficult for recruiting highly skilled employees They agreed professional and career development will become the top important criteria when recruiting highly professional employees in future Employees are more likely to feel commitment in their jobs when they see that the company is invested in developing their careers (Zingeser, 2004)

Developing career paths can encourage employees to motivate their profession Most of answers hoped that employees have chances to grow their skills and knowledge, then can lead

to higher levels of engagement As company goes on to bridge the potential skills gap in the future It is important to strengthen employees with all resources needed to be sucessful in their work (Bai, Brewer, Sammons & Swerdlow, 2006)

Job-specific training is one of the solution for improving skills and knowledge

(Armstrong & Cameron, 2005) This method can help employees become more effective and engaged in their position They can expand knowledge and increase more productivity A lot of interviewees viewed that they need training courses for their expertise and experience to solve problem and control risks

This chapter give three alternative solutions support to solve main causes is presented under the following headings: Develop positive relationships between employees and

managers, Improve compensation and benefits for employees, Develop career opportunities for skilled employees However, we need analyse which solution will be suitable for current

situation in Binh Thanh Branch to solve the real problem in sufficient and efficient way