The banking industry was increasingly focusing on enhancing customer engagement and selection through various technological advancements and strategies. Over the last decade banking being one of the key service sectors in Srilanka, which have observed rapid growth and expansion over the last decade. Rising incomes enhanced the need for banking services which resulted in great boom in terms of advanced technology, prompt communication system and conception of various banks to cope up with multinational led environment. Sharma & Dutta (2016)
Banking industry in Sri lanka
By end 2022,
the banking sector comprised of 30 banks, with 24 licensed commercial banks
(lcbs), which included 11 branches of foreign banks, and 6 licensed Specialized
banks (lSbs). The banking sector continued to support the financial
intermediation of the economy by enhancing banking services and expanding the
banking network. As such, 11 bank branches and 327 ATMs were established during
2022, while 3 bank branches and 87 ATMs were closed. Accordingly, the total
number of banking outlets and ATMs increased to 7,424 and 6,678, respectively,
by end 2022. 8 the banking sector continued to expand in terms of its asset
base during 2022. The asset base of the sector increased by Rs. 2.6 trillion
during the year and surpassed Rs. 19 trillion by end 2022, (CBSL,2022).
Graph
01 :Composition of the total assets of the Banking Sector, CBSL Report, 2022
The Importance of Employee Engagement
& Selection in the Banking Industry
There were
several reasons why employee engagement & selection is important in any
industry or organization. These are few reasons why banks can be benefited from
having an employee engagement strategy.
· Organization can move good to
exceptional when employee are fully engaged.
· Employees tend to perform better and
self-motivated.
· When employees are engaged, they
stick to the current employee, & they like to develop himself from bottom
to top level.
· Increase employee trust and loyalty
· Profitability and employee engagement
are strongly correlated
· An employee that is highly engaged
will consistently go above and beyond
Current
Situation Employee Engagement In The Banking Industry
Nowadays
banking industry developing and initiate
new innovative strategies in employee engagement and selection to absorb their
employees best results. Mostly in financial industry they use online measures
in order to ensure employee engagement since this a post pandemic world. These
are some employee engagement and selection practices use in the current banking
industry
v Virtual learning & development
v Online team building activities
v Online communication excises
v Virtual team meetups
v Online customer feedback
v Online
recognition and acknowledgment of employees
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.
Overall, the
banking industry is likely to continue evolving its approaches to customer
engagement and selection, driven by advancements in technology, changing
customer expectations, and regulatory developments.
References
Dutta, H.
& Sharma, S.(2016). “Employee Engagement in Indian Banking Sector,
International Conference on Management and Information Systems, [online]
available at
http://www.researchgate.net/publication/308523222_Employee_Engagement_in_Banking_Sector.
(Accessed:27th August 2021)
Annual Report 2022 | Central Bank of Sri Lanka
(cbsl.gov.lk) (Online) Available at
https://www.cbsl.gov.lk/en/publications/economic-and-financial-reports/annual-reports/annual-report-2022
Agree with your arguments. Further, research indicates a strong correlation between profitability and employee engagement, suggesting that engaged employees contribute significantly to a company's financial success. Engaged employees are more committed to their work, resulting in higher levels of productivity, innovation, and customer satisfaction, all of which positively impact the bottom line (Harter et al., 2002).
ReplyDelete100% agreed with your comment samudra. Employee engagement affects profitability in a variety of ways. Engagement can significantly improve productivity, safety, absenteeism, retention, and customer satisfaction. Engaged employees are also better at adapting and innovating, which are both necessary for sustainable profitability. (Tenney, 2023)
ReplyDeleteWell said, Employee engagement is a significant in the high-competitive job market. Organizations try to retain employees to achieve goals and succeed. Engage employees are playing a vital role in the organization success (Silva and Iddagoda, 2021).
ReplyDeleteAgreed with you Dilan. High level of engagement is associated with high level of performance, citizenship , behavior and individual well-being. (Truss, et el,. 2013). Finally that will lead the banking industry towards its goals.
DeleteIn terms of the techniques/strategies a business should utilize to improve employee engagement, the literature discusses a variety of various approaches. According to Armstrong (2009), a plan for increasing employee engagement should consider the following 05 major areas, which will be examined in depth in regard to a fast-growing company. Those are the work itself, the work environment, Leadership, Opportunities for personal growth, Opportunities to contribute.
ReplyDeleteYes Dinuka. Employee engagement is not only ensuring full commitment from the employees but also creates passionate and enthused workers who strive hard to work towards the organization’s vision and their personal goals (white,2008).
DeleteAgreed. I'd also like to bring up the subject of employee motivation and engagement. Employee motivation and engagement are inextricably linked. Employee motivation relates to an employee's commitment to his or her job, as well as how committed they are to the company's success and how involved they are in their daily tasks (Vnoucková, L., and Klupakova, H., 2013).
ReplyDeleteSusi.S et al (2011) found that work-life balance and employee engagement becomes a visible benchmark among high performing organizations that reap the economic and reputational benefits of being publicly recognized as a ‘best place to work’ or an ‘employer of choice’. For the same, organization needs to maintain and develop a culture which enables and supports opportunity to have desired work life balance and encourage the benefits of the employees and the organization.
DeleteAgreed, One aspect worth emphasizing is the shift towards personalized banking experiences facilitated by AI and data analytics. For instance, banks are increasingly leveraging customer data to offer tailored financial solutions and personalized recommendations. This not only enhances customer satisfaction but also deepens customer relationships, leading to greater loyalty and profitability (Smith, 2020).
ReplyDeleteBanking and finance are known for being a highly competitive area where the delivery of contextual customer experiences is no longer a “nice to have '' option, but one of the key expectations to address. The thing banks understood in recent years is that while there are many service providers with different offerings, the real value and appreciation receive exactly those meeting the individual needs of each customer, and this is unachievable without personalization. (Emerline Team, 2022)
DeleteYes Gayani, Gallup Research Group defines employee engagement as the individual’s involvement and satisfaction with as well as enthusiasm for work.(Hater et el,2002). Satisfied employee will deliver more towards organizational vision, goals and objectives.
ReplyDeleteI would like to add few. Talented employees are more sensitive towards the concerns that affect to their career, hence allocating investments on correct blend of talent management initiatives is essential to be concerned. Effective implementation of organization structure entails clarity of task responsibilities to enable employees to work well together and jointly manage overlapping duties and hand-offs with each other (Erickson, 2005). Every point will improve strength of employees.
ReplyDeleteThat's true Supun , Employee engagement is not only ensures full commitment from the employees but also creates passionate and enthused workers who strive hard to work towards the organization’s vision and their personal goals (white,2008).
Delete