02 : Employee Engagement in banking sector
Banking being one of the key service sectors in Sri Lanka has observed strong growth and expansion over the last decades. Sharma & Dutta (2016) mentioned that “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.” Further in their study they mentioned that the committed employees create the best customer stories which make the brand worthy.
“The banking sector in Sri Lanka, which comprises Licensed Commercial Banks (LCBs) and licensed Specialized banks (LSBs), dominates the financial system and accounts for the highest share of the total assets in the financial system”(CBSL,2020).
Further CBSL sources stated that, there are 24 Licensed Commercial Banks and 6 licensed Specialized Banks operating in the Banking sector in Sri Lanka. Banks play a serious role within the Sri Lankan financial system.
Graph 01 :Composition of the total assets of the Banking Sector, CBSL Report, June 2021.
The banking sector in Sri Lanka plays important role in Sri Lankan economy. The service sector has gradually increased its contribution on the GDP each year continuously. According to the following graph service sector contribution to the economy is nearly 60% of national GDP.
Graph 02 : Share of economic sectors in the gross domestic product (GDP) from 2010 to 2020
Source : www.Statista.com
Above graph denotes the importance of service sector on the National GDP. William Kahn (1990) formally specified the definition of personnel engagement as "the harnessing of organization members' selves to their work roles; in engagement, people employ and express themselves physically, cognitively, and emotionally during role performances. Therefore its’ clear that the engaged employee has a positive attitude towards the organization and its values. The performance of the employees in banking sector is very important and it has a direct impact on the country’s’ GDP. Therefore Employee Engagement is a major factor on Employee Performance of Banking sector. Further, Employee Engagement in banking sectors plays a crucial role towards country’s economy. There may be different factors and drives involve with Employee Engagement.
Video 01 : Why is Employee Engagement important ?
Source : Gallup Engagement survey. Youtube.
Reference List
o Annual Report 2020 | Central Bank of Sri Lanka (cbsl.gov.lk) (Online) Available at http://www.cbsl.gov.lk/en/publications/economic-and-financial-reports/annual-reports/annual-report-2020. Accessed on 28th August 2021.
o 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)
o Sri Lanka - share of economic sectors in the gross domestic product 2010-2020 | Statista (Online). Available at http://www.statista.com/statistics/728539/share-of-economic-sectors-in-the-gdp-in-sri-lanka. Accessed on 28th August 2021.
o Kahn, William A (1990). "Psychological Conditions of Personal Engagement and Disengagement at Work" (PDF). Academy of Management Journal. 33 (4):692– 724. Doi:10.2307/256287. JSTOR 256287.(Accessed on 27th August 2021).
o (8) Why is Employee Engagement Important? - YouTube Available at http://www.youtube.com/watch?v=KZjKY9I6UYE . Accessed on 28th August 2021.
Yes.To date, there is no generally accepted definition for employee engagement. However, there is growing consensus among the authors that the construct is distinguishable from related concepts in management such as employee commitment, organizational citizenship behavior and job satisfaction in such a manner that employee engagement clearly reflects the two-way exchange of effort between employees and employers, and it has stretched meaning beyond the aforementioned constructs. Research on engagement is still on its infancy, attempting to come up with more clear-cut and acceptable definition. (Coffman C, 2000)
ReplyDeleteAgree with your comment, as you stated in your comment employee engagement reflect the relationship between organization and the employee. When organization able to maintain positive employee engagement it will able to achieve the goal and objectives effectively.
DeleteYes. Employee engagement is 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 Amila. 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.
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). (O. Uler, 2008) An approach that displays an employee's determination, attention, and passion is motivation.
ReplyDeleteAgreed with you Sampath. Susi.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
Deleteopportunity to have desired work life balance and encourage the benefits of the employees and the organization.
In 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 take into account 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 Menupa. 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).
DeleteI agreed with you. I 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 Sanjeewani. 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).
DeleteAgreed. Additionally, Vance (2006) also stated that engaged employees lead organizations to achieve critical business results. Every organization has employees but one of the main reasons why some businesses thrive while others struggle is the percentage of "engaged" employees the organization has been able to sustain.
ReplyDeleteYes Nuwan, 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.
DeleteWonderful Article! want to engage your remote workers to get in touch with us today; we’d love to help. We bring you some effective Online employee engagement activities to engage your work from home teams.
ReplyDeleteWonderful blog! Employee engagement activities at the workplace can lead employees to be stress-free and energetic. The simple approach to engaging employees in fun activities and games. An employee engagement company in India, help various corporate and organizations to organize team-building, employee engagement and reward & recognition events.
ReplyDelete