Herzberg Theory of Employee Retention in Banking Sector

  Herzberg Theory of Employee Retention in  Banking Sector 

Frederick Herzberg's thesis posits that employee pleasure  be delineated into two distinct components such as hygiene and motivation  (Tan,2013). Workplace hygiene variables like as compensation and supervision contribute to the reduction of employee dissatisfaction. There is a positive correlation between the provision of acknowledgment and achievement to employees and their levels of dedication, innovation, and productivity.

Introduction to Herzberg Theory 

The enhancement of job happiness and the cultivation of a good and productive work environment can be attained by means of employee motivation (Wan and Tan, 2013).Herzberg's two-factor theory of motivation identifies various elements that serve as motivators for professionals to complete work of high quality. The understanding and application of the two-factor theory can enhance the ability to provide effective managerial support to team members. 

Herzberg formulated the idea with the aim of enhancing comprehension regarding an employee's job motivation and attitude. He conducted interviews with employees to gather insights into their favorable and unfavorable work encounters (Wan and Tan, 2013). The author hypothesized that an individual's degree of job satisfaction is influenced by two distinct groups of factors, namely motivators and hygiene considerations.

Motivational Factors

Achievement - Individuals who possess a fondness for independent work, exhibit a fervent aspiration to establish and fulfil objectives, have a willingness to undertake measured risks, and seek consistent feedback on their advancement and achievements are driven to attain success. This motivates them to achieve excellence in their work (Tan,2013).

Making recognition -  Offering commendation not only fosters a sense of achievement and appreciation among employees, but it also motivates them to sustain their commendable efforts and replicate the actions that led to their exceptional performance. Employees are more inclined to engage in repetitive behaviors and sustain their motivation when they perceive that their actions are duly recognized inside the workplace.

The current task at hand - Employees are more inclined to exhibit high levels of motivation and performance when they perceive their work as significant and their responsibilities as meaningful.

Potential avenues for professional growth and progression-  Promoting workers' awareness of the clear trajectory for career progression within their position can motivate them to actively pursue a promotion, thus enhancing productivity.

The presence of ample opportunities for professional and personal improvement often leads to increased motivation among individuals in the workplace. Providing employees with opportunities to enhance their skills and improve their performance in their positions cultivates a feeling of satisfaction and achievement that acts as a potent catalyst for motivation.

Hygiene Factors 

• The establishment of peer relationships has the potential to foster a sense of cohesion among individuals within a collective, hence potentially enhancing overall job satisfaction. 
• Corporate policies encompass many measures aimed at fostering a conducive work environment, such as the implementation of mask-wearing standards and the practice of social segregation. 
• Key components of a physical workspace are its dimensions and amenities, such as an on-site fitness center and modern furnishings (Wan and Tan, 2013).
  
• The present section pertains to the formal provisions employed by the company in the recruitment process, encompassing aspects such as the remuneration structure, the provisions outlined in the employment agreement, and the duration of the workday. 
• Compensation -  Companies should provide a competitive compensation and additional benefits in order to retain their employees. 
• Employment Status -  Upon the successful completion of substantial duties, individuals may experience a heightened sense of status. 
• The level of job security experienced by employees is positively correlated with their overall career satisfaction. 
• Employees who have autonomy have the freedom to carry out their jobs in any way they deem appropriate.

Practical Application of Herzberg Theory  in Banking Sector 

Motivation -  Banks possess the capacity to implement recognition initiatives aimed at acknowledging and commending the achievements and contributions of their staff members. Potential incentives for employees may encompass public acknowledgment during team meetings, financial rewards based on achievement, or accolades such as being named the employee of the month. Banks have the potential to enhance employee motivation and job satisfaction through the process of commending their contributions.

The provision of well-defined pathways for professional growth and development is a crucial factor in maintaining the motivation of individuals within the banking industry. This may involve implementing mentorship initiatives, internal advancement opportunities, and training programmes. Employees that are driven and committed are more inclined to have a well-defined trajectory for career progression.

Hygiene - 

Banks must ensure that its employees are situated in a hospitable and pleasant setting. This involves providing appropriate facilities, lighting, and ergonomically designed work areas. By implementing these hygiene principles, financial institutions can prevent employee dissatisfaction and foster a positive work environment.
 In the banking sector, attracting and retaining skilled individuals necessitates offering attractive remuneration packages. In addition to benefits such as health insurance, retirement plans, and performance-based incentives, it is imperative for banks to offer competitive compensation packages. In order to effectively meet the essential needs of employees and mitigate dissatisfaction, it is imperative to provide appropriate compensation.

Job security is highly valued by employees in the banking business due to its volatility and economic concerns. Banks can ensure job stability by engaging in transparent communication pertaining to the financial well-being of the company, its long-term strategic objectives, and its commitment to the welfare of its employees. Banks have the potential to alleviate employees' concerns and enhance job satisfaction through the provision of job security.

Banks can ensure the inspiration and engagement of their staff members by assigning them demanding tasks that require the application of their knowledge and abilities. One potential approach to achieve this objective is to provide employees with opportunities to engage in demanding projects, oversee renowned clientele, or participate in important initiatives. Banks can enhance employees' sense of achievement and satisfaction by providing them with engaging working opportunities.

References

Tan, Shen Kian. (2013). Herzberg's Two-Factor Theory on Work Motivation: Does it Works for Todays Environment?. Global Journal of Commerce and Management Perspective. 2. 18-22.

Wan Fauziah W. Y. & Tan S.K.,(2013). Generation Differences in Work Motivation: From Developing Country Perspective. International Journal of Economy, Management and Social Sciences, 2(4), pp 97-103.

Weng LC, Lai YZ, & Li YJ (2010). Too Much of A Good Thing: The Curvilinear Relationship between Leader-Member Exchange and Service-Oriented Organizational Citizenship Behavior. J. Human Resource Management, Vol. 10 (1), pp. 29-52.