Policy Recommendations for Enhancing Employees' Job Performance Based on Structural Equation Model: A Case Study of Commercial Banks in Vietnam

Abstract

Background: The banking system wants to develop quickly, sustainably, and meet digitalisation requirements, so it needs a team of highly qualified staff. Moreover, employee career competency is one of the most critical issues for organisations, helping them maintain a competitive position in the market.

Objective: The research aimed to measure critical factors influencing employees' job performance at commercial banks in Vietnam. Besides, the authors propose management implications for improving employees' career competency and job performance in the banking sector in the era of digital banking development in Vietnam.

Methodology: This study applied a structural equation model consisting of five factors: knowledge, attitude, hard skills, soft skills, and technology, and examined the impact of the above factors on tasks, context, and job performance. Data were collected from 900 employees working in 40 branches of 15 commercial banks in Vietnam. The analyses were done  using SPSS 20.0 and Amos software.

Result: After testing the scale’s reliability, convergence, and discrimination, the study's results showed that the critical factors of knowledge, attitude, skills, and technology positively impact task, contextual, and job performance.

Conclusion: Based on the results of testing the research model, the authors provided empirical evidence that the career competency framework includes critical factors: knowledge, attitude, skills, and technology that positively impact task performance, contextual performance, and employee job performance.

Unique Contribution:  This study provides evidence on the factors that influence  employees' job performance in commercial banks in Vietnam.

Key Recommendation:  Managers should take the issue of employees performance seriously by taking into account factors like attitude, skills, and technology.