According to Nasurdin

According to Nasurdin & Kamil (2016), banking sectors play a crucial role in contributing to the economy growth of most countries (Sufian & Habibullah 2010). For instance as stated by Kamil & Nasurdin (2016), the banking sector dominates most of the financial flows in country and estimated 70% of the financial system’s total asset in Malaysian context (Central bank of Malaysia, 2013). So, with the unpredictable business environment and intense competition, the banks are required to reach certain standard of performance in order to improve performance to fulfill the demand otherwise a lot of problems will happens.
Based on Financial Time, the popularity of banking selected as career dropped 41% since 2008. Globally, banks image have been affected due to poor service quality, control failure and misconduct as stated by Mr. Muhammad bin Ibrahim (Governor of the Central Bank of Malaysia, 2016). According to Malaysian Financial Sector Master Plan (2001) and Financial Sector Blueprint (2011), to establish the future direction of financial sectors in Malaysia, commercial banks should continue to improve their performance especially in the aspect of profitability and service quality (Nasurdin ; Kamil , 2016) For instance, many organization focused on profits and neglected the employee motivation factors . So, employee motivation should be emphasizes in order to improve work performance of employees in the organization especially banking sectors.
As stated by Kheng, Mahamad, Ramayah ; Mosahab (2010), Bank Negara Malaysia completed a survey on customer’s expectation and satisfaction towards product and quality provided by banking sectors that was shared by the Malaysia banks to industries in order to improve the service quality of sector. According to Gallup (2016), a majority of 60% Malaysian bank customers are indifferent towards their primary banks. This shows that customers are more concern on quality than quantity. According to Devin McCreery (2010), reported that many banks are lacking in various areas such as time taken by employee to answer customer calls, waiting time, the way employees greeted customers and uncertain of customers received sufficient information and continuous follow up from bank (Doraisamy, Appannan and Hui 2013). Sean Poulter ( 2011), found that banks failures have been revealed in the study which confirmed that half of the customers are unhappy with how complaints are deal by the employees. Poor service and advice from employees which shows the increasing of an average 7143 complaints a day which leads to serious financial loss (Appannan, et.al , 2013). Data from Technical Assistance Research Programs (TARP) stated that majority of 63% customers who are willing to take time to complain are not satisfied towards the way banks ’employee response to their problem. Besides, consumers are facing in queuing up at some banks and standing in line for long time at banks is non-productive (Munusamy, Chelliah ; Mun, 2010). Employees need to know the way to handle the problems efficiently, paying attention to questions or concerns and resolving problems are the key importance elements to be practices. So, banks need to focus on consistently delivering solution rather than simply managing the transactions.
In addition, nearly seven in 10 Malaysian millennial which shows the percentage of 64% who are indifferent towards their main banks while only 24% are fully engaged (Gallup, 2016). So, the banks need to improve employee performance in regards of service quality. It is important that bank front line employees should be trained well with ethics, professionalism, duties and responsibilities towards customers in order to improve the service quality. Furthermore, the productivity level and growth of employees in Malaysia has drastically decline as stated in Star Newspaper on 27th February, 2013. Further, it has been said that office-based worker’s productivity level in Malaysia remain low at 4.55% even though they work long working hours compared to their South East Asian counterparts (Star Newspaper, 2013). The main standpoint is the physical environment of office or workplace is essential in order to develop a good and healthy working environment since the employees spend most of their time inside the building which reside their work (Kamarulzaman, et.al, 2011).
It is essential to understand that new trends are continue to restructure the financial services industry. In this recent two decades, the globalization process, development of technology and the significances due to global financial and economic crisis have contributed to this changes. Therefore, the future become more complex, uncertain and unfamiliar which less attention has been emphasized to the essential change on human capital development that is vital for the performance in this new financial setting. There is an increasing demand for highly skilled knowledge workers that are able to adapt with changing requirement due to globalization and borderless workplace (Asian Institute of Finance, 2011). According to Robert Half Workplace Survey conveyed that the finance and accounting sectors is experiencing skills shortage across the Asia Pacific Region with 82% (Asian Institute of Finance, 2011). According to the survey conducted on talent gaps across the financial services industry in Malaysia, it has been revealed that this industry experiencing overall shortage of talent across all the sectors.