Abstract
This article presents the results of a survey among more than six hundred bankers in the Netherlands about banking culture. It addresses the question why trust in banks remains so low (45% of clients trust banks in the Netherlands). The key findings indicate that the problem is not so much immoral bankers or a few rotten apples but rather the dominance of a competitive banking culture. The findings suggest that clients? trust may be regained when banks leave behind their focus on performance targets, financial incentives, and behavioral regulation and move instead to a caring culture with a focus on relationships and open discussion of ethical dilemma?s.
Highlights
Banker’s Own Views of Banking CultureThe first indication that banks have not really improved their service delivery to clients since the crisis hit in 2008, is the response to the question whether the bankers themselves see an improvement in service delivery
Summary: This article presents the results of a survey among more than six hundred bankers in the Netherlands about banking culture
Again, a management tool fitting a highly competitive environment is not having the expected motivating effect on ordinary Dutch bank employees. It is precisely one of the key HRM tools, next to variable pay, that dissatisfied clients often refer to when judging bankers. These findings indicate a puzzle: if banks want to regain trust from their clients but they continue with HRM policies that are distrusted by clients and not perceived as motivating by bank employees, why do banks stick to such policies?
Summary
The first indication that banks have not really improved their service delivery to clients since the crisis hit in 2008, is the response to the question whether the bankers themselves see an improvement in service delivery. This is not a strong support for the effectiveness of variable pay This is in line with the earlier result showing low support for a competitive work environment. Again, a management tool fitting a highly competitive environment is not having the expected motivating effect on ordinary Dutch bank employees. It is precisely one of the key HRM tools, next to variable pay, that dissatisfied clients often refer to when judging bankers. Connecting the two HRM tools that are most criticised by clients (as well as by politicians who stand up as spokespersons for the dissatisfied bank clients), I show in Table 5 the results for the question onthe relationship between targets and variable pay. Not meeting targets will influence management decisions in termsof promotion, fixed salary raises and job security
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
