Aikaterini Divini and Nikos Schiniotakis
The purpose of this research is to examine whether a relation between employees’ profile and bank branch profitability holds in the Greek banking sector. Employees’ profile may…
Abstract
Purpose
The purpose of this research is to examine whether a relation between employees’ profile and bank branch profitability holds in the Greek banking sector. Employees’ profile may include education, training, work experience, age and place of origin/living. In addition, it is examined whether high employee performance is related to profitable bank branches.
Design/methodology/approach
The case of a Greek cooperative bank is selected with a network of 49 branches and a sample of 258 bank branch employees. Secondary data are collected from the bank’s human resources department database and electronic archives in reference to the year 2011. The methodology used in the research includes descriptive analysis, discriminant analysis and binominal logistic regression analysis.
Findings
There are specific employees’ profile features relating to efficient performance that affect bank branch profitability. The findings highlight the importance of recruiting in accordance to a bank’s skills requirements and the significant role of alternative training programs, motivation and performance evaluation systems in augmenting a bank’s overall profitability.
Originality/value
This research is the first attempt to combine and connect particular employee characteristics with efficient performance. It is also the first time that this particular bank, sample and data are examined and analyzed to serve the purpose of this research.
Details
Keywords
This paper aims to search for the factors that influence the profitability of Greek commercial and cooperative banks by examining other variables that have never been used before…
Abstract
Purpose
This paper aims to search for the factors that influence the profitability of Greek commercial and cooperative banks by examining other variables that have never been used before. It also seeks to examine bank performance before and during the economic crisis in Greece. The survey is based on previous similar research.
Design/methodology/approach
A multiple regression analysis has been used for the determination of the factors which influence the profitability of the Greek banking sector as well as the multicriteria method PROMETHEE for the examination of the Greek banking sector performance before (2007) and during the economic recession (2008‐2009).
Findings
The paper finds that: type of bank plays an important role in profitability; the indicator ROA is associated only with well‐capitalized banks with sufficient liquidity and cost efficiency; and cooperative banks in general at the beginning of the crisis were less influenced by the economic crisis than commercial banks.
Originality/value
This is the first time that the entire Greek banking system has been examined for the particular period regarding the factors that influence bank profitability. Up to now there has been no published research examining whether the type of the bank influences profitability or which of banks remained efficient and “durable” before and during the first two years of the economic crisis in Greece.