One of the pioneering factors that has led Westpac to not only survive, but dominate other major

banks since the downfall trends in 2010-2012, has been the inclusion of various employee
satisfaction and motivation strategies, resulting in a higher organizational output, efficiency in
various work sectors and a greater customer satisfaction score, also attributed to an ambitious
cultural diversification strategy. For the report, three motivation theories will be brought into
prominence, which have been used to greater effect by the company.
(i)

Equity Theory

Equity theory is a fairness concept governed by an employees ability to relate and weigh their
input and output efforts. If the workers is able to identify his work input is higher than the equity,
he will start making changes to adjust to reach that level of equity. A simple example of this
motivation theory can be seen in offices when a workers complains that they are not being paid
enough for their efforts, while the other workers are being paid more than they do (Adams,
1963).
Employees tend to compare their efforts to compensation ration with referent groups, which can
be either fellow colleagues, members of management or even other companies, the results being
a force of decreasing motivation.
(ii)

Expectancy Theory

Expectancy theory relates to the fact that an employees behavior is directly related to the
desirability and expectancy of the outcome by them. The theory dominantly implicates the need
for organizations and companies to device and design rewards and compensations targeted
towards the specific performance and expectancy of an employee, making sure the employee
strives and expects a similar reward to keep up the behavior in future.
The motivation level depends on three basic factors, Expectancy, Instrumentality and Valence
(Locke, 1968). Instrumentality is the belief of a worker that carrying out a task on a particular
performance level will guarantee a relevant reward. Valence refers to the value of that particular
for the employee, which depends on the specific needs, expectations and preferences of each
employee.
(iii)

Goals Setting Theory

Setting goals is essentially related to work performance. The theory states that creating specific
and achievable goals, at the same time being challenging, acts as a motivational factor for
employees to perform and desire achievements. Goal Setting Theory eventually brings about to
important factors to consideration (Vroom 1964).
The self-confidence of an employee, pointing to the individuals personal thinking whether he/she
is capable of achieving the goals. The second important factor that needs to be considered is the
workers commitment to achieving the goals, which also helps managers to identify whether they
are providing realistic goals and incentives to motivate employees.
How Westpac Capitalized on the Theories
(i)

Westpac Staff Super Accumulation Plan/ Employee Advantage Program

Having recently refreshed its remuneration plan, the company introduced a nice set of incentives,
universal for all employees plan, including a percentage of sum on fixed salary, incentives,
bonuses, leaves and allowances. The Employee Advantage Program offers various benefits to
employees like discounts on bank accounts, credit cards, personal loans, investments and
insurance (Westpac 2015). The company also provides a negotiated discount on buying services
from partner companies.
These measures are quite universal in nature, regardless of age, position or gender. The
companys policy targeted to increase equity motivation is effective as regular updating is
provided to the policies in response to employee motivation and needs.
Each state has a specific counselling program and social clubs, where workers can interact with
each other on an environment outside work. The counselling sessions help identify issues related
to workers, which can prove to a great aid to implementing equity theory, as it helps the higher
management to identify referent groups to which the employees feel unjustified (Adams, 1963).
This way, specific and targeted benefits and tasks ca be assigned to remove these ambiguities.
(ii)

Training, Career Counselling and Professional Development

Training employees and workers on acquiring specific task related skills is a fundamental
approach to gaining organizational goals and aims. To implement the goal setting theory,

Westpac has a number of policies and educational bodies. Western Academy is a virtually
designed environment for this purpose.
The Study Assistance Benefit program facilitates employees into pursuing further studies by
aiding in financial remuneration, the studies being relevant to their role and tasks for the bank
(Westpac 2015).
The Graduate Program from Westpac offers 1 and 2 years educational programs, targeting
specific individuals and preparing them to be a part of the group in an inclusive way. A
commendable thinking in this project can be attributed to the fact that students learning from
the groups own institution can better serve and work to the organizations goals, thus
affirming that the individual goal and organizational goals are as close to similarity as
possible.
(iii)

Work Flexibility and sense of empowerment

Equity theory mainly brings upon a psychological effect on employees, as they measure
whether fairness is at the proper level. Therefore providing employees with a sense of
empowerment and control over their rewards and incentives is a good way to relieve these
effects.
Westpac has a part time and job sharing policy, through which workers and even managers
can delegate their work with others, with their consent. Workers can also get facilitated with
working remotely due to any restrictions or urgency (Westpac 2015). The company offers 13
weeks of paid parental leaves and purchased leaves along with 4 weeks annual leaves.
Workers are given the right to purchase extra 4 weeks leaves if needed.
Another essential component that Westpac has been able to introduce is the Career break
policy, in which an employee can opt for a 3 to 12 months unpaid leave from office in case of
any serious urgency, while retaining employee status with the company.
(iv)

Maintaining Cultural, Age and Gender diversity

One of the biggest challenges for any organization is the recognition and appreciation of
employees in a socially diverse environment. This includes gender diversity as well, where
predominantly women still constitute a lower percentage of seats in the higher management.

Various consensus show that women constitute 13 percent of higher posts in banks, which
might be above average but still behind by miles (Bibby & Johnston: 2010). Westpac
introduced a gender target policy back in 2010 to boost the hiring and allocation of women in
higher management duties, doubling the numbers. By 2014, it reached 40 percent of women
in the group. It is a fundamental step in applying expectancy theory, as it restricts the gender
equity issues. The group also diversifies its policies according to the different age groups that
exist within the company, understanding that the expectations and needs for each individual
is different, and having a diverse age group in employees is also a key factor in attaining
goals for the organization.
Another important step towards achieving age diversity can be attributed to the
implementation of Prime of Life policy in 2013, which was one of the first by a bank towards
acquiring services and facilitating mature-age employees (Department of Employment,
2013). This has enable Westpac to increase the average retirement age for employees and
ensure sustainability in work force.
(v)

Bridging Communication Network

Westpac has a number of influencing policies to keep the communication gap between higher
management and workers to a minimum. This is especially useful in deploying the equity
theory, where conflicts can arise between workers and managers regarding various social and
performance comparison issues. The grievance guidance program offers to resolve and
handle these issues between the concerned personnel. If the issues still remain unclear, then it
is taken to higher management.
In compliance with Australian Standard AS 8004, the companys Concern Online system is a
two way communication system between the concerned individual and the manager in
complete anonymity (Westpac, 2015). It is another effective step towards implementing
Equity Theory, as psychologically it is extremely difficult to get workers to express their
concerns related to referent groups about comparison on rewards and incentives according to
performance. This is an effective way to provide workers with a sense of safety and security
to express issues, while at maintain complete discretion.

The bank has also recently introduced a new internal social network by the name of Yammer,
which will serve as a social platform for the banks employees outside of work environment.
The banks newly appointed head also stated in an interview that he will be constantly
involved in using the social network to interact with fellow employees.
Criticisms on Westpac Implementations
After the acquisition of St. George Bank by Westpac in 2008, the bank initiated a downsizing
policy for cost cutting (Johnston, 2010). The large cut off from job positions, which involve
posts from workers to middle management, was intended to provide funds for the
implementation of technological advancement for the companys banking system to provide
better customer experience, a move partly influenced by the investment from Commonwealth
Bank in advancements, which starting giving them a competitive advantage over other banks.
The investment was an essential need for the bank, as it had been operating on an outdated
banking system for years, while the acquired St. George Bank was already ported to the
newer platform. Still, the move to shed employees is to be considered an unnecessary and
inconsiderate step towards employees, especially the workers from St. George, who had
expected a job retention after the acquisition.

REFERENCES
Adams. 1963. Equity Theory on Job Motivation. Business Balls
Bilby, Johnston (2010) Westpac adopts Gender Target. The Age. 12 October 2010
Department of Employment Australia (2013): Prime of life policy, December
2013[online].Available:
http://docs.employment.gov.au/system/files/doc/other/westpacfinalprime_of_life_case_study.
pdf [Accessed 3 December 2013]
Johnston and Bilby. 2010. Westpac adopts Gender Target. The Age
Johnston. 2010. Westpac to Axe admin jobs. The Age
Locke.1968. Goal Setting Theory of Motivation. Management Study Guide[Online]
Available: http://www.managementstudyguide.com/goal-setting-theorymotivation.htms

Vroom. (1964). Vroom expectancy motivation theory. Yourcoach [online]. Available:

http://www.yourcoach.be/en/employee-motivation-theories/vroom-expectancymotivation-theory.php

Westpac. 2015. Westpac as an employer. Westpac[Online]. Available:

http://www.westpac.com.au/about-westpac/careers/westpac-as-employer/

Westpac. 2015. About-Westpac. Westpac