An insight into Islamic banking practices, employees perspective of Saudi Arabian Islamic banks

Abstract

The study investigates the Islamic banking environment in Saudi Arabia from the employee’s perspective, focusing particularly on the working conditions, employee preferences, and customer behaviors. Saudi Islamic banks are dominated by young male professionals. Saudi Islamic banks are operating in highly competitive environment that require attractive benefits and competitive working conditions to retain the experienced employees. The study also investigates the importance of customers feedback, setting and updating key performance indicators, assessing training needs, and a defining policy towards salaries, promotions, and compensation management. Setting daily targets and linking rewards to the achievements can motivate the employees and reduce the turnover. The study reveals that customers are generally aware of Islamic banking and Shariah compliance so the banks should engage in offering innovative and Shariah compliant products to grab a better market share. Islamic banking is generally considered resilient against crises like COVID-19 and the findings of the study validate this fact as well. The study also suggests that transparency, ethical practices, Sharia compliance, innovative and competitive products, use of technology, excellent customer service, collaboration with businesses, and social responsibility efforts are important factors for success in the Saudi Islamic banking sector.