The banking industry is one of the most competitive industries in the world. With rapid advancements in technology and changing customer needs, banks are continuously looking for ways to stay ahead of the competition. One of the most important factors that determine a bank’s success is its ability to attract and retain top talent. Effective talent management is crucial for the banking industry to achieve its goals and remain competitive.
Firstly, let us define talent management. Talent management refers to the systematic process of identifying, attracting, developing and retaining top talent within an organization. In the banking industry, talent management is particularly important because banks need to attract and retain employees with the necessary skills and expertise to provide high-quality financial services to customers. Banks need to ensure that they have the right people in the right positions to achieve their goals.
According to bank executives I’ve spoken with, the largest problem facing the sector is finding ways to increase and retool its employees at the same rate that Filipinos are using digital banking services. Employees of banks must maintain their skills to take advantage of new service delivery methods, digital technologies and instruments for sales and marketing. Banks today require skills in data science, user experience, cybersecurity and digital product design, which are difficult to obtain or improve.
Banks must immediately rethink talent and restructure in order to meet the digital demands of clients and compete with fintech (financial technology) firms to be relevant. The path ahead is not simple. Nevertheless, it’s not an impossibility.
A typical bank today uses up to 90 percent of its employees to manage day-to-day operations, with only 10 percent devoted to change and innovation, according to a global research by Boston Consulting. With the entry of digital banks in the country, there is for sure a talent crunch related to innovation roles in the banking industry.
One of the key strategies for effective talent management in the banking industry is recruitment. Banks need to attract the best candidates for open positions. This can be achieved through effective employer branding and recruitment strategies. Banks need to promote their brand as an attractive employer and create a positive image in the market. They should also leverage technology to streamline the recruitment process and attract candidates who possess the skills and experience required for the job.
Another important strategy for effective talent management in the banking industry is training and development. Banks need to provide ongoing training and development opportunities to their employees to help them acquire new skills and stay up to date with the latest industry trends. This can be achieved through internal training programs, mentorship, coaching and external training courses. By investing in employee training and development, banks can improve employee engagement, job satisfaction and retention rates.
Performance management is another key strategy for effective talent management in the banking industry. Banks need to have a systematic process for evaluating employee performance and providing feedback on their performance. This can help employees understand their strengths and weaknesses, and identify areas where they need to improve. Banks should also have a system in place to reward and recognize top performers. This can include bonuses, promotions and other incentives.
Lastly, employee engagement is crucial for effective talent management in the banking industry. Banks need to ensure that their employees are engaged and motivated to perform at their best. This can be achieved through various employee engagement strategies, such as regular communication, feedback, recognition and a positive work culture. Banks need to create an environment where employees feel valued and appreciated for their contributions to the organization.
These are where human resources technology (HR Tech) plays a significant role in the incumbent banks’ digital transformation strategy. Software for human capital management (HCM) is one such HR tech platform. In addition to enabling easy access to data and information, and supporting the development of analytics-based insights, this enables HR departments to automate crucial processes. In summary, HCM technology can support a bank HR team’s effort to find, engage and develop talent, their most important resource.
HR teams can manage many of the tasks and processes required to build the skills required to satisfy the demands of digital customers with the analytics-based insights from an HCM platform. This will be the next stage in the banking sector’s digital revolution.
To unpack strategies for an effective talent engine in the banking industry, Darwinbox — the No. 1 rated HCM on Gartner and trusted by JG Summit, Shakey’s Pizza, Robinsons Bank, and other leading enterprises and conglomerates in the region — is organizing a roundtable for Chief Human Resources Officers from the Banking industry. This by-invitation-only roundtable is slated on May 17, 2023, at The Artisan Cellar Door, 2276 Chino Roces Avenue, Makati, Metro Manila.
The author is the founder and CEO of Hungry Workhorse, a digital, culture and customer experience transformation consulting firm. He is a fellow at the US-based Institute for Digital Transformation. He teaches strategic management and digital transformation in the MBA Program of De La Salle University. The author may be emailed at email@example.com.