Innovation in the financial services industry remains a hot topic in recent years. With so much focus on the technological advancements of automated banking systems and services, it’s easy to overlook the importance of the human element.
Richard Branson famously said, “Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.” Banks need to find ways to properly manage this talent to set the business up for success. An infographic from McKinsey & Company outlines the six ways in which banks are prioritising talent as organisational assets.
Understanding subsequent talent requirements
A reported 43% of all hours worked in banking can be automated by current technologies. With this statistic in mind, it is important that banks scrutinise what their long-term gaps are and how they can hire to help close them. Talent requirements are beginning to change from fundamental cognitive skills to more socio-emotional and technological skills.
Pinpointing critical roles and delegating talent accordingly
An estimated 80% of bank business value is driven by around 50 key roles. It is important that banks use data in favour of traditional hierarchy to determine the most impactful positions and strengthen them with the best suited talent. Additionally, as the nature of the banking industry is rooted in constant change, it is vital that consistent training is offered to keep up with changes in the workplace.
Adopting more agile business models
As the specific project needs of banks come and go, teams will have to form within the organisation across the network to achieve set objectives. This allows skillsets to grow and adapt to changing needs as opposed to more rigid hierarchical structures. When new projects arrive, teams can be reassigned, made up of those whose skills are best suited to the task at hand.
The potential benefits of this structure include increased employee engagement, product improvement, cost-effective operations, quicker service delivery and a rise in customer satisfaction.
Replying on the objectivity of data
The future of recruitment for banks lies in the optimisation of data systems to motivate and promote the ideal candidate options for open roles. Company data can also be utilised to create a heatmap of which roles have high attrition rates. Banks can then increase their retention efforts accordingly.
Hiring with diversity
The diversification of ethnicity and gender is linked to reports of higher financial performance, increased employee satisfaction, optimal decision-making and improves company image. Banks that lead industry trends set goals for measurable diversity and re-evaluate processes to expose unconscious biases.
Keeping talent in focus from the top down
To ensure high success rates in finding suitable candidates, the board has to recognise human resources (HR) as an important strategic partner as it provides insight on human capital issues. To stay current, banks are bringing HR to the forefront on decision-making and procuring talent to match organisational objectives.
The banking industry is always changing. Future roles and functions needed will continue to shift with technological advancements. This is an opportunity for bank leadership to upskill existing employees and find new talent geared towards better customer service, innovative thinking and adaptive application.
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