Managing talent at public sector banks : Public sector banks do reward their staff. The reward to staff is, however, not comparable to those given by private or foreign banks. Things are constantly improving in this area with the liberal financial autonomy package to all public sector banks (PSBs) announced by the government last year and the realisation by PSBs to effectively face the challenges posed by other players. The banks need to make use of this opportunity in a greater measure.
Attrition and poaching has made things difficult for PSBs, whose ability to hire fresh talent is constrained by structured compensation packages with limited flexibility. For them talent nurturing has become a major issue rather than hiring fresh talent. They have to find out ways to incentivise the talent available. This requires a look at compensation packages commensurate with the paying capacity, differentiation between performers and non-performers and institution of a reward mechanism.
Talent management requires differentiating the organisation by building business capability through excellent programmes to attract, engage and retain the most valued employees, underlining the importance of talent differentiation, aligning the talent management strategy to the overall business plan and implementing a nuance approach towards the most valued employees with paradigm shift from uniform service regulations and compensation package structure to a flexible compensation package and service conditions.
Banks should put in place appropriate HR audit could play a vital role in instilling a sense of confidence in the management and HR functions in the organization. There is a manifest need to address the key drivers in attracting and retaining the right talent. Building an ideal work environment, cultivating and retaining talents in these difficult times requires effective management and leadership in maintaining a ‘talent friendly’ environment and ensuring alignment of talent expectations with core business strategy.
This is a tall order and necessitates periodical revisiting of the dynamics of compensation management, performance measurement, organisation change, employee relationship management, employer branding, talent development and succession planning. In the ultimate analysis, employee rewards and recognition have to move beyond compensation and benefits. In this world of flux and flow, turbulence and volatility, attrition and organisational dynamics, what is required is that employers ust offer a holistic package to employees. Monetary aspects have to be an integral part of this package but the significance of non-monetary incentives cannot be ignored in any objective assessment of the growth and structural transformation of any organisation. Succession planning is necessary to prevent losses of technical and corporate knowledge.
Succession planning requires linking the succession planning model to overall strategic plan of the company, driving business growth by retaining valued leaders, adapting the succession plan and leadership programme to demographic changes and harnessing the power of talent management. This issue of succession planning and talent crunch is particularly important with large number of retirements scheduled from 2008 onwards. This makes it necessary for PSBs to develop their second line of senior executives.
Banks should identify from within and create a special pool of people based on their competencies for handling new and emerging business opportunities. Banks should structure a position-oriented career path for such personnel and prepare them for immediate senior management positions, which would open up in the near future. Banks must also conduct competency mapping of their human resources and put in place action plans to develop the identified personnel for taking the organization forward in the next decade.
The role of HRM in propagating ethical and moral values is no less important. My admiration for Infosys seems not so much from its remarkable economic achievements as from the manner of its achievements. Infosys is universally recognised as a company with a difference — a company driving excellence and innovation with an industry-wide impact so tectonic as to re-define industry and business models and progressively scaling dizzy heights without ever being oblivious to highest ethical and moral values.
This steadfast pursuit of ethics and morality, this culture of truth and integrity is what distinguishes it from other perhaps equally well performing companies. This aspect has important policy prescriptive for all HRM practitioners. The increasing market scarcity of talents with the right technical and behavioral competencies combined with a ‘values-fit’ to the organization is made much more difficult by the high attrition rate.
Retention of talent through monetary and non-monetary strategies is needed to ensure business growth and continuity. Johann Wolfgang Goethe said,”treat people as if they were what they ought to be, and you help them become what they are capable of being”. This is precisely what we at Canara Bank have always attempted to do. Within the constraints of the functions and working of a PSB, we have in our own humble way attempted to streamline HRM policies and procedures in conformity with the needs of the present and the expectations of the future.
As a part of succession planning, Canara Bank had formed a 2020 club wherein we have identified and inducted potential leaders of tomorrow. A cross section of officers identified for the club helps the bank in enhancing awareness among officers of the importance accorded to them by the organisation. The employees are trained to cross- sell products. Employee expertise has been developed by constant skill upgradation. —The author is CMD, Canara Bank