The lack of talented staff is still the biggest challenge for banks seeking to expand their wealth management business in Asia, said the head of private banking at HSBC (Lynch 2008). As stiff competition for experienced wealth managers drives up pay and rich clients become more discerning, HSBC is turning more towards grooming its own private bankers from within, said Mr Chris Meares, chief executive officer of HSBC Private Bank (Lynch 2008).
Financial institutions can do their part to provide such continual training opportunities for their employees. In Singapore, international banks such as ABN Amro and UBS have set up regional training centres here to serve the training needs for their Asia Pacific companies. Last year, the Monetary Authority of Singapore (MAS) conducted a survey among the almost 700 licensed financial institutions in Singapore on their manpower needs (Figure 2). The bulk of financial sector professionals continue to be employed in traditional areas such as commercial banking, general insurance, corporate finance, general treasury and trading activities (Monetary Authority of Singapore 2008).
The manpower needs of the financial industry cannot be met overnight. One way to bridge the skills gap and to increase the manpower resources available in Singapore is to recruit more international talents into her shores. “Currently, international talent form approximately 15 per cent of the total executives in Singapore's financial sector” (Monetary Authority of Singapore 2008). As more foreign players increase their presence in Singapore, she can expect a greater proliferation of such financial talent into her shores. This will lead to greater cross-fertilization of ideas and increased innovation amongst industry players. This will provide the cutting edge for the nation’s competitiveness.
CitiBank; Financial sector - Banking industry
“Citibank, a member of Citi, commenced operations in Singapore in 1902. Citi was known as Citigroup when Citicorp and Travelers merged in 1998 and adopted the trademark of the red umbrella. The Citi franchise is deeply embedded in the financial sector and the local community, with a long-term commitment to its customers and the country. With a presence in more than 100 countries” (CitiBank 2008), Citigroup is a leader in the financial services sector and a choice partner of corporations, consumers and high net worth individuals. To remain a leading force, Citibank recognizes the importance of excellent recruitment and selection processes.
Singapore is also a key centre of excellence for Citi in Asia and a strategic hub for regional management, marketing, operations and technology expertise, serving the transactional needs of Citi in more than 60 countries. Citi is Singapore’s largest banking employer, with some 8,500 employees.
Fulyana Orsborn, HR director at Citibank, outlines her company's retention strategies, “The right hiring strategy has a significant impact on staff retention. At Citibank, staff attraction and retention are extremely important and we have a well-developed framework for ensuring the right people join and stay with us. Citibank is a huge financial institution offering outstanding career opportunities and mobility - factors that certainly assist us to attract high volumes of interested candidates. However, by selecting the right people who not only bring the right skill set but who also fit within our culture and shared beliefs ensures a harmonious working environment where staff are more likely to stay” (Human Capital Magazine – Australia 2008).
CitiBank has a strong organisational focus on providing an attractive working environment and the initiatives in place to sustain this are numerous. CitiBank ensures new starters are rapidly assimilated through a structured program with their manager. CitiBank does this by “providing individual staff development plans, by ensuring clarity regarding what is expected” (Human Capital Magazine – Australia 2008).
Their managers are educated and trained to provide mentoring and goal-setting for their employees. Citibank's initiatives are constantly evolving and developing. A regular Voice of Employee surveys is conducted to gain feedback from staff to ensure things are on track and to identify areas for improvement. CitiBank also fosters a culture of collaboration between managers and subordinates to further extract feedback and suggestions and provide an excellent benefits program.
Citibank is committed to developing staff and they see it is a critical aspect of their staff retention strategy, it is done through “individual staff development plans that provide the framework for focusing on career growth and career progression through talent identification and development” (Human Capital Magazine – Australia 2008). Individual plans set in place a framework for goal-setting and may include steps for achievement through formalised education, mentoring by senior colleagues, courses, classroom training, E-learning and networking events. “For many staff members, career development forms a major reason to stay in an organisation” (Institute of Policy Studies 2008). Citibank also has the Management Association program (MA program), a formalised program for high-performing and achievement-driven individuals. This program provides an invaluable opportunity to fast-track careers by giving management associates experience across the business areas, courses, and guidance from senior mentors.
“Best Practices” in CitiBank
The bank’s strategy has always been to “attract the best talent by leveraging on its strong brand name, meritocratic practices and the opportunities it offers as a diverse and global organisation” (CitiBank 2008). Cost effectiveness and the incorporation of best practices are also rigorously pursued in the recruitment process. The selection process includes a vigilant screening for competencies, skills, experience and integrity before an offer is made.
“Supervision and management have much to do with employee satisfaction and retention rates” (Arthur 2001). Several studies are cited that address the importance of developing strong relationships with employees and creating a work environment that demonstrates the value of employees and an environment characterized by good communication, recognition for good performance, including employees in on matters that impact them, providing opportunities to grow and learn, and offering work that both matters and is challenging.
When an employee feels that their basic needs are not being met, they begin the process of leaving the organization, and some will stay physically on the job even though they are emotionally absent. Lawler (2008) identified the following reasons employees leave: unmet job expectations, poor job fit, lack of coaching and feedback on performance, lack of professional development and promotional opportunities, not feeling valued or recognized, workplace stress due to job demands and work-life balance conflict, and lack of trust and belief in senior leadership.
Good supervision and management skills can do a great deal to correct these problems. Employing a coaching model with employees, keeping employees informed, striving to allow employees to participate in the decision-making process, and being friendly and professional with employees are just some of the behaviours that are recommended
“Talent building over the years has allowed Citigroup to rely significantly on internal channels to fill key positions” (CitiBank 2008). Its Talent Inventory Review (TIR) process is one of the most successful sources of recruitment for executive as well as managerial positions as candidates have proven fit with the Bank’s corporate culture. The purpose of TIR is to “assess the current performance and future capabilities of the company’s leadership team” (CitiBank 2008). It assesses the individual’s personal profile, including qualifications, experiences and career interest, and designs a development plan for each high potential staff. Through disciplined and consistent practice over the years, it has become a robust succession-planning tool built on a comprehensive talent inventory database.
The process is also helpful in determining the leadership team’s readiness to compete in the marketplace by examining the performance and growth potential of individuals and integrating this information across the diverse functions and businesses of Citigroup. It also highlights the “staffing and development actions needed to build and maintain a world-class leadership team” (CitiBank 2008). From the staff’s perspective, it provides them with a vehicle to assess their performance, professional skills and development needs against their long-term career objectives.
Talent attraction practices
Activities conducted to attract talent occur first in the recruitment process and are the most crucial for determining recruitment and staffing success. The maximum value of a recruiting cycle is fixed once the applicant pool is established. According to Harriot et al. (2008), to attract the best, companies need to stand out from the rest by incorporating the best practices.
Research and insight analysis of several companies known to have a rich inventory of talents shed light on how they win this war on talent by leveraging their employer branding practices. Progressively, companies are lamenting the lack of suitable candidates to fill open positions. The war for talent is not new and will continue to be so given the characteristic of an increasingly complex and competitive landscape. Johnson (2002) suggests, winning the war for talent, organisations must be aggressive in establishing their corporate brand. While many may know the benefits that an “employer of choice” can bring; from attracting high calibre job applicants to having attrition rate well below that of competitors, not many actually know how to go about positioning themselves to be one. “The main ingredient of a strong employer brand may be in its value proposition, but what is equally important is the consistency in their talent quest approach” (BNet Business Network 2008). Companies with superior value propositions have a compelling answer to why talents flock to them. A strong employee value proposition translates into a stronger pull on talents. Companies with a winning employee value proposition (refer to Figure 1) understand what motivates talents and put it into practice. Great companies send a clear and consistent message that talents are valued before and after hire. As a company’s brand is owned by the public, consistency in the way it is portrayed to the public is critical to the healthy development and maintenance of it.
Publicity is yet another attraction best practice in the industry. Even if one’s company is yet an “employer of choice”, that should not stop one from reacting to the onslaught of competition. “By identifying one’s strongest selling point and getting the word out about it is a lot more useful than many traditional recruitment methods like participation in job fairs and advertising” (Axelford et al. 2002). Some of the most coveted practices that could be publicised include “flexible work arrangement, organisation’s support for innovations, promotional opportunities and prospects to learn and grow and lastly how performance is recognised and rewarded” (Harvard Business School 2006).
Lastly, the industry should invest in innovative recruitment methods in order to attract a larger pool of talent. As more and more organisations realise the value of a good hire, the need to look beyond traditional ways of sourcing surfaces. The lack of reach to the passive group of applicants inherent in traditional ways of recruiting is one factor that prompts organisations to tap into innovative sources for recruitment. “E-recruitment is one innovative method of recruitment that its use has been on the rise. E-recruitment is more than posting advertisements on the Internet” (McMilllan 2008). It is about leveraging a wide range of web-based technologies.
Talent retention practices
“Talented employees frequently cite two reasons for their departure from a company: a higher salary or more career opportunities elsewhere” (Lynch 2008). Certainly, salary levels are important, but “recent surveys indicate that a better work environment or career opportunities” (Larkan 2007) are also heavily factored into an employee's decision to switch jobs or, conversely, to stay in a current one.
Companies with successful retention programs focus on expanding training opportunities in house and then tying these training opportunities back to compensation. Companies should also solicit employee input when devising career development and training programs.
Organisations should develop effective supervisors and managers. Larkan (2007) states that by improving skills in supervision, management, and leadership is strongly recommended relative to retention. Consistently practicing such skills as “management by walking around, employing a coaching model with employees, recognizing good performance – both small and big accomplishments, being personable, treating people with dignity and respect, avoiding micro-management, helping people see their value to the organization, and employing good listening skills” (Harriot et al. 2008) were viewed as important. Supervisors and managers could benefit significantly by using “360 degree feedback” to get a perspective of how others view them and then working to improve how they interact with others.
An employee-friendly culture tends to allow employees to feel that the organization is concerned for them and their families. Many employees desire “more balance between their personal and work lives” (Harriot et al. 2008). Flexible schedules, being treated with dignity and respect, having the opportunity to participate in employee surveys with an expectation that the feedback will be acted upon, developing a sense of camaraderie or team building, feeling informed, having clear performance expectations, receiving feedback from both the supervisor and constituents, and fair promotional processes were suggested. “Employees who feel like an organization cares about them are more likely to be committed, stay with the organization and recruit others to the organization” (Johnson 2002).
Another key factor in employee retention is the opportunity employees want to continue to grow and develop job and career enhancing skills. In fact, this opportunity to continue to grow and develop through training and development is one of the most important factors in employee retention. “Training and development opportunities are not just found in external training classes and seminars, these ideas emphasize what employees want in training and development opportunities” (Monetary Authority of Singapore 2008). They also articulate one’s opportunity to create devoted, growing employees who will benefit both the organisation and themselves through training and development opportunities.
Additionally, “employees must feel rewarded, recognized and appreciated” (Human Capital Magazine – Australia 2008). Frequently saying “thank you” goes a long way. Monetary rewards, bonuses and make the “thank you” even more appreciated. This includes understandable raises, tied to accomplishments and achievement, help retain staff. Commissions and bonuses that are easily calculated on a daily basis, and easily understood, raise motivation and help retain staff.
MAS’s chairman, Singapore’s Prime Minister Lee Hsien Loong says, “MAS is working towards sculpting Singapore into a hub for financial knowledge, innovation and learning” (Monetary Authority of Singapore 2008). In order to support its aim to grow the size and sophistication of the financial markets in Singapore, MAS actively promotes the establishment of a critical mass of regional financial training and research facilities. In 2004, “two financial training providers set up or expanded operations in Singapore, offering advanced or specialised financial training to professionals in Singapore and those from the region” (Monetary Authority of Singapore 2008). In the area of financial research, three financial institutions established or expanded their financial research activities here.
In order for Singapore's financial centre to continue to thrive and stay ahead amidst this challenging environment, she needs to have a pool of highly skilled professionals who are at the forefront of their respective specialist areas. This will therefore enhance the local financial sector talent, as well as expand efforts to attract and retain top international financial talent into Singapore by constantly exercising some of the best practices in the industry.
REFERENCE LIST
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Arthur, D 2001, The Employee Recruitment & Retention Handbook, Amacom, Great Britain
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Axelford, B, Handfield-Jones, H & Michael, E 2002, The War For Talent, Harvard Business School Press, Boston - United States of America
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BNet Business Network 2008, Research Indicates Best Practices for Attracting, Managing Industry Talent, viewed 29 July 2008, <http://findarticles.com/p/articles/mi_qa3636/is_200706/ai_n19433341>.
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CitiBank 2008, CitiBank Management Associate Programme, viewed 3 August 2008, < http://www.citibank.com.sg/global_docs/microsite/hr/recruit/ma07/index.htm>.
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Harriot, J, Hardy, D & Pogorzelski, S 2008, Finding Keepers - The Monster Guide to Hiring & Holding the World's Best Employees, Irwin-McGraw Hill Publications, United States of America
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Harvard Business School, 2006, Retaining your best people, Harvard Business School Press, Boston - United States of America
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Human Capital Magazine – Australia 2008, Love ‘em or Lose ‘em, viewed 8 August 2008, < http://www.hcamag.com/detail_article.cfm?articleID=902>.
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Institute of Policy Studies 2008, Singapore Future: Scenarios for the Next Generation, viewed 7 August 2008,
< http://www.ips.org.sg/events/p2008/Report_250408.pdf>.
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Johnson, M, 2002 How To Become a Talent Magnet, Pearson Education, Great Britain
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Larkan, K, 2007 The Talent War, Marshall Cavendish Business, Singapore
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Lawler, E, 2008 Talent: Making people your competitive advantage, Jossey-Bass Imprint, United States of America
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Lee, K 1989, The Search For Talent, Straits Publishers, Singapore
- Lynch, M 2008, ‘Lack of talent the bane of wealth management in Asia’, The Business Times, 30 June 2008, p. 32 (Network Singapore section)
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Monetary Authority of Singapore 2008, Annual report 1999-2000, viewed 8 August, <http://www.mas.gov.sg/annual_reports/annual19992000/MASAnnual9900.pdf>
- McMillan, D 2008, ‘Talent Management: How to invest in your workforce’, The Business Week, 14 August 2008, p. 58 (Asia section)
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Singapore, Ministry of Manpower 1999, Manpower 21: Vision of Talent Capital, Singapore
APPENDIX
Figure 1: What motivates talent?
Singapore, The Institute of Banking and Finance, Annual report 2007, viewed 10 August 2008, < http://www.ibf.org.sg/download/IBF%20AR%202007.pdf>
Figure 2: Financial Institutions’ manpower
Monetary Authority of Singapore 2008, Annual report 1999-2000, viewed 8 August, <http://www.mas.gov.sg/resource/about_us/annual_reports/annual19992000/MASAnnual9900.pdf>
