Future of Banking Talent

Future of Banking Talent

Future of Banking Talent

Innovation is spurring rapid change in the banking industry. As processes become automated and digital, banks will need to fundamentally shift the way they manage talent.
Innovation is spurring rapid change in the banking industry. As processes become automated and digital, banks will need to fundamentally shift the way they manage talent.
Innovation is spurring rapid change in the banking industry. As processes become automated and digital, banks will need to fundamentally shift the way they manage talent.

Understand future talent requirements.

Understand future talent requirements.

Talent needs are changing to include more social, emotional, and tech skills. Banks must identify gaps and plan to fill them.
Talent needs are changing to include more social, emotional, and tech skills. Banks must identify gaps and plan to fill them.
43% of all bank working hours can be automated with current technologies.
43% of all bank working hours can be automated with current technologies.
0%
0%

1

1

Identify critical roles and manage talent accordingly.

Identify critical roles and manage talent accordingly.

50 roles drive 80% of business value, banks should identify them using data, not hierarchy. Typically, 90% of crucial talent is overlooked by focusing only on top positions.
50 roles drive 80% of business value, banks should identify them using data, not hierarchy. Typically, 90% of crucial talent is overlooked by focusing only on top positions.
0%
0%

Roles

Roles

=

0%
0%

Business

Business

Then, banks must match the best performers to these roles & actively manage their development
Then, banks must match the best performers to these roles & actively manage their development

Traditional Approach

Traditional Approach

Talent to Value Approach

Talent to Value Approach

Ciritical Role

Ciritical Role

Non Critical Role

Non Critical Role

2

2

Adopt an agile business model.

Adopt an agile business model.

Banks must move from a hierarchical to an agile structure. Leadership empowers teams to accomplish their goals, reallocating them as opportunities arise and fade.
Banks must move from a hierarchical to an agile structure. Leadership empowers teams to accomplish their goals, reallocating them as opportunities arise and fade.

Machine Structure

Machine Structure

Organism Structure

Organism Structure

The flexible structure has many potential benefits:
The flexible structure has many potential benefits:
~0%
~0%

fewer product defects

fewer product defects

~0%
~0%

lower costs

lower costs

~0%
~0%

shorter time-to-market

shorter time-to-market

~0%
~0%

increase in customer satisfaction

increase in customer satisfaction

~0%
~0%

more employee engagement points

more employee engagement points

3

3

Use data to make people decisions.

Use data to make people decisions.

Instead of making decisions based on subjective biases or customary practices, banks will need to use data to:
Instead of making decisions based on subjective biases or customary practices, banks will need to use data to:

Recruit

Recruit

Motivate

Motivate

Retain

Retain

Promote

Promote

Company data can reveal roles with high turnover, like middle managers with good performance ratings. Focusing on these areas can reduce attrition.
Company data can reveal roles with high turnover, like middle managers with good performance ratings. Focusing on these areas can reduce attrition.

Performance Rating

Performance Rating

Good

Good

Very Good

Very Good

Distinctive

Distinctive

Grand Total

Grand Total

Role

Role

Front-line Employees

Front-line Employees

Middle Managers

Middle Managers

Senior Managers

Senior Managers

Grand Total

Grand Total

19%

19%

12%

12%

11%

11%

16%

16%

27%

27%

21%

21%

13%

13%

22%

22%

22%

22%

11%

11%

6%

6%

17%

17%

22%

22%

16%

16%

11%

11%

19%

19%

Attrition Rate

Attrition Rate

Low

High

4

4

Focus on inclusion and diversity.

Focus on inclusion and diversity.

Diversity results in improved financial outcomes and offers various other advantages.
Diversity results in improved financial outcomes and offers various other advantages.

Better decision making

Better decision making

Higher employee satisfaction

Higher employee satisfaction

An enchanced company image

An enchanced company image

Companies in the top quartile for diversity are more likely to have financial returns above industry medians:
Companies in the top quartile for diversity are more likely to have financial returns above industry medians:

Gender Diversity

Gender Diversity

4th Quartile

4th Quartile

45%

45%

10 pp

10 pp

1st Quartile

1st Quartile

55%

55%

Ethnic Diversity

Ethnic Diversity

4th Quartile

4th Quartile

44%

44%

15 pp

15 pp

1st Quartile

1st Quartile

59%

59%

5

5

Ensure the board is focused on talent.

Ensure the board is focused on talent.

Boards must view Human Resources (HR) as a strategic partner, not just for transactions. Leveraging automation, HR can streamline processes and enhance its strategic role.
Boards must view Human Resources (HR) as a strategic partner, not just for transactions. Leveraging automation, HR can streamline processes and enhance its strategic role.

Potential for HR task automation using current technologies:

Potential for HR task automation using current technologies:

56% Total

0

%

Fully Automatable

0

%

Fully Automatable

0

%

Other

HR can concentrate on advising the board on human capital matters like succession planning and talent risk. The CEO, CFO, and CHRO form a trio responsible for significant decisions regarding human and financial capital allocation.
HR can concentrate on advising the board on human capital matters like succession planning and talent risk. The CEO, CFO, and CHRO form a trio responsible for significant decisions regarding human and financial capital allocation.

6

6

To Sump Up,

To Sump Up,

To Sump Up,

these are the keys to understand ways banks are becoming talent-first organizations.
these are the keys to understand ways banks are becoming talent-first organizations.
these are the keys to understand ways banks are becoming talent-first organizations.

1

Understand future talent requirements.
Understand future talent requirements.
Understand future talent requirements.
Identify critical roles and manage talent accordingly.
Identify critical roles and manage talent accordingly.
Identify critical roles and manage talent accordingly.

2

Adopt an agile business model.
Adopt an agile business model.
Adopt an agile business model.

3

Use data to make people decisions.
Use data to make people decisions.
Use data to make people decisions.

4

Focus on inclusion and diversity.
Focus on inclusion and diversity.
Focus on inclusion and diversity.

5

Ensure the board is focused on talent.
Ensure the board is focused on talent.
Ensure the board is focused on talent.

6

CEOs Worldwide See Human Capital as a Top Challenge,

CEOs Worldwide See Human Capital as a Top Challenge,

CEOs Worldwide See Human Capital as a Top Challenge,

Despite HR being ranked lower in importance, there's a clear need to address this disconnect. Banks must prioritize HR to keep pace with rapid changes or risk lagging behind.
Despite HR being ranked lower in importance, there's a clear need to address this disconnect. Banks must prioritize HR to keep pace with rapid changes or risk lagging behind.
Despite HR being ranked lower in importance, there's a clear need to address this disconnect. Banks must prioritize HR to keep pace with rapid changes or risk lagging behind.

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