Stargate human resource

Bailey et al.: Strategic Human Resource Management, 2nd edition

Chapter 10 mini case study 1: Talent management trends in the banking industry 2017-2018

Changing demographical trends, an uncertain economic/political climate, and the continued development and integration of technology are all factors affecting the global banking industry. Talent management concerns have also been at the forefront, particularly in the Middle East. As Boyden.com highlights, the traditional way that Dubai, for example, has been banking is now changing as a result of these highlighted concerns.

One of the highlighted changes is that collaboration is “increasingly becoming more important to the future workforce than authority and rank” (Boyden). This long-term change means that many companies are “moving towards flatter structures [which] offer greater responsibility to employees and require leaders to rethink ways of communicating and influencing” (Boyden). Employees will also have to revaluate their career goals, since banking jobs are less stable than they once were. Offering financial remuneration is no longer enough, with many banks offering “emotional fulfilment”, such as a workplace which offers developmental and learning opportunity. It could be argued that these practices are a cynical attempt to protect pre-existing executive positions by flattening out opportunities for those below.

Talent management has been used as a way to justify or gloss over significant inadequacies or problems in the banking industry. For example, banks have defended their ‘bonus culture’ by arguing it is critical that talented employees are rewarded for their performance, particularly in the investment banking part of their businesses. Since the EU cap on bonuses, fixed salaries have risen rapidly to compensate employees for the reduction in bonuses (for instance, in 2010 HSBC doubled the basic pay for hundreds of its senior staff). Leading fund managers have become increasingly critical of the banking sector’s generous pay packages, especially those in the investment banking arm of the business. This concern is against a backdrop of criticisms over the widening gulf between CEOs/ senior executives and employees.

Activity

How might strategic human resource practices help provide a more fulfilling workplace environment for banking employees?

To what extent are banks using the concept of talent management to conceal flawed approaches to employee remuneration?

Sources:

https://www.boyden.com/media/talent-management-trends-in-the-banking-industry-2017-2018--2606699/index.html (Accessed May 2018)

https://www.bai.org/banking-strategies/article-detail/the-talent-of-talent-management-attracting-it-retaining-it-engaging-it (Accessed May 2018)

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