2. Strategic employee resource and skill management

 Recruitment and skills management is the most important function of human resource management. While turnover is a constant, human resource management professionals strive to keep the financial and human impact to a minimum. They know they must continuously update their recruiting strategies if they are to stay competitive in finding and retaining top talent. In order to minimize the resignation turnover of the employees, the Human Resources Department should select the most suitable candidates for the Bank and develop their capabilities according to the expected level of the Bank.

Recruitment as a Human Resource Activist

   At the start of every year, one thing we can always predict is the huge number of lists divining the hot issues in HR for the year ahead. Reading the crop of blogs that have appeared in the past few weeks, it is hard to disagree with the consensus among influencers and experts that the impact of technology on jobs, learning and management will define the agenda for HR into the 2020s. This includes creating a pool of suitable candidates in line with the human resource plan aimed at present and future selection. Recruitment is usually done through media advertisements (e.g. newsletters, social media, company websites), employment agencies, job fairs, and word of mouth going to universities and colleges.

What is the Importance of Recruitment

1. Find qualified and experienced employees in the market.
2. Replacing vacancies of retired employees.
3. Lack of qualifications with external staff.
4. Facing current market conditions or facing future market changes.
5. In some cases recruiting existing employees outweighs the costs of upgrading to new positions.

Recruitment in the banking sector

Level of employment in banking sector

    The Department of Human Resources has recruited employees to the Bank's top management level, mid-management level, and operational level. There are three major types of bank recruitment. Human Resource Management is important for banks because banking is a service industry. Management of people and management of risk are two key challenges facing banks. How you manage the people and how you manage the risks determines your success in the banking business.

Direct Recruitment - 

    Banks and financial institutions directly advertise the qualifications required for positions and experience on newspapers, websites (own website and others), social media to find suitable employees for the bank. Such recruitments are made for vacancies at the middle management level and operational level.

Former Training Executives, Management Trainees, Kanish Ex Executives.

Taking people from other banks and financial institutions - 

    Competitive banks and financial institutions need to be qualified, experienced, and performing banks. These types of recruitments are done for mid-management level and top-level vacancies.

Former Heads of Departments, Managing Directors.

From Internal Promotion - 

    

    Promotion of Internal Employees to higher grades according to internal needs.

Former Junior Executive Executive I to Junior Executive Executive II, Junior Executive Executive II to Executive I

Compared to the above 03 categories, the internal promotion has the least risk and it is a good habit to encourage existing employees in banks. Therefore, every bank conducts such promotions in its organization annually.

    Also, recruiting management-level employees with other companies is sometimes a problem for the bank because they had bad habits. Especially in lending. E.g., a portfolio of increased lending with personal loans and minimal lending with secured facilities (home loans and leasing). This helps the bank to create non-performing loans.

    Banks generally have the right to identify employees, but strict guidelines, but the decision-making process involves employment, training costs, and salaries, regardless of recruitment, giving benefits, large decision-making, and not showing the same bet. Employee service time and replacement were separated from the selection procedure.

Having the right candidates with the appropriate skills, from different resources and guaranteeing the best fitting of employees’ needs. It is most effective when using updated recruiting technologies.

Selection as a Human Resource Activist

This includes selecting the most suitable candidates from the pool of candidates that can be created during the recruitment phase. Therefore, the terms recruitment and selection are two different functions. Selection is done using applications, resumes, interviews, aptitude tests, and inquiry checks to recruit candidates.

Bank Selection Process

1. Call for applications
2.  Ability Test
3.  IQ test (Cognitive ability test)
4.  Physical fitness tests
5. Psychological tests (EQ test)
6. Selection Interview (Interview 01 or 02)

Motivation as human resource activism

   A positive work culture and a good organizational climate helps bring effective results to a company. Using this strategy, it’s possible to increase employee productivity and engagement, as well as create an environment conducive to innovation. However, these benefits are only achieved with employee motivation and performance.

 This work is sometimes referred to as the socialization or orientation of newly hired/hired employees to help them adapt smoothly to the organizational structure, culture, and process. In this case, a basic understanding of their responsibilities, accountability, and expectations of organizational policies and employee behavior will be provided. A job manual covering organizational functions, structure, value proposition, basic assumptions, vision, mission, and objectives will be a useful tool at this stage.

    In the banking sector, this type of division often handles senior employees of the bank or hires specially trained trainers.

    For example, newly hired employees in banks initially participated in the 7-day motivation section. In this section, they will learn about banking culture, banking products, and more.

    After completing the 06 monthly training period, the employees again participated in another motivational section. In this section, employees will learn about some of the technical aspects of banking products and some of the cryptocurrencies in banking and industry. They also have the opportunity to discuss their experiences with senior human resources senior staff at the head office.

    After completing another six-month training period, employees returned to another motivational section. In the section, they learn about the Bank's practical issues and policy actions. Such a division is handled by the Bank's senior and experienced officers.

The Human Resources sector has a very strategic role in organizations. Through their activities, motivation can be encouraged and in such, increase the quality of life-work balance for their employees. In the same way, the organizational climate can improve and directly impact productivity.

Talent Management

    The development of technology, changing demographics and the fluctuating economic and political situation, have all affected talent and employment. Talent management is the use of an integrated set of activities to ensure that the organization attracts, retains, motivates and develops the talented people it needs now and in the future.  

You’ve invested in acquiring the best talent, but how do you keep them? In the demanding and fast-paced financial sector, retaining and developing your workforce can be one of the biggest challenges within your HR team. From hire to retire, introducing a mentoring and talent management program can be pivotal for growth and development at every level. In order to maximize competitive advantage, the banking industry needs, among other things, not only a performance-oriented performance management system but also the right people with a creative mindset. The best option for this is to follow skill management.

    Accordingly, a banking business approach should include tasks for line managers to develop the skills of their immediate subordinates. Managers should share statistics with other departments for employees to gain knowledge of the overall organizational objectives.

    The problem with many banks and finance companies today is that their organizations put a lot of effort into attracting employees to their company but spend little time retaining and developing skills. Current employee performance in a specific job is always a standard assessment tool for an employee’s profitability.

    However, "Talent management" focuses on the future potential of an employee. The 'Talent Management' system can be implemented according to the banking business strategy and can be implemented in the day-to-day operations of the company as a whole. An organization engaged in "Talent Management" has published successful stories on how to mobilize, attract, select, train, develop, retain and promote employees within the organization.

    In the current economic climate, many companies have abandoned the need to cut costs. In that context, skill management can be used as a means of optimizing the performance of each employee and organization. Globally, however, only a small percentage of organizations say they have a clear "Talent management" strategy. The banking industry will be forced to rely disproportionately on millennials as this generational shift occurs. This is why training programs that focus on talented younger employees in the organization are so important.