Staff turnover now a top priority for banks
AS HONG KONG'S banking firms compete for more access and control of customers' financial assets, they face various human resources issues, including how to recruit and retain staff.
Many banks are cagey when it comes to the methods they use to recruit and retain their most talented people.
Methods increasingly being used to retain staff include lucrative bonuses and paying a type of 'finder's' fee to employees who introduce suitable new candidates.
Several leading banks declined to contribute to this article, saying they did not have any suitable candidate to discuss their recruitment and retainment polices. Others
said they were reluctant to reveal their employment policies.
'We have a 'Staff get Staff' programme that works very well,' said Steve Tait, HSBC head of human resources Asia-Pacific.
'Employees who introduce talented people who fit our recruitment criteria are paid a fee for their time and consideration,' he said.
The policy works because employees are able to explain to potential job candidates the firm's culture, employer expectations and career opportunities.
Mr Tait said employees also felt comfortable introducing friends and acquaintances to an employer.
While employees perform
a type of recruitment role for their employers, banks are
still struggling to find key
people in positions such as financial planning, wealth management, compliance, accounting and auditing and commission-based sales and marketing positions.
Once the 'right' people have been enticed on board, keeping them is another issue. On average, HSBC has an 8 per cent headcount turnover. Mr Tait described this as healthy because it generated career growth and promotion opportunities.
He said HSBC retained staff by offering competitive financial remuneration, but there were other areas that also carried substantial weight, such as career development and promotion opportunities and the sense of being appreciated and valued as part of the company.
An HSBC employee attitude survey carried out last year revealed that in addition to their salary, staff appreciated development and training opportunities, capability-based leadership from their immediate superiors and the latitude to make decisions.
According to recruitment specialist agency Michael Page, with banks fiercely competing with each other on the products and services they offer, they
are aware of how crucial it is
to hold on to their best employees.
The pace and intensity of recruitment was being driven
by the need to help secure market share, deliver profits and stay competitive, the agency said.
Wage inflation is occurring as a result of unprecedented demand and high-calibre candidates are in a strong bargaining position.
A shortage of skilled professionals is most acute in the corporate finance, mergers and acquisitions, debt, structured finance and project advisory sectors.
In Hong Kong there is a demand for theses skills due to the continued focus on Greater China.
Ensuring that salaries and none-financial incentives such as career development programmes are in line with markets conditions is also important to retain top performers.
