“Developing talent is business’s most important task – the sine qua non of competition in a knowledge economy.”
The development of technology, changing demographics and the fluctuating economic and political situation, have all affected talent and employment. The banking sector is facing certain talent management challenges in the Indian Banking Industries and further afield. The traditional way in which banking in India is changing, and financial institutions that want to stay ahead of the curve must be aware of these trends.
Talent management is the systematic attraction, identification, development, engagement/retention and deployment of those individuals with high potential who are of particular value to an organization. Talent management referring to an organization’s effort to attract, select, develop and retain talented key employees. “Talent management, which is ‘the implementation of integrated strategies or systems designed to increase workplace productivity by developing improved processes for attracting, developing, retaining and utilizing people with the required skills and aptitude to meet current and future business needs.”
Talent strategy is the No. 1 priority executives will focus on in 2020. This is substantiated when one considers the business value of designing and executing an optimized talent strategy. The 2020 State of Talent Optimization report published by different agencies in India found a strong correlation between talent optimization and organization performance. In fact, 600 executives across 20 industries revealed that organizations with aligned talent and business strategies are more likely to outperform other organization, retain top talent, see higher employee performance, and achieve strategic success rates of nearly 90%.
Organizations That Align Talent with Business Strategy Outperform Others by 16%, Retain 30% More Top-Performers, and See 34% Higher Employee Performance According to The State of #Talent Optimization Report (study of 600 executives by @predictiveindex).
“While most organizations have a business strategy and a financial plan to support it, The State of Talent Optimization report finds only 36% have a talent strategy and a mere 12% align their talent and business strategies.” However, those that do have talent strategies designed to hire, manage, and engage their people in a way that aligns with business objectives significantly outperform other organizations. The essence of leadership is aligning employees with the business strategy to achieve maximum success.
- ADOPTING LEARNING INITIATIVES
One key element to successful talent management is learning and development. Businesses within the banking sector who adopt learning and development initiatives will reap the rewards of an engaged workforce.
From format training programs through platforms such as Success Factors to informal mentoring schemes, it’s imperative that everyone from the C-suite to trainees is an active participant in your initiatives. Achieving buy-in will help you to identify areas in need of development, individual employee performance and areas at risk.
The challenge throughout your learning and development program is to create an environment that cultivates leaders who, in turn, encourage growth and learning. The importance of leadership within a business and how it can give your organization a competitive edge. From matching the right candidates to leadership roles in the hiring stage to setting career goals, training, feedback and support, we have seen how learning and development programs are the key drivers to employee retention and effective talent management.
- TALENT MANAGEMENT : NEED AND IMPORTANCE
Till date, the research on talent management has mostly focused on current organizational practices, but it often lacks a theoretical perspective. Recent reviews have come to the conclusion that the academic field of Talent Management is characterized by a lack of definitions and theoretical frameworks. In fact, the lack of consistent definitions appears to be the reason why there are at least three different ways of interpreting Talent Management in practice;
(1) Talent Management is often used simply as a new term for common HR practices (old wine in new bottles)
(2) It can allude to succession-planning practices, or
(3) It can refer more generically to the management of talented employees.
In short, neither a uniform understanding of the term ‘talent management’ is there, nor of its aims and scope.
Basically the term talent management has no universal or specific meaning or definition. It can be different from person to person and organization to organization as their own perception and requirements of the organization. Some organization sets their specific set of standards or yardstick to measure talent. The employees who attain those specific tasks and standards in the given time along with some additional tasks are considered as talented employees of organization. In a nutshell, there is no one ways to measure and identify talent.
Now a day’s managing talent in an organization is itself is a challenging task. No such industry is there which has not been affected b it. The banking sector is one among them. To hire the talented personnel is a challenging task, but to manage them is the most difficult one. In order to make a balance banks started conducting various programme in order to attract and retain the talented employees.
- TALENT MANAGEMENT IN BANKING
Almost all the literature recognizes that talent provides organizations with a competitive advantage, and it shares a common concern that not obnly the talent is scarce, but also most of the companies are not doing enough to manage and retain whatever they have. Human resources as the greatest source of competitive advantage for any organization, human resources deserves the attention and time of managers more than any other organizational resource or asset.
The banking sector in India has been largely resilient though the crisis of 2008-09 and are ahead in terms of prudential norms which enabled the Indian banks to weather the crisis. However of late, problems are creeping in-weak appraisals, poor asset quality, frauds, increase in customer grievances, poor risk management, inadequate understanding and leveraging of IT resources, manpower shortages, etc. The fallout of not having adequate talent/organization structure is that one creates a vast network of intermediaries – good, bad or ugly. Either they can coexist or may need to be banished. If they are to coexist, codes of conduct should be laid down, or own structures should be created so that one does not depend on these intermediaries. These are the challenges being faced by Indian Banks now.
In the era of cut throat competition banks have started paying attention towards attracting and retaining the new and existing talented employees by offering them various growth options attractive hikes in their career. They are designing various training and leadership programme for different managerial level in order to update the skills of employees. For this purpose various latest technologies is being used to design training modules for employees in the organization. Things have also started changing with the entry of numerous non-banking financial companies as well as private and foreign banks. Similarly, the nature of business of the banking sector has also undergone a lot of changes over a period of time. As a result the demand for specialized manpower is also increasing. In a competitive environment attracting and retaining right kind of talents are very crucial. Banks are framing their strategies in order to manage the talent. As a result, Human Resource Management function of a bank becomes extremely significant.