As China's economy continues to grow at a breakneck pace, thousands of new businesses are starting up, discretionary income is growing rapidly with the emergence of a new middle class, and wealth is being created as never before. Trying to recruit and retain highcaliber talent in the financial services field, the engine of much of the economy's growth, can be daunting-especially since April 2007, when the Chinese government loosened restrictions on foreign ownership of local banks. Multinational financial services firms have since flooded China.
The gap between employee supply and demand is especially wide when it comes to candidates capable of moving into senior leadership roles. Many recruits fresh out of universities lack the language and other skills to take on even entry-level positions in global companies. Nevertheless, salaries in China have risen out of proportion to the expertise of the talent pool, creating unrealistic expectations among potential employees. Moreover, China's one-child policy has created a unique problem. As one manager put it, "Consider that millions of young Chinese have no siblings and no cousins. It's not too difficult to see how the child can become the center of attention for the entire family. It's not easy giving critical feedback to someone who is not used to it and who has lots of employment options elsewhere."
Recall SCB's former difficulty in recruiting leaders for its banking operations in China. The company's strategy illustrates our framework in particularly illuminating ways.
Katherine Tsang, the CEO of SCB China since 2005, says, "These challenges forced us to tell the SCB story with passion, but to make sure that our culture and management practices matched that story in an honest way. We tell lots of stories here about our mission, our sense of purpose, and our brand, and the many opportunities that young people will get when they come to work for us. But we need to keep those promises." Together with Geraldine Haley, SCB's group head of talent management, Tsang created what the company calls the "raw talent superhighway" for SCB China, which is designed to attract and retain good people. The bank emphasizes acquiring specialized skills, followed by broad managerial training and development, followed by global networks and leadership development. Several components went into the highway's construction.
Selection. Tsang's and Haley's teams conducted extensive analyses of the skills and talents required by both retail and commercial bankers in China. Then they investigated nonbanking industries, such as travel and tourism, that had developed similar expertise, especially in customer relations. SCB China set out to aggressively recruit promising employees from these other industries; it was able to offer higher pay and significantly greater opportunities for career advancement.
Induction and orientation. SCB runs a standard induction program, but it offers an intensive version for its raw-talent hires- employees who demonstrate the desired behaviors and values but have no skills in financial services. This program introduces recruits to the company's culture and values and teaches them the ethical management of financial services, including money-laundering prevention and codes of conduct.
Technical training. SCB's retail division offers extensive training, and relationship managers in its wholesale business must complete a rigorous five-day "boot camp." All trainees must pass a strict examination before they are exposed to the bank's customers and clients. Skilled and seasoned managers conduct most of these sessions.
Professional and management development. SCB's raw recruits also get intensive training in the English language, communication and listening skills, and business etiquette, and they have a variety of ongoing educational opportunities. They receive career guidance and access to networking sessions, enabling them to explore different paths at the bank. In addition, SCB offers the Great Manager Program, which has won best-practice awards in China and elsewhere in Asia for its creativity and effectiveness in management development. The company has regional learning centers throughout China and e-learning platforms, so development is accessible to all. SCB is forming strategic partnerships with Chinese universities, both to strengthen relationships for recruitment and to offer those who join the company ongoing professional development at those schools.
Stretch assignments and deployment. One SCB message to recruits is captured in "Go places...," which has a double meaning: It tells people that if they join the bank and do well they will move ahead in their careers, and it reminds them that SCB is a global company with opportunities around the world. Chinese talent is often moved elsewhere, including to the group head office in London.
Personal development and performance management. SCB employees explore their passions and strengths, with coaching and guidance, to find a starting point for their careers. Although the SCB environment is nurturing, Tsang and other leaders don't hesitate to give regular and often tough feedback. "We deal with problems openly and honestly, and that has led to the creation of an authentic and trust-based culture. People know we are a straight meritocracy, and that motivates them."
CEO Peter Sands says, "We have an exciting growth story, but more important, people can translate that story into growth opportunities for themselves. We have 25-year-olds looking at 32-year-olds doing big jobs. These young people see who they can become, and that they don't have to wait 30 years to do it." Through these efforts the bank was able to decrease attrition by 3% from 2007 to 2008. That may not sound like much, but consider that SCB is bringing thousands of people on board every year. What's more, most companies in these markets are experiencing a dramatic increase in attrition.
The gap between employee supply and demand is especially wide when it comes to candidates capable of moving into senior leadership roles. Many recruits fresh out of universities lack the language and other skills to take on even entry-level positions in global companies. Nevertheless, salaries in China have risen out of proportion to the expertise of the talent pool, creating unrealistic expectations among potential employees. Moreover, China's one-child policy has created a unique problem. As one manager put it, "Consider that millions of young Chinese have no siblings and no cousins. It's not too difficult to see how the child can become the center of attention for the entire family. It's not easy giving critical feedback to someone who is not used to it and who has lots of employment options elsewhere."
Recall SCB's former difficulty in recruiting leaders for its banking operations in China. The company's strategy illustrates our framework in particularly illuminating ways.
Katherine Tsang, the CEO of SCB China since 2005, says, "These challenges forced us to tell the SCB story with passion, but to make sure that our culture and management practices matched that story in an honest way. We tell lots of stories here about our mission, our sense of purpose, and our brand, and the many opportunities that young people will get when they come to work for us. But we need to keep those promises." Together with Geraldine Haley, SCB's group head of talent management, Tsang created what the company calls the "raw talent superhighway" for SCB China, which is designed to attract and retain good people. The bank emphasizes acquiring specialized skills, followed by broad managerial training and development, followed by global networks and leadership development. Several components went into the highway's construction.
Selection. Tsang's and Haley's teams conducted extensive analyses of the skills and talents required by both retail and commercial bankers in China. Then they investigated nonbanking industries, such as travel and tourism, that had developed similar expertise, especially in customer relations. SCB China set out to aggressively recruit promising employees from these other industries; it was able to offer higher pay and significantly greater opportunities for career advancement.
Induction and orientation. SCB runs a standard induction program, but it offers an intensive version for its raw-talent hires- employees who demonstrate the desired behaviors and values but have no skills in financial services. This program introduces recruits to the company's culture and values and teaches them the ethical management of financial services, including money-laundering prevention and codes of conduct.
Technical training. SCB's retail division offers extensive training, and relationship managers in its wholesale business must complete a rigorous five-day "boot camp." All trainees must pass a strict examination before they are exposed to the bank's customers and clients. Skilled and seasoned managers conduct most of these sessions.
Professional and management development. SCB's raw recruits also get intensive training in the English language, communication and listening skills, and business etiquette, and they have a variety of ongoing educational opportunities. They receive career guidance and access to networking sessions, enabling them to explore different paths at the bank. In addition, SCB offers the Great Manager Program, which has won best-practice awards in China and elsewhere in Asia for its creativity and effectiveness in management development. The company has regional learning centers throughout China and e-learning platforms, so development is accessible to all. SCB is forming strategic partnerships with Chinese universities, both to strengthen relationships for recruitment and to offer those who join the company ongoing professional development at those schools.
Stretch assignments and deployment. One SCB message to recruits is captured in "Go places...," which has a double meaning: It tells people that if they join the bank and do well they will move ahead in their careers, and it reminds them that SCB is a global company with opportunities around the world. Chinese talent is often moved elsewhere, including to the group head office in London.
Personal development and performance management. SCB employees explore their passions and strengths, with coaching and guidance, to find a starting point for their careers. Although the SCB environment is nurturing, Tsang and other leaders don't hesitate to give regular and often tough feedback. "We deal with problems openly and honestly, and that has led to the creation of an authentic and trust-based culture. People know we are a straight meritocracy, and that motivates them."
CEO Peter Sands says, "We have an exciting growth story, but more important, people can translate that story into growth opportunities for themselves. We have 25-year-olds looking at 32-year-olds doing big jobs. These young people see who they can become, and that they don't have to wait 30 years to do it." Through these efforts the bank was able to decrease attrition by 3% from 2007 to 2008. That may not sound like much, but consider that SCB is bringing thousands of people on board every year. What's more, most companies in these markets are experiencing a dramatic increase in attrition.
No comments:
Post a Comment