Talent Management Practices in Banking Sector

Presented By:

Vinaya Gedam 34277 Priyanka Pandey 34288 Shraddha Pathare 34289 Sphurthi Potturi 34290

Outline
Indian Banking : Current Scenario Banking System Current Practices of Talent Management Levers of Change Examples Case Studies

Indian Banking Current Scenario

Rapidly Globalizing Very Competitive Environment More demanding & sincere Customers IT-enabled growth

Indian Banking System

Commercial Banks

Public Sector

Private Banks

Foreign Banks

Co-operative Banks

Urban Cooperative

State Cooperative

Central Cooperative

Talent Management: Implications

Indian Banking: Towards Global Best Practices by McKinsey & Company and Indian Banks Association, Nov 2007: The survey shows that the severe lack of superior talent ad new-age leaders is acute and crippling for Indian banks. They need to act urgently to attract, hire, develop and retain the best available talent to ensure sustained growth in the long term

Current Practices in Talent Management

A wide range of talent management practices are only partly in place at most banks

Source: McKinsey & Company and India Banks Association, Nov 2007

Current Practices in Talent Management

Banks depend heavily on internal talent and lack succession planning capabilities

Banks have limited ability to rely on talent pipeline

Source: McKinsey & Company and India Banks Association, Nov 2007

Current Practices in Talent Management

Banks are under-developing high-performing talent, creating severe threats to retention of key-personnel and longer-term productivity

High Potential Employee

Source : The Corporate Councils Leadership Model of Employee Potential, 2008

Source: McKinsey & Company and India Banks Association, Nov 2007

Levers of Change for Talent Management

Talent strategy aligned with Business Strategy of banks Efforts towards building strong Talent Pipeline to fill Leadership positions Invest in the Best Accountability Building practices SAP ERP HRM

Source : Development Dimensions International Inc Survey of Indian Banks, April 2008

Examples:

Grooming Leaders for Adaptive Challenges: The ICICI Way

o o o Chanda Kochar- From Trainee to CEO ICICI DNA Group Mentoring versus Individual Mentoring Talent Building: Action-Behaviour-Consequence model Junior Level: Consistent Passion Middle Level: Ability to build capability internally Senior Level: Agenda for change

Productive Work EnvironmentReserve Bank of India

Major Issue: Lack of Compensation Turning Constraints into Opportunities Loyalty Contract versus Psychological Contract Talent Management Models (i) Talent based on stellar performers (ii) Talent based on robust systems

Managing Talent: Canara Bank

Treat people as if they were what they ought to be, and you help them become what they are capable of being Employee rewards and recognition beyond compensation and benefits HRM policies in line with the needs of the present and the expectations of the future. 2020 club

Leading The Way Through: Standard Chartered

Leading by Example to be The Right Partner
Five values Creative, Responsive, International, Courageous and Trustworthy Strengths-based philosophy: Online Self Assessment Focus on executive development and internal Core Programs Employee Engagement= Strong People Managers

Case Studies:

Project Parivartan: State Bank of India

The success of the Bank's transformation depends crucially on its people." OP Bhatt, Chairman, State Bank of India, in 2007
Issue: Competition from Private Players-Talent Retention Agenda: Total Transformation- Parivartan Internal Communication Initiative

Human Capital Initiatives: Yes bank

Issues: Differentiating itself from its competitors Start-up Organization Agenda: Knowledge banking' approach Emphasis on human capital Projecting itself as an 'aspirational' employer in the Indian banking sector Innovative HR initiatives

Thank You