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Ethics and corporate responsibility are low priorities for wouldbe bankers
Despite the call for banking to demonstrate its social utility and to
reform its culture, ethics and corporate social responsibility are low
on the priority list for banking-oriented students, ranking 32nd and
33rd respectively out of 40 desirable job attributes. Environmental
sustainability comes in at 39th. These three also appear in the bottom
ten attributes that banking students associate with banks. Given the
new regulatory model, banks may need to emphasise ethics, culture
and social role more in their recruitment.
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Focus on South Africa
Out of all the countries surveyed, banking is most popular with
students in South Africa
Even though banking is not seen as the most popular of all employers
in any of the surveyed countries, business students in South Africa
ranked banking 23rd out of 100 employers, which is the highest
ranking given in this survey to banking as a preferred employer. At the
lower end of the rating scale, Japan ranked the popularity of banking
as an employer 50th, while Germany ranked it 64th.
Banking has lost out to a recent surge in the popularity of
accounting careers
Looking at the attractiveness of employment across industries over
the last year or two, the results of the survey show that business
students’ interest in auditing and accounting careers has been rising
steeply, while their interest in banking careers has been declining.
on from
Like their international counterparts, South African bankingoriented students care most about their training and development
Out of the 10 job attributes that banking-oriented students associate
with banks and the top ten attributes they find most attractive,
respondents from South Africa and the other surveyed countries concur
that professional training and development is at the top of their list.
from their
to remain in
upport
ds minorities
Addressing the talent challenges that lie ahead
The survey is a wake-up call for banks, whose popularity has fallen
sharply, following the global financial crisis. There is also a growing
gap between their image as employers and their needs in the new
highly regulated environment.
48% of
ies of
ployers,
g
urrent
Nonetheless, there are a number of ways in which banks could
respond to attract the best talent:
r banks,
d friendliness
nt banking
g. money and
lack, such as
Casting the net wider
From a South African perspective, the banking industry’s position on
transformation needs to be effectively communicated to prospective
employees to ensure attraction of diverse talent. Banking is an
international and cosmopolitan profession, and banks should
emphasise this in their recruitment. They should also work towards
becoming truly meritocratic employers.
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Defining your purpose and recruiting on fit
Banks need to articulate a new vision and purpose and the business
model that underpins it. Given higher capital requirements and
restrictions on activities, the new business model will tend more
towards a utility than in the past. With higher levels of regulatory
scrutiny, there will be a greater focus on culture.
It is therefore a concern for banks that banking-oriented students
neither associate banks with ethics, corporate social responsibility
or environmental sustainability, nor care much for them. As banks
articulate their new vision, they need to define what this means for
their employees, and recruit accordingly.
Identifying key requirements in the bank of the future
Banking-oriented students still associate banks with prestige and
financial success – the attributes on which banks traded pre-crisis.
However, banks are more likely to need innovation, creativity and
dynamism as they cope with the implications of new technology. They
need to adapt their employer branding and explicitly project, seek and
reward these attributes.
Emphasising training and development over pay
The Culture in Banking Survey by Deloitte revealed that senior bankers
view pay as the key lever for cultural change. But compensation
practices are under pressure, thanks to falling returns. Moreover,
banking-oriented students rank training and development ahead of
pay as a key aspiration. Banks do offer great training, and they should
highlight this rather than the more ephemeral attraction of money.
Developing long-term career strategies
In view of more than half of banking-oriented students expecting to
stay in their first job for a maximum of three years, banks need to
offer students a clear career path and a more amenable lifestyle. With
the students’ top career goal being work–life balance, banks may be
rewarded with greater loyalty if they offer greater flexibility.
Thinking global, hiring local
Business students’ priorities vary widely across countries. South
African banks need to tailor their approach to each market when
hiring graduates, so that their brand aligns with local aspirations.
Planning for the transition
Thanks to regulation and technology, the bank of the future will look
very different from what we see today. Yet, culture – and staffing –
will not change overnight. Banks need to plan carefully to manage
the transition from the profit-oriented, highly leveraged models of the
past to adapt to a much more heavily regulated environment.
For more information contact:
Jack Sellschop, Director - Consulting/Human Capital,
Human Capital FSI Leader
Direct: +27 (0)11 517 4223 Mobile: +27 (0)83 680 0539
Email: [email protected]
2013/12/11 3:46 PM