Talent Management

ICICI Bank Deutsche Bank

      

      

Table of Contents
1. INTRODUCTION ................................................................................................................................... 3 2. OBJECTIVES .......................................................................................................................................... 4 3. TALENT MANAGEMENT ....................................................................................................................... 5 3.1 Overview........................................................................................................................................ 5 3.2 Designing a talent management system ......................................................................................... 6 4. METHOD OF STUDY ............................................................................................................................. 8 4.1 Nature of Study .............................................................................................................................. 8 4.2 Tool used for the study .................................................................................................................. 8 4.3 Organizations studied .................................................................................................................... 8 4.3.1 ICICI Bank ................................................................................................................................ 8 4.3.2 Deutsche Bank ........................................................................................................................ 9 5. FINDINGS AND CONCLUSIONS............................................................................................................ 10 5.1 Introduction and Background ....................................................................................................... 10 5.2 Talent Management Process ........................................................................................................ 10 5.2.1 Structure and hierarchy of organization................................................................................. 10 5.2.2 Selection Process................................................................................................................... 12 5.2.3 Training Programs ................................................................................................................. 13 5.2.4. Performance Management ................................................................................................... 14 5.2.5 Compensation ....................................................................................................................... 15 5.2.6 Succession Planning............................................................................................................... 16 7. RECOMMENDATIONS......................................................................................................................... 17 Annexure I ............................................................................................................................................. 19

1. INTRODUCTION
Talent management implies recognising a person's inherent skills, traits, personality and offering him a matching job. Every person has a unique talent that suits a particular job profile and any other position will cause discomfort. Only a seasoned jeweller would know that all that glitters is not real! And, only those who can recognise the worth of a diamond can value it, for others it's just a stone! Talent is doing easily what others find difficult. It is the job of the Management, particularly the HR Department, to place candidates with prudence and caution. A wrong fit will result in further hiring, re-training and other wasteful activities. No matter how inspiring the Leaders are, they are only as effective as their team. A team's output is healthy only if the members are in sync. To achieve such harmony, the key ingredient is "putting the right people in the right jobs". Talent Management is beneficial to both the organisation and the employees. The organisation benefits from: Increased productivity and capability; a better linkage between individuals' efforts and business goals; commitment of valued employees; reduced turnover; increased bench strength and a better fit between people's jobs and skills. Employees benefit from: Higher motivation and commitment; career development; increased knowledge about and contribution to company goals; sustained motivation and job satisfaction. In a service-oriented industry such as banking, people are among the most important assets. To stay competitive, a bank must efficiently manage its employees during every phase of employment, from recruitment through training and development. But banks of all sizes face challenges that make enterprise talent management very difficult to achieve. These challenges include mergers that consolidate resources, the fluctuating global economy, shorter product life cycles, the constant demand for quick ROI, an aging workforce, and the huge burden of picking the best job candidates from a multitude of applicants. With this view, research on talent management programmes of the Banking Sector was conducted. Interviews were done with Mr. Rhushad Nariman (Acquisition Manager) of Deutsche Bank and his colleague Ms. Ayesha Hasan (Sales Manager and in charge of training and development) and with Ms. Shristi Dalmia (Credit Manager) of ICICI Bank and her colleague Mr. Nishant Singh ( ). A thorough analysis of talent management today was performed to investigate the requirements and changing trends of acquisition, retention and development of talent in companies. Insights were made as to how such talent management practices are in line with the strategic intent of organisations.

2. OBJECTIVES
The study has been conducted for two companies from the banking sector with the following three objectives: y y y To explore trends (purpose, program duration, type, level, characteristics, etc) on talent management and development practices in business organizations. To understand the competencies and traits considered essential by the industry in their employessfor competitive advantage. To explore best practices around talent acquisition, retention and development as a process and make deductive recommendations to the same.

3. TALENT MANAGEMENT 3.1 Overview

Today many problems plague the HR management of an organisation. The most common of these are: y y y y y y y Heightened competition for skilled workers. Impending retirement of the baby boomers. Low levels of employee engagement. Acknowledgement of the high cost of turnover. Arduous demands of managing global workforces. Importance of succession planning. Offshoring and outsourcing trends.

Companies have come to realize that their employees talents and skills drive their business success. Companies that have put into practice talent management have done so to solve an employee retention problem. The issue with many companies today is that their organizations put tremendous effort into attracting employees to their company, but spend little time into retaining and developing talent. This requires new thinking and a new mission to achieve business success. These factors coupled with the need to align people directly with corporate goalsare forcing HR to evolve from policy creation, cost reduction, process efficiency, and risk management to driving a new talent mindset in the organization. One important distinction is the evolution of the difference between tactical HR and strategic talent management. Transactional HR activities are administrative overhead. Talent management is a continuous process that delivers the optimal workforce for your business. In this new modelinstead of being the owners of processes, forms, and complianceHR becomes the strategic enabler of talent management processes that empower managers and employees while creating business value. With this view, talent management may be defined as the implementation of integrated strategies or systems designed to improve processes for recruiting, developing and retaining people with the required skills and aptitude to meet current and future organizational needs.

Talent management is depicted as a circularnot a linearset of activities as shown below.

The main focus of talent management systems are: y y y Recruitment - ensuring the right people are attracted to the organization. Retention - developing and implementing practices that reward and support employees. Employee development - ensuring continuous informal and formal learning and development. y Leadership and "high potential employee" development - specific development programs for existing and future leaders. y Performance management - specific processes that nurture and support performance, including feedback/measurement. y Workforce planning - planning for business and general changes, including the older workforce and current/future skills shortages. y Culture - development of a positive, progressive and high performance "way of operating".

3.2 Designing a talent management system

A successful talent management system needs to include all the employees of the organisation from new recruits to tenured professionals to executives. Also talent planning must be done in parallel with business planning, creating a rich integration of people and strategy.

A suggested good talent management system integrating all the processes of the organization can be like the following:

The five elements in the above diagram are: 1. Need the business need derived from the business model and competitive issues. 2. Data collection the fundamental data and intelligence critical for good talent decisions. 3. Planning people/talent planning guided by data analysis. 4. Activities the conversion of plans into integrated sets of activities. 5. Results costs, measures and effectiveness criteria to judge the value and impacts of Talent Management.

4. METHOD OF STUDY
This research was conducted keeping in mind the BFSI industry. Hence, these questions were designed for the purpose of interviewing bank officials (senior managers or heads). SECTOR- BANKING AND FINANCIAL SERVICES (BFSI)
The BFSI sector is one of the most prominent sectors headlining the horizons of economic growth. Banking, Financial Services and Insurance (also known as BFSI) is an industry name. This term is commonly used by IT/ITES/BPO companies to refer to the services they offer to companies in these domains. Banking may include core banking, retail, private, corporate, investment, cards and the like. Financial Services may include stock-broking, payment gateways, mutual funds etc. Insurance covers both life and non-life. A lot of data processing, application testing and software development activities are outsourced to companies that specialise in this domain. The sector, being highly competitive and part of service industry requires efficient talent management practices. We have looked at the key challenges in this sector and then focused on two companies.

4.1 Nature of Study

This study was conducted over a period of one month in two banks located in Mumbai. The observations in this study are based on interviews with senior management of those banks. The survey was conducted in two steps: 1) The first step was to approach the senior managers of specific banks and establish contact with them for interview. They were emailed the questionnaires so that they could briefly have a look at it. Then the mangers could either chose to give the interview themselves or depute another employee who would be in a position to give us the data. 2) The second step was the interview itself. During the interview, the questions from the questionnaire were put forward to the person.

4.2 Tool used for the study

The tool used was the questionnaire itself. The information collected during the interview was noted down in a document which was later used for analysis.

4.3 Organizations studied

Two banks were chosen, one the largest private sector bank in India, ICICI Bank and second, a complete global bank, Deustche Bank.

4.3.1 ICICI Bank

ICICI Bank is India's second-largest bank and the largest private sector bank by market capitalization with total assets of ` 3,634.00 billion (US$ 81 billion) as on March 31, 2010 and profit after tax ` 40.25 billion (US$ 896 million) for the year ended March 31, 2010. The Bank

has a network of 2,035 branches and about 5,518 ATMs in India and presence in 18 countries. Mrs. Chanda Kochhar is the current MD & CEO of the bank. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Indonesia and Malaysia. Our UK subsidiary has established branches in Belgium. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

4.3.2 Deutsche Bank

Deutsche Bank AG is an international universal bank with its headquarters in Frankfurt, Germany. The bank employs more than 80,000 people in 72 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets. As on 30th June, 2010, the Bank has 1,926 billion (US$ 2,427 billion) worth of assets and a net income of 2.94 billion (US$ 3.7 billion). Mr. Josef Ackermann is the current CEO and Chairman of the group Executive committee. The bank offers financial products and services for corporate and institutional clients along with private and business clients. Services include sales, trading, and origination of debt and equity; mergers and acquisitions (M&A); risk management products, such as derivatives, corporate finance, wealth management, retail banking, fund management, and transaction banking.

5. FINDINGS AND CONCLUSIONS 5.1 Introduction and Background

In each of the organizations, ICICI Bank and Deutsche Bank a very exhaustive talent management process can be identified. Their talent management process is seen to start right from the recruitment and selection process to the succession planning. There are various training programmes in place to build on talent of the employees and the performance management of the candidates is done on specific criteria so as to align their activities to them. Proper succession planning tools are also in place. The Talent management process in these organizations follows the following processes as can be seen with the talent management lifecycle diagram below:

Talent Lifecycle

5.2 Talent Management Process

5.2.1 Structure and hierarchy of organization
An organisation's structure is a framework that allots a particular space for a particular department or an individual and shows its relationship to the other. ICICI ICICI is broadly classified into retail banking and wholesale banking. Within each of these groups are various sub-groups depending on the line of activities like, sales, credit, risk, policy, etc. Also there are support functions like HR, Admin., Operations which cater to all/more than one divisions.

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The hierarchy can be seen below:

Executive Director

General Manager

Deputy General Manager

Asst. General Manager

Chief Manager

Manager

Asst. Manager

Senior Officer

Junior Officer

Hierarchy of ICICI Deutsche Bank Deutsche Bank is divided into the following main three divisions: y y y Corporate and Investment Bank PCAM or Private Clients and Asset Management Corporate Investments

There are support functions like HR, Admin., Operations which cater to all/more than one divisions.

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The hierarchy of Deutsche bank is as follows:

Vice president

Associate Vice President

General manager Levels

Officer Grades

5.2.2 Selection Process

Employee Selection is the process of putting right men on right job. It is a procedure of matching organizational requirements with the skills and qualifications of people. ICICI bank For every level of employee candidates are considered from the internal pool of employees, references and outside candidates. The selection process varies for various levels. For Management trainees, the company visits Business schools and CA placements. Here there is an initial screening of CVs, followed by a small test online, then GD (which is an elimination process) and finally personal interview (selection process). The candidate has 3 rounds of interviews- 1st with the team head, 2nd with the dept head, and then with the HR team. For sourcing employees from inside the organization there is over the job posting. There are 2 ways for over the job posting. a. Either the employee directly contacts the concerned dept that he is interested in taking up the job. b. Otherwise the HR team contacts all departments that an opening is available and the depts. communicate this to the employees.

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For a person to be placed in a position internally he needs to have at least 1 or 2 yrs experience in the organization and a rating of 1 or 2 in this performance sheet. Deutsche bank In Deutsche bank Selection is based on various parameters : Work experience, Educational Background including field of specialisation of the candidate as well as merit and other certifications done, relevant to the job applied for. It is conducted by a technical expert in consultation with the HR manager and does not have a zealously fixed format. For freshers recruitment from B schools is common, where they go through a process of CV shortlisting, GD and personal interview.

5.2.3 Training Programs

Training programs are aimed at conducting classes or providing material to the employees so as to make them more efficient and well versed with their job requirements.

ICICI The training programs for ICICI are 2 fold:

a. Do-It-Yourself online training module called Learning Matrix This is related to vocational topics related to the financial sector. It is a module which is developed inhouse. It is prepared for a particular division for on the job training in their respective sector .An employee is required to complete 4-5 mandays of training as per convenience. It is a standardized and mandatory programme. b. Classroom Courses These are related to soft aspects like leadership skills, motivation, presentation skills, etc. There are several programmes like leadership development programme, goal development programme, interpersonal development programme, management training programmes held for the employees each year for 2 days. They take place in centralized locations like Mumbai, Delhi, Jaipur etc.

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These HR programmes are compulsory for all the employees of all departments. They are standardized. These are conducted by external people for which external training agencies are hired. Deutsche Bank In Deutsche specific programs are conducted for the freshers and the regular employees. a. For Freshers: There is on the job training programme which has modules relating to subjects such as Wealth Management Program, Financial Planning, and System Programs. This is conducted every Saturday. It is mandatory. Additionally the company supports the freshers certification courses such as AMFI, IRDA etc b. For regular employees: Product training related to specific projects is conducted once every 3-4 months as and when new projects are allotted to them. In this organization training programmes have a lot of flexibility with no standardization as The programs differ from topic to topic, project to project, requirements as well persons responsible for conducting the same. Mostly external agencies are hired for each of the training programmes. The various tools used for training programmes are Audio Visual aids (on and off job), Online training modules and tests, Role plays, Case studies and Video situational analysis.

5.2.4. Performance Management

ICICI The performance management platform is completely online. Achievement against business targets, ability to work in a team (feedback from internal customers), client feedback and self development/training are the main tools to measure both employee effectiveness and growth potential. The weightage given to the various criteria to evaluate an employee are: Around 85% weightage is given to criteria related to the performance of the employee in the daily operations. The various indicators used are: achievement against business targets, feedback from superirors, clients and peers etc. Also Every year the employee fills a goal development sheet on which he is asked to fill in his desirable goals which he wishes to achieve in the year. At the end of the year the employee is asked to do a self assessment with regards to how much he has achieved in the year. The superiors of the employee rates the overall performance of the employee. Around 15% weightage is given to the overall performance of the employee during the HR training programmes. 5% weightage is given to the performance of the employee in the training exams
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The performance of the employee is communicated to him by uploading his PMS sheet on the online system where the employee can see his results by signing on to his individual account. Deutsche bank Performance management in deutsche bank is based on various parameters like Time spent in the organization, Leadership potential, Ability to mentor others on the team (evaluated by team feedback), Delivery and Punctuality on work including adherence to deadlines and targets, Crisis Management etc. The evaluation of the employee against these various parameters is done through an online database circulated throughout the HR levels and is steadily updated with the outcomes of various programs. In addition, poor performers are asked to retake certain modules which require them to improve. Measurement also requires a technical expert of that department to be present in order to do an unbiased evaluation along with the project manager and team as well as the HR. There is no clear demarcation as to the weightage given to different parameters but around 80% is given to work related indicators and the rest to the training programmes conducted.

5.2.5 Compensation
ICICI bank In ICICI there is a formation of the Talent Pool which comprises of the top performers from various teams. There is a huge amount of brain-storming done by the senior management to decide who all get to be a part of the talent pool for a particular year. These performers get higher bonus, increments and promotion vis-a-vis the other employees. For low performers incentives are withheld and counseling is done to motivate the nonperformers or low performers. There are times when they are transferred to other departments if it is felt that they will perform better elsewhere. Deutsche bank There is no clear demarcation of high performers vis--vis the low performers as in ICICI. But the high performers are rewarded through bonuses, incentives, promotions as well as hikes in salary and designation. For low performers, Additional off-the-job training and offline content modules have been designed exclusively for such candidates. Feedback is taken on a more-than-routine basis from such performers as we always give an opportunity to every employee to explain his performance first. More often than not, the departmental HR resolves such issue within time span of a month.

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5.2.6 Succession Planning

ICICI Bank It is done for the employees in the talent pool. Their performance sheet scores are considered and the opinions of the employee and the supervisor are considered for recommending an employee for a particular post. Deutsche Bank While eligibility plays the most important role here (in accordance with the rules set by Deutsche Group), we prefer succession planning through long lasting employees that have occupied reasonable number of roles in the organisation. We usually do it based on the vacancy which arises and then benchmark the potential candidates against the role to be filled. For highly crucial positions, even the top management is brought into picture. Opinions of the employees for the same post are also obviously considered.

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6. RECOMMENDATIONS
A number of recommendations can be drawn from looking at the case interviews conducted and the overall talent management systems used in organisations. These apply to every sector and are not industry specific.  Every organisation needs to align their talent management system to their specific business requirements. There is no one way to do talent management.  When considering the right talent management system for your organisation, you first need to decide which perspective is most relevant to your business goals. It is then important to look at the most relevant dimensions to help shape the way you define, develop and structure your talent management system.  Designing and implementing a talent management system can be shaped by the dimensions. All the case study organisations could be mapped against these dimensions demonstrating that they are common to all talent management systems.  Talent management requires a talent culture to be developed so that talent conversations become acceptable throughout the organisation and individuals are encouraged to expand their networks.  Care needs to be taken with disseminating talent management practices as talent management inevitably leads to segmentation and this can conflict with diversity and inclusion initiatives. Talent management systems can complement diversity initiatives by ensuring equality of opportunity to enter the talent pool and transparency over selection criteria.  When designing appropriate routes for developing talent within your organisation, it is important to consider the prevailing culture within your organisation and the appetite for risk.  Offering differentiated and tailored development routes that can meet individual needs and strengths can help to improve the engagement of those identified as talent and avoid perceptions of under-utilisation.  Measures of return on investment (ROI) should be appropriate, measurable and economical. There is no point collecting costly data that is not feeding back in the right areas. Equally, failing to collect data leaves organisations with a blind spot and they will not be able to tell if their talent management system is meeting its strategic objectives or not. Measures of ROI are best considered when the system is being designed, so that the evaluation process is designed into the system itself.  Central ownership for talent management is important to achieve alignment with the organisations strategic objectives and to help diminish the potential for silo mentalities.

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 It is important that any talent management system is integrated across all aspects of human resource management. There are clear inter-dependencies between talent management and recruitment, development, diversity, retention and succession planning practices.

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7. References
y y y y Mr. Rhushad Nariman (Acquisition Manager), Deutsche Bank Ms. Ayesha Hasan (Sales Manager and in charge of training and development), Deutsche Bank Ms. Shristi Dalmia (Credit Manager), ICICI Bank Mr. Nishant Singh ( ), ICICI Bank

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Annexure I Questionnaire on Talent Management in Organizations

1. How is selection process for the various levels in the organization? 2. How is the structure of the organization? 3. What are the training programs that fresher needs to go through? 4. What are the programs for the employees already working? 5. What are the various tools used for training and development? 6. What is the frequency of such programs? 7. Are the training and development programs conducted by internal employees or external? Who are the main players involved in planning and executing this programs 8. How is the effectiveness measured? 9. Are the programs standardized? 10. How are people motivated to attend these programs? 11. How is Performance Management done at organization, department and individual level? 12. What are the parameters used to evaluate ones performance? 13. What are the benefits: Financial and Non Financial? 14. What kind of technology and tools are used to measure performance? 15. How are high performers rewarded? 16. How are the low performers handled? 17. How is the performance system communicated to employee? 18. How is succession planning done using these performance management tools?

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