Talent Management:

1

• Talent Management
• A Sector Approach
• Team Azizi
• Arshad Hassim
• Sandile Sokhela
• Dumile Makapela
• Johlene Narayadu

2
Talent Management

• Our Definition
• Attract,
• Develop, and
• Retain high potential and performing individuals

3
Challenge

• How to create an environment as a Banking Sector
  where we
• can
• Attract,
• Develop and
• Retain top talent within the Banking Sector

4
Current Situation

• Financial Sector Charter targets Senior Level
• Few Black female executives
• HIV/AIDS pandemic
• Economy growing at 4.9 (target 6)
• Aggressive Head Hunting of Black Talent
• Exit of Talent to Explore Opportunities outside
  the Sector

Supply and Demand Imbalances
5
Attract, Develop and Retain
SKI LLS SHORTAGE
Exit
Banking Sector Career Development
Entry into the Sector
6
Attract, Develop and Retain
SKI LLS SHORTAGE
Exit
Banking Sector Career Development
Entry into the Sector
7
Banking Sector
Symptoms
Entry into the Sector

• 30 graduates unemployed
• Talent from other sectors reluctant to enter
  the
• sector
• International Executive MBA Programs do not
  
• feature South Africa

Wits University March 2007
8
Banking Sector
Root Causes
Entry into the Sector

• Supply and Demand Imbalances
• - Academic Institutions not meeting industry
  demands
• - Lack of Sector Brand Awareness
• Empowerment Entrepreneurial Opportunities
• Lack of Understanding of generation X and Y
• different expectations

9
Banking Sector
Entry into the Sector
Recommendation
10
Sector Collaboration

• Eliminating barriers to Entry
• Develop Industry Entry Level Qualifications e.g.
• Financial Markets
• Bank Financial Risk Management
• Customer Relationship Management
• Align current Academic curriculum to industry
  needs
• Identify key skills needed for the future in the
  banking sector (5yrs)
• Where is talent demand outpacing talent supply
  currently
• Which segments of the workforce create value

11
Sector Collaboration

• Eliminating barriers to Entry
• Market the sector to improve its brand
• Positioning of Bankseta
• Buy-in and support from Government
• Career days
• Advertise
• More in-service training opportunities

12
Banking Sector
Entry into the Sector
How Implementation
13
Sector Collaboration
Proposal
BankSeta Driver
Institute of Bankers
BankSeta
Bankers Association
Form Interbank committee
14
Value in Collaboration

• Toronto Financial Services Alliance
• Enhance and promote the competitiveness of
  Toronto
• Promote locally and internationally, the
  capabilities of the industry
• International Financial Services of London (IFSL)
• Promotes the skills and expertise
• Raise awareness of the size and importance of
  London
• Invest Australia (AXISS Australia)
• Global financial services centre in the Asian
  time zone
• Advice to Government financial policy,
  regulatory and market structure issues

15
Attract, Develop and Retain
SKI LLS SHORTAGE
Exit
Banking Sector Career Development
Entry
16
Symptom
SKI LLS SHORTAGE
SA Bank Scenario 1Profits after-tax
R10bnR525 000 x 35000 x 20 x 15 R
551,250,000.00 per annum
Job-hopping could be costing South Africa more
than R25bn a year based on SA Reserve bank
figures.
17
Symptom High Turnover

• 1.5x Salary Cost per Individual (Fortune 500)
• Hurt Factor of 20 consistent with international
  literature
• Turnover of 15 range 8 to 23
• Number of Employees 35000 consistent with the
  Big Banks in SA
• Mid Point Middle Management band as defined by
  the Old FSC Charter Codes
• Top Talent 7000 employees
• Cornel University (1.5x)(Top Talent)(Annual
  Turnover Rate)

18
Root Causes
Banking Sector
Career development
Entry

• Inequalities of the past has resulted in a lack
  of experience in previously disadvantaged
  individuals
• Slow pace skills transfer at middle senior
  management levels
• Emigration of South African talent due to
  globalisation
• Shortage of skills has resulted in the war for
  the same talent by the banks
• Generation X and Y have different expectations

19
Banking Sector
Career development
Entry
Recommendation
20
International ExchangePrograms

• Accelerate Skills Transfer through Secondments
• Career Customised Approach
• Technical or Leadership positions (Middle or
  Senior)
• Post Graduate Academic Qualifications

A Two way relationship between South Africa and
Canada
21
Benefits

• Deeper skills pool
• High morale
• Loyal employee
• Enhanced culture
• Improved continuity

Competitive pressures
Retention
Best practice
Investment opportunities
Retention
Attraction
Cost effective
Enduring legacy value
Reduced risk
Credibility versus Colour
22
Why should TFS Engage?

• Embedded Value Capabilities
• ING Insurance
• International Financial Reporting Standards
  Implementation
• Canadian Bankers Association
• Mining Finance
• National Bank

23
Other Areas of Interest

• Mortgage Finance
• Asset Management Product Development
• Mobile Banking
• Debt Capital Markets

24
Banking Sector
Career development
Entry
Implementation
25
International Exchange Program
BankSeta
TFSA / Immersion Lab
Engage with South African banks
Engage with Canadian banks
Identify Competencies Identify Candidates
Identify Competencies Identity Candidates
26
Conditions for SA

• Middle to Senior high potential Individuals
• 3 4 years with the Organisation
• Service Contracts Similar to MBA

27
Top International Banks

• Deutsche Bank
• Merrill Lynch
• Citigroup
• JP Morgan

International Exchange Programs key to development
28
Talent Management
SKI LLS SHORTAGE
Retention
Banking Sector Career Development
Entry into the Sector
29
What is the Link?
Revenue
Employee Commitment
Customer Loyalty
30
The Business Case
Revenue
Employee Commitment
Customer Loyalty
5
3
3

• Over 18 to 24 months

Source CIBC Analytics
31
Academic Supporting Research
32
Cappelli (2000)

• Mechanisms for retaining employees
• Job customisation
• Job design
• Compensation
• Social ties
• Location
• Hiring and retaining the most valuable employees.

Cappelli, P (2000) A market driven approach to
retaining talent, Harvard Business Review,
January-February 103 -111.
33
Cappelli (2000) Concluded

• market, and not the organisation, will ultimately
  determine the movement of employees.
• Organisations may be able to counter the push
  factors
• Organisations cannot counter the pull factors

34
Cappelli Recommends

• retention strategies should focus
• key employees or groups of employees
• an understanding of employees perception of the
  labour market.
• Perceptions are influenced by
• culture,
• past experience,
• environment,
• families and
• peer groups

35
In Summary

• External challenges require sector collaboration
• We have the means to eliminate some of the
  existing barriers
• We have the means to enhance the sector brand
• Capacity building locally and internationally
• Improve the pace of skills transfer to fast track
  growth in the
• economy
• Promotion of capable individuals i.e. credibility
  versus colour

36

• Thank You

• The objective is not to prevent employee loss,
• but to control its frequency and timing.
  Cappelli (2000)