Jobless bankers left behind by changing demand for skills

The global banking sector has seen tens of thousands of redundancies since the start of the downturn. But does this mean there is a ready pool of talent for banks to draw on as they seek recruits?

According to one analysis, 160,000 jobs were cut globally during 2012 at just 29 of the world’s biggest banks. Yet despite this, international banks are talking of a talent shortage and an inability to fill key roles.

Matthew Mellor, managing director at Armstrong Craven Executive Search and Selection, says the sector has changed since the global recession began. “The entire landscape of the banking sector is changing, meaning that organisations are having to adapt their talent infrastructures to become more customer focused.

“This is changing the nature of the pool of talent required and talent is being looked for outside the banking sector – from consumer-focused sectors such as retail and online,” he says. This leaves banks competing with the likes of Amazon or Facebook for skills – and often losing out.

Lee Slater, head of talent acquisition and international talent deployment at Standard Chartered banking group, sees a similar trend: “Where banks used to hire primarily banking experience, the downturn seems to have brought a focus on transferable skills with other sector experience.

“We are considering candidates with skills much wider than banking experience alone. When looking at talent and suitability, this means having to be more intuitive about fit, culture, adaptability and transferable skills rather than pure experience criteria.”

Mr Slater agrees that jobs cuts in recent years mean there is “a bigger external pool to draw from”, but he believes that for the big global banks “international experience and a global mindset remain relatively scarce”.

He says: “We operate in many exciting growth markets across Asia, Africa and the Middle East, and we need different skills in different places. For example, in Europe and the UK we might be focusing on the next generation to lead the bank. In China and Africa we may need more people who will be the next generation of middle managers.”

The skills demanded by international banks might also be growing more specialised, says David Leithead, managing director for banking and financial services at Michael Page, the search firm. “Employers are seeking talent but will hold out for candidates that precisely match their requirements. This will often mean relevant recent experience gained within the local market.”

The specific demand Mr Leithead sees across all regions is for risk and compliance, internal audit and other governance roles, as banks focus on controls, and areas such as financial crime and money laundering units, in response to local and global regulatory changes.

“In these fields, the supply of experienced people locally is often limited, so this is where international relocators may find opportunities,” he says.

Mr Leithead, also a former head of Michael Page’s Japanese business, adds: “The focus in many Asian locations is on building core workforces of nationals rather than foreign imported talent, which is sometimes related to tightening visa rules, but also reflects fewer senior vacancies, and, of course, a desire for local market experience.

“In some areas, such as operations, there is an oversupply of candidates.”

He says that in Hong Kong, Chinese institutions are pushing into the private banking market and competition for private bankers has intensified. Rating agencies are also strengthening their Asian operations.

The trend to shift back office functions to locations such as the Philippines, India and eastern Europe continues, he adds.

Sally Fisher, a partner at Deloitte specialising in organisation and change, says an international finance talent survey conducted by her firm found differences in recruitment channels in Asia, compared with other regions. She says Asia has a stronger internal referral network.

“They are not as reliant on external recruits,” she says. “Their overall anxiety about the talent shortage is about 10 per cent lower than in the Americas and the Emea region.”

At Standard Chartered, the response to this has been two-fold, says Mr Slater. “First, internal resourcing,” he says. “With an 89,000-strong team of capable people, one of the best sources of talent is our own backyard. We seek to develop the right technical and professional training combined with critical experiences to enable them to take up roles across our network.”

The second response is international mobility: “The movement of our people around our network provides an opportunity to share knowledge, processes and experiences, allowing us to fulfil specific resource requirements.”

At any moment, Standard Chartered has 800 people on international assignment, plus many more who have moved permanently.

Mr Leithead of Michael Page sees this happening across the industry: “The best firms have poured resources into internal mobility and talent management programmes, recognising that their talent shortages can often be addressed through development and redeployment of the current workforce.”

However, not all talent needs can be met internally, and recruitment practices need to change. This is where the banks are struggling, says Mr Leithead. “Pressure on costs is generally suppressing innovation in recruitment, with many banks placing too much reliance on referral programmes and networks, which can source relevant skills quickly but are generally anti-diversity.”

Elissa Coward, talent management expert at PA Consulting Group, agrees: “It is time for banks to take stock and reflect on who they need to attract to differentiate and compete. Will it be ‘more of the same’ or is it time for something different?

“In an increasingly connected, collaborative and transparent world, banks should focus on diversifying their talent profile and make a genuine commitment to cultural change.”

Mr Slater, based in Singapore, also notes many organisations shifting towards direct sourcing, reducing their reliance on recruitment agencies and search firms, and using a broader range of channels to build talent pipelines and fill roles directly. “Social recruiting, via channels such as LinkedIn, Facebook and Twitter, are proving a good tool for this, as well as building our employer brand in local markets,” he says.

As for the individual job-seeker, Mr Mellor offers advice: “International banking institutions are seeking individuals who are able to marry what it takes to work for a single global organisation with the constant ability to understand and adapt to the regional and cultural differences. Evidence of such qualities is vital.”