‘Engaging their workforce as a customer could be the solution:
Reputation challenges in engagement with local communities are very real concerns for Human Resources in Banking, with recent events in the USA and India banking reputation is at an increasing low: As the ‘sub-prime crisis’ of 2007 transitioned to the ‘credit crunch’, then eventually the full-blown ‘Global Financial Crisis’ (GFC) of late-2008 (1), every aspect and detail of the financial services industry was called into question. It is clear, eight years later, that the banking sector is still recovering and managing the fallout from the GFC. Unsurprisingly, this is impacting the way that banks go to market, the strategies enacted to rebuild their brand, and the perception of these endeavors in the wider community.
“The most effective HR Leaders in the Financial Services Industry will construct workplaces with superb leaders, who in turn create an internal culture of engagement and inclusion that produces performance and innovation, while enabling meaningful external engagement with their broader community in which they operate”
says John F Hansen, Oracle’s Vice President for Human Capital Management in JAPAC.
Sourcing the talent to reinforce and enrich your corporate brand
As is increasingly the case across all industries & sectors, people are at the heart of corporate endeavors that look to establish an explicit, transparent & easily relatable corporate brand to the community. An organizations workforce, managers and leaders are the public face, and primary mechanism, for building (and sometimes re-building) the values and brand of their employer. This means that, in the Financial Services industry, HR executives, and the broader HR function in each organization, will need to play a lead role in the re-establishment of banking institutions as responsible, non-discriminatory, trustworthy and valued contributors to our society.
“Banking is an industry which runs on trust and reputation. For customers to have confidence in this industry, banks need sound HR practices aligned with their business strategy, and staff who are both highly-skilled and display impeccable ethics and integrity”
says Balaji Kalyanasundaram, Global Client Advisor for Oracle’s Financial Services customers India
A key responsibility is therefore the attraction of talent into the financial services industry that will display these skills, ethics and integrity traits. So what channels will be most effective for showcasing your corporate brand, and identifying and attracting this talent pool? Traditionally, the corporate website may have been a primary indicator/communicator of an organizations’ brand, but research by CEB (2) indicates only 20% of candidates base their decision to apply for a role on this source.
“Today’s high achievers routinely bypass company websites” notes Bertrand Dussert from Oracle’s HR Transformation practice, and have turned to new and more contemporary sources of brand intelligence such as “the insights of current and former employees available via professional and personal social networks” (3).
Engaging with your current workforce and or community using digital social channels is a must, so upgrading the HR skill set, to understand how to engage, utilizing digital marketing with talent is key for the future success.
“ Modern HR should apply the same principles as Modern Marketers in understanding the digital body language of talent they’d like to recruit and engage accordingly”
recommended Wendy Hogan, Marketing Transformation & Strategy Director, Oracle Customer Experience APAC.
Given that Social Sourcing and Employee Referrals are regarded as the most effective sourcing method for new talent, Oracle has developed five strategies for sourcing the talent needed to bring your corporate brand to life:
- Treat Employees like your Customer, because the talent war today is for mind-share, heart-share and loyalty.
- Create Brand Ambassadors within your own workforce, and leverage their network connections and influence so you deliver Person 2 Person Marketing.
- Consistently Brand and show all your stakeholders, not just customers or employees a service of integrity.
- Identify Communities (social networks) to target for your social sourcing activities.
- Collaborate with Marketing for help with communications, they are working on community engagement and branding consistency as well!
Your leadership need to reflect your community for sincere engagement.
Diversity is a key driver in HR community engagement strategy; in particular this is prevalent for the recruiting of talent by advanced innovative Financial Services firms:
‘ Engaging with the external community you do business with is a key aspect of banking. So having a diverse workforce, with similar diversity in its leadership ranks & that reflects the community it serves, continues to be a driver in the Australian banking sector, and must form part of any workforce strategy’
says Liam Murray, Key Account Director for Financial Services in Oracle.
Ensure the right engagement messaging reflects your changing audience
The Financial services talent pool have many choices for the future, from Fin-tech to crowd companies, to even the way they are employed; indeed the Gig Economy is increasingly attractive for self motivated, highly skilled & innovative individuals who want to be involved in exciting projects; with freedom for flexibility & avoid the treadmill of the corporate ladder cited as some of the key reasons for being a freelancer; this highly selective, highly capable talent make decisions based on your companies engagement and reputation. This is a workforce that HR need to consider in these demanding times of talent short markets, where commercial agility is a must and where long term exposure to full time employees is being questioned.
“The U.S. freelance workforce grew by 2 million since 2014 and I believe it will continue to grow.” As the millennial generation becomes a larger share of our workforce their higher tendencies towards freelancing and entrepreneurial-ism will redefine our workforce and how companies have to engage.”
Before, during and after the employment of talent from the extended community, it is increasingly apparent, that the engagement practices of particularly the banking sector are critically being focused on more than fiscal reward; it is about creating a ‘joyful experience’, an engagement experience owned by HR custodians, who manage the ‘Human Risk’ for their firms.
‘Creating a joyful experience is a driver for some of our award winning innovative Financial Services Customers’, says Matt Tesseyman Key account Director Oracle Financial Services, ‘Indeed Employee engagement is considered a Key Performance Indicator of success in one of my pioneering customers’
At Oracle, we believe this continuous practice of engagement with both internal and external communities requires significant investment of HR’s time and analysis. We are partnering with our Financial Services customers across the globe to leverage Oracle HCM Cloud to support the transformation of their Human Resources strategy, and as a platform to drive engagement, collaboration, innovation for high-performance workforce’s’.
If you would like to have an advisory consultation or attend our next HR Financial Services Event in APAC please contact Mark Wadsley.
1. Gittins, Ross “The Global Financial Crisis and Its Effect on Australia” March 19, 2009 http://www.rossgittins.com/2009/03/global-financial-crisis-and-its-effect.html
2. Harding, Emily “Introducing the 2014 Employment Branding Effectiveness Survey” November 11, 2013 CEB Global https://www.cebglobal.com/blogs/introducing-the-2014-employment-branding-effectiveness-survey/
3. Dussert, Bertrand “The Big Reveal: HR In The Age Of Transparency” March 18, 2015 https://blogs.oracle.com/oraclehcm/the-big-reveal:-hr-in-the-age-of-transparency
4. Oracle Voice “5 Ways HR Leaders Can Win Talent Through Branding” October 2, 2015 https://blogs.oracle.com/oraclehcm/5-ways-hr-leaders-can-win-talent-through-branding
5. FINTECH WEEKLY “Fintech Definition”, 2016 https://www.fintechweekly.com/fintech-definition