The Talent Gap: Three Processes Bankers Must Embrace to Safeguard Risk Management Continuity

Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending

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THE TALENT GAP: THREE PROCESSES BANKERS MUST EMBRACE TO SAFEGUARD RISK MANAGEMENT CONTINUITY


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• U.S. banking has become more skills-intensive.

• Geographical bank expansion and intensified competition has prompted an upgrade of skills.

• One in four of U.S. customer-facing retail bank staff needs to be replaced annually.*

• “In recent years, all careers have seen an escalation in the credentials needed to succeed.”**

*Source: Deloitte ** HBR Blog Network: “The Skills Gap That’s Slowing Down Your Career”

TRENDS


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Banks want employees with the skills and experience to perform multiple job functions across many risk areas.*

Credit analysts and experienced relationship officers are in high demand.*

52% percent are worried that their bank is at risk of losing talented executives.**

60% percent believe that their bank needs to cultivate a broader talent pool.**

4 1 3 2 TRENDS (CONT.)

*The RMA Journal **North Western Financial Review survey


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THREE PIVOTAL PROCESSES 1. Analyze the talent gaps.

2. Develop strategies to address the gaps.

3. Rethink training.


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What? Where? Why?

What are the talents gaps?

Where are the talents gaps?

Why have the gaps occurred?

FIRST: ANALYZE THE TALENT GAP


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DETERMINE

Determine the skills your company needs.

ASSESS

Assess existing talent using performance appraisals, benchmarking, and testing.

IDENTIFY

Identify employees with potential.

1 3 2 WHAT ARE THE TALENT GAPS?


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WHERE ARE THE TALENT GAPS?

Departments Lines of Business

Divisions

Identify talent gaps by:


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WHY HAVE THE TALENT GAPS OCCURRED? IDENTIFY THE CAUSES

Attrition

Retirements

Hiring freezes

Rapid growth


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• Map out training as a part of an ongoing career development path and not just skills for the initial job.

• Match training to business needs.

SECOND: DEVELOP STRATEGIES TO ADDRESS THE TALENT GAPS


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OPTIMIZE YOUR TALENT STRATEGIES

Optimize your talent-management strategies by focusing on:

• Capabilities.

• Minimizing turnover of the most skilled managers.


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This approach lets you:

1. Assess the skills, work ethic, and character of prospective workers.

2. Provide training tailored to specific needs.

OFFER INTERNSHIPS OR COOPERATIVE DEGREE PROGRAMS

FOR COLLEGE GRADS


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MINIMIZE TURNOVER

Develop an incentive program that interests/motivates talent.


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ENGAGE EMPLOYEES

Ask staff members to participate in your employee development planning.


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MENTOR STAFF MEMBERS

Mentor and train talent for leadership roles.


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THIRD: RETHINK TRAINING

Make training a strategic initiative.


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CHOOSE TRAINING THAT SUITS YOUR NEEDS

Education providers—like

The Risk Management Association

(RMA)—offer a range of training types and levels.

Traditional classroom

training

Online training

Combined classroom and online training

Certificate programs

Certification programs Forums

Round tables

Conferences

Custom solutions

Audio conferences


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Builds a stronger risk culture.

Develops leadership and more knowledgeable talent pool.

Boosts commitment to career.

ADVOCATE CERTIFICATES AND CERTIFICATION

Sets up continual learning.

Business benefits


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Networking opportunities.

Recognition of continual learning.

Resume enhancement: increased chance of getting job/promotion.

ADVOCATE CERTIFICATES AND CERTIFICATION (CONT.)

Clear opportunity for differentiation.

Individual benefits


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A generation of credit

professionals is poised to retire

soon. You should address replacing them

now.

Mentor existing talent and recruit new talent with

commercial banking career development in

mind.

Train and rotate talent through

critical jobs before

promoting to managerial level

jobs.

DEVELOP AND IMPLEMENT YOUR TALENT REPLACEMENT STRATEGIES NOW.


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Economy & Finance

The Talent Gap: Three Processes Bankers Must Embrace to Safeguard Risk Management Continuity