Over the last three years, people’s working habits have been totally revolutionised by the pandemic, and it is looking increasingly likely that many of these changes will become permanent features. Simultaneously, financial institutions are also thinking more laterally about how they nurture and retain talent. Margaret Harwood-Jones, Managing Director, Global Head, Financing and Securities Services at Standard Chartered, explores some of the transformations happening in today’s workplace.
The pandemic upends working practices
The pandemic has had an acute impact on labour markets, as record numbers of people voluntarily leave their jobs. In March 2022, 4.5 million Americans quit their jobs, while data from the US Labor Department suggests there are currently 11.2 million vacancies still waiting to be filled.1
Asian markets have not been immune from the “Great Resignation” either, with a study by Mercer revealing there had been a 69 per cent increase in turnover in Singapore during 1H 2021.2
1 Bloomberg – August 30, 2022 – US job openings unexpectedly rise to 11.2 million, near a record 2 Mercer – September 20, 2021 – Compensation matters, but may not solve talent troubles of Singapore companies, says Mercer
A lot of this change is being fuelled by mid-level staff seeking employment opportunities elsewhere, as the gradual easing of pandemic restrictions across Asia fuels pent-up demand for change. As with the rest of the world, many companies in Asia are struggling to fill the openings left by departing staff.
Labour shortfalls are a growing problem in the Middle East too. According to a PwC study, 46 per cent of workers in the UAE said there was a shortage of people with specialised skills in the country, rising to 58 per cent in Saudi Arabia and 75 per cent in Kuwait.3
3 PwC – June 21, 2022 – PwC Middle East Workforce Hopes and Fears survey 2022
Flexibility will be key
As normality resumes, flexible or hybridised working practices are becoming increasingly ubiquitous. In Asia, Africa and the Middle East, this is a radical departure from the norm, as working from home never really took off in these regions pre-pandemic, like it did in Europe and North America.
Organisations have adapted accordingly. In 2020, Standard Chartered unveiled its Future of Work concept – building on the bank’s existing flexible working practices and introducing flexi-working in its offices globally. It also provides a framework allowing for staff and leadership to negotiate and agree on new working arrangements, in a way that strikes a sensible balance between working from home and being in the office.
Although remote working has its benefits, time spent in the office is also important as it allows staff to familiarise themselves with the bank’s culture; build networks; and forge meaningful business relationships.
Maximising staff potential
Banks are looking at new and innovative ways by which to maximise staff potential.
Standard Chartered, for instance, recently scrapped its performance ratings system for staff, by moving to a continuous feedback loop throughout the year. Line managers have a vital role to play here, so it is critical that they are supported during the whole process.
As such, Standard Chartered has introduced new tools to help managers identify the performance and potential of their teams; provide a framework for succession planning and expand the performance process to enable them to focus more on discussions around career development.
If financial institutions are to thrive, then they also need to embed a culture of strong and continuous learning habits among staff - a practice which is prevalent across some of the leading technology companies.
In a report by PWC, 74 per cent of people surveyed indicated that they are ready to learn new skills or re-train to remain employable in the future.
This is something which Standard Chartered is looking to facilitate among its vibrant workforce.
There has been significant investment in technology by Standard Chartered to ensure all staff have access to tools which can help them build upon their existing skills. In 2020, Standard Chartered launched diSCover – an internal learning platform which provides a single point of access to all of the bank’s online educational materials, and this is currently being used by more than 80 percent of staff.
Elsewhere, Standard Chartered’s Future Skills Academies covers topics such as Data and Analytics, Digital and Sustainable Finance, delivered to colleagues in bite sized chunks based on their individual growth plans. In contrast to conventional internal trainings and certifications, HR and subject matter experts will source cutting edge content and training courses that can help teams learn more about the key trends shaping the banking industry.
Standard Chartered also operates Global Learning Weeks, whereby senior managers share with staff some of their unique insights into the dynamics influencing the industry. The theme of upskilling, education and development is also very much in line with the bank’s sustainability pillars.
Technology is also being leveraged in order to help upskill staff Standard Chartered recently introduced Talent Marketplace, an AI (artificial intelligence)-enabled platform where employees can be matched with suitable short-term project opportunities across the bank globally according to their interests, skills and experiences.
Digital and skills
Through technology, big data and innovation, the banking space is evolving, as new products and business models that serve customers better and more nimbly, can be developed much faster. This is illustrated by the rapid growth in data analytics solutions, distributed ledger technology and digital assets reshaping banking operations. For example, markets in Asia and the Middle East are among the leaders in terms of digital asset development and adoption.
A suitably skilled workforce which embraces the innovation mindset and is capable of utilising and understanding these disruptive technologies is urgently needed to support this new banking environment. Existing talent therefore needs to be upskilled to harness these tools.
This is why Standard Chartered has made investments in its workforce by setting up the digital asset COE and engaging with external experts to help current employees become more familiar with blockchain technology and how to build use cases around it.
Inclusion as an enabler
Historically, there has been a serious imbalance in terms of gender representation and diversity at the leadership levels in financial services. Despite women comprising 58 per cent of the total workforce at a junior level at finance companies, this is not replicated in the higher echelons of management. (See table).4
However, this inequality appears to be slowly changing. Since 2018, McKinsey notes that the share of women at a senior vice president level at financial institutions has increased by 40 per cent - and 50 per cent among the C-suite.
Women, particularly women of colour, continue to be underrepresented in financial-services roles above entry level.
4 McKinsey – October 21, 2021 – Closing the gender and race gaps in North American financial services
This is partly being enabled through COVID, as hybrid work models are now considered to be an acceptable practice – and such flexibility is helping convince some people to stay in the workforce who might otherwise not have.
Retaining mature, qualified, and experienced women is critical to the success of any company, as is recognising and educating leaders on the reasons that may contribute to them leaving the workplace, together with the provision of tools to help prevent such exoduses from happening.
Standard Chartered is widely considered to be a trailblazer when it comes to promoting gender diversity, with more than 35 per cent of the FSS Management team being women, in what is testament to the bank’s excellent diversity and inclusion (D&I) policy.
Getting the most out of people
Amid the ‘Great Resignation’, retaining talent is proving difficult. However, the organisations which embrace flexibility, diversity, and an innovative approach to people management and education, will be the ones who lead the way, and attract the best talent moving forward.
