Re-defining people strategy in the digital age

TPBank's goal is to become the leading digital bank in Vietnam

The banking sector has been going through several transformations in recent years. Banks have to continue revamping strategies to keep pace with regulatory changes, evolving needs of different customer segments and technological advancements. Such strategic revamp could only be brought to life by the right tatents.

With great tech advancements come great needs for people

The evolution of technology often leads to a big shift in the workforce of banking industry. McKinsey estimates that 43% of all bank working hours can be automated with current technologies, hence, the fear of robots taking humans' jobs can be understood.

However, this concern has actually been well addressed throughout the years. For one, the digital advancements mean better, faster and more effective customer services. The impacted workers can be reskilled or upskilled for new jobs. On the other hand, new technologies require new experts in digitalisation, IT, data, etc. to facilitate the banking revolution.

Vietnam’s banking sector development strategy to 2025 with a vision to 2030 has set out clear objectives of digital transformation and workforce building for banks. Accordingly, the State Bank of Vietnam (SBV) has issued Decision No. 1537/QD-NHNN approving the action plan for the banking sector to proritise high performing workforce.

The central bank's Deputy Governor Nguyen Kim Anh once said that the human resources are fundamental to the sustainable development of banks and financial institutions. Therefore, employers should pay attention to train and upgrade their people in order to meet the high demands of the Fourth Industrial Revolution (Industry 4.0).

Challenges for employers…

According to Navigos Group, the number of candidates are limit ed in terms of quantity and quality in response to the need of banking digital transformation. In terms of quality, the market is in short supply of candidates who have experience in utilising advanced technology. Besides, the quantity of candidates does not satisfy the need of banks who want to recruit a large number of talents in a short time frame. The supply shortage has made the talent attracting and retaining competition fiercer among banks.

In order to stay ahead of competition, beyond raising bars in recruitment quality and employer branding, banks need to focus on building an environment for their employees to be at their best. By taking good care of their people, they could not only retain the existing talents but also prove to the potential candidates that they really offer a great place to work.

… open up new opportunities

A great place to work embraces a lot of aspects. First of all, it should reflect a culture that supports widely promoted values including diveristy and inclusion. The organisation should be a diverse place that brings together people with different views in perceiving the world.

At HSBC Vietnam, our people come from more than 10 nations and territories. Different ideas and perspectives help us innovate, manage risk and grow the business in a sustainable way. That's the reason why the bank's leaders are committed to work towards creating a place where everyone feel valued, appreciated and supported to be at their best.

One of the key focuses in developing a quality workforce is gender equity. In 2018, HSBC Vietnam set a target to achieve 30% women in senior leadership by 2020, which we achieved with 30.3%. We extended our target to 35% by 2025 – which we are on track to meet. As by the end of 1Q23, the number of women in senior leadership was 33%, making it 64% of women in senior executives roles.

Moreover, for employees to be at their best at work, it is important for them to be mentally, physically, financially and socially healthy. Therefore, many initiatives have been rolled out to support their wellbeing, including supplementary medical coverage scheme, wellness classes like yoga or dance, health talks, etc.

Ms. Tran Thi Nguyet Oanh, Country Head of HR, HSBC Vietnam

Becoming a talent magnet by making a difference

The current workforce in the banking sector is very diverse, particularly from demographic perspective. It has become normal to see four different generations including Baby Boomer, Gen X, Millennials and GenZ working together in one place. Each generation has its own lifestyle with different needs and plans. Against this backdrop, the more employers understand such generational differences, the more competitive edges they gain when it comes to talents. The key is to have the insights of who they are and what they needs to address.

Corporate culture: This remains among top 3 factors that impact employees' motivation to stay with a company. A company's culture is shaped by its shared purpose, values that refers to the attitudes and behaviours which characterise itself as an organisation. More than ever, employees would want to know how their jobs matter, what they contribute to and how they support the organisation and the society. More importantly, the purposes and values of the employers should resonate with the personal goals and principles of its people. Thus, not only banks but any organisation in any industry needs to show its talents where it's heading to and who it's serving. In an internal survey conducted in 2021 after HSBC Group refreshed its purpose, values and strategy, 84% of its employees in Vietnam said that they understand how the changes apply to them and their role.

Working environment: This is the top factor that impacts the motivation of employees to stay and work with a company, and it also remains the area that most employees (60.2%) would like to see improvements this year. In the post-Covid world, hybrid working model that combines the best of remote work with in-office work has become a new norm for employees. It is noteworthy that a large population of GenZ (69.8%) also supports this model. It allows them to have more choices in how, when and where they work, giving them the best of both worlds. By the end of 2022, 59% of HSBC Vietnam staff are working in hybrid mode, a significant increase in comparison with 2021's level of 37%, reflecting the growing need for flexible working.

Compensation and benefits: A total reward package is not just about good fixed and variable pay. It's also about other meaningful benefits that support employees to be at their best at work, including supplementary medical coverage, more leaves, allowances, etc. In order to better support a life after retirement of its employees, HSBC Vietnam has recently partnered with Dragon Capital to launched a voluntary supplementary retirement programme for all employees in Vietnam. This is an important step forward for the labour market given Vietnam is considered one among nations with the fastest aging population in the world. The number of people at and above 60 years old is expected to increase by 5 million and old people will account for more than 17% of Vietnam’s population by 2030 and expected to reach 29.8 million, equivalent to 27.2% of the total population of Vietnam by 2050. When the country moves from “golden population” to “aging population”, there will be a hike in social welfare, that requires an early planning.

Development and career opportunities: According to a LinkedIn's research, opportunities to learn, develop new skills and career growth are among top five factors that people consider when pursuing new jobs. Besides, promotion is one of four top reasons that employees consider when changing jobs. In order to facilitate effective learning and development, solutions can be beyond course-based, from on-the-job learning, coaching to mentoring, and more. At HSBC, our people have the access to multiple platforms that help them upgrade their skills in various spaces including the content that aligns with social and economic movements, like ESG and sustainable skills or future skills to prepare for the future of work. Equipped with such skills, employees can grow and get ready for future career opportunities including not only hierarchical movements but also progression in new areas. My own promotion can be the testament to HSBC’s long-term people strategy, which encourages a “no boundary” environment for our staff to develop themselves in new areas, fulfiling their aspiration in career. I used to be the Head of Corporate Banking South, Wholesale Banking, and in 2020, I was appointed as new Country Head of Human Resources of HSBC Vietnam. I myself have had to obtained HR knowledge and experience to support the bank to grow its human capital.

Finally, I think that the leaders should listen to what their people think and feel about the working environment as well as C&B policies, that is the way to uncover the insights of their needs. For years, internal survey has been an effective tool for leaders to listen to their people voicing about their desires and challenges at work. However, beyond that, a third party survey like the one to certify Great Place To Work of Great Place To Work Insitute – a global authority on high-trust, high-performance workplace cultures is emering as a new method to gather employees' opinions and feedbacks. HSBC Vietnam has recently become the first bank in Vietnam to be certified two years in a row. It’s the only official recognition determined by employees’ real-time opinions of their organisation. Such certification also help strengthen employer branding in talent competition.

I'm fond of a saying by billionaire Richard Branson that goes "Train people well enough so they can leave, treat them well enough so they don't want to". It summarises pretty well the HR philosophy that encourages companies to nurture their people so that they're confident to find a new job in the market while providing excellent employee experience to motivate them to stay at the same time. People are the most valuable assets of an organisation. Your strategy can be copied, your technology can be imitated, your business model can be cloned but not your people, and they're the factor that help you make a difference.