HR Corner Focus on staff development pays off by Charles Mak State-owned banking institution benefits from new HR policies Businesses which struggle to retain their best employees may find it hard to believe one thing about the Hong Kong branch of Agricultural Bank of China. In 2005, the bank's rate of staff turnover was two per cent and, so far this year, it is on track to be even lower. Head of corporate affairs, Belinda Ngan, puts it down to having a successful staff development scheme. "We've been running it for two years and the effects are obvious," she says. The scheme aligns recruitment policies, retention strategies and business development needs. Its focus is to help all staff acquire the necessary competencies and to train on a continuous basis. This involves constant communication between line managers and the HR department in order to coordinate plans and policies. "We identify HR needs and decide if an internal transfer or external recruitment will serve us best," says Ms Ngan. "Career advancement for existing staff is always a consideration and usually our first priority." Any member of staff with the necessary skills and banking knowledge can apply for a promotion or job rotation. When necessary, extra training is arranged to help people fit into a new role. "A good understanding of the bank's structure and systems is always an advantage," Ms Ngan says. "Internal transfers also let staff show their initiative and potential." Career advancement for existing staff is always a consideration and usually our first priority Spotting potential A more sophisticated performance appraisal system has made it easier to identify potential. This aims to measure competencies and the attainment of core objectives. The whole process centres on organisational goals which are set annually. Each department has targets endorsed by senior management and each employee set individual goals. Different competencies are then laid down for general staff and managers as a further guideline for performance standards. During interim appraisals, staff can voice their career aspirations. They are also expected to identify achievements, areas to improve and action plans. These are linked to departmental objectives and the bank's business goals. "Interim appraisals allow us to take immediate action and not wait until the year-end reviews," Ms Ngan explains. "The most important elements in this are transparency and opportunity." When setting goals, the bank ensures they are attainable, realistic, measurable and mutually agreed. A clear timeline and intermediate objectives also help to guarantee a fair assessment of performance. "Goal setting is a two-way communication process," Ms Ngan says. "If we want staff to grow with the bank, they must understand our business direction and requirements, so that expectations can be met." Monetary rewards are tied to goals and the bank has adopted a performance-based incentive scheme. These incentives related to levels of achievement and responsibility within different functions and departments. Wide network With the most extensive branch network in Greater China, the bank now has roughly 100 million personal customers and 400,000 corporate clients. The Hong Kong branch was established in 1995 and specialises in forex trading, bonds, derivatives, trade finance, syndicated loans and project finance. Counselling and coaching are part of the staff development plan. "Our HR department and line managers discuss potential routes for personal and career development," says Ms Ngan. "Staff need to understand the changing requirements of the workplace and the business environment. Then they can take action and adapt to new expectations." Selected employees who show the greatest potential are nominated for advanced leadership training. This puts them on the fast track to a management position. There are also generous subsidies for further education, which come either as full reimbursement for courses considered necessary for day-to-day work or as grants if courses are taken for personal advancement. Salient points - Staff development plans aligned with recruitment policies, retention strategies and business needs - First decision is whether to transfer internally or recruit - Career advancement for existing staff is a major consideration - Constant communication about recruitment needs between line managers and HR department helps in developing talent - Performance appraisal system identifies potential - Goals must be attainable, measurable and agreed by staff and managers - Counselling and coaching can effectively boost performance Taken from Career Times 7 July 2006, p. B20 Your comments are welcome at [email protected]