Selection of Bank employees in times of crisis

The world economy is cyclical in its development, periods of growth alternating with periods of decline, the active development — crisis intervals. In 2008, the world economy was reeling from the next crisis. The financial crisis in the most affected investment and financial sector, construction, insurance companies, i.e. those companies that are directly related to lending and large investments.

it is Obvious that the financial crisis has caused significant damage to a large number of banks and other financial institutions that either had a much worse financial results, or were forced to seek government aid.

Russia was no exception.

In the 2000s, the Russian economy has developed rapidly, the peak of development occurred in 2006-2007. On the market were available for Bank loans with relatively low interest rates, there was an active appreciation of the shares on the stock exchanges, the price of natural resources has increased, all this has given a few more opportunities for business development.

On the Russian banking services market reached almost all the world’s largest banking brands. Did the competition among banks in the reception staff, companies appeared reserve, which allowed to increase the wages of workers. If we trace the dynamics of the pay increases, we can observe a tendency of increase in 5 times.

Many banks actively diversified its work, have opened up new trends, new projects started, developed branch network. All this gave impetus to the growth of demand for skilled workers, the demand began to exceed supply. The financial stability of the banking structures allowed unreasonably to raise the budgets of HR services. Emerged and actively growing demand for the services of recruitment agencies.

In the period of crisis in the banking sector has significantly changed the business environment for which it was necessary to adapt quickly in order to effectively manage.

Almost all of the banking agencies had to quickly change management strategy staff and drastically reduce the budget to work with staff. Reduced expenditure on external services providers (recruitment through recruitment agencies, training services and other), or completely stopped funding, it has become one of the fastest and easiest ways for businesses. Significantly reduced the number of vacancies, which was conducted recruitment of employees who often stopped recruiting new employees, introduced a system of evaluation of the numerical strength of the staff, which led to the dismissal of some of them. Reduced costs of compensation and social packages (decreased size or completely stopped payment office mobile phone, decreased travel expenses, banks refused compensation office Lunches, corporate transport, machinery business class, corporate events). Many banks have agreed with staff’s incomplete working week or part-time work, which entailed the review of working conditions (decreased salaries, partially or completely refused to pay premiums). There were numerous cases where the company has agreed to care leave without pay.

In this regard, measures the need arose, aimed at optimizing the expenditure side, while it was extremely important to do this with minimal loss of performance.

For many banks, optimization of personnel costs has become a key article, which tried to save money amid the financial crisis.

This is understandable, since this cost is usually a significant part of the budget of any organization. The complex of anti-crisis measures aimed at reducing such costs have tried to develop services each Bank individually for its structure, and he depended on the activities, size and development strategy.

But even in the conditions of austerity, employers have sought to retain key employees, «backbone», which is the backbone of business. Among them were: top management, line managers (heads of departments, divisions, departments and specialists, which are difficult to find on the market, with a unique set of competencies of specialists in important information custodians internal accumulated experience of the company, «clientsyou»working with key clients.

Among employees conducted the evaluation to assess the effectiveness and degree of participation in the business processes of each. According to the results of certification individually for each employee was the decision made to save it to the company, transfer to another job or termination of employment.

One of the schemes was the transition to outsourcing projects. Often this related service or Support services (cleaning departments, IT professionals, logistics, PR, recruitment, i.e. those units, the services which the business does not need every minute.

Much has changed in the recruitment system. Personnel evaluation and understanding what kind of actions and processes will form the basis for the future structure of personnel management, has allowed to determine the need for recruitment of new staff (number, position, their functions and core competencies) or the replacement of existing staff on new, focused on efficiency and perspective.

professional development and additional training was administered only to those employees who largely depended the future of the business, its optimization and growth. In my opinion, in a crisis, it is absolutely the right strategy.

In the crisis, many banks have changed incentive schemes for staff. Previously, they were focused on the rapid growth of wages (to retain employees, attract more qualified), then after the crisis, motivational schemes were changed from material to immaterial.

If you assess the situation with personnel management in the banking sector as a whole, we can draw the following conclusions:

1. employees remaining at the workplace, decreased the level of wages, reduced benefits package and additional benefits, however, in some cases, the number of duties increased.
2. Stabilized level of remuneration for staff at all levels. Qualification and income of the employees were brought in line with the market situation.
3. most of the applicants have revised their salary expectations, are more adequately assess its position in the market, have become more flexible.
4. Reduced the deficit of personnel. The applicants have not been able to simultaneously consider several proposals.
5. a Significant portion of workers who lost jobs (employed in Finance and banking), began to consider adjacent areas for employment.
6. appeared On the market a large number of applicants, managers in the banking sector, increased requirements for qualification, candidates have become more active to get additional certificates, thereby increasing the level of professionalism. Tougher was evaluated set of required competencies.
7. the Number of job seekers in the labour market increased primarily at the expense of low-skilled personnel, such leadership was fired in the first place.
8. became Harder to find job applicants without experience and students, because for the same money you could hire qualified professionals.
9. banks, which retained its position in the market, there is a need to develop conservation measures «star» employees.
10. the Number of new vacancies in the banking sector fell sharply. That significantly affected the specialized agencies, which only worked in this field. Recruitment agencies had difficult, the number of orders dropped significantly, the market has increased the number of recruiters freelancers working for lower pay. The services of recruitment agencies returned only in a period of sustainable growth.
11. the result of anti-crisis measures, the majority of banking institutions have increased employee productivity.
12. Promptly to rectify their situation and to achieve efficiency in the post-crisis period could only those banks, which were able to retain their best workers to find new employees due to releases from structures competitors, and sometimes purposefully perkupa the right people.

the Global financial crisis has become one of the key factors that significantly influenced the development of economic structures, in particular the banking sector, which in turn had a negative impact on the personnel management system. The crisis has led banks not only to the financial problems that contributed to the loss of their market position, but also a significant reduction in the number of qualified personnel, who are known for «everything.» In the banking sector was made operational personnel decisions aimed at structural changes, staff turnover, reduced the available job openings, substantially reduced staff costs, was a series of dismissals of people. The crisis has forced everyone to work in new ways, first of all leaders. During the crisis it was necessary to constantly improve the skills and professionalism of managers and employees. Particular attention was now focused on the main resource, which is essential to the effective development of any organization is its employees and their professional potential.

Hoodoba Ekaterina

Recruitment company AVICONN

Head office, Moscow