Research Objective

To know the talent management strategies of finance industry

To know the talent management strategies of food & beverages industry

To know the talent management strategies of IT industry

To study the talent management practices adopted in service sector.

To study benefits or results of talent management practices to an individual or an organization.

Research Questions

What are the talent management strategies of finance industry?

What are the talent management strategies of food & beverages industry?

What are the talent management strategies of IT industry?

What are the various practices adopted for talent management in the service sector?

What are the benefits of talent management practices to individuals and organizations?

Scope of Study
The researcher could not capture more data from the field on the topic of talent management
practices. Besides that, insufficient data is captured on the benefits of talent management to
individuals and organizations.
Significance of Study
Useful guidance on the wider implications on how to improve the performance at workplace
by managing talent.
Ensuring that the talent strategy is clearly aligned with the corporate strategy must be a
priority.
Create highly-skilled internal talent pools.
Deploy existing talent more effectively and recruit selectively.

Talent Management in Finance Sector

Malaysias financial sector has a myriad of products. It encompasses of banking intermediaries,
insurance companies and capital market intermediaries with comprehensive assets of almost 400%
of Gross Domestic Product (GDP) as of early 2012. 50.6% of the Malaysian economic systems
total assets is due to the 54 banking intermediaries.
These intermediaries, that are supervised by Bank Negara Malaysia, consists of 23 commercial
banks, 16 Islamic banks, and 15 investment banks. This includes commercial banks in Labuan
IBFC, which account for 3% of accumulated assets, and Development Financial Institutions. Bank
Negara Malaysia is also responsible for the supervision of insurance companies. Capital market
intermediaries are regulated by the Malaysian Securities Commission and comprise fund
management companies, broker-dealers, investment banks, and the securities and derivatives
market. The offshore financial centre in Labuan is supervised by the Labuan Financial Services
Authority: businesses include offshore banking, insurance, trust and fund management; activities
are carried out only in foreign currencies.
Malaysias GDP grew by 4.9% y/y in the second quarter of fiscal year 2015. The growth was
mainly due to the private sector demand in a situation of weak exports. The banking industry in
Malaysia remained strong in 2014. Total loans grew to MYR 1.34tr, while total deposits from
customers increased to MYR 1.64tr in 2014. The loan-to-deposit ratio was healthy at above 85%.
The biggest portion of the gross loans was utilized for working capital with 35%, followed by
residential property and transport vehicles with 18% and 13%, respectively. Both Risk Weight
Capital Ratio (RWCR) and core capital ratio of Malaysian banks remained resilient as of December
2014. Malaysian banks are striving to achieve the capital requirements prescribed in the Basel III
requirements.
Talent development is a focal point for the Malaysian financial sector, given the necessity for an
accessible supply of highly capable talent who will also act with the highest levels of responsibility,
good governance and ethics for the ability to be a high performing and sustainable organisation.
This includes the continuous investments in strengthening its internal capabilities and resources.
Due to the financial sector being in a position of prime strength, it is of importance that the
institutional foundation is built on the strength of quality talent. Investment in the continuous
development of talent is of the highest priority. This is to ensure that the organisations are always

equipped with the best central banking skill-sets and calibre. These talent and leadership
development efforts are set up by the sectors robust talent strategies, succession planning and
differentiated performance rewards. In line with the adoption of a high-performance culture with a
strong sense of accountability. Within the corporate culture, there is a shared purpose to strive in the
service of the nation, to be committed to duty, and to uphold the enduring tradition of integrity.
Over the years, the sector has also transformed from vertical integrated towards horizontal
collaboration to best benefit from the varying expertise that resides within the sector. These have
allowed for resources and energies to be optimised and aligned towards the strategic outcomes, to
ensure that the best results are achieved.
Ensuring relevant skills, competencies and a strong ethical foundation for the financial sector
workforce remained a key priority. This continued to be pursued in close collaboration and
supported by Bank Negara Malaysia.
Following its establishment in July 2014 by Bank Negara Malaysia, the Financial Services Talent
Council (the Council) completed the foundations to reinforce talent development for the financial
sector. The Councils strategies formulation to meet the future talent demands of the industry are
achieved through the rich insights, input and viewpoint from extensive engagement and
consultation with key stakeholders of the sector.
The Council is currently in the advanced stages of developing its recommendations and aims to
publish the same by the end of 2016. The recommendations are expected to complement the work
of existing talent organisations in the sector, with a view towards strengthening the overall talent
development environment that produces a sustainable and high quality talent pipeline for the
financial sector.
Even with the current situation, t he recruitment systems in banking companies is in need of further
improvement. To ensure that wasteful expenses are deterred, it is important to develop an entry
point banking qualification and reducing the number of applicants (Singh, Ms, Srivastava, Road, &
Road, 2013).
Talent Management Practice in Finance Sector
According to Dr K C Chakrabarty, Deputy Governor, Reserve Bank of India, in his speech during
the Seminar on Talent Acquisition and Management on May 31, 2011, has highlighted the following

6 components of talent management which are of importance. The explanations that follow includes
current situation in Malaysian finance sector, specifically Bank Negara Malaysia (BNM).

Recruitment

On-boarding / Induction

Training and Development

Performance Management

Succession Planning

Employee

Retention

Initiatives

Recruitment: The right talent can be attracted to the organization through the potential applicants
view of the organization as well as similar values shared by them(Abraham, 2011). The
Deputy governor of Reserve Bank of India in his speech has stated that there is a serious
introspection on the kind of talent that the banking industry requires and adequate time
should be spent in devising ways and means to spot the right kind of talent (Governor,
2010). Malaysian banks have started focusing more on recruitment process to identify the
right talent for recruitment.
On-Boarding / Induction: Successful on boarding is a key part of any talent management strategy.
With the high cost of recruiting, business leaders must understand that effectively
integrating new hires into the organization is an important step to ensure their
success(Bauer, n.d.) It is more cost effective to pick a suitable candidate from the current
organisations employees rather than employing a new recruit externally.The Banks
initiatives are designed to ensure that its talent proposition remains relevant and competitive.
The human capital policies and strategies in the Bank are constantly being adapted to keep
pace with the changing landscape of talent management. These trends include the shifts in
talent mobility, technological change and new talent management practices.
Training and Development: There needs to be appropriate learning and development interventions
to help employees in their career path. An organization can provide both formal and
informal interventions such as conventional training and development programmes to
creative alternatives such as talent coaching and mobility (Abraham, 2011). Training and

development of employees becomes an important strategy in talent management. During the

year, the Bank focused on nurturing the wellness of its staff through targeted fitness
programmes, sporting events, better in-house medical facilities, and the provision of
counselling services for career management. These efforts reflect the Banks continuous
endeavour to create a safe and conducive working environment in line with changes in
demographics, technology and lifestyle choices.
Performance Management: It is the Process through which supervisors and those they lead gain a
shared understanding of work expectations and goals, exchange performance feedback,
identify learning and development opportunities, and evaluate performance results(Steps,
Individual, & Effectiveness, n.d.). Performance management would help in retaining the
best talent in the organization. The Bank has practised differentiated performance rewards
as part of its efforts to attract, motivate and retain talent. This is accompanied by on-going
initiatives to foster and reinforce the values of the Bank. The Banks code of ethics provides
clear standards of conduct to guide staff, including the obligation to act with the highest
standards of integrity. Breaches of the code of ethics are swiftly dealt with by the Bank,
reflecting its low tolerance for improper behaviour or conduct among staff.
Succession Planning: refers to a process whereby an organization ensures that employees are
recruited and trained to fill every key role within the company. Proactive succession assists
in loss of an employee, Expansion, Etc. Effective succession planning and management
effort should address the need for critical backups an individual development in any job
category (Rothwell, W. J. 2010).
Employee Retention Initiatives: Banks like any other organization focus on employee retention
initiatives. The old values of loyalty have eroded and greater demand for talent has changed
the playing field for the search and retention of personnel (Balachandran, Mishra, &
Chaudhury, 2010). Retaining skilled talent, particularly in specialised functions, remains a
key challenge for banks in an environment where staff are more mobile and those with
sufficient experience are in high demand not only domestically but regionally. Despite a
marginally lower headcount (-0.2%), staff cost increased by 11.6% during the year due to
higher salaries paid to retain skilled talent. This increased the overall costs per employee
slightly

by

1.1%

during

the

year.

References
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Intellenews

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2.

Bank Negara Malaysia (2015). FINANCIAL STABILITY AND PAYMENT SYSTEMS

REPORT 2015.

3.

Bank Negara Malaysia (2015). ANNUAL REPORT 2015.

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Singh, S., Ms, B., Srivastava, N., Road, S. G., & Road, S. G. (2013). Talent Management
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