As foreign banks are preparing to incorporate in China and
conduct renminbi retail business, domestic banks will have to face
the crisis of keeping their professionals.
Even the international banking giants need global vision with
local expertise.
In other words, they need to hire high-caliber local
professionals if they want to expand their foothold in the Chinese
market more quickly to compete with deeply-entrenched domestic
banks.
Foreign banks' competitive edge in attracting staff is obvious.
Few domestic bank managers would turn down a high salary bid from
the cash-rich international banks.
But the salary gap may not be the most crucial factor in shaking
the loyalty of domestic bank managers.
Many Chinese banks, especially the big ones, come from the
traditional planned economy, where they were required to abide by
administrative orders with little concern for market demand.
Some of these banks are now publicly listed and have made
impressive strides in their operation, with their balance sheets
improving in recent years.
While their business performance can be jazzed up within a
relatively short period of time, a more open and engaging corporate
culture and environment will take much more time to develop.
This corporate culture may be what will make the difference
between domestic and foreign banks, starting with staff
training.
Foreign companies in China are generally considered more skilled
in bringing out the full potential of their employees through
specific and consistent training programs.
They may take an active role in helping employees develop their
careers based on their abilities.
Foreign companies aim to make their employees feel they work not
just for money but for greater career success, a sense of
engagement that many Chinese employers are at a loss to
develop.
Even if domestic banks raise the salaries of their managers,
they will lose the war for local banking talent if they fail to
build a more responsive corporate culture.
(China Daily March 14, 2007)