A. Rozhkova, J. Olentsova Bank staff as a tool for improving its competitiveness

Bank staff as a tool for improving its competitiveness
Alena Rozhkova
Julia Olentsova
Krasnoyarsk State Agrarian
University
Krasnoyarsk, Russia
Krasnoyarsk State Agrarian
University
Krasnoyarsk, Russia
[email protected]
[email protected]
ABSTRACT
The article considers the issue of the bank's labor resource and how
it affects the competitiveness of a financial institution. The
relevance of this issue is not in doubt. In today's world, it is
impossible to imagine a large place without financial institutions
such as banks. The competitiveness of banks within the national
financial system and as independent economic entities depends on
many factors, from the external environment to the qualifications
of employees. The number, and most importantly, the quality of
employees
determines
the
economic
indicators
and
competitiveness of banks, as well as their feasibility in the market.
The staff ensures that commercial organizations effectively use all
their available resources. That is why issues related to the process
of people's work are very relevant in modern conditions. In order
to turn the working potential of banks into a serious competitive
advantage, it is necessary to carry out a number of project activities,
which are divided into several areas in the article.
There are a large number of credit organizations in the city of
Krasnoyarsk in Russia. The largest of them are: Sberbank; VTB24, Alfa-Bank, Russian Agricultural Bank, Vostochny Express
Bank, Promsvyazbank and Pochta Bank. In many banks, the
competition is great, it is a struggle to attract customers. In this case,
the presence of competitors providing high-quality service at an
attractive cost expands the product range and increases the ability
of the banking organization to provide as many opportunities as
possible for the bank's customers.
In general, the created mechanisms of interbank competition are
similar to competition between companies, but it is characterized
by increased intensity, a variety of forms, types and methods [30].
Factors that determine the competitive advantage of banking
institutions:

quality of customer service, motivation and
personnel ability;
KEYWORDS

Financial institution; personnel training; labor potential; Bank;
competitiveness; personnel; coaching.
the level of customer confidence in the bank, the
reputation of the organization;

level and volume of banking products.
1. INTRODUCTION
At the present stage of social development in Russia, the credit and
financial sphere is becoming more and more important for the
economy, with the central position of state and regional commercial
banks. The role of banks has naturally increased, which not only
increases the demand for bank’s employees and other employees,
but also leads to an increase in the labor force. In this regard, the
most important task for the development of credit and financial
institutions is to improve the efficiency of the bank's employees,
train the bank's personnel to improve their skills, provide
incentives, etc.
Insufficient attention to human resources will lead to a decrease in
the professional competence of bank’s managers, which will lead
to confusion in investment activities, such as late payment of
wages, pensions and various benefits, as well as other negative
social consequences. The study of practical problems in personnel
management is becoming increasingly important for management,
since managers can effectively manage only if they understand the
scope of employee’s motivation, the mechanism of motivation and
the mechanism for stimulating training. These tasks are constantly
faced by the manager, whose task is to skillfully use motivation and
labor motivation to improve the efficiency of the organization,
considering its characteristics and the direction of the employee's
activity.
2. MATERIALS AND METHODS
Thus, there are various factors that determine the competitiveness
of a bank, and the most important role in the reputation of a credit
institution is played by the level of customer service and the
personnel competence [6,18].
Working with bank’s employees is a complex, but very interesting
area of activity and has its own characteristics, which, if ignored,
can lead to huge losses for both bank’s employees and expert
employees. Let's look at these features and possible measures to
consider the employees’ characteristics of a banking organization.
First of all, we note the specifics of the bank as a human activity
[1,2,27-29]. High intellectual activity combined with clear
requirements, especially in the process of organizing their own
educational institutions, a special personnel approach to each type
of employee will help develop the concept of work.
This difference is due to the unique personnel characteristics of the
methods of evaluating personnel in the technical department, which
is certainly different from the evaluating personnel in the
advertising department or in the department working with
securities. The procedure for hiring a customer relationship expert
should depend on this industry - it is the consolidation of
information about all banking products and services, history,
beliefs, and survival [7,8,10,11]. The bank has a deep
understanding of the value of each banking profession and the
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corresponding qualities of the talent of professionals applying for
the bank's understanding.
Due to its special nature, the bank requires compliance with strict
algorithms for banking operations. It must work correctly
according to the established rules, which immediately makes it
necessary to:
a) consider the choice of people to work in the bank, the ability to
work in accordance with regulations, the ability to issue reasonable
offers, and not lose the desire to produce and create;
b) find people who can prescribe software technologies for the
bank's employees, as experience shows, this is not an easy task for
the bank's personnel department. Such specialists, in addition to the
fact that they must perfectly know the technology of the described
work, possess the skills of "Workflow" as the most modern means
for building a successful workflow, must possess the art of seeing
the picture of production affairs as a whole.
Almost all work in the bank is based on interaction with the client.
In addition to the ability to successfully interact with customers and
create comfortable service conditions for them, there is a special set
of individual specialists (most importantly - the art of
communication and understanding of the client's business), so it is
the personnel product, which includes its own services and products
of the bank's sales activities, and that is why the bank, working with
specific requirements, forms special methods of the bank's client
work [19-24]. Rules and laws of technical interaction with clients
of all bank's employees and maintaining this level at a high enough
level, since reducing it to unacceptable values in any section of the
bank will lead to the collapse of the entire organization of relations
with customers.
A. Rozhkova, J. Olentsova.
Working in a financial company requires specific knowledge:
mathematical skills, perseverance, care, observation, responsibility
and friendliness. You must be able to manage your material and
human potential. A bank’s employee is not only an expert with high
professional training, but also must have the skills of a psychologist
to determine the requirements of customers and find contact with
them - to give customers exactly what they want. The expert must
also calculate the profitability of their work to make sure that the
bank makes a profit.
One of the key problems in the bank is the personnel inefficiency,
insufficient initiative of employees within their authority [3,5,9].
This prevents the bank from reaching a qualitatively different level
of organizational functioning and successfully developing in the
conditions of global economic instability.
We need to find ways to fix it. For this purpose, the “target tree”
method was chosen, which more clearly reflects the goals that the
bank should face, and allows you to choose the most significant and
real for execution at a given time.
Divide the main goal of the organization into two levels and define
the relationship and subordination between them, thereby creating
a tree of goals, which is shown in figure 1.
Working in a bank involves a constant search for new knowledge,
which includes modern information technologies, innovations, and
practices of foreign banks and other financial institutions. So, it is
absolutely necessary to have service personnel working in the
"smart market". Naturally, this factor poses a serious challenge to
the creation and operation of training centers as an external
component of the bank's successful operation, the organization of
corporate seminars and the departure of employees for training and
advanced training in both Russian and foreign banking centers.
A distinctive feature of working in the bank is the need to preserve
commercial secrets, knowledge of business clients and secret
documents, banking and technological information, data about
bank’s employees, so it is necessary to form a reasonable attitude
to such requirements and create a system for protecting information
about employees, about sanctions in case of violation, in particular
information. There is no doubt that working in a bank is associated
with stress and physical strain.
In all these components, the role of the HR department in trying to
resolve them is obvious, including the need to train managers,
evaluate their work, and motivate successful management
activities. Thus, we see that banking has different characteristics
from other market participants, and we try to show that these
characteristics are directly related to the work of human services,
making quick, specific and effective personnel decisions for each
type of difference.
3. RESULTS
Figure 1. Insert caption to place caption below figure.
Main objective: 0. Reduced turnover and advanced training in a
bank’s branch.
The goal of the first level.
1.1 Improving the motivation management system: implementation
of a program to increase employee’s motivation, individual work
with complex personnel.
1.2 Improving the personnel development system: updating the
personnel training system, choosing more effective methods of
development, individual work with new personnel.
The goal of the second level.
2.1. Improving the financial compensation system: analysis of
existing financial compensation systems, selection of the most
suitable for the banking situation.
Insert Your Title Here
2.2. Improving the career management system: analysis of existing
employee career management systems, selection of the most
suitable for the banking situation.
2.3. Improving the personnel training system: introduce new
training methods into the development system and improve the old
ones.
2.4. Improving the personnel reserve system: analysis of the
existing personnel reserve system, updating this system and
launching it.
To solve this task, we select the second-level subtasks "Improving
the personnel training system". It is suggested to use coaching. This
event will allow us to highlight key areas in development of the
training system and understand which solution is best suited in this
area.
The most effective task can be described as the introduction of a
new training and follow-up event for employees, because the old
methods of training employees are outdated and no longer have
their original effectiveness, which prevents them from achieving a
positive result in the development of employees [4,12,13,25,26].
This task is also currently feasible, since the bank has the most
resources for this.
The event covers four areas of work that do not follow each other
in time, but coexist in parallel, reinforcing each other.
The analysis showed that the traditional method of training has
become irrelevant at the present time and does not bring the
necessary benefits for employees involved in the training. The
introduction of coaching will help employees find out the true
reasons for their motives for working in this bank, become resultoriented, and most importantly - use their experience and new
knowledge gained during training, directly in the process of work.
In order to implement this activity, it will be necessary to make
changes in the structure of the personnel involved in the training.
The general indications of coaching as a personnel management
tool can be presented in the form of a table 1.
Table 1 The general indications of coaching as a personnel
management tool
Coaching as a tool for Coaching as a tool Coaching as a tool
Directio
working with
for working with a for working with
n
personnel
team
the system
- conducting meetings
and conversations to
- detailed study and
inform employees about - study of team
description of all
goals and objectives; coaching features;
relationships
forming
an - application of team
within the credit
understanding of what coaching
methods
institution;
the final result is;
(Walt
Disney
- using the Dilts
- 360-degree method of Method, Greensburg
Events
pyramid on the
delegation;
Wave);
scale of a credit
- learning the coaching - monitoring the
institution;
principles of Milton internal environment
using
spiral
Erickson;
of the bank for the
dynamics
to
- applying the Dilts existence of problem
diagnose the bank's
Pyramid to motivate areas.
values.
and
develop
subordinates.
Area of - a bank manager;
- a bank manager;
responsi - a head of HR - a head of HR - a bank manager.
bility department;
department;
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- a head of division.
- a head of division.
- positive reaction of increase
job
employees
to
the satisfaction
and
implemented
improve
team
technology;
relations;
- the ability to interact - increase employee
- a credit institution
more effectively with engagement
and
as an open system
Planned employees
in
the improve the quality of
with a clear vision
result framework of coaching communication;
of all business
conversations without - conditions for the
processes.
interrupting the work generation of new
process;
ideas;
- increased employee’s - the emergence of a
responsibility
and common mission and
engagement.
vision.
Monitoring of the company’s work will be carried out by
employees of the HR department with conducting tests, evaluating
the level of managers, checking the capabilities of managers using
monitoring checklists, which are special forms with the most
significant elements highlighting the level of using coaching. It can
also be controlled by unscheduled checks by the director, who
monitors the personnel work, how much the new event affects
them.
The effectiveness of this event can be assessed after six months by
regularly personnel evaluating and their competencies, as well as
comparing financial indicators before and after the event. Training
managers and the Manager for working with trainers participate in
the assessment of the bank's employees, as well as summarize the
test results, analyze the indicators and, based on the results, can
develop recommendations for each of the employees.
When developing the concept of a coaching system in a bank, the
key points should be:
- defining the goals and objectives of the event, determining its
limits in the overall structure of the bank;
- training in the conceptual apparatus and terminology common to
all participants;
- development of administrative methods and procedures for
coaching management;
- defining methods and techniques of work, development of
coaching procedures;
- defining the forms of interaction of employees included in the
event, and the distribution of areas of responsibility;
-plan activities for the implementation of coaching and develop
prospects for its further development.
After training, the heads of branches of the bank can use this
knowledge in relation to their subordinates. In the same way
managers can cover the entire bank with the learning process.
4. DISCUSSION
Thanks to the introduction of coaching in the work of managers
with their subordinates, they themselves develop their own
algorithm to achieve their goals. And when they decide and create
a plan of action, it becomes their own and is not taken for granted.
They don't accept it as something imposed by the leaders: they have
this plan, and so they automatically take responsibility for it and
view it as their "original idea." In the same way, motivation itself,
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responsibility and figuratively, a person begins to "run faster and
more energetically".
In our case, there is no need to make any changes to the deep
structure of the bank, since the mission and strategy of their
activities are already clearly formulated, and the team has a general
idea of the goals in their activities. We have also developed an ideal
organizational structure for the bank - all this helps to function
effectively in certain areas. Therefore, the proposed event is aimed
at implementing coaching in the development system and
maintaining the team spirit and knowledge of managers and
managers on coaching issues.
For example, the effectiveness in the impact of personnel’s training
activities on improving the efficiency and quality of customer
service using the methodology of the American company
"Honeywell" can be determined by the following formula:
Е = P х N х V х K-N х Z
(1)
where P is the duration of the event's impact on effectiveness and
other performance factors;
N is the number of employees trained;
V is the cost estimation of differences in the performance of the best
and average employees performing the same work;
K is the coefficient that characterizes the effectiveness of personnel
training (increase in performance, expressed in shares), K = 0.75;
Z is training costs per employee.
When evaluating differences in productivity, you can consider the
ratio of the estimated cost for performance (efficiency, quality of
work, resource savings) of the best and average employees who
perform the same work for the company.
However, the effectiveness of training should not be evaluated only
with the help of funds allocated for this purpose. The training of
qualified personnel affects important factors of social efficiency.
Improving professional skills has a positive impact on employment,
employment opportunities, expansion of the external labor market,
income of credit institutions, opportunities for self-assessment and
self-realization. It also gives an impetus to further development and
striving for achievements [14-17].
The social effect of the measures taken to improve the bank's
personnel training for the next year will be incorrect. However, we
can assume that the following social effects will occur as a result of
this event, as shown in table 2.
A. Rozhkova, J. Olentsova.
- formation of a favorable - personnel loyalty to the credit
image of a credit institution; institution and good reviews about
- the creation of stable it outside its borders;
employment.
- number of regular customers.
In order to reduce the financial and time costs of personnel
searching for and hiring, it is necessary to conclude agreements
with educational institutions for temporary employment as assistant
accountants, students of these institutions, with payment of wages,
in accordance with the current legislation of the Russian
Federation. Resources should continue to be allocated to enable
personnel training close to the previous levels. Develop and
introduce a system of coaching that involves personnel training and
testing, and is designed to reduce the labor and time costs of
personnel training and evaluating skills, and should lead to a
reduction in the resulting financial costs and improve the efficiency
of the bank as a whole.
5. CONCLUSION
To sum up, we can say that in order to compete with each other,
banking institutions need qualified and competent personnel who
should strive to improve themselves in the process of work, which
is achieved through a well-thought-out personnel policy of the
management. Depending on what goals and objectives the financial
institution sets for itself, such personnel should be selected. After
all, the higher the personnel qualification, the more competitive the
credit institution will be.
This event will help you bring your employees up to the level of
their main competitors in the market, which will allow you to win
even more market share and maintain your position. The event is
universal for banks, due to its adaptability to the specifics of the
credit institutions work.
This is valuable for banks that try to provide a high level of service
and quality of offers, because coaching helps to find an employee
for the right style of work without extra costs, as well as identifying
personal motives for them this will allow them to work effectively
in a team and in the company.
Table 2 Social effectiveness of the event.
Social effect
Effectiveness indicator
- improving the content of - share of employees who improve
work;
their skills;
implementation
and - share of employees who
development
expressed a positive attitude to the
individual
abilities
of event and supported changes;
employees;
- share of employees who offer new
improving
the ideas
for
improving
the
competitiveness of personnel; organization of work;
- ensuring that the goals of - personnel turnover rate due to
employees and managers are lack of development opportunities;
aligned in career management;
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