It’s been a tumultuous year for the banking sector which has been beset with corporate scandals, the latest one being the recent Forex-rigging debacle. On top of this, many banks which are headquartered in the City of London are grabbling with a raft of regulations such as Capital Requirements Directive IV and the forthcoming Senior Managers’ Regime. What are the major challenges facing HR directors of global banks in 2015? I asked the experts to look into their crystal balls and offer their thoughts.
There are a number of challenges facing HR directors in the banking sector in 2015, according to Andrea Eccles, chief executive of City HR Association. She believes that these challenges come under the categories of regulation, remuneration and restoration. With regards to regulation, Eccles argued that both EU directives and Prudential Regulation Authority (PRA) and Financial Council Authority (FCA) consultation papers have had a major impact on people management activities within banks. “These include the reward elements arising from the Capital Requirements Directive (CRD) IV and the introduction of bonus caps of 100% of base pay or 200% with shareholder approval. Furthermore, the PRA/FCA are also proposing new conduct rules with the introduction of the Senior Managers Regime (SPR) which will hold employees –particularly those at the top end-more accountable for their actions. This will result in seismic changes in HR strategy given that the SPR is likely to impact the full employee lifecycle from recruitment and on-boarding to performance management and exit.” Read More