Open season for bank employees

February 5 – With Druk Punjab national bank (DPNB) now open, the country’s first two commercial banks have lost a number of customers both old and new. But a few employees from both BoB (bank of Bhutan) and BNB (Bhutan national bank) also joined the migration to DPNB, causing one bank to step up measures at retaining its staff.

BoB, a Druk holding and investments subsidiary, recently introduced an education scholarship program for its employees in a move to bond them to the company. The company lost 10 employees last year, some of them to DPNB, at both the executive and junior management levels.

BoB’s CEO, Kinga Tshering, said he was not concerned at the moment about more losses. But he added it could become a problem. The bank is taking steps to ensure a core group of employees “will always be with us,” he said.

Over the next ten years, BoB will spend Nu 120 mn to send 60 of its employees abroad to obtain master’s degrees. Six employees, each receiving Nu 2m each, will go for their master’s every year, during the next decade. After returning, these employees will be bonded to the company for triple the duration of the study period ensuring their retention.

On whether the bond period might be excessive, the bank’s human resources (HR) head, Tshering Namgyal, said that returns on the investment had to be ensured and that, according to the bank’s calculations, the bond period “is very fair.”

Tshering Namgyal also pointed out that this is not only a retention strategy, but one at upgrading staff capacity. He said, “Keeping in mind the competition, we also want to achieve the same level of competency, the same kind of customer service and eventually make it even better.” He added that it was a move to also reward and recognise the “loyalty and dedication, hard work and contributions,” of employees, motivate young employees, and attract graduates.

Meanwhile BNB, which lost six employees last year, two to DPNB and four to the upcoming T bank, is also taking measures to mitigate the situation.

The bank recently revamped its employee performance management system to be “more objective and quantitative than subjective.” This will ensure that employees, who are doing well, are eligible to a faster rise in the ranks and more pay.

But BNB’s CEO Kipchu Tshering said that, while incentives at his bank is better than most companies, “there’s no way to stop them leaving, especially at the executive level”. He pointed out that “when you can make 65,000 in DPNB rather than 30,000 in BNB, it’s only natural that they’ll go.”

BNB, as a retention strategy, also introduced staff schemes for both housing and vehicle loans at only 5 percent, last year.

source: kuensel