Nguyen Ngoc Due, the Deputy of Head, Human Resource Management Division - Techcombank, who gave me the chance to work in her company and to be a part of Human Resource Business Partner t
BACKGROUND OF COMPANY
Name, Form, Head Office, Network and Term of Operation
Full name: Vietnam Technological and Commercial Joint Stock Bank
1.1.2 Head office of the Bank:
Address: 191 Ba Trieu Street, Le Dai Hanh Ward, Hai Ba Trung District, Ha Noi Capital, Vietnam
Email: ho@techcombank.com.vn; Website: www.techcombank.com.vn
Techcombank is a joint stock company with the term of operation of the Bank shall be ninety-nine (99) years Techcombank is operated under the Banking Operation License No 0038/GP-NHNN issued by the State Bank of Vietnam on March 6, 2018 (renewed for operation license No 0040/NH- GP dated August 6, 1993) In accordance with the Enterprise laws and the Bank Charter, Techcombank is allowed to open branches, representative offices, non-business professional units, transaction offices, automated trading machines Techcombank can establish Subsidiaries/Affiliates and other forms of commercial presence to fulfil Techcombank's operational objectives
- As at 31 December 2018, Techcombank was present in 45 cities and provinces in Vietnam with 315 Branches, Transations offices, Representative offices, 1.117 ATM Machines
- Techcombank has four (4) subsidiaries 100% owned the Bank, as follow: Techcom Securities Company Limited; Vietnam Technological and Commercial Joint Stock Bank – Asset;
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Techcom Capital Management Company Limited; Technological and Commercial Finance Company Limited.
The objectives of the Enterprise
Techcombank operates and develops according to the objectives:
- Becoming the best commercial bank and leading enterprise in Vietnam
- Becoming a financial partner that domestic and international customers want to co- operate for development.
Scope of Operation
Techcombank can carry out business activities and operate both domestically and overseas in the fields permitted by the laws, and approved by the General Meeting of Shareholders or the Board of Directors in accordance on the basis of the bank charter.
Major operation of Techcombank
Techcombank implements the capital mobilization may be carried out in Vietnamese Dong, foreign currencies, gold and other financial products as provided for by the laws, through the following form:
- Receiving demand deposits, term deposits, savings deposits and other types of deposit;
- Issuing certificates of deposit, promissory notes, bills, bonds to mobilize domestic and foreign capital
Techcombank also has obtained loans from domestic and foreign credit institutions, economic and financial organizations in accordance with the laws
Techcombank provides credit to domestic or foreign individuals and organizations as approved by the State Bank in the following forms: Lending; providing bank guarantees; issuing credit cards; discounting and re-discounting negotiable instruments and other valuable papers; domestic factoring; international factoring with banks which are entitled to provide international payment services;
Techcombank's payment activities mainly focus on opening bank accounts for clients and providing the following payment services:
- Providing domestic payment services such as checks, payment orders, payment authorization, collection orders, collection authorization, letters of credit, bank cards, collection and payment services;
- After obtaining an approval from the State Bank, Techcombank provides international payment services and other payment services
On the monetary market, Techcombank is eligible to participate in bidding treasury bills; buying and selling negotiable instruments, government bonds, treasury bills, State Bank bills and other valuable papers
Regarding the account opening activities, the bank performs some of the following operations:
- Techcombank complies with the regulations on opening a deposit account at the State Bank and maintain on this deposit account the average balance which is not lower than the reserve requirement
- Techcombank may open payment accounts at other credit institutions in Vietnam
- Techcombank also can open deposit accounts and payment accounts in foreign countries in accordance with the laws on foreign exchange control
In accordance with the Enterprise Law, Techcombank directly or through Subsidiaries and Affiliates in order to implement the following investment banking activities:
- Consultancy on appraisal and analysis of investment projects; corporate finance, securities investment; Consultancy on issuance of valuable papers;
- Underwriting and securities underwriting and securities custody (including bond issuance underwriting and bond custody);
- Consultancy management of financial portfolio and management of investment portfolio or other investment banking activities (if any);
- Other cases as prescribed by the laws and the Charter of the Bank
Techcombank carry out other activities on the basis of the State Bank’s license, following types of activity:
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- Consultancy for cash management, banking, finance; merger and acquisition of enterprises and investment;
- Purchase and sale of Government bonds and corporate bonds;
- Upon obtaining a State Bank's written approval therefor, providing securities depository service, trading in gold and other business activities related to banking operations;
- Providing a number of property management services such as management services, property preservation services, services of offering cabinets and safety deposit boxes for lease
- Other activities permitted and/or not banned by the laws.
Customers and Clients
Customers of Techcombank are all individuals, collectives and businesses wishing to use the Bank's products and services.
Basic financial data
In according to Report on Business Performance in 2018, as at 31 Dec 2018, Techcombank achieved some results as follows:
Total Techcombank’s assets at the end of 2018 reached VND 321 trillion, 19.2% growth compared to the prior year, in which credit increased by VND 36.8 trillion, and deposits increased by VND 26 trillion compared to 2017 As a result of the successful capital raise in 2018, total Techcombank’s equity increased by VND 24.9 trillion compared to 2017
Techcombank has consolidated profit before tax was VND 10,661 billion, a year-on-year growth of 32.7% Net interest income increased 24.6% versus 2017 Return on average asset (ROAA) and return on average equity (ROAE) reached 2.9% and 21.5%, respectively
Total Techcombank’s deposits (including CDs) were VND 207,678 billion, a year-on-year growth of 18.4% Total Techcombank’s credit exposure at year end was VND 217,138 billion, a year-on-year growth of 19.97% and within the credit growth limit granted by the State Bank of Vietnam
Capital adequacy ratio (CAR) at year end was maintained at a healthy 14.30%, well above the 9% regulatory requirement
TABLE 1: REPORT OF TECHCOMBANK ON BUSINESS PERFORMANCE IN 2018
TABLE 2: KEY FINANCIAL INDICATOR OF TECHCOMBANK DURING THE PERIOD 2014-2018
(Source: REPORT ON BUSINESS PERFORMANCE IN 2018, BUSINESS PLANS FOR 2019, AND REVIEW OF
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Figure 1: Organization chart of Techcombank
COMPANY STRUCTURE AND ORGANIZATION CHART
Organization chart of Techcombank
Figure 1: Organization chart of Techcombank
CHAPTER II: COMPANY STRUCTURE AND ORGANIZATION CHART
Organization Structure
The structure of organization and management of Techcombank includes:
In accordance with the Law on Enterprises and the Bank Charter, General Meeting of Shareholders has the following rights and obligations:
- Passing the development orientations of the company and elect, remove from office or dismiss members of the Board of Directors and supervisors; decide on reorganization and dissolution of the company;
- Decide on the types of shares and total number of shares may be offered for sale; the rate of annual dividends; make decisions relate the assets in accordance with the Enterprise Law
- Decide on amendments and supplements to the company charter and approve annual financial statements;
- Other rights and obligations provided in the Enterprise Law and the Bank Charter
Board of Directors has the rights and obligations such as:
- The Board of Directors decide on medium term development strategies and plans and annual business plans of the company;
- Decide and recommend issues related to shares (types of shares, selling prices of shares/bonds, redemption of shares); decide on investment plans and investment projects within the rights and obligations; basing on solutions for market expansion, marketing and technology to make decision;
- Approve contracts for purchase, sale, borrowing and lending and other contracts accordance with the Enterprise Law;
- Appoint, remove from office or dismiss the chairperson of the Board of Directors and other key managers of the company as provided in the Bank Charter;
- In the daily business of the company, The Board of Directors implement the supervision and the direction with the director or director general and other managers in their work;
- Decide on the organizational structure and internal management regulations of the company, to decide on the establishment of subsidiaries, branches and representative offices and the capital
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9 contribution to or purchase of shares from other enterprises; recommend reorganization or dissolution of the company or to request bankruptcy of the company;
- The other rights and obligations provided in this Law and the Bank charter
2.2.3 Chairperson of the Board of Directors
The rights and obligations of the Chairperson of the Board of Director include:
- Prepare agendas, working plan and programs, contents and documents for meetings of the Board of Directors;
- Organize the adoption and monitor the implementation of resolutions of the Board of Directors;
- Chair meetings of the Board of Director, the General Meetings of Shareholders;
- Other rights and obligations provided in the Law on Enterprise and the Bank Charter
The Supervisory Board has the following rights and obligations:
- Supervise the Board of Directors, director or director general in the management and administration of the Bank to ensure the reasonableness, legality, the systematicity, consistency and appropriateness, truthfulness and prudence in the management and administration of business operations of the Bank
- Review, inspect and evaluate the effect and efficiency of internal control, internal audit, risk management and early warning systems of the Bank
- Participate in and discuss at the other meetings of the Bank, the General Meeting of Shareholders and the Board of Directors
- Exercise other rights and perform other obligations as provided in the Enterprise Law, the bank charter and resolutions of the General Meeting of Shareholders
The Chief Executive Officer has the following rights and obligations:
- Be responsible for the issues related to the daily business activities of the company independently of the decisions of the Board of Directors;
- Implementing the bank's business and investment plan according to the Resolution of the Board of Directors;
- Propose the organizational structure and internal management regulations and appoint, dismiss and remove from office managers in the bank under its jurisdiction
- Decide activities relate to human resource management (recruitment, wages and other benefits for employees of the bank)
- Other powers and obligations provided by law, the Bank charter and resolutions of the Board of Directors
The structure of Business Divisions:
- Wholesale Banking Division: Develop, organize, implement and manage the entire development strategy of the Bank’s wholesale banking segment
- Business Banking Division: Developing strategy and coordinate with other divisions to deploy business activities, following direction and strategy of the Bank to achieve financial/non- financial objective
- Personal Financial Services Division: Deploy business plan, collaborate with other divisions to develop and serve retail customers according to direction and strategy of the Bank, ensuring achieving financial/non-financial objective
- Transaction Banking: Building and developing the bank cash flow management and trade finance services
- Investment Banking Division: Responsible for the development and implementation of solutions related to investment banking activities
- Marketing and Communication Division: Responsible for oversight of product management; develop, manage and execute marketing strategy and plan by identify, quantify key customer segments and business opportunities; manage overall brand and communication
- Insurance Division: Develop, deploy insurance business plan, through interaction with the other business divisions
- Sales and Distribution Division: Prepare and execute network development plan; implement and supervise sales plan implementation
- Treasury and Markets Division: Build and develop business strategies to maximize profits from activities in the financial and capital markets
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Roles and Responsibilities of of Business Divisions
- Coordinate to develop, implement strategies/policies/programs/activities in order to push sales to each segment (as defined by Techcombank’s regulations) to meet/overcome assigned targets
- Direct the business unit’s banking activities for the whole segment, build business model, business policy, product, targeted customer, investment portfolio, human resource policy, training and recruitment policy… Implement strategies for each segment, product and marketing; Determine targeted market, build sales policy, business model, customer portfolio, investment portfolio for sales unit within each Divisions
- Research and develop product/service to meet the need of customers; coordinate with other related division/units to develop other products and services Build operational process and model, risk management model, price, customer loyalty program
- Support other business divisions in business activities to maximize profit from the relationship with customer
- Manager and monitor business activities of units within division and of approved products
- Be responsible for building, organizing and implement all Techcombank’s strategies on developing detail segments
- Be fully responsible for business outcome, loan performance, product/services quality, personal qualification directly engaging in business activities of related division
The structure of Supporting Divisions:
- Strategy and Corporate Development Division: is the coordinator for developing implementing and updating the Bank’s vision, strategy, business model and financial model;
- Human Resource Management Division: Organize and manage human resource of
- Compliance and Legal Division: Assure the Bank’s compliance with laws and regulations in every aspect of the Bank’s operations; assure maximized interest and benefit of the Bank in legal aspects
- Finance and Planning Division: Manage the Bank’s business activities, balance sheet and funding according to the Bank’s plan and strategy
- Transformation Office (iPMO): Implement and monitor transformation program whole of the Bank
Roles and Responsibilities of of Supporting Divisions
- Build, execute, maintain, manage and control the transformation, human resource, strategy business model and financial model;
- Support and coordinate with other divisions in developing, implementing the business activities;
- Assure the Bank’s compliance with laws and regulations in every aspect of the Bank’s operations;
- Assure maximized interest and benefit of the Bank in legal aspect;
- Manage the centralize to serve the Bank’s operations;
The structure of Governance Division:
- Risk management Division: Develop policy/regulation, implement and supervise compliance to minimize risk in the whole system of the Bank
- Operation and IT Division: Manage and execute the Bank’s activities in technology, operation and quality management
Roles and Responsibilities of of Supporting Divisions
- Organize the building and monitoring of bank-wide quality management framework implementation, execute quality analysis and improvement activities in support to divisions to continuously improve product and service quality
- Building, develop, maintain and implement the system of rules, processes, internal regulations related to technology and operation service providing and other activities
- Establish quality standards and continuously improve operational quality for all system Develop and implement control mechanism and manage operational risk effectively to minimize the loss in operations
- Develop policy, measure tool, strategy to minimize credit, market risk, operation risk
- Implement risk management activities to maximize profit, provide the best services to customers, assure compliance to laws and alignment to the Bank’s strategy
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The Intern’s Position
I have joined at Human Resource Business Partner in Human Resource Division for nearly
4 months internship I have worked as a Human Resource Consultant for support the business units of the bank I carry out my work under the supervision of Ms Nguyen Ngoc Due - Deputy Director in charge of Human Resource Management Division My department consists of 18 members who working in Offices in the North, Central and South Vietnam I am happy to work in a professional environment My group always have innovation and transformation programs, my colleagues are highly qualified and often support me during my internship time Through the tasks assigned, I have accumulated the knowledge and skills necessary for my work
HR Strategy and Performance Management
THE MISSION: ASSIGNED TASKS AND GOALS
The Tasks Assigned
As introduced from the previous sections, I have joined the Human Resource Management Department as a Human Resource Business Partner (HRBP) with the following main tasks:
Supporting line manager in operating human resource management for branches in the bank’s system;
Communication and deployment of bank's human resource management activities to employees across the system (manage recruitment activities, payroll operations management, manage insurance-related activities, operational work, business activities as usual);
Analyzing trends and metrics with the Human resource department;
Receiving and collecting the employee’s feedback in order to resolve complex employee relations issues;
Working closely with management and employees to improve work relationships, build morale and increase productivity and retention;
Supporting to organize an agenda meeting;
Participating in meetings and help division brainstorming in some projects.
The Link between the Subject Matter and the Mission
In the past years, Techcombank has spent more energy than most other banks in the system for recruitment, training and efficient use of human resources At the bank, it is the key factor to consolidate the foundation value of "excellent personnel" in accordance with professional capacity, professional and professional training that the bank is looking forward to This position gave me the best oppotunity to observe and recognize the differences in working culture between Techcombank and its competitors, thereby the impacts of these differences on the development of the company was identified For this reasons, it is clear that the tasks assigned to me were very much related to the subject matter of the human resources management impacts on the business strategy of Techcombank, indeed:
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During my internship at Human Resource Business Partner Officer, I have experienced and understood Techcombank's personnel management policies
Besides, I also work with foreign experts from different countries to help me have more comprehensive assessment of the human resource management method that the bank is developing and applying
I know how to apply the provisions of the labor law and personnel policies of the bank to solve problems with workers
I have accumulated a lot of practical experience that gives me the knowledge to develop personnel policies
These experiences help me to implement well the problem of consulting human resources activities for companies operating in finance and banking as well as to propose some solutions to improve the efficiency of human resource management of the bank.
The Goal to Reach
My individual action plan to complete the subject matter and goals during the internship period:
Vietnamese law regulating the bank’s operation model
Mastering the legal documents regulating the commercial bank and foreign banks operating in Vietnam
Find out the bank’s regulations on organization and operation of the system
Understand the scope of Techcombank’s business, its products and services, its customers and main partners
Have a thorough knowledge of the bank organizational structure, the function of each division and learn how the business running in the system
Study the working culture of the Company and its different partners
Be aware of the communication system within the company and between the company and its partners
Studying the operating human resource management activities in Techcombank
Research the regulations, procedues of HR Management
Be aware of the role of Human Resource Division
Be aware of the role of Human Resource Business Partner
Participate in the operation of daily human resource management activities
Provide effective and timely human resources support to assigned area
Partner with Operations to source and select candidates for current and future hiring needs
Assist supervisors on employee relations issues and act as communication channel between employees, management and union as needed
Maintain HRIS records and personnel files
Analyze data to improve in areas such as capability development of employees, hiring sources, time to fill and other areas that impact workforce planning
Perform other duties as requested by leadership
The Contribution to the Company
In general, during my internship, I contribute to the day-to-day work of the Human Resource Management Division and I believe that my efforts will help the bank expand its business strategy and operate effective human resource management, namely:
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Following the guide of line manager and co-operate well with my co-workers to ensure that the daily operation goes favourably
Understand and flexibly handle internal situations to ensure business operations of units are not affected by human factors
Have an overview of the bank's management to effectively consult units in using current human resources
Monitor and report on workforce and succession planning
Identify training needs for teams and individuals
Proposing solutions to improve human resource management to suit the business situation in each period.
Theoretical Knowledge Put into Practice
There are some courses from the AMI program that gave me a vital theoretical knowledge to apply into practice during the internship time:
This subject provides different techniques, models and tools in building strategies market like SWOT analysis; PESTEL and five forces, detail:
How to analyse an organisation’s position in the external environment – both macro-environment and industry or sector environment (focus on working enviroment and human resource)
How to analyse the determinants of strategic capability – resources, competences and the linkages between them
How to understand an organisation’s purposes, taking into account corporate governance, stakeholder expectations and business ethics
Understanding different types of employee from different countries, with diverse culture; and know how to communicate with and provide services to them in the most appropriate way;
How to do business with international business partners and communicate in the most appropriate way;
How to deal with the internal customers and suppliers in an effective way, to reach company’s goals;
How to negotiate with business partner of the company;
How to negotiate with the employee of the company in order to solve the complex problem;
Helps to analyze different culture through various methods in order to showing the influence of the variety in cultures on manage of human resource
Providing approaches and tools to develop business plans, manage business plans, including human resource management activities
Providing an overview of business administration in an international environment, especially when there is competition in international human resources
The awareness of globalization process and its impacts on the business
Be aware of the challenges and opportunities that the global economy presents to the business activities of organizations
Providing the opportunity to learn and practice useful skills in a short, medium or even long-term, the way make decisions that is essentially consequence and risk-free
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DEVELOPMENT
Stakeholder Matrix for Human Resource Management
Stakeholder Matrix plays a vital role to explore who has power to company business, especially to Human Resources Management, how to meet with the expectations of the related parties and from that the company could draw out and launch suitable strategies to use of human resource efficiently and enhance company’s competitiveness
- Techcombank become one of leader bank in Vietnam
- Professional and skill staff to improve business
Customer - High quality of services and products
- Professional and trusted Bank staff
- Money in buying the bank’s services and products
- Loyalty for long-term business
- Social responsibility and contribution of the bank
Raising public awareness of the Bank and then its reputation
- Vietnam Safe and Strong Banking system
- Issuing policies and creating legal framework for banking activities
Internal Environment Analysis
Techcombank's internal factors were analyzed to determine “strengths” and “weaknesses” of the bank in order improve the Human Resource management
Techcombank has developed the sales and distribution system with 315 branches and transaction offices in 45 provinces The system spreads across provinces and cities has demonstrated Techcombank's coverage In 2018, Techcombank increased its charter capital to VND 34,966 billion Moreover, Techcombank’s shares are officially listed on Ho Chi Minh Stock
Exchange (HOSE) and the Bank’s market capitalization ranked 2nd in the banking industry
Getting 2 world-class certifications: ISO27001: 2013 and PCI DSS 3.2 Techcombank continues to investment in developing and automating e-banking platform and technology solutions Therefore, Techcombank has become completely as market-leader in digitalizing its banking products and financial services
Techcombank's total human resources has had a certain growth in 2018 Techcombank’s headcounts has increased by 17%, from 8,328 employees in 2017 to 9,757 in 2018, as the percentage of graduate degree holders grew from 5.96% in 2017 to 8.7% in 2018 which in line with the business expansion plans and consolidating Techcombank’s position in the market Although the number of personnel is increasing, human resource management solutions with modern information technology systems at banks have not developed synchronously Therefore,
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Techcombank aims to continuously invest and improve the effective management system for its human resources
Techcombank sets up remuneration policies for employees which focus on “people excellence” strategy, aiming to develop a competitive benefits policy, combined with a suitable talent retention and management, to ensure highly productive and well performing human resources Especially, Techcombank has become one of the most awarded companies at the Vietnam HR Awards 2018 event – the first and only award that honors enterprises with the best
HR policies in Vietnam, endorsed by the Ministry of Labor and organized by Talentnet in collaboration Techcombank has been honored and recognized in 3 of the 5 aspects of human resource management: Excellent Human Resource Strategy, Effective HR Planning and Recruitment, and Effective Talent Management
In order to prevent and mitigate risks, Techcombank has been investing in risk management, Techcombank became the first bank in Vietnam to complete an IFRS9 project, meaning that the Bank now meets the international accounting standards of IFRS 9 with the strictest requirements in financial statements transparency, enhance its risk management capabilities, ensuring asset quality and business performance Techcombank is also one of the first movers in connecting host- to-host to the credit bureau (CIC) which allows to look up information in a timely and proactive manner, enhancing information security for customers, mitigating operational risks, and optimizing the processes of sharing of internal data and information.
External Environment Analysis
Leading by Party Communist since its foundation in 1945, Vietnam political regime have been stable for 74 years in spite of the war with French and American The stable political regime has ensured for the stable development policies in the peace period, including Human Resources development policies
Developing high quality human resources is always the focus of the Vietnam government and the whole society Over the past time, Vietnam have implemented the "Vietnam Human Resource Development Strategy for the period of 2011-2020" and " Vietnam Human Resource Development Plan for the period of 2011-2020 This issue have been successfully solved by the right, rational and strong policy of the government through the system of labor laws, employment,
22 social insurance, vocational training and the other fields Currently, in conditions of accelerating industrialization and international integration, human resource development is considered as one of the three breakthroughs of the country's socio-economic development transformation strategy
At the same time, human resource development becomes the foundation for sustainable development and increased national competitive advantage
In the process of development and international integration, the Vietnamese government, along with the improvement of political institutions, policy systems and labor laws, have been reformed, amended and supplemented accordingly The creation of a legal framework has provided important conditions for the formation and development of the labor market, contributing to the transformation of labor structure, especially labor conversion in the agricultural and forestry sector
- where low labor productivity to industry and service sectors with higher labor productivity In the period of 2010 - 2017, labor movement by industry in our country is taking place in a reasonable and progressive manner: increase the proportion of labor in industry (from 21% to 25.7%) and services (from 29.5% to 34%) (Source: Vietnam's economy and the world in the period of 2017- 2018) With this restructuring, the bank has been provided with abundant human resources to select and recruit
These are the key factors contributing to the development of a modern bank management and control system following international standards and practices, helping the Bank design excellent products and services for the Vietnamese people, and creating a solid foundation for the expansion of reputation of the bank to the regional and international market in the future
In the Government's regular meeting on July 2019, comments and acknowledgments of basic assessments from representatives of ministries, experts on Vietnam's economic picture in the first half of 2019: In general, the results achieved in the first 6 months of 2019 are basically positive compared to the region and the world, maintaining a good growth momentum, stable macro economy, inflation under control Motivation to support both supply and demand growth;
In particular, personal consumption increased sharply, the processing, manufacturing and service industries continued to grow
Looking back on the past 10 years of development, Vietnam's economy achieved a relatively high growth rate compared to many countries in the world in the period of 2008-2018, reaching an average GDP of 6.1% GDP growth in Vietnam is still largely driven by bank credit
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Credit supports GDP growth but also raises significantly the inflation If the years 2008-2010, credit activities of the bank impact on the economy is always over 30% (in 2009 was 37.7%) but GDP growth is not commensurate, only at 5.66-6, 42% From 2013 onwards, this activity has slowed down but remained at two figures of 13-18%, GDP growth also increased strongly to always above 6.2% (except for 2014 was 5.98%) and reaching the highest level in the past 10 years at 7.08% for 2018 The bank credit is basic cause affecting the development of banking and finance industry in Vietnam in recent years (Source: General statistics office of Vietnam)
The CPTPP Agreement officially came into effect in early 2019, up to now, Vietnam has initially stepped up its exports to a number of member countries (Canada, Mexico, ), effectively increasing exports to markets with FTA signed with Vietnam (Japan, ASEAN, etc.), especially exports to the US market increased sharply in the first 6 months of 2019 The signing of FTAs, CPTPP and EVFTA has created huge opportunities for the economic development of Vietnam, opportunities for businesses In order for the integration to be really effective and successful, the sufficient condition is that the capacity of domestic corporations, businesses and financial institutions must meet the international "rules of the game" This helps to mobilize and make the best use of available resources in the country and make better use of external resources, promoting competitiveness Particularly for the banking industry, diversifying products and services to meet the requirements of international organizations as well as building high quality human resources is an urgent requirement, both as an opportunity and as challenge
Vietnam has a population of over 90 million people, ranking 14th in the world, 7th in Asia and the 3rd in Southeast Asia After 10 years, since 2009, Vietnam's population size has increased by 10.4 million The average population growth rate in the period of 2009 - 2019 is 1.14%/year Educational level of the population is quite good (Source: Data on danso.org is based on estimates and data of United Nations)
The labor force for the whole country in the first quarter of 2019 was estimated at 55.4 million (Source: Labor Situation Report in the first quarter of 2019 – General statistics office of
With a large population and relatively young population pyramid, Vietnam has entered a period of "golden population structure" It means that Vietnam has the most abundant human resources ever since the increase in population in recent years which has led to an increase in the
24 labor force Each year Vietnam has nearly 1 (one) million people entering the working age, this is an important competitive advantage of Vietnam in the socio-economic development
The ability to work in groups, professionalism, and the ability to use foreign languages is a very limited The spirit of work responsibility, professional ethics, civic ethics, industrial cultural consciousness, labor discipline of a significant portion of employees is not high Labor productivity is low compared to many countries in the region and the world (Source: Research and Develop Human Resource – Institute of National Resources and environment training)
With the current economic growth rate and the improvement of the quality of life, the population community tends to consume smarter by instead of using cash in transactions, they use products and services of the bank to meet the needs of life This requires the banking system to develop a comprehensive range of products The capacity of employees, especially the customer service officers, the personal finance officers must have enough skills and knowledges to serve individual and business customers, domestic and foreign organizations
One of the very important factors when Vietnam integrates into the world economy is the human resources of the high quality banking and finance industry Human resources will not only require high professional qualifications, but also must have good foreign language skills, as well as applications of scientific and technical advances that can be circulated in the region and around the world Therefore, linking training, developing professional capacity with training and fostering moral qualities of the bank’s staff is extremely important and necessary
Benchmarking Analysis
Benchmarking is a method which the bank implements to evaluate the performance and quality of their human resources compared to competitors or compared to "best practices" within or outside the organization
- Internal Benchmarking : The Bank regularly organizes internal surveys to find the operating unit that achieves the best results From the survey results, the bank will set up projects to improve service quality, develop new products, and innovate workflow The bank has conducted a number of surveys: Survey employee satisfaction level when working at the units; Survey the performance of employees' work…
- Benchmarking competition : Through direct comparison with competitors in the same segment, Techcombank has self-assessed its position and influence in the domestic market as well as the Asian market
In this section “Benchmarking competition” is analyzed to evaluate performance of Techcombank and compare the bank’s position and influence with competitors in the domestic market
Firstly, the author uses AB500Ranking which is the ranking list of Banks in the Asia-Pacific region, made by The Asian Banker base on the results of annual research on financial and business activities of the banking industry The evaluation criteria of The Asian Banker is based on the use of 12 criteria such as: total asset size, bad debt ratio, capital adequacy ratio Asset scale criteria are the basis for building a list of the top 500 banks (AB500Rank) The evaluation criteria are based on the belief of long-term profitability from the core business of banks to rank (Strength Rank) for
Table 3 is the list of the bank of Vietnam in the Asia banker’s AB500 Ranking announced by The Asian Banker in 2018 The table shows that Techcombank was the bank ranked 2nd in terms of profitability, after only Vietcombank in 2018 With result of The Asian Banker’s AB500 ranking and survey of Asia Pacific’s strongest banks in 2018, Techcombank followed at 76th, up
25 spots The result also determinded to an evaluation based on a belief that a strong bank demonstrates long-term profitability from its core businesses
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TABLE 3: THE LIST OF VIETNAMESE BANKS IN THE ASIAN BANKER’S AB 500 RANKING (Source: The Asian Banker - http://www.theasianbanker.com/ab500/2018-2019/strongest-banks-asia-pacific)
Bank Strength Rank in the Vietnam
To evaluate the position of Techcombank in local market in term of employees’ income, figure 2 illustrates Techcombank is the bank of third-highest employees earning VND 27 million per month (2017) and the level of VND 30 million per month (2018) Techcombank has become the one of market leaders in talent acquisition and retention, deploying various policies and programs that help motivate and inspire the entire workforce
FIGURE 2: TOP THE BANKS WITH THE HIGHEST INCOME (2017-2018)
(Source: Aggregate data from audited financial statements of more than 20 banks published as of April 8, 2019)
Another benchmarking competition among local banks in terms of staff size over the years, Table 4 shows the size of human resources in Vietnamese domestic banks, according to data of 20 banks that released the consolidated financial statements for the fourth quarter of 2018, Techcombank ranked 9th in terms of staff size, an increase of 17.15% over the same period in
2017 The increase in staff size with the number of employees more than 1000 in 2018 has shown that Techcombank has a certain attraction in the labor market in Vietnam However, the increasing number of employees has not yet confirmed the high-quality human resources
TABLE 4: THE NUMBER OF HUMAN RESOURCES AT BANKS IN VIETNAM
(source: vietnambiz.vn - https://vietnambiz.vn/co-them-it-nhat-17000-nhan-vien-ngan-hang-moi-trong-nam-2018-120938.htm )
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SWOT Analysis
- Partnership with HSBC - a world's leading bank
- Extensive sale and distribution system in
- The Bank with the best HR policies
- Well - established, effectively - operated and effective internal control systems
- Large financial resources investing in technology and services
- Hight ranking in Vietnam banks
- Less attractive to high-quality human resources from oversea
- Not high labor productivity of employees
- Human resource management solutions with modern information technology systems at the bank have not developed synchronously
- Government policies encourage high - quality human resource development
- Vietnam has a young and abundant labor force
- The increasingly vibrant development of the banking and financial market due to Economic growth & International economic integration
- The banking system in Vietnam is in a race to digital banking, requiring high-quality human resources in information technology
- Lack of human resources effectively implementing development strategies, risk management, international payment, foreign currency trading, investment in Vietnam
- The developed digital bank will gradually replace the operating human resources, the reduction of personnel is what will happen in the future.
Proposing solutions
Through the time of approaching the human resource management at Techcombank, based on the analysis and information gathered during the internship, from the analysis of impact factors
30 such as the content above, I propose some solutions to improve the efficiency of human resource management of the bank for next time
4.6.1 Developing Digital in Human Resource Management
Not only when internship at the bank, during my work at the many companies in Vietnam,
I always want to use the modern technology system in the field of human resources to ensure efficiency and improve the quality management and reduce the wasted resources To achieve that requires a certain financial potential of the investment organization for human resource management activities In addition, the organization needs to have the operation and cooperation between divisions and professional competence of workers to ensure compliance with the requirements of the technological system
As such, the new technology system in managing human resources has brought about positive effects for managers and all employees in the organization The model I propose includes the following specific steps:
+ Human Resource Efficiency: Building technology platforms (towards current resource optimization goals, reduce resource management costs, provide useful statistical information for future human resource development strategies) to efficiency manage HR processes
+ Human Resource Management Innovation: Using modern technology to manage training
& development programs; recruitment & evaluation; salaries & benefits, performance management, consulting in human resource management activities
+ Building Information System: Building information sharing channels quickly to link human resources with business activities
+ Human Resource Internal network: Building an internal social network to help employees connect and share emotions Building technology applications (apps, software ) to help users share work experiences
4.6.2 HR transformation delivering the workforce of the future:
HR Efficiency HRM Innovation Information System HR Internal network
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Enterprises are made up of 4 elements: people, processes, organizational structure and technology With the increasing presence of Technology 4.0 in the business activities of the bank, the element of Human Resources Management will have to change a lot in the coming time under the impact of technologies To adapt to that impact, Techcombank will need to answer key questions, such as:
+ What will Techcombank’s future workforce look like?
+ How can Techombank successfully integrate digital and human labor?
+ How will Techcombank have to change our operating model to remain relevant and competitive?
The implementation of HR transformation is indispensable in the bank The HR transformation model applies the following steps:
Set the vision and prepare change
DEFINE Map the current and forecast the future workforce
DESIGN Determine and design workforce Strategics
Identify business trends and technology developments that impact the workforce
Assess the impact of short-term, long-term strategies on building a workforce
Correct assessment of the nature of professional competence and internal labor force skills so that gap is found compared to future requirements
Choose the solution that suits your business requirements (finance, culture, development strategy)
Building a system of solutions for human resource development strategy
Testing solutions and adjusting them to internal resources
Apply replication throughout the system on the HR transformation
Establish a management system and measure the transformation
Constantly improve and adjust to ensure a truly effective transformation
CONCLUSION
How the internship work meets the Goals set
As the goals I have set up during my internship at the bank I mentioned in Chapter III, when
I look back on the results, I have achieved the goals to a certain extent:
- Mastering the legal documents regulating the commercial bank and foreign banks operating in Vietnam
- Understand the scope of Techcombank’s business, its products and services, its customers and main partners
- Research the bank's development strategy for the 2016-2020 period, thereby understanding the bank's human resource management goals
- Have a thorough knowledge of the banking organizational structure, the function of each division and learn how the business runs in the system
- Understand the system of regulations, policies, processes and methods of operating professional tasks under the human resource management at the bank
- Be aware of the communication system within the company and between the company and its partners
- Research the regulations of HR Management, be aware of the role of Human Resource Division in business, especially in a bank
- Provide effective and timely human resource solutions for the unit in charge
- Partner with Operations to building source and select candidates for current and future hiring needs
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- Assist supervisors on employee relations issues and act as a liaison between employees, management and union as needed
- Building clear career path and professional development for myself
- Analyze data to improve areas such as salary, hiring sources, capability development and other areas that impact workforce planning
- Research and analyze the factors affecting human resource management activities at the bank based on the knowledge learned at the AMI course: Stakeholder Matrix analysis, PEST analysis, SWOT analysis, Benchmarking Analysis
- Assessing the trend of human resource management of financial institutions and banks in the coming time, as a basis for proposing some effective human resource management solutions in the digital age
- Learning and research the corporate culture of the bank, thereby understanding the importance of corporate culture in business development
- Learning and improve communication skills between the Head Office with Branches in daily human resource management activities
- Improving working skills, coordinate among departments in the Human Resource Management Division, appreciate the roles and responsibilities of each department in the operation of the bank
- Having the opportunity to participate in the bank's projects on restructuring the customer segment, restructuring the organizational structure to improve the operational efficiency of the bank
- Having the opportunity to improve planning skills, build strategies, organize systematic management activities of the bank (applicable to organizations with more than 10,000 employees)
- In addition, I also had the opportunity to work with foreign experts in the field of banking and finance, which helped me gain practical knowledge and experience in business administration
The shortcomings of the internship work
During the internship at Human Resource Management Division, besides completing the assigned tasks, due to time constraints and some objective factors (confidentiality of bank information, regulations on data systems) I still have some shortcomings which I could not complete
- Limited assessment of the challenges and opportunities affecting human resources of the bank in the current period when financial and banking institutions are focusing on investing and developing digital banks in Vietnam
- Has not focused on analyzing in detail with the bank's competitors in Vietnam and Asian markets
- Research has not focused on labor movement trends, the brain drain of high-quality human resources in Vietnam, leading to impacts on the expansion of banking operations and development
- Not research yet on how to expand the reputation of the bank in the labor market and employment abroad, especially in the areas of highly developed information technology countries
- Not research yet about the detail solutions to propose a plan to restructure human resources when digital technology develops strongly in the banking industry
- The optimal solution for advanced human resource management software in the world has not been studied so that it can be proposed to be applied at the bank.
Recommendations
From the content I did not complete as expected as well as my observation during the internship, to further improve the quality of the human resource management method at the company, I propose some content for the bank to consider:
- Focusing on in-depth research on competitors in developing and applying personnel strategies
- Developing a training, building competency framework for high quality internal staff The method of human resource management changes from "buy" to "build", which means focusing on developing human resources in the process of working Playing an important role in the method of switching from "buy" to "build" the employee of the bank is the specialized and standard training programs for middle and high managers
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- In-depth studying of the movement trend of human resources in domestic and foreign banks in Vietnam
- In order to improve the quality of banking human resources, it is necessary to expand cooperation with foreign-based training institutions in Vietnam or international training institutions in the region from which to access quality human resources in order to ensure competitiveness in the international market
- Conducting cost assessment when applying technology 4.0 gradually replace human resources at the bank to have a strategy to use resources appropriately
- Expanding the network abroad to increase the training of human resources to adapt to globalized business activities
- Consider improving the ability to attract, retain employees and improve performance by applying the 5-step PRIDE process:
+ P - Provide: Provides a positive working environment for employees
+ R - Recognize: Recognize and develop reward programs that encourage appropriate staffing
+ I - Involve: Increase employee engagement with the organization
+ D - Develop: Develop skills and recognize the potential of employees
+ E - Evaluate: Improve the efficiency of employee evaluation process (based on 3 factors: attitude, competence, level of engagement)
- HR transformation will be built through activities programs related to human resources, from recruitment, training, staff rotation, to remuneration, rewarding, building friendly working environment, building corporate culture of Techcombank.
Conclusion
My internship at Techcombank was an extremely valuable experience for me I have had certain knowledge about Techcombank and the operation of a banking and financial institution in the domestic market I also know that with the development of the economy and technology, the more people reduce the use of cash, and will instead use the bank's products and services with the most advanced utilities During my internship in the Human Resource Management Division, I was able to work with HRBP (Human Resource Business Partner) from practical tasks, workshops,
36 training, coaching, meetings and discussions regularly to help me practice my skills and I can work better in a team and effectively manage time after nearly four months After working here in this company, I became more responsible and more enthusiastic Moreover, communicating with colleagues and direct customers also makes me improve problem solving skill, handling situations with workers
I would like to say a deep thank you to my supervisor, my colleagues and the working partners for helping me a lot during my internship and considering me as a team member I have gained in internship will definitely help me a lot in my upcoming career
I always believe that Techcombank with a vision and effective business strategy, along with a team of employees who are always enthusiastic, creative and solidarity will help the bank to achieve the No 1 position of the commercial banking system in Vietnam market
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