The second thing that is a must, is to insure the highest motivations for training.
It can, moreover, be a precondition in order to increase turnover and/or to be able to charge higher course fees. In fact, since the introduction of course fees for bank training in C.I.S. countries, there have often been less managers [...]
To make a choice between candidates, one has, mainly, to take into consideration the following factors:
- long past professional experience and, particularly, knowledge of the bank, the way it works and its organisational culture,
Promotion
A promotion is a move of an employee to a job within the organisation, which has greater importance and, usually, higher pay. Frequently the job has higher status and carries improved fringe benefits and more privileges.
European banks’ new practices concerning career management are, more and more, characterised by:
Presentation of the European banks’ traditional practices
In many of the retail banks from western European countries, career management was characterised by:
Assessment and remuneration
In most western European banks’ remuneration policies, flexibilisation and performance related pay are more and more widely introduced, to increase employees’ stake in the business. They favoured some kind of variable system and performance related pay plans.
Training needs analysis
Training should always meet a need. Otherwise it is not efficient. The need arises from a problem situation involving skills, which may be defined as a “skills gap” (the gap between actual and desirable skills).
Common characteristics and evolution trends of past compensation policies of western European banks
Base rates used to be established through collectively negotiated agreements and fixed according to conventional structures, in a rather rigid manner (codified system of scales).
The main factors/elements of a compensation policy
There are five key elements in good compensation plans for banks:
