Talent management’s role in retaining employees in the banking sector in Laos

Abstract

RESEARCH QUESTIONS: 1. How well do HR managers understand the term ‘talent management’? 2. What are the current roles of HR managers regarding talent management in the banking sector in Laos? 3. What are the current practices of talent management that are employed in banks in Laos? 4. What are the key benefits that talent management provides to banking organisations in Laos? 5. What are the current practices of talent retention in the banking sector in Laos? 6. What are the factors that hinder talent retention in the banking sector in Laos?

ABSTRACT: When it comes to the management of people in banking organisations, it is not only workforce management that is the focus of Human Resource Management (HRM) but it is also the management of talented high performing employees. This is called “Talent Management” (TM). Talent Management is becoming an important organisational strategy to attract, recruit, and retain the most capable employees to help the organisation achieve its goals and retain its competitiveness amongst its competitors.

This research project aimed to explore HR managers’ perceptions regarding the practice of talent management in the banking sector in Laos and to identify the likely problems and successes of Human Resource (HR) practices in banks in Laos. The research project further focuses on identifying the current practices of talent management and talent retention as well as their key benefits and challenges for business performance and competitive advantages for the banking sector. In order to achieve the aim and objectives of the research, this study used semi-structured interviews as the approach for qualitative data collection. The process involved interviewing eight HR managers from the banking sector in Laos who were the participants for this study.

Based on the empirical findings, HR managers in the banking sector in Laos generally are aware of the term ‘talent management’ and can explain its basic definition. They have more than one role and the roles that they mainly execute include being an administrator and a strategic partner. In terms of the current practices of TM, many practices are applied such as resourcing talent, talent development, talent relationship management, and rewards. The key benefits that TM provide to the organisational performance are related to day to day operations, talent resourcing, business goal achievement and new products and activities initiations. The benefits of TM in terms of competitive advantage include customer satisfaction and competitiveness enhancement. In regard to talent retention, the three most applied methods are training and capacity building focus, staff engagement programmes, and succession planning programmes. However, retaining talent in organisations is found to be difficult. The causes are lack of a talent management policy in organisations and an increase in competition in the same industry.

Finally, the research concludes that the role of TM, despite becoming increasingly important in the field of HRM, is still a relatively new concept for Laos HR managers. Laos HR managers working in the banking industry should take business strategies into account when creating TM plans. In addition, there is a need for the appreciation of TM from the top leaders. HR managers and supervisors working in the Laos banking industry also need to improve TM to put HRM fully into practice in organisations in Laos.