Effective Selection Methods of Employees in the Banking Sector

 

The selection methods of a bank can be either internal or external. Internal selection focuses on people who are already working as company employees, while external selection aims to attract the new talented candidates from outside (Hausknecht et al., 2004).

Internal recruitment methods can always be faster than external ones, because the candidates are already within the bank, as the management needn't  to start from square one and find them. The only thing is to be done is have a  look closely at their skills and match them to the needs of the bank. Internal recruitment can also be less costly and result in employees becoming more productive in their new roles &  faster than a brand-new hire might(Smither et al., 1993). Internal recruitment also enhances employee morale by ensuring that they will always have the option to advance their careers in their chosen professions (Shammot, 2014).

One downside of internal recruiting is that it can put a damper on diversity and fresh thinking since the internal employees not bringing anyone new into the organization (Hausknecht et al., 2004).

External recruiting, on the other hand, is more time-consuming because it requires the bank to source, screen, and interview multiple people, after complete the  negotiations and on boarding once the top management has selected a candidate(Rynes, 1990).  An additional set of skills and concepts can also improve the organization, which will be beneficial in the long run. Inside the firm, new and innovative ideas can be shared, resulting in a greater learning culture (Saviour, 2016).

However, the external recruitment has the advantage of helping the bank to  hire people with specialized expertise or hard-to-find skills. It’s a better way to infuse the organization with innovative ideas & creative thinking(Britain,2009).

Following are some selection methods

1. Structured Interviews:

Under this selection method, always use standardized, job-related questions to analyze experience, candidate’s skills & suitability for the bank's environment.

2. Behavioral Assessments:

Evaluate past experiences, behaviors and to predict future performances. This method helps to identify the candidates with the proper competencies for the job.

3. Skills and Aptitude Tests:

 According to this method, implementing some kind of tests that assess specific skills which are relevant to banking roles, such as numerical reasoning, customer service & financial analysis.

4. Reference Checks:

Under this method bank Contact the professional references & previous employers to verify the candidate's working history, reliability & performances.

5. Simulation Exercises:

Create realistic of job previews or case studies in the bank that simulate the tasks that employees would encounter in their job roles. Within this method the bank can get a clear idea about how candidates approach and handle the  real-life scenarios.

6. Personality Assessments:

Use assessments to, ensure the candidates who align with the bank's values and culture & gauge a candidate's personality traits.

7. Background Checks:

 According to this selection method, verify a candidate's employment history, education and any potential legal issues. Not only that the bank ensures the  transparency and helps in making informed decisions  in the organization.

8. Panel Interviews:

This method Involve multiple interviewers to reduce individual biases & provide diverse perspectives   in the evaluation process.

9. Job Previews/Shadowing:

Allowing candidates to spend time within the actual work environment to understand the job demands & assess if it aligns with their expectations in the bank.

10. Continuous Learning and Improvement:

 Regularly review and update the selection methods based on feedback and the evolving needs of the bank to ensure ongoing effectiveness.

 

References

Britain, G. (2009). Recruitment and selection. Amsterdam ; Boston ; Oxford: Elsevier/Pergamon

Hausknecht, J.P., Day, D.V. and Thomas, S.C. (2004). Applicant Reactions to Selection Procedures: An Updated Model and Meta-Analysis. Personnel Psychology, 57(3), pp.639–683. doi:https://doi.org/10.1111/j.1744-6570.2004.00003.x.