TABLE OF CONTENT

I. INTRODUCTION.....................................................................................................................3

II. CONTENTS.............................................................................................................................3

LO1 Explain the impact of the role of HRM in creating sustainable organizational

performance and contributing to business success............................................................3

P1 Explain the main areas of HRM in their contribution to creating sustainable

performance.............................................................................................................................3

1. Introduction of the selected company...........................................................................3

1.1. Introduction of Vietcombank....................................................................................3

1.2. Business vision and mission statement..................................................................4

1.3. Business objectives....................................................................................................4

1.4. Strategic aims.............................................................................................................5

2. The analysis of industrial characteristics of the chosen company and its public

HRM strategy.........................................................................................................................5

2.1. Industrial characteristics...........................................................................................5

2.2. Five Forces Porter......................................................................................................7

2.3. HRM strategy of Vietcombank................................................................................11

M1 Compare areas of HRM to create sustainable organizational performance...........14

P2 The effects of the changing nature of organizations on human resources skills and

knowledge...............................................................................................................................15

1. What is Digital Business Transformation.....................................................................15

2. A presentation of Vietcombank’s digital business transformation..........................15

3. An explanation of how it leads to HRM changes is to be presented........................16

M2 Examine HRM in relation to the changing nature of the modern business

organisation............................................................................................................................17

LO2 Assess the contribution of HRM in recruiting and retaining talent and skills to

achieve business objectives..................................................................................................18

P3 Review relevant HRM practices in relation to recruitment and retention of

employees for the achievement of business objectives...................................................18

1
 1. Talent management definition.....................................................................................18

2. Talent management process........................................................................................19

3. Talent management at Vietcombank...........................................................................20

3.1 Employer branding...................................................................................................20

3.2 Recruitment...............................................................................................................22

3.3. Onboarding...............................................................................................................25

M3 Evaluate the use of HRM practices in recruitment and retention in relation to the

importance of the labour market........................................................................................25

III. CONCLUSION.....................................................................................................................31

IV. REFERENCES......................................................................................................................31

LIST OF FIGURE AND TABLE

Figure 1: Logo of Vietcombank...............................................................................................4

Figure 2: Banks with foreign investment in Vietnam...........................................................8

Figure 3: Talent Management Process................................................................................19

Figure 4: Recruitment process of Vietcombank.................................................................24

Figure 5: VCB recruitment announcement.........................................................................25

Table 1: Vietcombank's policies with Vietinbank................................................................26

2
I. INTRODUCTION

As a consultant for Vietcombank - a leading bank in digital transformation. With

today's technological environment, digital transformation is inevitable for businesses

to capture a market in the most comprehensive way. Therefore, the recruitment need

for employees with a deep understanding of the digital transformation market is

extremely large. Through this article, the author will briefly introduce Vietcombank,

human resource training policies, recruitment and selection of personnel during the

company's digital transformation process.

II. CONTENTS

LO1 Explain the impact of the role of HRM in creating sustainable organizational

performance and contributing to business success

P1 Explain the main areas of HRM in their contribution to creating sustainable

performance.

1. Introduction of the selected company

1.1. Introduction of Vietcombank

Former Bank for Foreign Trade of Vietnam, now Joint Stock Commercial Bank for

Foreign Trade of Vietnam (Vietcombank) was established and officially came into

operation on April 1, 1963 with the predecessor organization being the Central

Foreign Exchange Management Department (under Vietnam National Bank). As the

first state-owned commercial bank selected by the Government to pilot equitization,

Vietcombank officially operated as a joint stock commercial bank on June 2, 2008 after

successful implementation announced its equitization plan through the initial public

offering of shares.

Figure 1: Logo of Vietcombank (Vietcombank, 2022)

3
After 60 years of construction and growth, Vietcombank has made important

contributions to the stability and development of the country's economy, promoting

its role as a key foreign bank, effectively serving the country's economy domestic

economic development, while creating important impacts on the regional and global

financial community. Vietcombank is continuously voted "Best Bank in Vietnam" by

prestigious organizations around the world. Vietcombank is also the leading bank

among credit institutions in Vietnam in the Top 500 Leading Banks in the world

according to voting results announced by The Banker Magazine in 2022; The only

Vietnamese bank in the Top 30 Strongest Banks in the Asia-Pacific region according to

The Asian Banker's assessment; is the only representative of Vietnam to be in the Top

1,000 largest listed enterprises globally (ranked 950) voted by Forbes Magazine...

(Vietcombank, 2022)

1.2. Business vision and mission statement

Vision to 2025: No. 1 bank in Vietnam, one of the 100 largest banks in Asia, one of the

300 largest financial and banking groups in the world, one of the 1,000 largest listed

enterprises worldwide demand, making a major contribution to Vietnam's sustainable

development.

(Vietcombank, 2022)

1.3. Business objectives

The bank sets a 2023 business plan with main targets such as pre-tax profit increasing

by at least 15% compared to 2022, expected to reach about VND 42,973 billion.

Besides, the bank also expects total assets to increase by 9%; Credit balance increased

by a maximum of 14%; Mobilizing capital growth in line with credit growth;

Lending/deposit ratio (LDR) is not higher than the level implemented in 2022; Bad

debt ratio controlled below 1.5%; Dividend payment ratio as approved by competent

authority.

(Vietcombank, 2022)

4
1.4. Strategic aims

 Number 1 in terms of profit scale; has a diverse income structure, shifting

towards increasing the proportion of non-credit income.

 Leading in digital transformation in Vietnam's banking industry.

 Leading bank in risk management in Vietnam.

 Leading in human resource quality.

 Leading in environmental, social and corporate governance (ESG).

 Research and strive to issue shares and list on the international stock market.

(Vietcombank, 2022)

2. The analysis of industrial characteristics of the chosen company and its public

HRM strategy

2.1. Industrial characteristics

High risk: The bank's business object is money, so it is very difficult to control and

manage. Banks must bear most of the risks in the economy. For example: A business

that borrows money from a bank to do business is burned, that business falls into a

difficult situation, and is unlikely to have money to pay the bank.

Chain reaction: When banks suffer damage or crisis, leading to bankruptcy, people,

the source to attract circulating currency, lose confidence and will no longer deposit

money in banks, leading to people losing money. People will save money at home, the

circulation of money will be limited, the state will print more money, causing inflation.

Based on the specific characteristics of operations in the field of finance and banking,

human resources of the banking industry have the following unique characteristics:

Professional skills: compared to many other professions, the banking industry has

high and strict requirements from input recruitment such as appearance

requirements, qualifications (well-trained through universities, regular college),

working seniority. However, in the current integration period, foreign language

requirements, teamwork skills, management skills and work planning skills are

essential.

5
Health: The physical condition of human resources in general has many limitations in

terms of height, strength, and endurance. Especially in the field that requires high

work intensity and pressure on business results in the banking industry, human

resources are required to have good physical strength to meet the requirements of

the job and the plan.

Besides, the banking industry is also affected by factors such as politics, economics,

society, and law.

a) Politics:

Vietnam is considered one of the most stable political systems in the world. This is a

very favorable factor for the development of the banking industry and the Vietnamese

economy. Foreign financial corporations are investing capital in the banking sector in

Vietnam, leading to increased competition in the banking sector, creating favorable

conditions for the banking industry to develop. A stable political context will reduce

the risks of terrorism, strikes, strikes...

b) Economics

Banking is a sensitive field with many potential risks and depends heavily on the

environment in which the bank operates, in which the macroeconomic environment

has a significant impact on the competitiveness of commercial banks. commercial. It is

expressed through specific indicators:

 The internal stability of the economy: Shown through the scale and growth rate

of GDP, foreign exchange reserves, financial potential, operational efficiency of

domestic companies...

 Level of macroeconomic stability: look at basic indicators such as inflation index,

interest rate, exchange rate...

c) Society

Due to the pace of social development and a stable economy, people's needs related

to payments through the Bank and practical products and services provided by the

6
Bank are increasing. Vietnamese people's psychology always changes according to the

law due to market fluctuations. For example, when the economic situation is

inflationary, people switch from cash to savings in gold... High urbanization speed

(increase in new industrial parks) along with a young population structure increases

demand to use practical services provided by the Bank. The number of businesses has

increased sharply, leading to an increase in demand for capital and finance.

d) Technology

The technical and technological system of the banking industry is increasingly

upgraded and equipped with modern equipment, allowing banks to innovate, perfect

their business processes, distribution methods and, above all, develop new products

and services such as: Online Banking services VCB-iB@nking, VCB PhoneB@nking, VCB

SMS-B@nking and other electronic banking services such as ATM system, Home

B@nking... will help banks Reduce costs, improve operational efficiency and retain

customers.

e) Law

With commercial enterprises in the banking industry, an industry impacts the entire

economy. Activities of the banking sector are strictly managed by the State Bank of

Vietnam and governed by legal documents and industry regulations such as: Law on

Credit Institutions, Law on Banking, relevant Decrees and Circulars to regulate diverse

and ever-changing competition practices to maintain a healthy business environment

for all lending institutions.

2.2. Five Forces Porter

a) Threat of new entrants

Barriers to entry for domestic banks increased after the government temporarily

stopped licensing new banks from August 2008. The risk from new banks will depend

on the height of barriers to entry. Accordingly, if new banks easily enter the market,

the level of competition will increase.

7
Risk from foreign-invested banks: According to the commitment to open the

banking industry, when Vietnam joined the WTO, the banking industry has been

changing as foreign financial institutions can hold shares of Vietnamese banks and the

appearance of banks with 100% foreign capital. There have been 9 100% foreign-

owned banks licensed to establish in Vietnam.

Figure 2: Banks with foreign investment in Vietnam (Nguyen, L. and et al, 2022)

Risk from domestic banks: Most of the increased market share in recent years

belongs to private commercial banks, while the credit market share of state-owned

banks has shrunk. Some private banks with shares such as ACB, MBB, TCB, VPB, VIB,

TPB apply free transfer fees, combined with other forms of increasing customer

experience to help this group of banks attract customers regularly, thereby reducing

capital costs when CASA increases and making mobilization easier. This is a suitable

solution for the current situation, increasing the deposit ratio helps improve bank

liquidity and at the same time forces banks with high service fees like Vietcombank to

consider and come up with solutions to increase quality, as well as reduce service

fees.

(Nguyen, L. et al., 2022)

b) Current competitors

Competitive pressure from competitors in most fields in general and the banking

sector in particular is relatively large. Currently, Vietcombank's competitors such as

Viettinbank, Agribank, BIDV, Sacombank... are trying to increase market share, in

8
addition, Vietcombank's competitors are also banks with 100% foreign capital, with

advantages in quality and service. Therefore, Vietcombank needs to pay more

attention to technological innovation, product diversification, improving service

quality, bringing customers the highest satisfaction.

(Nguyen, L. et al., 2022)

c) Bargaining power of suppliers

State Bank: Vietcombank operates as a state-owned commercial bank, the State Bank

of Vietnam also holds 74.8% of charter capital and is the largest shareholder of

Vietcombank. Vietcombank's operations depend on and are affected by the policies of

State law and the State Bank.

Sources of capital mobilization: Vietcombank mobilizes capital from shareholders,

customers, businesses, other banks, strategic alliance partners... such as the State

Bank of Vietnam (representative of State capital in VCB): 74.8% charter capital, Mizuho

Corporate Bank. Ltd: 15% of charter capital, Domestic organizations and individuals,

foreign organizations and individuals: 10.2% of charter capital.

Equipment and service providers: Vietcombank is not the only working partner of

companies providing equipment and services, so it may lead to cases such as: delay in

providing equipment/services, uneven quality, price increases... In addition, when

sticking with a supplier for a long time, banks will have to bear high switching costs.

(Nguyen, L. et al., 2022)

d) Bargaining power of buyers (customers)

One of the important characteristics of the banking industry is that all individuals,

economic organizations or consumers, including other commercial banks, are buyers

of products and services through the form of financing from banks, and are also

sellers of products and services for banks through deposits, setting up transaction

accounts, or interbank loans... this characteristic has created considerable pressure

for banks. where sellers expect to receive higher interest rates and buyers expect to

pay lower costs than they actually do.

9
Pressure from depositors: For customers who play the role of providing capital,

bargaining power is quite strong. Because the development and existence of banks

always rely on capital mobilized from customers. Customers can then ask the bank to

give them a higher interest rate, which leads to a decrease in the bank's profitability.

Meanwhile, the risk of substitution for banks in Vietnam, for consumer customers, is

quite high. Customers acting as depositors still create competitive pressure between

banks, but with the advantage of high reputation and reliability, VCB has minimized

this pressure.

Pressure from borrowers: For borrowers, their bargaining power is weaker than that

of banks. When borrowing money, customers need to present reasons and financial

documents... Although borrowers do not put much pressure on customers, they can

still create a competitive threat among banks. This power comes when the bank is

stagnant and cannot clear cash flow, or this customer has many small suppliers, the

customer transacts in large volumes and the cost of switching between suppliers is

low.

(Nguyen, L. et al., 2022)

e) Threat from substitute products/services

The massive establishment of intermediary financial institutions threatens the

advantage of commercial banks in providing financial services as well as traditional

services that are still provided by commercial banks. These intermediaries provide the

market with differentiated products and create conditions for buyers to have more

diverse choices and a more expanded financial market.

For corporate customers: The risk of being replaced by the bank is not very high

because this customer group needs clarity as well as documents and invoices in the

bank's product and service packages.

For consumer customers: When bank interest rates are not always attractive to

consumers, in addition to depositing savings at banks, Vietnamese consumers also

have many other choices such as keeping foreign currency, investing in stocks, forms

10
of insurance, investing in precious metals (gold, silver, diamonds...), investing in real

estate or other investments.

Therefore, the threat from alternative products and services to Vietcombank and

other banks is huge. On the other hand, when using this banking service, combined

with the preference for cash, makes consumers want to keep and use cash rather

than going through banks.

(Nguyen, L. et al., 2022)

2.3. HRM strategy of Vietcombank

a) VCB's employee engagement strategy

The business culture at Vietcombank always considers taking care of human resource

development as the focus and prerequisite goal associated with sustainable bank

development. In which, creating conditions for comprehensive human development is

considered a central element in Vietcombank's development plans with a vision for

2025 - 2030.

Vietcombank proposes solutions to train high-quality, specialized human resources

and meet the bank's development requirements, requirements for digital banking

development and innovation in modern banking technology applications.

Vietcombank also actively builds a cultural foundation for applying digital technology

in the bank to promote the learning and creativity of all employees in the

organization, building a creative and open working environment to Encourage staff to

be creative in their work; Promote scientific research and implementation of initiatives

and applications of digital technology in banking activities.

Regarding implementing policies for employees, as of December 31, 2022,

Vietcombank has 22,599 people. Vietcombank has been building and implementing a

series of optimal remuneration policies for employees, not Continuously improve and

further enhance income as well as legal rights and interests of all employees in the

system, contributing to creating a cohesive workplace environment. In 2022,

11
Vietcombank continues to affirm its position as the bank with the most attractive

working environment when voted ranked No. 1 in the entire banking industry, ranked

No. 2 in the entire Vietnamese market and in the Top 50 reputable Vietnamese

enterprises most attractive employer brand.

(Vietcombank, 2022)

b) Human resource training policy

Vietcombank always focuses on training and is organized with orientation to improve

the quality of human resources. Vietcombank actively develops training programs

both domestically and internationally. The training program is continuously reviewed

and innovated to suit the actual needs of the units and the strategy for developing

high-quality human resources. Training is carried out in many diverse forms such as:

centralized training, training via videoconference, E-learning training.

(Vietcombank, 2022)

In 2019, Vietcombank invested in upgrading the Training Center into a School of

Human Resource Training and Development with the task of managing and

implementing training and scientific research activities in accordance with the

orientation and development goals. development of Vietcombank. The school

completes the process of building training programs for positions from branch

manager level to senior leaders (C-level).

By the end of 2022, Vietcombank has had 70 electronic lectures on the E-learning

platform, 380 training courses organized (both centralized and online) with more than

97 thousand employees participating. The training rate for the management sector

reached 6.86 times/manager and the training rate for the staff reached 4.42

times/employee; equivalent to the average number of training hours for management

is about 19 hours/year and for employees is about 12 hours/year.

(Vietcombank, 2022)

12
c) Remuneration policy for employees

The average income of employees at Vietcombank has continuously grown over the

years, always ranking at the top of the banking industry and reaching a high level

compared to the general market level. The average income of Vietcombank staff in

2022 will reach nearly 432 million VND, equivalent to 36 million VND/month, an

increase of 8% compared to 2021. Thus, Vietcombank has spent nearly 9,600 billion

VND in 2022 on staff salaries. Vietcombank implements a transparent, fair, and

motivating evaluation mechanism: work performance is measured and evaluated

based on a set of indicators for each job position, ensuring both qualitative and

quantitative evaluation and Comprehensive recognition of staff contributions, thereby

incorporating appropriate and transparent remuneration and reward regimes.

(Vietcombank 2022)

d) Salary, bonus and welfare policy

Salary mechanism

Vietcombank's salary mechanism is built on the principle of payment based on

position, job title, job complexity, professional qualifications, salary distribution linked

to business results, and salary levels task completion, creating motivation to improve

labor productivity, quality and work efficiency. Salary policies are regularly reviewed

and improved to better suit actual operating conditions, ensuring internal fairness

and competition in the market.

The employee's salary is divided into 02 parts: (1) Fixed salary determined by

rank/grade appropriate to the professional position held; (2) Effective salary is

determined according to the results of work completion assessment measured by

KPIs, encouraging employees to strive for good work results.

VCB applies an expert salary mechanism, with very competitive salaries for highly

qualified workers to recruit necessary workers for a number of specific fields,

transformation projects to improve management capacity and activity.

13
The average income of workers at VCB is guaranteed and has grown over the years,

reaching a high level compared to the general market level.

Remuneration

Non-salary benefits for employees at Vietcombank are quite diverse with forms such

as: organizing periodic health checks; buy health insurance, life insurance; give away

gym cards; Subsidy/treatment support for maternity and illness cases; money for

lunches, uniforms, vacations, birthday celebrations, filial piety, travel support for

holidays, allowances for retired workers, support for child care costs, rewards for

employees' children have good academic performance...

Employees are also given the opportunity to participate in training at home and

abroad, and Vietcombank pays/supports training costs according to the provisions of

the Training Regulations; receive regular/unscheduled rewards according to the

provisions of the Regulations on emulation and commendation.

In addition, Vietcombank's Trade Union and Youth Union regularly coordinate to

organize activities to care for the material and spiritual lives of employees, helping to

balance life and connect employees throughout the system such as : establish and

support the activities of clubs (Yoga, running, table tennis, tennis, badminton,...);

organize running races and activities on International Children's Day June 1, Mid-

Autumn Festival, Vietnamese Women's Day October 20, International Women's Day

March 8; giving movie tickets, tickets to amusement parks, tickets to book fairs for

working people, letters of gratitude and gifts for parents and mothers of workers on

the International Day of the Elderly on October 1 every year, etc.

Social insurance regime

14
Employees at Vietcombank are eligible to participate and enjoy social insurance

benefits in accordance with State regulations. Vietcombank actively coordinates with

social insurance agencies to quickly and promptly resolve benefits for employees and

ensure maximum benefits for employees when on leave or sick maternity.

M1 Compare areas of HRM to create sustainable organizational performance.

With the goal of leading in digital transformation in the Vietnamese banking industry.

In 2021, the bank has had a number of initiatives that have initially brought

experience and convenience to customers (Opening an account: opening an online

payment account using eKYC authentication, opening a securities trading account

projects), capacity building projects/transformation projects continue to be deployed

and put into application according to the roadmap, actively supporting digital

transformation goals... In 2022, Vietcombank has recruited senior personnel and

foreign experts with professional qualifications and rich experience in the field of

digital transformation to implement more than 300 initiatives with 4 pillars of

digitization (Digital), Data Data, Technology and Transformation. In addition, the bank

focuses on promoting training activities; Focus on training programs on Information

Technology and Digital Transformation; Training for positions at the Branch according

to the Training Map; Implement training courses for staff according to regular and

intensive programs with a variety of centralized, online, and E-learning forms.

Therefore, over the past years, Vietcombank has created a source of high-quality staff

to meet the bank's human resource needs, thereby creating sustainable value for the

bank.

P2 The effects of the changing nature of organizations on human resources

skills and knowledge.

1. What is Digital Business Transformation

Digital Transformation is the process of using digital technologies to create – or adapt

– existing business processes, culture and customer experiences to meet business

15
changes and requirements. market demand. This change in the digital age is digital

transformation.

(Le Pham, 2020)

There are 7 digital transformation elements: business model, digitization of products/

services, IT infrastructure, digitization of business processes, digital skills of

employees, organizational structure and digital channels for interaction with clients.

2. A presentation of Vietcombank’s digital business transformation

Digitization of products/services: in 2001, Vietcombank provided digital services to

customers, starting with the first version of Internet Banking for individual customers

and the VCB-Money system for institutional customers. Up to now, Vietcombank's

digital services are increasingly upgraded and diversified. The number of individual

customers using Vietcombank's Digibank application has grown strongly in recent

years. In the first 11 months of 2021, the number of customers on digital channels

increased by 44%, the number of transactions increased by nearly 57% and the

transaction value increased by 64%. Every day, Vietcombank's digital channels

smoothly process 2.5-3.5 million transactions with a value of 18-36 trillion VND. The

transaction rate of individual customers on digital channels accounts for 97% of the

total number of transactions.

IT infrastructure: in 2020, Vietcombank successfully put into operation the new Core

Banking System (Core Banking Signature). The system opens up the ability to handle

multiple services with a centralized database, fast and real-time transaction

processing speed 24/7.

Digital channels for interaction with clients: Vietcombank launches Virtual

Assistant VCB Digibot in customer care activities on Website and Fanpage, helping

customers have an additional modern and friendly 24/7 support channel in addition

to the current hotline channel. ownership of the bank. With the deployment of

chatbots, instead of having to go to Vietcombank transaction points or call a customer

care operator, customers can chat online with virtual assistant VCB Digibot in

16
Vietnamese for consulting support, providing information and answering problems

when using Vietcombank's products and services.

3. An explanation of how it leads to HRM changes is to be presented

The shift in labor structure in the banking industry due to the impact of digital

transformation has led to the emergence of more technology-related job positions;

Repetitive and uncreative jobs will be replaced by robots and automation systems;

Many job positions will be transformed due to the application of technology in

operations and processing processes.

This shift will increase the need for quality and quantity of human resources in the

financial sector by about 8 - 9% by 2030 (McKinsey, 2020). According to the World

Economic Forum (WEF, 2020), about 65% of new jobs appearing are related to digital

transformation and about 56% of workers in Southeast Asia in the next 20 years are at

risk. Lose your job if you are not equipped with skills and cannot meet new needs.

This data shows that traditional human resources are gradually shifting to high-quality

human resources with international accessibility.

In order to meet the needs and quantity of human resources to ensure the digital

transformation process, Vietcombank in 2019 upgraded the Training Center into a

School of Human Resource Training and Development with the task of managing ,

carrying out training and scientific research activities in accordance with

Vietcombank's development orientation and goals. In addition, some new forms of

online training such as: via MS Teams, Blue Jeans... platforms are also researched and

deployed. Training plays an important role in fostering source staff to build a team of

successive staff. Therefore, over the past years, Vietcombank has created a source of

high-quality staff to meet the bank's human resource needs, thereby creating

sustainable value for the bank.

17
M2 Examine HRM in relation to the changing nature of the modern business

organisation

New digital technology has actually reduced a portion of banks' staff, requiring less

labor, but requiring higher expertise, both knowledgeable about banking and finance,

and knowledgeable about technology. Every bank needs to have a team of highly

qualified staff and experts to implement the digitalization process, so it must have a

remuneration policy to attract and retain high-quality human resources and

specialized experts. According to a report by Navigos Group, positions of software

developers, information technology engineers, and technology project managers are

regularly recruited by Vietnamese banks to serve the digital transformation process.

Recruiting candidates in the technology and data field due to the strong need for

digital transformation at commercial banks with attractive salaries for employees in

the technology and data field is also very attractive, especially Particularly human

resources with expertise in Blockchain and Artificial Intelligence (AI) are receiving the

highest salaries.

Grasping the importance of digitalized personnel, as well as fierce competition from

banks to attract talented people for digitalization, VCB has developed many

preferential policies for Digital Banking Center personnel. In addition to the general

regimes applicable to other officers, the salary and benefits for technology and

digitization officers have special incentives compared to other positions of the bank

with the goal of attracting many talented personnel for digitization. The Digital

Banking Center has many expert positions with attractive salaries for employees who

are good at digitizing, especially for positions of digital transformation experts, UI/UX

design experts, DevOps... for digitalization. From 2020 up to now, VCB has

continuously recruited many personnel for technology and digitalization activities with

more than 50 positions for the Digital Banking Center and dozens of positions for

banking information technology personnel.

18
With the advantage of being the only bank present in the top 500 banks in the world,

The Banker Magazine announced the best working environment with a dynamic and

extremely creative environment and a high average income. In the labor market, VCB

has a great advantage in recruiting good, high-quality personnel.

LO2 Assess the contribution of HRM in recruiting and retaining talent and skills

to achieve business objectives

P3 Review relevant HRM practices in relation to recruitment and retention of

employees for the achievement of business objectives.

1. Talent management definition

Talent management is the attraction, selection, and retention of employees, which

involves a combination of HR processes across the employee life cycle. It

encompasses workforce planning, employee engagement, learning and development,

performance management, recruiting, onboarding, succession and retention.

(Gartner, 2022)

2. Talent management process

The six-step process for managing talent in an organization includes planning,

attraction, selection, development, retention and transformation.

19
 Figure 3: Talent Management Process (Forbes, 2022)

Planning: Figure out your human resources needs, key roles, hiring plans, and other

aspects related to your business strategy.

Attract: Reach potential candidates through social media recruitment campaigns, job

portal posts, and referrals. You can also use recruiting software to find the best

candidates for open positions. Check out our list of top recruiting software to learn

more.

Selection: Find the best candidates through a series of assessments such as

interviews, written tests, skills assessments and psychometric tests, among others.

You can also use an applicant tracking system to streamline your hiring process,

candidate information, and candidate contact information. Check out our list of the

best applicant tracking systems here.

Development: Once an employee is hired, ensure there is an effective onboarding

process so they can settle into the role. To improve retention, provide development

opportunities such as training sessions, mentoring, and peer coaching.

20
Retention: Training a new employee is more expensive than retaining an employee.

For companies to retain existing talent, they may have to increase salaries over time,

create growth opportunities, ask for feedback, and offer flexibility.

Transformation: The talent department must be invested in employee development

and creating a positive work environment. No employee will stay at your organization

forever—but you can conduct exit interviews and succession planning for a smooth

transition. In addition, you should also reward your most loyal employees with

retirement benefits and promotions to encourage them to stick around for the long

term.

(Danao, M., 2022)

3. Talent management at Vietcombank

3.1 Employer branding

Vietcombank always pays top attention to its staff, from taking care of their material

and spiritual lives to increasing benefits for employees at the enterprise. That's why

Vietcombank was honored three times in a row to win the "Typical Enterprise for

Workers" award by the Vietnam General Confederation of Labor in coordination with

the Ministry of Labor, War Invalids and Social Affairs and the Trade Federation. and

Vietnam Industry organized from 2014 to present.

Developing high quality human resources

Vietcombank implements the strategic goal of "Leading in human resource quality"

through the development of comprehensive, high-quality human resource

development policies for employees. With this goal, in 2019 Vietcombank completed

upgrading its Training Center into a Human Resource Development and Training

School. Since then, Vietcombank has affirmed its determination to build systematic,

professional and modern training programs, providing employees with opportunities

to experience the most advanced learning and research environment. All employees

joining Vietcombank are given a clear training roadmap with diverse content and

appropriate training forms.

21
Training roadmap

All positions at Vietcombank have a training roadmap. The training roadmap is clearly

defined right from the time new employees join the Vietcombank team and there will

be additional adjustments appropriate to each stage to meet job requirements and

career development roadmap.

Education program

Training programs are built systematically, professionally and are constantly

innovated and enhanced to adapt to the digital transformation era. Vietcombank's

human resource training and development school has successfully implemented

many training programs from employees to senior managers.

Forms of training

Vietcombank is one of the pioneering enterprises in applying advanced technology

and science to personnel training. Training programs are organized through diverse

and technological forms such as: Centralized training/coaching, training via

videoconference, Ms Teams form (Online & Remote Classroom), E form -learning.

Currently, Vietcombank is promoting E-learning in its training programs. Through this

method, employees will be able to proactively learn anytime, anywhere, and the

content of the training program will be digitized on the software. According to actual

data at Vietcombank, currently the number of lectures via E-learning accounts for

nearly 30% of the total training content with diverse and rich topics to help students

learn more effectively. In addition, E-learning is also piloted for skills exams at

Vietcombank.

Affiliate programs

In addition to building a clear training roadmap, rich training programs and diverse

modernized training forms, Vietcombank also focuses on building affiliate programs

through signing cooperation agreements with universities and training units to

improve training quality and attract high-quality human resources.

Development opportunities

22
All Vietcombank employees have the opportunity to develop themselves through

career paths. Here, employees not only have the opportunity to develop and improve

their professional qualifications but also assert themselves in higher positions

through internal upgrade exams.

(MISA AMIS, 2022)

3.2 Recruitment

a) Recruitment of personnel

Recruitment work

Vietcombank always focuses on the quality of human resources, especially in the

current digital technology era. Vietcombank's employer brand is increasingly affirming

its position in the labor market in the banking industry in particular and the

Vietnamese labor market in general.

The Vietcombank recruitment exam process includes 3 rounds:

Round 1: Preliminary application

The only form of receiving applications is online. Candidates apply directly and view

detailed recruitment information on Vietcombank website, Recruitment section; In

this section, candidates need to scan the following documents to create and submit

an online application.

 Self-declared curriculum vitae within the most recent 6 months certified by a

competent state agency.

 Copies of diplomas and transcripts (no need for notarization/authentication).

 Copy of foreign language and IT certificates (no need for

notarization/authentication).

 Health certificate within the last 6 months.

 02 4×6 photos (taken within 6 months up to the time of application).

In addition, candidates must fully supplement notarized/authenticated paper

documents when requested by VCB; or when there is a notification that the candidate

has entered the recruitment interview round. Depending on the specific position,

additional documents will be required.

23
Round 2: Knowledge test

(Organized 7 - 10 days after the end of the Round 1 application receiving period)

Vietcombank's knowledge test round usually has two parts:

1. Professional testing

The Credit/Teller/Treasury/Informatics professional exam will have 45 - 50 multiple

choice questions in 60 minutes. In this part, candidates must answer questions about

macroeconomic knowledge combined with professional questions related to law; as

well as knowledge about products and services provided by Vietcombank. Some

general knowledge questions have also been added to this section.

2. English test

All candidates applying to Vietcombank must take an English test, except for Treasury

positions. There are 2 main types of topics:

 Test format 1: 60 questions, choose the most correct word / 60 minutes.

 Test format 2: 45 questions, choose the most correct word + 1 reading lesson /

60 minutes.

Round 3: Council Interview

This is the last round before candidates complete the entrance exam process to

Vietcombank. To pass this round and win the opportunity to work at Vietcombank;

Candidates can interview twice if applying for a position at branch level or higher.

In this round, like other banks; Vietcombank often asks diverse questions; Divided into

many areas to simultaneously test the candidate's knowledge - attitude - skills.

After 3 rounds of the recruitment process, Vietcombank will notify candidates who

meet the bank's requirements. After that, Vietcombank will open training classes for

new employees to meet the operations and plans that the bank has set out.

24
 Figure 4: Recruitment process of Vietcombank

b) Personnel selection

Vietcombank has proactively built the Vietcombank Development Strategy until 2025,

with a vision to 2030 with the goal of becoming the No. 1 bank in Vietnam, one of the

100 largest banks in Asia, one of the 300 largest corporations. The world's largest

financial and banking company, one of the 1,000 largest listed enterprises globally,

has greatly contributed to Vietnam's sustainable development. To be able to realize

these strategic goals, high-quality human resources are considered both the subject

and one of the main development drivers of Vietcombank.

Currently, Vietcombank is accelerating the digital transformation process, changing its

operating model from traditional methods to digital banking activities. The Bank has

officially launched the Transformation Action Program with 3 phases and 4 pillars

including: digitalization, data, technology and transformation, focusing on improving

customer experience, developing digital human resources and improving business

processes.

To obtain high-quality human resources associated with the digital transformation

process, Vietcombank has policies to attract, recruit and appoint a number of

experienced foreign experts to a number of key leadership positions of Information

Technology and Digital Transformation sector. At the same time, prioritize recruiting

and building a team of information technology and digitalization staff with good

25
qualifications and high professionalism, meeting the needs of operational

management and mastery of public systems modern technology. Vietcombank has

also implemented systematic training and fostering of staff so that they have enough

capacity, innovative thinking, flexible working methods and the ability to quickly adapt

to the transition process. numbers are going very strongly.

3.3. Onboarding

Figure 5: VCB recruitment announcement

(source: Nguyen Thu, 2023)

26
M3 Evaluate the use of HRM practices in recruitment and retention in relation

to the importance of the labour market

Salary in two major cities

Salary of bank employees in Hanoi capital alone, the average salary of bank

employees ranges from 7 - 9 million VND/month. However, there are still places with

lower salaries, from 5 - 6 million VND. And the high income of bank employees can be

up to 40 million VND/month.

In the Ho Chi Minh City area, the salary of bank employees is slightly higher than in

Hanoi, on average 8 - 10 million VND/month. Although the lowest salary in this area is

about 7 million VND/month, there are still bank employees with extensive experience

and solid expertise who can achieve a salary of 50 million VND per month.

Table 1: Vietcombank's policies with Vietinbank

Comparison
Vietcombank Vietinbank
criteria
Ranging from 8 - 28 Ranging from 9 - 25

million/month depending on million/month depending on

location location.

Vietcombank's bonuses usually 13th month salary bonus,

range from 5 million or 1 Bonus: Official employees 4

month's salary (depending on million

Salary each branch) on fixed occasions NV Probation: 1 million, New

such as: Lunar New Year, May 8, Year bonus,

September 2, Tet... 5 million for uniforms (for all

Branches that do well at the top employees).

of the apparatus can receive an

amount equivalent to 15 - 20

months' annual salary.

27
Remuneration In addition to salary, there are - 12 days/year leave policy, full

regime many other forms that can be 05 years of working

mentioned such as: birthday, experience will be entitled to

filial piety, wedding, vacation 01 additional day off;

money, gifts on the occasion of - Support employees and their

New Year and Lunar New Year, relatives to treat illnesses and

support for travel expenses accidents;

during holidays, and health - Support families of

check-ups periodic health employees affected by natural

insurance, critical illness disasters and enemy

insurance, preferential credit sabotage;

products for employees, rewards - Gifts on International

for employees' children with Children's Day and Mid-

good academic achievements, Autumn Festival for

subsidies for retired employees... employees' children;

Vietcombank also pays special - Reward children of

attention to female workers employees with good

through expenditures to support academic achievements;

female workers such as: monthly - Gifts on the occasion of

support payments, child care International Women's Day

support, maternity benefits, gifts March 8, the founding day of

on March 8 and October 20. the Women's Union October

In addition, Vietcombank's Trade 20 for employees;

Union and Youth Union regularly - Support for travel expenses

coordinate to organize activities on holidays and New Year for

to strengthen employee employees;

engagement: Organize activities - Gifts for employees on the

for employees' children on occasion of holidays and New

International Children's Day June Year: New Year, Lunar New

28
 1, Mid-Autumn Festival, Giving Year, National Unification Day

gifts to parents and April 30 and International

grandparents on the Labor Day May 1, National Day

International Day of the Elderly, September 2;

organizing group activities such - Gifts for employees on the

as Family Day and Let's Run. occasion of VietinBank's

founding day;

- Rest regime to recover health

after illness or maternity;

- Periodic health examination

regime;

- Retirement benefits;

- Vacation
Brand name Ranked number one in the Top 2000 largest enterprises in

Banking industry in the Top 10 the world.

Best Places to Work in Vietnam. Top 500 most valuable

Ranked 3rd in the Top 500 banking brands in the world.

Leading Employers in Vietnam VietinBank is the only

(VBE500). Vietnamese bank to be in the

Top 500 most valuable banking Top 300 Most Valuable

brands in the world ranked by Banking Brands in the World

Brand Finance. three times in a row (Brand

Top 1000 largest listed Finance)

enterprises globally announced 9 consecutive times in the Top

by Forbes... 2000 Forbes Global,

Vietcombank's contributions For many years in a row, it has

have been recognized by the been awarded the title of

Party and State with many noble Vietnamese National Brand

titles and awards: Second Class and Strong Vietnamese Brand.

29
 Labor Medal (1993); Third-class Top 100 Sustainable

Independence Medal (2003); Ho Enterprises in Vietnam (CSI

Chi Minh Medal (2008); 100), Top 10 most valuable

Independence Medal, First Class Vietnamese Brands.

(2013); First Class Labor Medal

(2018)
Education Training roadmap VietinBank always ensures

policy All positions at Vietcombank that its staff and leaders have

have a training roadmap. The the ability to learn, adapt

training roadmap is clearly quickly, coordinate well, and

defined right from the time new be ready to respond to all

employees join the Vietcombank changes in the system and the

team and there will be additional market. Vietinbank pays

adjustments appropriate to each special attention to staff

stage to meet job requirements training and development;

and career development From the first day of becoming

roadmap. a VietinBank officer, you will

Education program have the right to participate in

Training programs are built systematic training programs:

systematically, professionally and the program includes

are constantly innovated and professional courses to help

enhanced to adapt to the digital you develop professional

transformation era. capacity and advanced skills

Vietcombank's human resource according to your needs

training and development school requirements of the

has successfully implemented competency framework for

many training programs from each position. Since 2021,

employees to senior managers. VietinBank will strongly change

Forms of training its recruitment policy and

30
Vietcombank is one of the appointment policy for leaders

pioneering enterprises in and managers towards

applying advanced technology transparency through internal

and science to personnel exams, to give opportunities to

training. Training programs are officials with achievements.

organized through diverse and High, highly engaged with

technological forms such as: many contributions.

Centralized training/coaching, Examinations to select leaders

training via videoconference, Ms and managers are held

Teams form (Online & Remote publicly and regularly, creating

Classroom), E form -learning. promotion opportunities for

Currently, Vietcombank is officials with outstanding

promoting E-learning in its qualities, qualities, and

training programs. Through this abilities.

method, employees will be able VietinBank also has 1-1

to proactively learn anytime, Coaching activities to help

anywhere, and the content of the members become more aware

training program will be digitized of themselves and determine

on the software. According to a suitable promotion path.

actual data at Vietcombank, VietinBank's title system is

currently the number of lectures always updated, improved and

via E-learning accounts for nearly clearly communicated so that

30% of the total training content employees can grasp and

with diverse and rich topics to choose their own

help students learn more development and

effectively. In addition, E-learning advancement orientation.

is also piloted for skills exams at

Vietcombank.

Affiliate programs

31
 In addition to building a clear

training roadmap, rich training

programs and diverse

modernized training forms,

Vietcombank also focuses on

building affiliate programs

through signing cooperation

agreements with universities and

training units to improve training

quality and attract high-quality

human resources.

(source: Vietcombank and Vietinbank, 2022)

III. CONCLUSION

Through this article, the author has raised factors affecting the banking industry such

as the PESTLE model, PORTER's 5 competitive pressures model of Vietcombank. In

addition, the author has outlined the effectiveness of applying digital transformation

in an organization, and how these digital transformation processes have affected the

HRM department. This article also proposed strategies attract talent with specific

activities related to the employer's brand, select and train new employees, plan to

retain talent to achieve the overall goals of the business.

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