The financial sector has been under intense pressure in recent years caused by the prolonged period of low interest rates, new competition from start-ups that rely heavily on artificial intelligence (AI) and ever more regulation. Banks, insurance companies, asset managers and financial service providers are often forced to rethink and extensively adapt their internal organizational and procedural structures and even their business models as a whole. This inevitably leads to the spin-off of business units and employee separation programs in certain areas. Normal business operations need to be maintained whilst these are being implemented — and new product strategies are introduced simultaneously.

Important points to consider are:

  • Transformations, e.g. in agile organizations, require rethinking of many processes and interfaces as well as organizational and cultural change. HR must pro-actively support these.
  • Job losses impact the entire organization, including the staff who will work there in times to come. They feel the changes and are at risk of losing sight of their long-term prospects. Support for these employees must be guaranteed to ensure a successful transformation.
  • Consolidations, e.g. by way of mergers, bring challenges in the form of harmonization of HR systems, remuneration structures, and processes. Decisions need to be made as to whether one system should take on the lead position, the “best of both worlds” are to be combined, or an entirely new system is to be created.
  • A large number of project elements are processed simultaneously. These must be organized, coordinated and supervised, which demands exact and constructive project management.
  • Incentives must also work in times of change. However, short-term oriented remuneration systems are often not able to reflect any positive future prospects, and additional/different solutions are have to be found.

Companies need experience with such transformation processes, which they only too often lack. hkp/// group consultants support financial sector businesses of all sizes with these kinds of projects. Our experts not only bring their experiences with similar projects as consultants but also as former executives in a variety of roles.


Author Isabel Jahn

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