Universidad San Ignacio de Loyola

CURSE

International Human Resources

BLOCK

FC-PREINGIBS07B01N(H)

COMPARATIVE HR PRACTICES IN RBS AND

DEUTSCHE BAN

TEACHER

Alarco Ferradas, Maria Barbara

STUDENTS

Ferrando Carranza, Illary Valeria

Alarcón Ambolaya, Sebastián Emilio

2023-02

Lima-Peru
 1. Compare the HR approaches adopted by RBS and DB

The Royal Bank of Scotland (RBS) stands out for its pioneering approach to
human capital measurement. They have developed a comprehensive model that links
HR metrics to business performance indicators, recognizing the direct influence of HR
initiatives on organizational outcomes. This approach centers on talent attraction and
retention, with a focus on creating a compelling proposition for employees. RBS seeks
to attract, engage, and retain the best talents, implementing strategies such as total
rewards, recognition, development, and work-life balance. They also understand the
importance of tailoring these propositions to meet the individual needs of employees,
including those with family responsibilities. Furthermore, RBS emphasizes employee
engagement and satisfaction, firmly believing that an appealing employee proposition
leads to higher engagement and, ultimately, better business performance.

On the other hand, Deutsche Bank (DB) has opted for a radical transformation
in its HR function. This bank has integrated project-based learning, new technologies,
and academic contributions into its strategy. Unlike RBS, DB adopts an approach
heavily influenced by risk management in its HR metrics. They identify HR risk factors
related to motivation, adaptability, qualifications, and employee turnover. Specifically,
DB focuses on minimizing the turnover of key employees, recognizing that losing these
employees can have a significant cost, estimating it to be approximately 1.5 times their
annual compensation. DB's HR metrics are designed to manage these risks and
ensure that HR initiatives support organizational goals.

RBS excels in its focus on human capital measurement, talent attraction and
retention, customization of the employee proposition, and employee engagement as
key elements of its HR strategy. In contrast, DB has opted for a strategic
transformation of HR with a strong focus on risk management and the retention of key
employees. Both banks employ HR metrics to achieve their objectives, but their
fundamental priorities and approaches differ substantially.

HRM is a distinctive approach to employment management which seeks to

achieve competitive advantage through the strategic deployment of a highly committed
and capable workforce, using an array of cultural, structural and personnel techniques,
explains the strategic importance of Human Resource Management in banking
institutions. (J. Shifa Fathima, 2015, p. 3).

2. How effective are these strategies in order to enable these organizations

achieve their business goals?

Both strategies are effective in their own context and depend on each
organization's business objectives. RBS's focus on human capital
measurement, talent attraction and retention, employee value proposition
customization, and employee engagement can be effective in improving
business performance through a highly engaged and capable workforce.

On the other hand, DB strategy focused on risk management and

retention of key employees can be effective in minimizing the costs associated
with critical employee turnover and ensuring that HR initiatives support
organizational objectives.

In addition to the above, it is important to note that the two strategies

have different approaches and may be more effective in different situations. For
example, the BSR strategy may be more effective in an organization where
talent attraction and retention is critical to business success, while the DB
strategy may be more effective in an organization where risk management is a
key priority.

Also, it is important to consider that these strategies may evolve over

time and may require adjustments as the organization's needs and objectives
change. Ultimately, the success of these strategies will depend on how they are
adapted and implemented in the specific context of each organization.

Another important point to consider is that, although these strategies

focus on human resource management, business success also depends on
other factors, such as business strategy, organizational culture, technology and
other external and internal factors. Therefore, it is important for organizations to
take a holistic approach to business management and consider how all parts of
the business interact to achieve business objectives.
 Ultimately, the effectiveness of these strategies will depend on how they
are tailored to the specific needs of each organization and how they are
implemented in their particular context.
References

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https://www.shrm.org/hr-today/news/hr-magazine/0618/pages/global-recruiting-

tips-for-hr.aspx

Diard, A. (2023, 23 enero). 7 Best practices for hiring international employees overseas

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hiring-international-employees-overseas/

Hewson, M. (2019, 26 abril). RBS and Deutsche, compare and contrast. CMC Markets.

https://www.cmcmarkets.com/en/news-and-analysis/rbs-and-deutsche-compare-

and-contrast

Recruiting Internationally: Considerations and Strategies. (s. f.).

https://recruitee.com/articles/recruiting-internationally

J. Shifa Fathima. (2015). Human Resource Management in Banking Sector.

https://www.shanlaxjournals.in/pdf/MGT/V2N3/MGT_V2_N3_013.pdf

AccountingWEB. (2016, 29 abril). Case study: How Royal Bank of Scotland’s derives

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https://www.accountingweb.co.uk/tech/tech-pulse/case-study-how-royal-bank-

of-scotlands-derives-value-from-human-capital-management