Career development
What the career paths of Swiss bank executives tell us about skills and talent development
Since the beginnings of digital transformation in the 90s, banks have constantly reinvented themselves to adapt to changes in their environment. The digital revolution alone has profoundly transformed the way banks operate and interact with their customers. Within organizations, it has redefined work, moving from an HR approach centered on job-specific qualifications, to a focus on individual skills. In this context of uncertainty, banks need to encourage rapid decision-making by empowering their teams, which implies greater confidence in employees' ability to handle unknown and complex situations. As a result, the level of skills expected of employees is constantly rising, and the assessment and development of these skills is becoming a strategic challenge for talent management. Through targeted HR actions, talent management must aim to identify, attract, integrate, develop and retain employees capable of making a difference, in a dynamic that reconciles both organizational performance and individual career development.
It is in this context that ISFB fulfils its mission of supporting the organizational and individual development of the French-speaking financial center. Active in particular in the production of sector-specific knowledge, ISFB is multiplying initiatives to strengthen its support for its member banks by providing them with targeted research results. To this end, on Tuesday August 20, 2024, the annual HRD morning was held on the ISFB premises. Professor Eric Davoine from the University of Fribourg presented a summary of his research into the career paths of senior executives in the Swiss banking sector (1). This meeting offered a unique opportunity to shed academic light on the significant aspects of the career paths of men and women at the head of Swiss banks, while putting into perspective the skills requirements at all hierarchical levels.
His study points out that, historically, Swiss bank executives often came from non-academic backgrounds. He notes that, for a time, the Swiss business elite built part of their legitimacy through military careers. Over time, the proportion of managers with traditional backgrounds, such as apprenticeships, has notably declined, in favor of those with university degrees, particularly from business schools. The need for Swiss banks to adapt to an increasingly globalized economic environment has fostered the emergence of a variety of business models, calling for new skills on the part of managers. More than ever, managers need to be able to adapt quickly to change and innovate to remain competitive, which requires flexible management and the ability to integrate new trends and technologies into banking operations. Globalization has also led to an increase in the international mobility of managers, influencing their career paths and introducing more diversified talent management practices that take into account both international and local considerations.
As Professor Davoine observes, today's executives possess strategic management and reorganization skills, often acquired through experience with auditing and consulting firms. These firms represent a crucial step in the careers of executives in the Swiss banking sector, where they acquire an important legitimacy, as do headhunting firms. Thanks to their expertise in specific markets and their discretion, headhunters (2) play a central role in the selection of Swiss bank executives, conferring credibility and legitimacy on candidates while helping to redefine leadership standards. Professor Davoine concluded his presentation with a discussion of gender dynamics within the top management of Swiss banks. He noted that, although the proportion of women on executive committees has risen in recent years, it remains relatively low compared with other European countries. This shows a positive trend towards greater diversity in corporate governance.
In short, the evolution of the Swiss banking sector and the transformation of the skills required of managers reflect the need for continuous adaptation in a globalized, technologically advanced environment. At every hierarchical level of the organization, technical and soft skills are valued differently, depending on the type of function, the type of bank and the economic climate. In this context, talent development is essential to ensure access to qualified specialists capable of maintaining the high level of expertise of the French-speaking financial center, an area in which ISFB plays a leading role.
This is reflected in the ISFB services offered to its members in the form of management training programs, as well asassessment and skills assessment services.
(1) Pedro Araujo, Eric Davoine & Pierre-Yves Donzé (26 May 2023): Banking elites and the transformation of capitalism in Switzerland: A prosopographic analysis (1890-2020)Business History, DOI: 10.1080/00076791.2023.2213650
Strategic Business Area 3
Career development
In addition to its range of technical and managerial training courses, the ISFB offers its member banks' human resources departments a range of guidance and career management services.