Kasikornbank (KBank) had the highest rate of employee turnover among the country's four biggest banks in the first six months of the year, owing to tough competition in banking careers.
MEETING THE CHALLENGES
Ariya Banomyong, country manager of Google Thailand, speaks at yesterday’s Towards the Shifting World seminar held by KBank at CentralWorld. Other panelists included Kasikornbank president Teeranan Srihong, Berli Jucker president Asavin Techacharoenvikun, PTT president and CEO Pailin Chuchottaworn and Advanced Info Service CEO Wichian Mektrakarn. SOMCHAI POOMLARD
The bank said its turnover rate in the first half was 8.5%, compared with Siam Commercial Bank's 7%, Bangkok Bank's 5% and Krungthai Bank's 1.5%.
KBank's ranking slips to second place, however, if the comparison extends to the fifth-largest bank by assets, Bank of Ayudhya, whose turnover rate was 8.8%.
KBank, the industry's fourth-biggest lender by assets, has raised its minimum salary twice since last year, in accordance with government policy.
Salaries for new university graduates start at 14,500 baht a month, up from 12,500-13,500 baht recently. The bank also offers 2,500 baht a month for living expenses.
In January 2012, the minimum monthly income for state employees with a bachelor's degree rose to 15,000 baht.
KBank's turnover has risen to 12% annually in the past two years, mainly on intense competition in banking careers, especially the areas of branch business, relationship management and overseas work.
KBank's turnover in the past five years was 4%, in line with the industry rate.
"Under fierce competition, we want to keep our turnover rate in line with the industry level," said Surasak Dudsdeemaytha, executive vice-president of KBank. "But we don't think it can return to single digits, due to the rapid growth of the banking industry."
KBank's new employees have risen each year, from 2,000 in 2010 to 3,000 in 2011 and 3,900 in 2012.
The bank expects to recruit 4,500 new employees in 2013, a third of them for business expansion and another third to cope with turnover.
Mr Surasak said new staff recruitment is centred on overseas business to prepare for the onset of the Asean single market.
Asian personnel, especially Chinese, are needed for business expansion in mainland China.
KBank's employees number about 19,000, with half of them working as branch staff. The bank has about 50 foreign employees, largely Chinese, Japanese and South Korean.
Shares of KBANK closed yesterday on the SET at 163 baht, up 62 satang, in trade worth 1.173 billion baht.
About the author
- Writer: Somruedi Banchongduang
Position: Business Reporter