Impact of Royal Commission on HRM in Banking Sector

International human
resource management

Running Head: Report
Contents
Contents...........................................................................................................................................1
Introduction......................................................................................................................................2
Employment background to working in banking sector in Australia, Impact of the Banking Royal
Commission on the job market........................................................................................................3
HRM issues in the banking sector post Royal commission report..................................................3
Royal commission can generate a revamp of hiring practices at banks..........................................4
Human resource issues and challenges to be addressed by the HR department..............................5
Questions.........................................................................................................................................7
Recommendations for human resource department......................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
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Running Head: Report
Introduction
The report focuses on understanding the various recommendations stated by the Royal
Commission in Australia. The banking royal commission was founded in December after several
pressures from public, comprising consumer groups, labor and whistleblowers. The Royal
commission has categorically put, that the individuals of the financial sector did not pay any
heed towards customer service; all that was essential for them was enhancing their sales and
profits. The recommendations have shaken up the financial industry and have managed to
highlight some very critical issues. This report presents some of the recommendations that were
laid down in the report of the Royal commission. The report majorly has pointed out the effect of
the Royal commission report on employment issues, HRM issues and morale of employees after
the release of the Royal commission report. But before this discussion the report discusses the
response of both the government as well as the opposition in context of the financial scandal and
the recommendations and the response of the banks and their zeal to gain back the customers
confidence. The various HRM issues that have arisen because of the recommendation of the
Royal commission report are discussed and recommendations are given henceforth (Australian
Government, 2019).
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Running Head: Report
Employment background to working in banking sector in Australia, Impact of the Banking Royal
Commission on the job market
After the recommendation of the Royal commission report, the number of employees across
banking industry has fallen down. National Bank of Australia has plans of bringing down its
employees to 33422 from 4000 employees. There is only 13 % increase in the candidates who
are seeking for compliance role in Australia. The industry is welcoming employees who have
transferable skills and is promoting applications for junior positions with salary of $74,142 and
senior positions with salary of $130,776 (Williams, 2019)
HRM issues in the banking sector post Royal commission report
After the release of the Royal commission report a survey was conducted of the employees and it
was noted that the financial employees find their jobs to be extremely stressful and have started
feeling insecure towards their job. According to the study 25% of the financial sector employees
feel that their job is very stressful and 13% are dedicated towards their work, in comparison to
19% of national average. This data itself states that the employment in the financial industry in
the coming times is extremely challenging. Several employees have felt the impact of this
inspection at their private stature and thereby this has impacted them mentally (Fisk & Howes ,
2019). The feeling of job insecurity is high and thus it will impact the recruitment of managers
from other countries too. The present situation has bought ambiguity in the minds of employees
about the future of the industry and their job security. 29% of the employees said that they did
not have the requisite skills to perform their jobs. The role of leaders to create a united culture in
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