1. The Royal Bank of Scotland Group :
The Human Capital Strategy
Syndicate – 5
1. Fadila Pratika HS Alimuddin - 29318345
2. Andi Firmansyah – 29318333
3. Herman Hutagalung – 29318375
4. Rikordias D – 29318391
5. Lidia Monika -- 29318315
6. Aunurrahman Priyo Aji - 29318402
2. 1. Please describe the evolution of people management at RBS in the period of
1997 to 2008
HR Practices Description
Evidence Based Human Capital
• Implement a strong evidence based HR function framed around consultancy model,
supported by a shared services function
• Create an annual HR customer survey and bi-annual activity review to ensure that the HR
function was focused on delivering the business priorities.
• Leveraging the data to better understand and support HR initiatives
• Very clearly demonstrate the impact of measurement had bottom line business performance
New Metric for Employee Engagement • Develop new metric employee engagement to measure the strength of the Group Human
• Could identify the pattern where the most engaged employees produce superior business
result by running multiple regression from employee survey
• Employee engagement created based on leadership effectiveness and linked to customer
service, as well as achievement of sales target, staff absence and turn-over.
Standardization of Metrics across
• Create standardization of metrics across the Group’s different business unit to ensuring fair
comparison between employee in different function and countries
• Having data at the business unit level afforded managers the opportunity to recognize and
address human capital challenges at the aggregate level
Friendly Human Capital Toolkit • Online tools that HR across Group diagnose issue, develop interventions, share best
practices and measure effectiveness of people strategy
• The toolkit enabled HR managers to work with their business to measure their people metrics
Branch Manager Performance
• Creating Branch Manager as People Manager to communicate performance to their group of
people regularly and more frequent.
• Branch Manager as personal coaching and problem solver
People Focused Financial Services
• Managers are accountable to develop financial performance, customer service and people
3. To help business leaders utilize key people measures such as employee Engagement, turnover and leadership effectiveness.
• Reduce the Turnover and absences by analyzing which component of the employee proposition that impacted the engagement
• Employee engagement, programs such as :
• Rewards Program: Flexible Rewards
• Non-Financial: Design “The Big Thank You”
• Target and focus employment of policy is different among countries base on it key driver of engagement
• Leadership Effectiveness
• Implement standardized metrics to measure managerial effectiveness between :An individual and the line manager A business
units to senior management Executive level to it’s Divisional management Group Chief Executives and Group executive
Management Committee to its Group leaders across the myriad of countries, business and languages represented within the
group that enable RBS to compare employee internally and externally that enable RBS to have a strong insight into individuals
and their impact on business performance and Customer Service
• Performance Management
In RBS the Human Capital Strategy identified 7 Areas of Employee Performance that’s link with Business and customer
Performance Metric: Leadership Index, Engagement Index, Customer Focus, Image and Competitive Position, Managing
People and Change, Efficiency and innovation Together.
• The Human Capital Toolkit
• The Toolkit enable HR Professional across the group diagnose issue, develop interventions, share best practices and measures
the effectiveness of their people strategy
• Enable HR Manager to work with their business to measure their own people metrics
2. What’s the Human Capital Strategy in accordance to RBS
4. 3. Give Examples how RBS leverage data and information to the level of knowledge?
• RBS conducted annual survey “Your Feedback”. RBS uses the data from survey to help understand effectiveness of key
initiatives such as continuous framework “Work-Out”. Feedback from survey also highlighted one of key drivers of employee
engagement was non-financial recognition. RBS Remuneration & Benefits respond that by creating program “The Big Thank
You”, which enable managers to recognize excellence in customer service, such as; box of chocolate, red letter day and wine.
• RBS built a system called Human Capital Toolkit that helps HR professional across the Group diagnose issues, develop
interventions and share best practices.
• As an example, the Toolkit helps Paul & Helen analyze bank brand in the Group by region, by area manager, by aggregate and
by division in terms of customer service, financial performance, leadership, engagement and other aspects. The Toolkit informs
area branch managers influence on business performance and people performance was not as strong as the branch manager’s
influence. The data also said the company need to make it worthwhile for talented people to stay as branch managers.
• Brand managers is undervalued role for the last five years, because the job is seen as stepping stone.
• From that finding, the company view that the role of branch managers should be filled by high-quality people. In order to get
those high-quality people, several ways are considered such as:
• Raise of income
• People transfer from other division who has entrepreneur skill
• Transfer of Area Manager into Branch Manager
• HR Toolkit also implementing rating for branch managers (categorized as A and B), which then A-rated managers are taken as
role model. And managers who get B rating, considered as talent who need appropriate development to becoming A-rated
• Data from Toolkit also used to accurately segment branch managers and examine potential correlations between their
characteristics and competencies