For banks, “soft” cuts to staff to encourage generational turnover

REUTERS

Cost containment is a recurring managerial strategy for many companies. There are ways and ways, however, to cut. In particular, when the cuts concern the “personal” item, i.e. the workforce, one should act with great attention, caution and sensitivity. If the staff reorganization plan involves an agreement with the unions, it is already a good starting point. If each party involved is satisfied with the common ground that has been found, it is a further sign that the right action has been taken. In the banking sector, for example, negotiations are being concluded regarding organizational reorganization paths, in particular of the workforce, which go in this “soft” direction. In recent hours, in fact, Intesa Sanpaolo has signed an agreement with the unions aimed at allowing a generational change without social impacts, also following the important investments in technology. As regards Italy, the agreement identifies the methods and criteria for achieving the objective of 4,000 voluntary exits by 2027, with access to retirement or the Solidarity Fund. Furthermore, by June 2028, 3,500 young people will be hired on permanent contracts, of which 1,500 as global advisors for the network’s commercial activities to ensure greater proximity to customers, particularly in Wealth Management & Protection. The hirings “will be intended to support the growth of the group and new activities and are added to those already foreseen in the framework of the 2022-2025 Business Plan, equal to 4,600 by December 2025 compared to the 9,200 exits that will be completed by the first quarter 2025”. By 2027 Intesa Sanpaolo expects, through natural turnover, 3,000 exits for Italy and 2,000 net exits for the international subsidiaries, the latter entirely concentrated on the central functions without any impact on the commercial roles.

Overall, savings in personnel expenses are expected for the group when fully operational (from 2028), taking into account the aforementioned hires, in the order of 500 million euros per year and expenses (to be accounted for in the fourth quarter of 2024) of 350 million euros per year. net of taxes.

Last October 17th UniCredit also announced that it had reached an agreement with Fabi, First Cisl, Fisac ​​Cgil, Uilca and Unisin on generational turnover, employment and training. The “efficiency improvements” procedure, initially foreseen for 1,600 employees, was scaled down to 1,000 all incentivized and voluntary exits, with a reduction of 38% compared to the start of the negotiation. 500 new hires are also expected, in addition to another 250 new arrivals for turnover. Contributing to the result, the bank specified, is the inclusion of 600 resources in training courses through UniCredit University.

Last July Bper also closed an agreement with the unions on the rather balanced generational turnover process between new entries and voluntary exits.

In short, the banks are leading the way in agreements between voluntary entries and exits which will lead to a generational change in the job market of this sector. It must be said that compared to other sectors, the credit sector represents a world apart, as it enjoys excellent health. Moreover, in recent years the main Italian and European banks have seen a frightening growth in profits, thanks above all to the rise in interest rates determined by the ECB’s monetary policy.

It is no coincidence that in 2023 the collective bargaining agreement for banks was also renewed which, with an average economic increase of €435 per month when fully operational, is particularly “generous” when compared with the majority of agreements closed on contracts in other sectors in recent months. The sector’s Solidarity Fund also allows for voluntary redundancies that are not economically disadvantageous for those leaving.

Certainly for banks, in this phase of flying profits, it is easier to carry out a sustainable generation replacement. But in general, a scheme that provides for respectful relationships and constructive discussion between companies and workers’ representatives could also be replicable in other fields less “rich” than banking.