International financial services companies such as UBS are some of the most attractive employers around. But with competition for the best talent fierce, outstanding training and promotion programmes are vital. Talent development is becoming a cornerstone of successful corporate strategy

By Marcel Ospel, Chairman of UBS AG

Switzerland's banks make up one of the most important sectors of the country's economy. Between them they generate (either directly, or indirectly through demand effects on other industries) some 55 billion Swiss francs – 12 percent of the national income. They are also one of the biggest taxpayers. They manage assets worth 4,000 billion francs, including a third of the world's crossborder personal assets. They employ over three percent of the Swiss workforce. Switzerland's banks are offering a large number of qualified positions commanding above-average salaries – with an increasing proportion of them located outside of Switzerland.

More than almost any other sector, the Swiss financial industry embodies traditional Swiss values such as openness to the world, innovation, stability, efficiency and discretion. Located at the heart of Europe and at the crossroads of major European trade routes, Switzerland has always had an international orientation. Most Swiss financial institutions were therefore well prepared for the opening up of world markets and the globalisation of supply and demand.

Yet that very globalisation has brought with it fierce competition not only for clients and market share, but also for staff. For UBS, recruiting and developing managers has become a central to the firm's corporate strategy. We believe careful talent management, and the early identification and development of potential leaders, are key factors in securing a company's long-term success. This training philosophy is closely linked to our growth strategy, which aims to achieve organic growth in our defined core businesses while taking advantage acquisitions when appropriate. The key to that lies in the professional recruitment, development, motivation and retention of future talents.

Two major advantages when it comes to recruiting such people are the attractiveness of the brand and our firm's reputation. According to Business Week/ Interbrand, UBS is currently 42nd in the list of the 100 best-known firms worldwide. The value of our brand is estimated at 8.7 billion US dollars. The sharp improvement in the public perception of our firm in recent years helps us to recruit top people and is reflected in employee statistics: in 2005, UBS hired 836 people with university degrees (bachelors and masters) – an increase of 53% over the previous year.

Lifelong learning

Recruiting talent is only one part of the story, however. What really matters is what happens afterwards. Therefore we encourage a learning culture that gives every staff member the opportunity to continue developing at every stage in their career, making the best of their individual strengths and talents. Last year, we spent over 200 million francs on staff training and development worldwide.

Behind these figures lie numerous promotion and development programmes. One of them is a global Graduate Training Programme (GTP) aimed at the best university and college graduates. Some 220 graduates are currently attending this programme, which offers general training modules that are standard across the firm, coupled with material specific to certain regions and types of business. International rotations with on- and off-the-job training units support the development of graduate trainees, with an eye to their future function within the bank. At the same time, the firm also supports traditional learning programmes.

Because UBS is active in many markets around the globe, there are plenty of opportunities for talented staff to take on international assignments. Anyone who is interested in working abroad for a time can therefore count on management support. It's largely up to individuals to take the initiative in arranging a placement abroad, and drive and commitment are the key factors.

Talent management and the management culture

Even the best development programmes are useless, however, if they are not closely linked to talent development and the management culture within the company. At UBS, management makes a direct contribution to these programmes. Members of the Group Executive Board and senior managers regularly take part in management seminars and development programmes for future leaders. Especially talented members of staff are picked out at an early stage and directed towards special training channels. We have entrusted our Leadership Institute with the task of identifying future leaders for our key positions, and giving them the training they need. These seminars offer trainees plenty of opportunity to compare notes, learn and exchange opinions with top managers. As a result, UBS is today regarded as one of the most attractive employers in the world.

Education and research

Of course, it would be misguided to assume that we can win competition for top talents solely through measures within our firm. The brightest talents also go where the best universities and research institutes are. The Swiss banking sector has therefore championed moves to create within Switzerland a leading global education and research institution in the field of banking and finance. The Swiss Finance Institute (SFI) was set up with our help last year. Its aim is not to establish a training institution in its own right, but rather to build on the existing capacities of Switzerland's universities. It co-finances research professorships and supports specific projects. It also plans to combine existing further education and postgraduate diploma programmes in the financial sector and offer qualifications including a masters degree in 'General Bank Management'.

Swiss banks are already extremely attractive, internationallyoriented employers with great future potential. At UBS alone, we have around 600-700 unfilled vacancies at present in Switzerland alone; and given the economic power of emerging markets in areas such as Asia and Latin America, the trend is set to continue for some time yet.