Human Capital Development in the Ethiopian Banking Industry: Taking the Global Dynamics into Account

Abstract

This study was conducted to assess the overall human capital development endeavors of commercial banks in Ethiopia in light of the current global dynamics. To realize this objective, an in-depth interview was made with relevant managers of the selected banks. Some secondary sources were alsoused as a complement. The data was analyzed using the qualitative data analysis technique. The findings indicate that an integrated HR strategy that guides the banking sector is largely missing. It is also found that though the banks are making preparations in developing their human capital to face the global competitive challenges, much remains to be done. The banks’ efforts to own highly qualified human capital are also hampered by a number of internal and external factors. It is suggested, among others, that there is a medium to long term need to develop a continuous pipeline of quality human capital for the Ethiopian finance and banking industry. Furthermore, it is proposed that the whole issue of human capital strategy needs to become an increasingly important topic on board agendas. Finally, forging strategic alliances with international development partners and/or consultancy firms for the development of human capital in the financial services industry is recommended.