Shenzhen Development Bank Sees Talent Drain in Wake of Ping An Acquisition
Shenzhen Development Bank is showing signs of internal stress following its acquisition by Ping An Insurance Group. A branch vice president has resigned and taken on the role of president at China Bohai Bank’s Guangzhou branch. His resignation was quickly followed by a dozen other SDB employees loyal to the vice president, and is part of an exodus of some 200 employees who have either resigned or quit in the aftermath of the acquisition announcement.
New SDP president Richard Jackson has said that many opportunities remain for its employees and has pushed to raise employee’s salaries in an effort to curb the talent drain, but many are saying even a 20% salary increase may not be enough to keep SDB’s best and brightest. Many employees cite a blatant overlap of services now provided by both companies, which now has two headquarters, two credit centers and four branches within the same cities, as the reason for their early departure from the company.
While this will not affect the company in the long term, as it will see talent retained by the Ping An staff, it is a PR blow to SDP and another example of deficient talent-retention tactics and poor planning. Companies in Shenzhen and throughout China are taking a harder look at their employee retention rates and seeking to improve this statistic as it realizes the high cost of acquiring competent talent at all levels.