Career Development as a Sustainable Transformation of the Head of Unit PT Bank Rakyat Indonesia (Persero) TBK

Erfan Robyardi¹*, Mohamad Adam², Zunaidah³

^1,2,3Universitas Sriwijaya, Palembang, Indonesia

Emails: [email protected], [email protected], [email protected]

Abstract

PT Bank Rakyat Indonesia (Persero) Tbk (BRI) has implemented a sustainable transformation plan in response to the dynamic developments in the global and Indonesian economies. This study aims to analyze the career development framework within BRI's Talent Management System as part of its human capital management strategy. Using qualitative research methods, data were collected through document analysis, observations, and interviews. The findings reveal that BRI's career development process encompasses five main phases: Attraction, Identification, Selection, Development, and Succession. These phases are supported by advanced resources such as BRILLIANCE and other leadership and technical development programs. BRI also ensures fair opportunities by adhering to national labour regulations, particularly regarding women's rights. The implementation of structured career management policies has significantly enhanced employee performance and fostered inclusive economic growth. The study concludes that BRI's career development strategy aligns with its long-term objective of becoming a leader in financial inclusion by 2025.

Keywords: career development, �employee rights, financial inclusion, human capital strategy, succession planning, talent management

INTRODUCTION

The Unitary State of the Republic of Indonesia (NKRI) and the geopolitical conditions in Indonesia during this decade, particularly in 2024, when representatives are elected to the Republic of Indonesia's district, city, provincial, and people's representative councils, as well as the President and Vice President, followed by regional heads including regents, mayors, and governors, demonstrate how the global economy is evolving in developing nations. This presents a significant challenge for micro, small, and medium-sized enterprises (MSMEs), which serve as a key pillar of the economic base of the Unitary State of the Republic of Indonesia (NKRI).

Positive outcomes were achieved by PT Bank Rakyat Indonesia (Persero) Tbk (henceforth referred to as BRI/the Company). These results are closely tied to BRI's commitment to implementing Sustainable Transformation to Grow Stronger and Greater to support inclusive national economic growth by consistently contributing to the creation of social and economic value (Lewis et al., 2021). Through sustainable transformation, BRI has been able to respond strategically during periods of economic uncertainty, especially in the post-COVID-19 pandemic era.

In its mission to become a Champion of Financial Inclusion by 2025, the company is devoted to sustainable growth by focusing on cultural and digital transformation. To achieve this vision, BRI maximizes its strengths by emphasizing the business escalation period (beyond banking) (Mathews, 2019). This includes enhancing retail banking through the development of the value chain business, advancing digital products, and strengthening synergy and cross-selling between BRI and its subsidiaries. Additionally, the optimization of Ultra Micro Holding (BRI, PT Pegadaian, and PT Permodalan Nasional Madani) leverages its extensive customer base to become a new source of growth for BRI, utilizing widespread infrastructure and comprehensive financial products and services (Rahman & Muhammad, 2023).

Furthermore, BRI continuously innovates its digital solutions to improve banking services. As a BRI super app, BRImo is regularly upgraded. In 2023, BRImo enhanced its cross-border transaction and investment capabilities, integrating artificial intelligence features such as the Sabrina chat banking service. With 3.1 billion transactions totaling IDR 4,159 trillion and 31.6 million users (an increase of 32.6% year over year), BRImo generated IDR 2.4 trillion in fee-based revenue in 2023.

Aligned with international agreements, recruitment, selection, and placement processes are conducted in compliance with local government regulations (Finn, 2020). Practices such as employee demotion, mutation, and promotion are executed following customs passed down through generations. The direct observation method, assignments to unit heads based on job descriptions, and the documentation of activities aligned with those descriptions continue to evolve to meet business needs (Dennis et al., 2015).

Scores from individual evaluations over short-, medium-, and long-term periods have been recorded in worksheets. To enable career planning for unit heads, the organization requires employees with average scores to possess skills and supplementary competencies both from within and outside the organization (Rothwell et al., 2015).

Within the organization, a working group is formed where team members collaborate to complete predefined tasks using resource support and reliable human resources (Villinski, 2016). Subsequently, a trade union relationship is established, involving not only company employees but also their spouses, children, neighbors, and family members. UPGRIP (2024).

RESEARCH METHODS

Qualitative research methods are research methods based on the philosophy of postpositivism or imperative, used to investigate natural object conditions where the researcher is the key instrument. The research involves a specific population and sample selected purposefully based on the research objectives. Data collection techniques are carried out using triangulation, which combines observation, interviews, and documentation (Santos et al., 2020). The data obtained tends to be qualitative, analyzed inductively, and the results aim to understand meaning and uniqueness, construct phenomena, and develop hypotheses.

In this study, the data collection techniques include interviews, observations, and documentation. The analysis process, regardless of the type of research, involves a systematic examination of components, their relationships, and their connection to the whole. This process is undertaken to identify patterns and derive insights, as described by Spradley in Sugiyono (2024).

RESULT AND DISCUSSION

Career Development

�In order to develop the careers of workers, BRI has implemented the Talent Management System as an integrated BRI talent management framework, which includes 5 (five) stages, namely

1) Attraction Stages.

�BRI has prepared a talent source and a talent channel to attract the best candidates for BRI. Some of the programs include recruitment programs through Regular Recruitment and Talent Scouting (Allal-Ch�rif et al., 2021). The Talent Channels designed by BRI are BFLP, BNLP, BBOP and BMSP.

2) Identification Stages,

It is a grouping of BRI Workers based on aspirations, individual assessments (annual performance), and competency, and it clusters into the Human Asset Value Matrix and areas of expertise (talent pool).

3) Selection Stages

Workers are categorized into talent clusters based on performance and competence. These results are combined with other supporting scores, including the suitability of expertise, additional points from national and international awards, endorsements, employee aspiration and other things (Schimmelpfennig & Hunt, 2020). These results will determine the BRILLIANCE Score of Workers and include Workers in the talent pool and list of successors.

4) Development Stages

Workers will be given development programs as needed, whether it is based on talent clusters, Corporate Titles, or Worker roles (Gallardo-Gallardo, 2018). This helps in the process of finding succession, especially for Key Strategic Positions. Some of the development programs include:

a) Character

b) Professional competencies

c) Leadership competencies

d) Technical competencies

5) Succession Stages

It is the process of selecting candidates to be placed as successors through promotion or rotation of talents in a position through succession planning. Currently, to become a successor, BRI has developed an application to support the Talent Management System at BRI called BRILLIANCE (Young, 2017).

Career Planning

The Director of Human Capital is directly in charge of two divisions within BRI's Human Capital Management structure, whereas the SEVP Human Capital Strategy is in charge of two divisions. The Human Capital Business Partner Division, BRI Corporate University, the Human Capital Strategy & Policy Division, and the Human Capital Development Division are all under the direction of the Director of Human Capital, who also oversees the SEVP Human Capital Strategy from the division of management.

In general, the Human Capital Strategy & Policy Division is in charge of employee governance, individual performance management, human capital communication, labor cost management, reward policy strategy management, and human capital planning strategies. Human capital development, talent management, hiring and evaluation, human capital resourcing, and human capital partnership management are all under the purview of the Human Capital Development Division (Bratton et al., 2021). Management and human capital business partners, regional human capital business partners, career and succession planning, talent mapping, industrial relations and union implementation, reward operations, human capital information systems, and people analytics are all under the purview of the Human Capital Business Partner Division. Additionally, BRI has a Corporate University that oversees training and education initiatives, including BRI's internal accreditation under the corporate university idea.

Rapid digital change, shifting regulatory dynamics, global economic instability, and other national and international factors will all pose serious hurdles to business growth conditions in 2024 (Kaftan et al., 2023). These factors will ultimately affect BRI's human capital management approach. According to the direction of business development, BRI's human capital management will continue to prioritize boosting worker productivity in 2024, particularly to support the CASA strengthening strategy. This will be achieved through worker capability improvement programs, particularly for marketers and micro ranks to support the Human Capital Micro Reengineering initiative; enhancing performance management; continuing to optimize and automate business processes through the implementation of strategic workforce planning; and optimizing the contribution of subsidiaries through the implementation of standardized human capital management in the BRI Group.

In order to free up the time of current employees, the Reinventing Job process, which is a job reconstruction process that involves identifying a comprehensive task list to capture the potential for automation or transfer to technology, particularly for repetitive and administrative processes, is one of the strategies being implemented as part of BRI's strategic workforce planning project. These days, it is more efficient and redirects that time to other more strategic and value-added jobs. Its management is anticipated to be more effective and efficient in 2024 since the process will still be operating in both support and business work units, including one of the implementations in BRI's human capital business processes (Mulyana et al., 2024).

However, the program's primary focus is also on workers' capacity building and capability improvement, which is carried out by implementing creative competency-based learning initiatives and bolstering coaching and mentoring programs in the long-term individual performance management process. Enhancing these capabilities is primarily focused on micro ranks and marketers to support the Reengineering Human Capital Micro initiative's implementation. It also aims to improve work unit leaders' leadership skills so they can guide and lead the company's business goals.

Additionally, the company will implement the Implementation Synergy of subsidiaries, which includes standardizing human capital management within the BRI Group, to support its aspirations to grow inorganically by maximizing the contribution of subsidiaries. In order to capture the current state of human capital management in each subsidiary, a maturity assessment was conducted first. According to the assessment's findings, BRI Parent and each subsidiary firm will subsequently execute a number of strategic activities in line with the human capital management roadmap created for the ideal circumstances anticipated in 2025. Additionally, the BRI Group's sustainable performance management system is being improved through a number of initiatives, such as modifying performance management policies and provisions to reflect contemporary conditions and challenges, creating a more dependable support system, and making other efforts to keep performance management implementation aligned.

Trade Unions

keeping in mind the state-guaranteed rights of female employees. When compared to male employees, female employees have their unique advantages. The first reason is that biological factors�such as menstruation, breastfeeding, and childbirth�are involved. Second, because of sociocultural factors, female employees are more susceptible to workplace violence, including discriminatory acts and sexual abuse. Therefore, by enacting several regulations, the state validates this necessity. It is hoped that women workers' rights will be protected and accommodated by the basic legislation.

Law (UU) Number 13 of 2003, which has been modified by the existence of a Government Regulation in lieu of Law No. 2 of 2022 concerning Job Creation, and Manpower Law No. 6 of 2023, which has been established as a valid legal guideline, are among the regulations that regulate the rights of women workers.

The ratification of Law No. 80 of 1957 concerning the Agreement of the International Convention on Labor Organization (ILO) No. 100 of 1953 concerning Equal Wages for Women and Men for Work of the Same Value has also resulted in the creation of legal regulations pertaining to the rights of female workers.

Law Number 39 of 1999 concerning Human Rights, Law Number 24 of 2011 concerning the Social Security Administration Agency, and Regulation of the Minister of Manpower Number 3 of 1989 prohibiting the termination of employment for married, pregnant, and nursing women are all examples of regulations. The following are the rights of female employees who have received accommodations from the state:

1) Right to Menstrual Leave

In accordance with Labor Law No. 13 of 2003 Article 81 Paragraph 1, female workers can apply for rest when they feel menstrual pain on the first to second day by notifying the employer.

2) Female workers are entitled to special facilities during certain working hours, as stated in Article 76 of the Labor Law. For example, pregnant female workers should not be employed between 23.00 and 07.00. Female workers who have shift work between 23.00 to 05.00 are also entitled to facilities in the form of shuttle transportation.

3) Prohibition of Termination of Employment Due to Marriage, Pregnancy and Childbirth.

Female workers who are married, pregnant and give birth cannot be subject to Termination of Employment because they violate the regulations in Article 153 paragraph 1e of the Manpower Law.

4) Protection rights during pregnancy.

Female workers who are pregnant, if their work is at risk to the pregnancy and safety of their lives, are entitled to protection according to Article 76, paragraph 2 of the Labor Law.

5) Right to Maternity and Maternity Leave.

Female workers who are pregnant and giving birth are entitled to apply for leave in accordance with Article 82, paragraph 1 of the Labor Law; Female workers are entitled to rest for 1.5 months before the time to give birth and 1.5 months after giving birth according to the calculation of the obstetrician or midwife.

6) Birthing Expense Rights.

As stated in Law Number 24 of 2011 concerning the Social Security Administration Agency, in the case of female workers who have been registered with the BPJS Kesehatan program, they are entitled to health services for pregnancy and childbirth examinations.

7) Miscarriage Leave Rights.

Miscarriage is not an easy event for women. Therefore, female workers have the right to apply for rest leave for 1.5 months or according to the recommendation of an obstetrician or midwife in accordance with Article 82, paragraph 2 of the Manpower Law.

8) The right to breastfeed or express breast milk.

Female workers who are still breastfeeding their children are also entitled to time if it is done during working hours. This need has been accommodated in Article 83 of the Labor Law. https://spbri.org/news/81euaMVIR (2023).

CONCLUSION

PT Bank Rakyat Indonesia (Persero) Tbk, one of Indonesia's leading banking institutions, has demonstrated a strong commitment to implementing corporate governance practices. The organization has successfully completed the attraction phase, preparing talent channels and sources to meet strategic goals. It has also finalized the identification phase, which involves aligning employees' goals with organizational objectives by categorizing talent clusters. These clusters streamline various stages of the recruitment and development processes. The Human Capital Strategy & Policy Division oversees key responsibilities, including individual performance management, employee governance, human capital communication, reward policy strategy, labor cost management, and human capital planning. Additionally, the Human Capital Development Division manages critical functions such as human capital development, talent management, recruitment and evaluation, resourcing, and partnership management.

Significantly, BRI acknowledges the importance of protecting workers' rights, with particular attention to women. The organization recognizes that female employees face unique challenges due to biological factors, such as menstruation, breastfeeding, and childbirth, as well as sociocultural factors that increase their vulnerability to workplace violence, including discrimination and harassment. By addressing these concerns, BRI aims to foster a safer and more inclusive workplace. Future research can further explore the impact of these human capital strategies on organizational performance and employee well-being. Additionally, studies can examine the effectiveness of gender-sensitive policies in promoting equity and productivity in the banking sector.

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Copyright holders:

Erfan Robyardi, Mohamad Adam, Zunaidah (2024)

First publication right:

AJEMB � American Journal of Economic and Management Business