Banks Shift Hiring Focus from New Graduates to Experienced Veterans

The hiring strategy in the banking sector is shifting from focusing on new graduates to seeking experienced 'veteran' workers. As banks reduce their workforce due to branch closures and digital transformation, the demand for reemploying retirees with field experience and expertise is rapidly increasing.

According to the financial sector on September 6, major banks such as KB Kookmin, Woori, and NH Nonghyup have all begun their hiring processes for the second half of the year. KB Kookmin Bank plans to hire about 160 new employees, while Woori Bank will recruit in the double digits. NH Nonghyup Bank aims to hire 120 new employees at the fifth-grade level. Shinhan Bank and Hana Bank are also expected to announce their hiring plans later this month.

However, the overall number of new hires is on the decline. The four major banks—KB Kookmin, Shinhan, Hana, and Woori—reduced their hiring from 1,880 in 2023 to 1,380 in 2024, and further down to 1,280 last year. In the first half of this year, they hired about 540 employees, a decrease of 55 from the 595 hired during the same period last year.

It appears unlikely that hiring will significantly increase in the second half of the year. Woori Bank hired 195 employees in the second half of last year but is now projecting a two-digit hiring figure for this year. Even if they assume a maximum of 99 hires, that would be only half of last year's total.

Shinhan Bank and Hana Bank have not yet finalized their hiring numbers, but with ongoing branch reductions, they are not expected to pursue large-scale recruitment of new employees as in the past.

Banks are focusing more on selecting talent in specific areas rather than simply increasing headcount. Woori Bank has established a new global and specialized division for its second-half hiring. This includes recruiting individuals with overseas experience and language skills, as well as professionals with qualifications such as lawyers, certified public accountants, and tax accountants.

Consequently, there is a proactive approach to rehiring 'retired veterans.' Banks are looking to reemploy experienced retirees to utilize them in sales, loan consulting and assessment, and risk management roles.

According to data received by Kim Jae-seop's office from the Financial Supervisory Service, from 2020 to May of last year, the number of rehired retirees was 2,053 at KB Kookmin Bank, 1,461 at Shinhan Bank, 821 at Woori Bank, and 447 at Hana Bank. The five major banks, including NH Nonghyup, rehired 574 retired employees in just the first quarter of this year, surpassing half of last year's total rehiring figure of 1,057 within three months.

The trend of rehiring is expected to continue in the second half of the year. KB Kookmin Bank is currently conducting a rolling recruitment for retired employees until November 11, with a hiring figure in the double digits.

The increase in rehiring retirees is also driven by the ability to utilize skilled labor at relatively lower costs. Kim Sang-bong, a professor of economics at Hansung University, stated, "Rehiring after retirement allows banks to reduce labor costs while leveraging skilled personnel. Rehired workers have the advantage of high field experience and understanding of the job."