Mar 1, 2018
5
Mar 1, 2018
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Work permit in Cambodia
Do
expat need to apply for a work permit?
Yes
you DID. Now
you would be able to apply for a work permits by online, Please click on this
link for More
info here.
It’s
important to note that work permits and visas are not the same thing. In
theory, although you may have gotten a year-long visa (often called a business visa), that
doesn’t necessarily give you the right to work in Cambodia. In
practice, Cambodia is one of the least regulated countries in the world when it
comes to visas and employment, and many expats do not have the work permits
that they ostensibly require.
There
are two types of work permits in Cambodia: temporary and permanent. Temporary
work permits are for most regular expats and last the length of the
individual’s visa. Permanent work permits are reserved for major investors and
friends of people in high places.
In
order to get a work permit, your employer needs to apply for you through the
Ministry of Interior. Essentially, this is entirely up to your employer, but if
they do want you to have a work permit, you will have to provide the
following:
* 3 sets of Application Form as issued by the Ministry of Interior
* Passport with valid
* 3 photographs (4×6), taken from the front without hat or
* Certificate of Health from a physician in
* Written work
* Insurance policy issued by employer or any insurance company
* 3 sets of Application Form as issued by the Ministry of Interior
* Passport with valid
* 3 photographs (4×6), taken from the front without hat or
* Certificate of Health from a physician in
* Written work
* Insurance policy issued by employer or any insurance company
You
will also have to pay a fee. Although the actual amount of the fee is not
stated in Prakas 555, the document concerning Cambodia’s
“Management of Foreigners’ Work Permits,” it’s generally known to be $100.
At
the current time, work permits are essentially a non-issue. You do not,
in practice, need a work permit to get hired at a company in Cambodia. Most
expats do not have them and the government rarely asks about it. There have
been more crackdowns recently–they usually last a few days and a few people are
told they need to procure permits–but then everything goes back to business as
usual.
Most
English schools, for example, have a small percentage of teachers with work
permits that can be shown to the police when they come by to ask. The schools
don’t bother to obtain permits for the rest of the staff. Although this is the
case at the time of writing, it is likely that at some point in the future laws
about work permits for expats will be more vigorously enforced.
For
those who are required to get one, a work permit usually costs $100 per year.
However, be aware that in recent crackdowns foreigners have been required to
pay $100 per year backdated for the entire time they’ve spent in Cambodia, not
just the current year.
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Where to apply for a
Cambodian visa:
Cambodia-Vietnam
border
Cambodia-Thailand
border
Overstaying
your Cambodian visa
read more
How to applying and what do you need for a Cambodian visa???
What you need to
apply for a visa to Cambodia:
* A
passport that is valid for at least six months and has at least one blank
* A
passport-size photo. If you don’t have this, you can pay a $2 fee and they will
scan the photo from your passport.
Where to apply for a
Cambodian visa:
At the airport. If you’re from
most countries, you can get a visa on arrival at the Phnom Penh, Siem Reap, and
Sihanoukville airports. You do not need to do anything in advance -- you’ll be
given the paperwork on the plane and you just need to get in line on arrival
with your passport photos, cash (in US dollars), and passport. There is an ATM
at the airport in arrivals that dispenses US dollars if you don’t have any on
hand. If you want to skip the visa line, there’s usually an official on hand
who will speed you through immigration and customs for a “donation” of between
$5 and $20.
At a Cambodian embassy. If you prefer to
get your visa in advance — or if you are from Afghanistan, Algeria, Bangladesh,
Iran, Iraq, Nigeria, Pakistan, Saudi Arabia, Sri Lanka, or Sudan — you can
visit your nearest Cambodian embassy.
At a land border
crossing. You
can also apply for a visa at the following Cambodian land border crossings:
Cambodia-Vietnam
border
1. Bavet international checkpoint: Moc Bai,
Vietnam – Svay Rieng, Cambodia
2. Kha Orm Sam Nor international checkpoint (“Chau Doc crossing”): Ving Xuong,
Vietnam – Kandal, Cambodia
3. Phnom Den international checkpoint: Tinh Bien, Vietnam – Takeo, Cambodia
4. Trapeang Phlong international checkpoint: Xa Mat, Vietnam – Kampong Cham,
Cambodia
5. Ha Tien international checkpoint: Xa Xia, Vietnam – Prek Chak, Cambodia
6. O’Yadaw international checkpoint: Le Tanh, Vietnam- Ratanakiri, Cambodia
7. Trapeang Srer international checkpoint: Binh Phuoc, Vietnam – Kratie,
Cambodia
8. Banteay Chakre international checkpoint: Binh Phu, Vietnam – Prey Veng,
Cambodia
Cambodia-Thailand
border
1. Cham Yeam international checkpoint: Hat Lek,
Thailand – Koh Kong, Cambodia
2. Poipet international checkpoint: Aranyaprathet, Thailand – Banteay Meanchey,
Cambodia
3. O’Smach international checkpoint: Chong Jom, Thailand – Oddar Meanchey,
Cambodia
4. Chong Sa Ngam/Choam international checkpoint: Si Sa Ket, Thailand – Oddar
Meanchey, Cambodia
5. Prom international checkpoint: Ban Pakard, Chantaburi, Thailand – Pailin,
Cambodia
6. Ban Laem/Daung international checkpoint: Chantaburi, Thailand – Battambang,
Cambodia
If you get your visa at a land border crossing
in Cambodia, you can expect to pay between $1 and $20 in “fees.” If your bus
company offers a visa service for an extra few bucks, it’s often better to pony
up as it can save quite a bit of time
Another option you can apply e-visa, which can be obtained online. It is only available to
citizens of the countries for which visas on arrival are available (that is,
everyone except those from the restricted countries listed above). It is only
offered for the tourist (T class) visa and costs an extra $7 on top of the
regular visa fees, and it is only available to those entering Cambodia at the
Siem Reap and Phnom Penh airports and the Bavet, Poipet, and Cham Yeam land
border crossings. You can get your Cambodian
e-visa online. More recently the government has added an additional $3
credit card processing fee, bringing the total price of the e-visa up to $40.
Extending your Cambodian visa
If you have a 30-day tourist visa, you can
extend it once for an additional 30 days for a fee of $45. If you have an
ordinary visa (E class) you can extend it for 1, 3, 6, or 12 months for between
$45 and $300 depending on the length of the extension.
Currently, Cambodian visas cannot be renewed online.
Technically there’s an official way to extend
your visa by going to this address:
Department of Immigration
322 Russian Federation Boulevard, opposite Phnom Penh International Airport
Phnom Penh, Cambodia.
Everyone who’s tried it this way recommends
against it, though. The process can take ages, may require multiple bribes, and
is just generally a pain.
The easy way to extend your Cambodian visa is to
use any of the hundreds of local travel agents in town. They’ll take care of
the paperwork for you; the process takes two business days.
You’ll need:
·
A
passport that is valid for at least another six months
·
A
blank page in your passport
·
One
passport-sized photo
·
Renewal
fee in US dollars
A 12-month multiple-entry visa costs $275 to
$300, depending on the fee added by the agent. The agent’s fee is usually
somewhat negotiable.
Overstaying
your Cambodian visa
It’s not advisable, but you can overstay your
Cambodian visa at a cost of $10 per day, payable at Immigration on your way out
of the country.
If you plan to only stay a day or two over 30,
this is often cheaper than getting a visa extension. However, be warned that
you’ll need exact change in US dollars. If you present immigration officers
with a $20 bill for a $10 overstay, it’s likely that you won’t be given change.
It is possible to overstay for up to 30 days.
After 30 days, overstayers are still liable for the $10 daily fee, but, depending
on the length of the overstay, risk imprisonment, deportation, and future bans
on entering the country.
1
B-class visa:
The B-class visa, known as the “NGO visa,” is a free visa for employees of certain NGOs registered with the government. To get this visa, you will need to enter the country on an E-class visa and transfer to the B-class visa. Ask your employer if you are eligible, because not all NGOs qualify.
read more
TYPES OF CAMBODIA VISA
Cambodian
tourist visa: The tourist visa (T class) is best for those who know they will be staying 30
days or less.
The
30-day tourist visa is available to travelers in advance or on arrival (for
most nationalities) for a cost of $30. The tourist visa is single entry only,
and can be renewed once for an additional 30 days for a fee of $45. After that,
tourist visa holders must leave Cambodia and come back to obtain a new visa. If
you are planning on staying in Cambodia, don’t bother with a tourist visa and
start with a renewable ordinary visa instead.
There
is a minimum stay of 24 hours if the Cambodian visa is issued at the Siem Reap
airport; otherwise there is no minimum stay.
Cambodian
“ordinary” visas (E class).
For anyone who is considering staying in Cambodia for an extended period of time, an E-class visa is the best option. Previously, there used to be only one E-class visa, known as the “business” or “ordinary” visa. In 2017 a new set of E-class visa types became available. (These are in no way related to the electronic visa, also confusingly known as the e-visa).
For anyone who is considering staying in Cambodia for an extended period of time, an E-class visa is the best option. Previously, there used to be only one E-class visa, known as the “business” or “ordinary” visa. In 2017 a new set of E-class visa types became available. (These are in no way related to the electronic visa, also confusingly known as the e-visa).
Anyone
can get any of the four E-class visas. At the time of writing, there is no
documentation required to apply for these visas. However, visa holders must be
able to provide appropriate paperwork if questioned by the immigration police
at a later date.
To
get one of the following E-class visas, you will need to apply for a 30-day
E-class visa (not an online e-visa) when you arrive. This is also valid for 30
days and costs $35. The difference between the ordinary visa and the tourist
visa is that the ordinary one can be extended indefinitely. After 30 days, when
you go to extend your visa, you can choose an EB, EG, ER, or ES visa.
* The FOUR E-Class Visas
1- EB visa:
The EB business visa covers most Cambodia expats, including those who are working and their partners and children, freelancers, and those who do not fit in any other category. Be aware that the EB visa does not confer the right to work in Cambodia. In order to be legally employed, you will need a Cambodian work permit, but you do not need a work permit to get the visa. Once you have the EB visa, at any point in the future the immigration police may ask to see your business license, work contract, and work permit, or a letter confirming the purpose of your stay. This renewable visa can last for 1, 3, 6, or 12 months, although only the 6- and 12-month visas allow multiple entries.
1- EB visa:
The EB business visa covers most Cambodia expats, including those who are working and their partners and children, freelancers, and those who do not fit in any other category. Be aware that the EB visa does not confer the right to work in Cambodia. In order to be legally employed, you will need a Cambodian work permit, but you do not need a work permit to get the visa. Once you have the EB visa, at any point in the future the immigration police may ask to see your business license, work contract, and work permit, or a letter confirming the purpose of your stay. This renewable visa can last for 1, 3, 6, or 12 months, although only the 6- and 12-month visas allow multiple entries.
2- EG
visa:
The EG visa is intended for those searching for employment, and can last 1, 3, or 6 months. At the time of writing, the employment requirements are not strictly enforced for the EB visa, so the EG visa is redundant, but if in the future the requirements for the Cambodia EB visa become more strict, the EG visa will be useful for new expats looking for a job.
The EG visa is intended for those searching for employment, and can last 1, 3, or 6 months. At the time of writing, the employment requirements are not strictly enforced for the EB visa, so the EG visa is redundant, but if in the future the requirements for the Cambodia EB visa become more strict, the EG visa will be useful for new expats looking for a job.
3- ER
visa:
The new retirement visa is the most confusing and least documented of the E-class section. The requirements for the ER visa have not been clearly defined at time of writing, but it is meant for those of retirement age who can show documentation of retirement in their home country (such as a pension or Social Security) and prove that they have the funds to support themselves, although these requirements are currently sporadically enforced, if at all. It allows the work permit requirement to be waived, but in every other respect, it functions as an EB visa. The ER retirement visa can be issued for 1, 3, 6, or 12 months.
The new retirement visa is the most confusing and least documented of the E-class section. The requirements for the ER visa have not been clearly defined at time of writing, but it is meant for those of retirement age who can show documentation of retirement in their home country (such as a pension or Social Security) and prove that they have the funds to support themselves, although these requirements are currently sporadically enforced, if at all. It allows the work permit requirement to be waived, but in every other respect, it functions as an EB visa. The ER retirement visa can be issued for 1, 3, 6, or 12 months.
4- ES
visa:
The ES visa is a student visa. Anyone can apply for the ES visa. If asked by the immigration police, ES visa holders need to be able to show school transcripts or a record of school payments. The ES student visa can be issued for 1, 3, 6, or 12 months.
The ES visa is a student visa. Anyone can apply for the ES visa. If asked by the immigration police, ES visa holders need to be able to show school transcripts or a record of school payments. The ES student visa can be issued for 1, 3, 6, or 12 months.
Once
you have your first 30-day E-class visa for Cambodia, you can extend it from
inside the country for 1, 3, 6, or 12 months. It’s advisable to extend it for 6
or 12 months, as these visa types are multiple-entry. The 1- and 3-month visas
are single-entry only, meaning that if you leave for a weekend trip to Vietnam,
you’ll need to get a new Cambodian visa when you return.
It’s
important to note that if you are planning on getting a visa on arrival, some
airlines will not allow you to enter the country on a one-way ticket. If
you are planning on getting a one-way ticket, give yourself extra time at the
airport so that if your airline requires you to get a return flight you have
time to either search for a cheap flight or bus ticket from Phnom Penh to Ho Chi Minh City or Siem Reap to Bangkok, or
get a fully refundable flight that you can then cancel once you arrive in
Cambodia.
Other visa-K-class visa:
Other visa-K-class visa:
The
K-class visa is for those of Cambodian descent who hold a foreign passport. It
is a free lifetime visa, although you will almost certainly be asked to pay an
unofficial “facilitation fee” to get it. Bring any documents that show that you
have one Khmer parent, such as a birth certificate, marriage certificate,
family book, or Cambodian ID card. A Khmer last name and ability to speak Khmer
may be enough — along with a $20 bill, of course.
Cambodian
visas for children:
Since late 2016, all non-Cambodian children have been required to have an E-class visa to enter the Kingdom. The prices are the same as for adults. If the child has at least one Cambodian parent, they can apply for a free K-class visa.
Since late 2016, all non-Cambodian children have been required to have an E-class visa to enter the Kingdom. The prices are the same as for adults. If the child has at least one Cambodian parent, they can apply for a free K-class visa.
B-class visa:
The B-class visa, known as the “NGO visa,” is a free visa for employees of certain NGOs registered with the government. To get this visa, you will need to enter the country on an E-class visa and transfer to the B-class visa. Ask your employer if you are eligible, because not all NGOs qualify.
If
you are caught using a visa for a purpose not allowed under that particular
visa type, you will be fined $100 and required to leave the country within 7
days (so don’t get a retirement visa if you are working).
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read more
Tax on Salary-Cambodia
The tax on salary is a monthly tax imposed on salary that has been received within the framework of fulfilling employment activities. A physical person resident in the Kingdom of Cambodia is liable to the tax on salary for Cambodian source salary and foreign source salary. A non-resident physical person is liable to the tax on salary for Cambodian source salary. The enterprise which is the employer of an employee has the obligation to withhold tax before salary payment and pay this tax to the tax administration by the 20th of the month following the month in which the salary is paid.
For a resident employee the tax on salary due is determined on the monthly taxable salary and is withheld according to the progressive tax rate as below:
Monthly salary (Riels) | Rate |
0 - 1,200,000 | 0% |
1,200,001 - 2,000,000 | 5% |
2,000,001 - 8,500,000 | 10% |
8,500,001 - 12,500,000 | 15% |
12,500,001 - upwards | 20% |
For a non-resident employee the tax on salary is withheld at the rate of 20% of the amount to be paid before withholding. . This withholding tax is the final tax on salary for the non-resident receiving the salary.
For fringe benefits, every month, the employer shall withhold and pay tax at the rate of 20% of the total value of fringe benefits given to all employees. The value of fringe benefits is the fair market value inclusive of all taxes.
Jan 23, 2018
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Jan 23, 2018
Phnom Penh Post Code
Are you looking for Cambodia Postal Code?
Of course Cambodia is also using Postal Code, you can find out Phnom Penh Postal Code in a following.
read more
Of course Cambodia is also using Postal Code, you can find out Phnom Penh Postal Code in a following.
Khan Russei Keo | 12100 | Khan Chamkarmorn | 12300 | |
Russei Keo | 12104 | Tonle Basak | 12301 | |
Toul Sang Kè | 12105 | Boengkengkang 1 | 12302 | |
Kilometre 6 | 12106 | Boengkengkang 2 | 12303 | |
Chrang Chamres 1 | 12107 | Boengkengkang 3 | 12304 | |
Chrang Chamres 2 | 12108 | Boeng Trabek | 12305 | |
Svay Pak | 12109 | Tumnup Tuk | 12306 | |
Phsar Doeum Thkov | 12307 | |||
Khan Toulkok | 12150 | Toul Svay Prey 1 | 12308 | |
Boengkâk 1 | 12151 | Toul Svay Prey 2 | 12309 | |
Boengkâk 2 | 12152 | Toul Tum Poung 1 | 12310 | |
Phsardépo 1 | 12153 | Toul Tum Poung 2 | 12311 | |
Phsardépo 2 | 12154 | Olympic | 12312 | |
Phsardépo 3 | 12155 | |||
Tuk Laak 1 | 12156 | Khan Meanchey | 12350 | |
Tuk Laak 2 | 12157 | Boeng Tumpun | 12351 | |
Tuk Laak 3 | 12158 | Stung Meanchey | 12352 | |
Phsar Ddoeumkor | 12159 | Chak Angré Krom | 12353 | |
Boengsalang | 12160 | Chak Angré Leu | 12354 | |
Khan Daun Penh | 12200 | Khan Dang Kor | 12400 | |
Sraas Chak | 12201 | Dang Kor | 12401 | |
Wat Phnom | 12202 | Trapeang Krasaing | 12402 | |
Phsar Chas | 12203 | Kokroka | 12403 | |
Phsar Kandal 1 | 12204 | Phleung Chhésrotés | 12404 | |
Phsar Kandal 2 | 12205 | Chom Chao | 12405 | |
Chey Chumneas | 12206 | Kakap | 12406 | |
Chak Tomuk | 12207 | Porng Teuk | 12407 | |
Phsar Thmei 1 | 12208 | Prey Veng | 12408 | |
Phsar Thmei 2 | 12209 | Samrong | 12409 | |
Phsar Thmei 3 | 12210 | Prey Sar | 12410 | |
Boeng Raing | 12211 | Kraing Thnoung | 12411 | |
Kraing Pongro | 12412 | |||
Khan 7 Makara | 12250 | Prataslang | 12413 | |
Monorom | 12251 | Sac Sampeou | 12414 | |
Mittapheap | 12252 | Cheung Ek | 12415 | |
Veal Vong | 12253 | |||
Orussei 1 | 12254 | Khan Chba Ampoeu | ||
Orussei 2 | 12255 | Chbar Ampeou 1 | 12355 | |
Orussei 3 | 12256 | Chbar Ampeou 2 | 12356 | |
Orussei 4 | 12257 | Niroth | 12357 | |
Boeng Prolit | 12258 | Prek Pra | 12358 | |
Prek Eng | ||||
Khan Por Senchey | Preak Thmey | |||
Chom Chao | 12405 | Kbal Koh | ||
Kakap | 12406 | Veal Sbov | ||
Kraing Thnoung | 12411 | |||
Kokroka | 12403 | Khan Chroy Chang Va | ||
Trapeang Krasaing | 12402 | Chroy Chang Va | 12110 | |
Phleung Chheh Roteh | Prek Tasek | 12111 | ||
Samraong Kraom | Prek Leap | 12112 | ||
Boeng Thum | ||||
Kamboul | Khan Prek Phnov | |||
Kantaok | Prek Phnov | |||
Ovlaok | Ponh Nheapon | |||
Snaor | Samrong | 12409 | ||
Koh Roka | ||||
Khan Sen Sok | Pon Sang | |||
Phnom Penh Thmei | 12101 | |||
Teuk Thlar | 12102 | |||
Khmounh | 12103 | |||
Kraing Thnoung | 12411 |
Sep 18, 2017
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Sep 18, 2017
read more
Simple Ways to Boost Performance of Your Financial Institution
Regardless of economic conditions or
competitive position, every organization should always be seeking ways to
improve. Given the intense competitive pressures they face, this is especially
true for financial institutions. Following is a high-level overview of eight
key areas where financial institutions can often make real and significant
improvements to their operations.
1. Technology – leveraging your
investment
The plain fact is that most
financial institutions are not getting the ROI they should from their
technology spend. Ask yourself these questions:
- Do you suspect that the organization is not using the
full functionality and capacity of your existing systems?
- Are you struggling to get key systems integrated with
each other?
- Have you postponed implementing key functionalities due
to lack of time and resources?
- Do you continue to use manual processes that were
originally meant as temporary stop-gap measures?
- Are you running outdated versions?
- Has it been more than a couple of years since you last
explored outsourcing?
If you answered YES to even one of
the above questions, there is likely opportunity to improve system
functionality and deliver greater ROI. The fact is that most financial
institutions are only utilizing between 25 and 30 percent of the capabilities
of their current technology for a variety of reasons. Many organizations suffer
from phase 2 syndrome, in which systems with impressive potential capabilities
are installed but the training and follow through necessary to fully exploit
those tools isn't completed. And, it is difficult to keep up with the
accelerating evolution of technology. Server consolidation, cloud computing,
mobile technology – all of these can offer real advantages to financial
institutions when strategically evaluated and implemented.
Here are some ways to get started
evaluating your current technology optimization quotient:
- Compile a list of all of your key technology systems –
both those managed in-house and those outsourced to a data center or
purchased as a service
- Determine the main purpose of each listed system and
determine if there is any overlap among the capabilities of the systems
- Survey system users to see if there is data that they
have to re-enter into multiple systems
2. Less is more - improving your
expense management
Financial institutions sometimes
focus efforts to save money in the wrong areas and end up cutting activities
important to the organization's mission or value proposition. This can happen
for several reasons:
- Unwillingness to address sacred cows because of
internal politics
- Looking at past successes instead of future
opportunities
- Following benchmarks without appropriate analysis
Effective expense management starts
with a more detailed understanding of your spend throughout the organization.
By better understanding how your organization spends money and what is being
purchased, you can more easily identify savings opportunities that will have a
meaningful bottom line impact. To achieve this, consider these steps.
- Collect and categorize spend data throughout your
organization from sources such as accounts payable, procurement, payroll,
contracts, procurement cards, and expense systems.
- Identify specific categories of spend that could be
reduced without significant customer-facing impacts
- Define and implement specific savings strategies such
as supplier consolidation or renegotiation, elimination of non-essential
spending, demand or specification management, and tightening of expense
policies.
- Track and report hard dollar savings delivered from
each strategy, showing the impact by business unit and service line.
In addition, consider longer term
expense management strategies to help ensure an objective evaluation and to
guard against inefficient expense management based on precedent and inertia.
Consider using the phase zero-based budget approach when performing annual
budgeting and planning. Each department should start at $0 and will have to
justify every FTE and dollar spent when creating their budget. This will help
to ensure each department is committed to spend management.
3. More is more – boosting revenue
Managing expenses is vital, but
growth still depends on increasing revenue. What can your financial institution
do to grow the top line? Here are some ideas:
- Review all prices for products and services on a
rolling three-year basis, reviewing a third of all products and services
annually
- Compare prices of all core products and services
against your competitors at least annually. Increase prices on services
prices below market while lowering prices and increasing sales activities
on services prices above market.
- Identify opportunities to create products and services
that can drive new revenue streams.
- Create revenue strategies that lead customers toward
desired outcomes. For example, institutions want consumers to switch from
paper statements to electronic statements. So announce a price increase
for paper statements to cover postage costs. This will drive some
consumers to use e-statements and generate additional revenue from those
that don't.
4. Quality – are your measures
effective?
Quality matters. But, as with any
effort, so does ROI. In today's economically and competitively challenging
environment, all financial institutions should ask themselves some hard
questions about quality control efforts.
Take the CAMELS rating system. Many
financial institutions strive to maintain a CAMELS 1 rating. But can you afford
to push for that rating in today's market? The right answer depends on your
institution's specific circumstance and goals.
It's important to be able to clearly
articulate how your institution measures quality. What objective and subjective
measures do you use? How do those measures support your goals? When these
measures are laid out, it should be clear as to whether you are measuring the
right things and measuring them accurately.
In addition to quality measures,
it's important to indicate where you are investing time and resources to ensure
quality. If you are investing in services or activities that are already
performing at the top end of the quality scale, you might want to consider
diverting some of the investment to other, lower performing areas. Ultimately,
it's about ensuring those investments are going where they will make the
biggest difference.
Here are some quality strategies to
consider:
- Focus on baking quality assurance measures into your
processes instead of layering quality control steps at the end.
- Create clear, ongoing channels for communicating
quality issues throughout the organization and ensure they are raised to
the appropriate level of leadership. Review quality measurements and
results with leadership at least quarterly to ensure quality issues are addressed
and those quality measurements are still relevant and effective.
- Communicate quality success stories internally to
employees and externally to shareholders and customers through channels
like annual reports and newsletters to leverage the benefits of your
quality efforts.
5. Productivity – getting the most
from your people
Every organization preaches
productivity, but only those with a culture that supports improving it with
clear goals, transparent accountability and real rewards achieve the best
results.
Start by accurately defining current
productivity levels at the workgroup and employee levels. Identify how well
they are supporting the mission, goals and objectives of your institution and
define the qualitative and quantitative measurements to rate them.
Encourage a culture that questions
the status quo in any process. Set clear standards so that all employees know
that they must meet defined productivity standards and that they are being
measured relative to their peers. For example, tellers can be rated for
improved transaction levels, reduced outages and increase in simple sales.
Set multi-year strategies for
significant productivity increases for specific workgroups. Strategically
target workgroups where re-engineering needs to occur and the highest potential
for cost savings exists.
6. Service – focusing on what
matters
Effective service is vital to
retaining and building customer relationships. But are you focusing on the
right services and the right customers? Consider these three questions.
- Most financial institutions have service standards, but
do your customers share your impression of your service? What have you
done to find out?
- How would an increased or decreased level of investment
affect service levels – could you be over- or under-investing in service?
- Are your services focused on the evolving needs of
today's market or are they only focused on your historical customer base?
Here are three strategies to help
focus your service efforts:
- Be sure that every employee understands the services
expectations associated with their position and how they are measured.
Those expectations must be communicated clearly and updated regularly.
- Establish clear three- to five-year service improvement
targets that directly support your institution's mission and goals by
focusing on key markets and that have clear accountability at all levels.
For example, set improvement targets for metrics like average products and
services per customer, average revenue per customer and customer
retention.
- Use service strategies to drive customer behavior in
desired directions in areas like e-statement adoption, ATM usage, and
online and mobile banking.
7. Business development – growing
your future
For many financial institutions, the
key to business development is understanding the current market position. Only
by understanding how well the current mix of products and services meets
customer needs can you make appropriate decisions on where to focus development
efforts. Ask yourself these three questions when looking to identify your
business development opportunities.
- Are you the primary financial services provider for
your customers or a secondary player supporting their needs? What
percentage of the financial services buy (aka "wallet share") do
you own in your customer base?
- Why are some customers choosing other financial
institutions for certain needs?
- How well-trained is your sales force – are they better
trained at understanding your products, service and market or at filling
out forms and screens?
Develop sales training programs that
enhance both product/services knowledge and general sales skills. At many
financial institutions, sales people are not even aware of the full range of
products and services offered. Consider developing product/service specialists
to accompany sales people on calls involving more complex products and
high-value targets. This will help ensure that prospects fully understand the
features and benefits of your products and that their questions are answered
completely and accurately. Create sales objectives and reward mechanisms for
the sale of targeted products to boost penetration into key market segments,
but be sure to guard against inappropriate responses to those reward systems,
such as sales people steering prospects to the wrong product just to boost
their numbers.
By understanding your customer wants
and your sales team needs, you can most effectively target your future business
development efforts.
8. Customer retention – keeping what
you have
Every financial institution is looking
to increase business with existing customers. Every lost customer represents
more than just the business they were already doing with you. They represent
all the other business that you could have sold to them. And the cost and
effort of securing new customers far exceeds that of building relationships
with your current customer base.
The BAI states that the average bank
loses 13 percent of their customers each year. The first step in customer
retention is to assess the size of the problem. Identify your loss rate and see
how it compares to this average. Then dive into those customer losses. Identify
the number of services they took advantage of and which services specifically.
Ask them questions around why they left and what you could do to win them back.
Once you have evaluated your
organization's situation you can better gauge how to improve your customer
retention.
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