CBZ finds value in accelerated digital innovation

Blessing Mudavanhu

LISTED financial services group, CBZ Holdings Limited has notified workers its intention to retrench due to the ongoing migration of its systems to digital platforms.

A copy of a circular addressed to all the employees dated April 24 2021 and co-signed by the bank’s group chief executive, Blessing Mudavanhu and chief human resources officer, Nyasha Mutsai confirms the sad development.

The duo said the manner in which the bank reaches, serves, and provides solutions to customers and clients had changed significantly due to transition to digital platforms and automation.

“This is an area which will continue to change, and with this comes the need for new business models and different skill-sets,” the circular reads in part.

“We acknowledge that there are some colleagues amongst us who may not be willing or able to undertake this journey of change, and will want to take the opportunity to pursue other interests.

“We are, therefore, pleased to announce the offer of a voluntary severance package for any employees who willingly, freely, and voluntarily wish to consider pursuing opportunities outside of the organisation.”

The bank assured workers that all offers shall be considered and a response indicating whether applications have been accepted or declined shall be provided no later than Tuesday 18 May 2021.

Among other exit perks, the voluntary severance package offers pay equivalent to three months, service pay six weeks per year served, settlement allowance six weeks, leave days owing will be paid, medical aid and funeral cover equivalent to a six-month post separation.

However, staff loans including personal, car and study loans will become due and payable while on housing loans, a minimum of 50% of the mortgage balance will be due and payable from the package upon exit.

The remaining balance may be transferred to mortgage finance at the legislated minimum interest rate currently at 15% plus 2%, within the remaining tenure, provided the staff member can demonstrate ability to meet the monthly repayments post separation.

Following the voluntary severance exercise, CBZ shall review any remaining positions which have been impacted by the new changes.

“Upon that review of the voluntary severance exercise, should it be found that we do indeed need to consider retrenchment, our retrenchment exercise will commence in June 2021, and will take place in liaison with the affected employees,” the circular added.