The BFSI (Banking, Financial Services, and Insurance sector), is transforming the Indian economy rapidly. Although this growth provides opportunities, it also presents challenges as well. At this stage, HR's role becomes very important as they acquire, groom, and leverage the talent. There are a lot of macro trends in this area, but we have shortlisted a few of the talent priorities which impacts HR the most.
Digitalization- Digitization and technology has disrupted all the sectors and has impacted the HR function as well Technology has become the common enabler for all the talent priorities. Hence it makes technology one of the most sought-after core competencies for every role in the sector. Within BFSI, the Insurance sector has been the flagbearer of technology and has more scope to grow as compared to other sectors.
Reskilling & Upskilling- BFSI sector is adopting different technological ways to deliver the services and hence, the skills that are needed to excel in this sector are ever-evolving. Insurance firms, banks, and stock exchanges are developing with a faster pace of innovation and they are looking for more and more talent who can drive this crazy transformation. On the other side, there are few skills that have become extinct due to the advent of technology, thus, HR needs to reskill a major section of the workforce.
Ramp-up staffing- BFS industry is witnessing acute attrition and the business unit is only 75% staffed. This attrition is stunting the BFSI sector to achieve its goals. 3 out of the top 5 sectors in terms of attrition are from BFSI. So, there is an urgent need to combat attrition and ramp-up staffing to run the business at full capacity.
Resource productivity- BFSI sector is very field force and front-line intensive. With the rising competition, there is a need to ramp up field-force productivity to ensure a sustainable business model. The BFSI sector should work on retaining the field force employees for a longer tenure to improve their contribution and leveraging technology solutions to deliver efficacy.
Engaging distributed human resources- Looking at the Geographic region of India, it is difficult to engage the BFSI employees across locations. Also, looking at the attrition rate, it is important for BFSI to retain its employees. The hiring process should be the same across all the cities. This initiative will be successful is the employee interaction and business vision is similar in all the regions.
