Job Opportunities In Banks
Bank hiring zooms ahead of new licences -Times of India-28.01.2014
MUMBAI: The banking
sector, which will see the entry of new players this year, is witnessing
a hectic pace of activity on the HR front. An unusually high percentage
of hiring is taking place, which is being attributed not only to branch
expansion by existing banks but also to the new banking licences that
are expected to be issued.
Experts believe this could lead to a
war for talent. Prospective players are said to be researching employee
databases in existing banks to identify talent. Some are believed to
have even kept banking personnel on a standby so that they can hit the
ground running, if and when they bag a licence.
With the fear
of being poached by new players, existing banks, on the other hand, are
boosting their strength and using innovative employee retention tools.
Some could even look at golden handcuffs, if faced with a loss of
talent, industry sources said.
Large corporate houses like Aditya Birla Group, Larsen & Toubro and Bajaj are in the fray for a banking licence. So are Religare, IDFC, Edelweiss and JM Financial.
"The banking sector where the hiring rate was not more than 15-20% in
2012-13, has witnessed a spurt in hiring of around 60% till December
last year. Most of the existing banks are gearing up by increasing their
headcount in order to stay ahead. We expect the trend to continue and
grow stronger," said Ajay Shah, general manager (BFSI), TeamLease
Services, a staffing company.
"Companies/financial services
firms aspiring for a banking licence are putting in place a database of
people for senior positions (CXO/CXO-1 levels) that will form the core
team. Given their established credentials of having built businesses
from ground up, key people in Indian private banks are likely to be
prime targets for the new entrants," said Animesh Kumar, group head, HR
& corporate services, IDFC.
Firms which bag banking
licences would get about 18 months to launch operations. To cut down on
cycle times and costs, technology, big data and analytics will be key
drivers of new ways of acquiring talent and delivering services and
products. "An important source of talent for prospective banking firms
would be women managers, especially those who have taken a career break
and are now desirous of coming back into formal employment," said IDFC's
Kumar.
Another interesting talent pool for banking aspirants,
he said, is likely to be the Indian diaspora, which is now looking to
relocate back to India for personal reasons.
Santrupt Misra,
group HR head, Aditya Birla Group, however, said, the group is not
hiring for banking. "It will be presumptuous on our part to do so as the
licence issue is not decided," he said. The group is not worried given
its strong employer brand. "Should we get a licence, we will take up
hiring. Some companies may have done opportunity hiring or may be
meeting other needs that are current hoping to leverage when the bank
comes up," said Misra.
While private banks are worried about the HR challenge, they too are sprucing up their strength. Axis Bank,
for instance, is expected to see a double-digit headcount growth this
year. The bank is tapping on growth potential at unbanked locations.
"Hiring is primarily towards the expansion plan of the bank. The new
banking licences would have an impact few years later," said Rajesh
Dahiya, president-HR, Axis Bank, who is hopeful that its employee
engagement initiatives and growth opportunities within the bank would
help retain key talent.
Ratnakar Bank,
on the other hand, is expected to close the year (March 31, 2014) with
1,000 hires this year to take its total strength of 2,600 employees.
"The way plans are being discussed, we will continue to hire around 500
or so even in the next year, but it is not finalized yet," said Tajinder
Kumar, head-HR, Ratnakar Bank.
Kumar admits shortage of talent is a challenge for the sector. "Existing private banks, other banks and even public sector banks
have stepped up hiring efforts in a big way. When new banks come up,
although one is not clear on date and count, they will also have a
requirement of senior management people," he said.
So is it an
unusual trend? "It seems to be a period of significant change in the
sector. Technology is playing a very important role in this change, so
is operations and sales and distribution. Newer ways of work require
different skills, so re-skilling is key," said Ratnakar Bank's Kumar.
Even customer expectations have changed. If you look at how banking was done 10 years back and now, there is a vast difference.
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