Banking on good HR
S.C. Dhall

There is an urgent need for the repositioning of human resources in banking organisations to meet the changing needs.

The new-generation private sector banks have, to a certain extent, weaned away the cream of experienced and trained human resources from the public sector banks (PSBs), that too from the lower and middle levels of management that constituted the core customer relations talent pool.

A sound and futuristic HR policy should recognise the talent within the public secto banks and design bold initiatives for acquiring fresh human resources. The positioning of the existing staff at the right place is required to drive their success.

The banking industry offers Voluntary Retirement Scheme (VRS) only at the junior levels of management, while it is needed more for the top brass that are often simply passing time. It is actually the junior and middle-level managers who work for the growth of the banking industry. More and more junior officers should be given postings and placement of their choice as an incentive to work for the growth of the organisations.

The top brass are generally from outside and unaware of the attitudes of the junior officers. The good performers are given low-profile postings like auditors and those who fit for the job of auditors are given the postings of branch heads. This is why some banks where HR planning is not effective are loosing business to competitors.

The HR policy should be framed to spot talent in specific age groups and promote them, subject to suitability and eligibility, and groom them for bigger responsibilities.

Usually, those who are below average performers are given postings in the controlling office to manage the good performers as branch heads.

Private sector banks are working in accordance with modern HR principles.

The PSBs should take a cue from them. Top positions should be given to younger IIM-trained professionals. When they can manage good results in the private sector, why not in the PSBs. Some banks which have implemented HR planning are the winners.

The method of recruitment for PSBs too may need to be reviewed. The aptitude of employees in relation to their jobs is the most important human factor on which the superstructure of modern banking can be built. If a person works on a job of his liking, his motivation to achieve remains quite high.

Employees often act as brand ambassadors for the banks and many a time influence potential employees. Therefore, the existing employees should be taken care of and provided adequate development opportunities.