Implications of Recent Trends in Banking and Finance for HR

Abstract

HRM plays a multifaceted role in the dynamic banking and finance sector. As part of the growth and stability of financial institutions, HR professionals contribute to talent acquisition, retention, performance management, diversity, and inclusion, as well as change management. Human Resources Management continues to evolve and remain an integral part of the banking and finance industryas a result of adapting to emerging trends and challenges.The importance of human resource management has grown manifold because of the nature of banking industry, which is mainly service based. The management of people in the organization along with handling the financial and economic risks at the wider level is the most potent challengefact us the banking industry. The HR management needs to think both about the quantity and quality requirement in the banking sector and deal with the shortage in the skilled manpower supply in the sector efficiently. The recent changes in banking and finance demand that HR departments become more agile, tech-savvy, and focused on continuous learning, compliance, diversity, and employee well-being. HR professionals must adapt to these changes to effectively support their organizations and drive sustainable growth.  In the present study, an effort has been made to analyze the HR practices in both public and private sector of Indian Banking Industry and is aimed to study the impact of HR practices and satisfaction level on employee career development. An interview schedule has been administered to a sample of 89 employees of SBI and ICICI in Hyderabad. The study analyzed the results by using statistical techniques, namely,Chi-square, multiple regression analysis and Garrette ranking method. The findings of the study revealed that SBI employees are older; less qualified and have more work experience and technical skills compared to ICICI. The personnel of ICICI are younger, highly qualified with less work experience and focused both on HR and technical skills. The employees of both the organizations are highly satisfied on career development.The present study focuses on the recent trends in banking and finance necessitating a proactive and strategic approach by HR departments especially on skill development, regulatory compliance, technological integration, and employee well-being so that HR can support their organizations in navigating these changes effectively sustaining growth.