State-owned lender Bank of India ( BOI), which is under Prompt Corrective Action (PCA), is roping in human resource (HR) consultancy outfit to identify and develop leadership talent pool. It asdvisory outfit will also help in succession planning at top management level.
State Bank of India and IDBI Bank have already appointed advisors for HR revamp.
The consultancy outfit will explore feasibility for introduction of a 360 degree feedback system. This is especially for the executive cadre for their development, BOI executives said.
The proposed HR Interventions will be implemented in such a way that the milestones are set to ensure tangible results periodically from six months onwards. The timeline for the project will be 18 months.
Banking industry is passing through a ‘Retirement Decade’ (2010-2020). This has led to shortage of competent personnel in critical positions such as Risk Management, Information Technology, foreign exchange (FOREX), Credit Appraisal/ Monitoring, HR, Marketing etc.
Also, there is a perceptible gap between requisite skill requirement vis-à-vis availability.
This has meant, a need to improve requisite credentials, capabilities and experience to lead in specialised areas like IT, FOREX, Treasury etc.
BOI executives said many bank executives have seen quick career progression due to gaps arising out of large scale retirements. However, personnel climbing up the ladder may not be experienced enough, though maybe academically and theoretically competent.
The lack of adequate experience in different areas and fields results in weaknesses in skill sets necessary in the top management which has to shoulder multifarious responsibilities without segment specialization.
Bank needs to build new capabilities to attract and retain talent. As the Bank is going through business and technology transformation, massive re-skilling is required.
The challenge for the bank is that transformation of HR has to be conducted concurrently with business growth. New HR processes and methods have to be institutionalized.
Re-disseminated by The Asian Banker from Business-Standard.com