In Conversation With Anil Salvi, MD & Group Head- Human Resources, JM Financial Group On HR Challenges in BFSI Sector
Anil Salvi, Managing Director & Group Head- Human Resources at JM Financial Group. Prior to this, Anil was leading the Human Resources function at Royal Bank of Scotland (RBS) in India as SVP and Head HR. Previously he has worked with companies like Deutsche Bank, Syntel Inc., and Blue Star Limited.
He has experience of over 30 years of which he has spent near 23 years in the Banking and financial services Industry. Anil holds a Bachelor’s Degree in Economics and has completed his Master’s Degree in Human Resources from Bombay University in 1990.
Q- Currently, what are the top HR challenges in the BFSI Industry?
The BFSI sector is evolving at a rapid pace. The buoyancy in the market as well as in the economy is certainly getting reflected on the functioning of organizations and its resources. Due to the tailwind, the organizational performance expectations has galloped and have never been at the level that is being witnessed at the moment.
The BFSI sector requires more talent and at the same time organizations are expecting the existing talent to contribute more. Never ever have we witnessed such paucity of talent across levels. Each organization is trying to retain their in-house talents and at the same time simultaneously trying to create additional talent pools.
Thanks to limited supply and high demand, the employee reward mechanism has undergone significant change. It’s no longer about high salary and assured bonus expectations. The demand for ESOPS and growth rewards have become central to the on-boarding discussions.
ESOP discussions are taking place more frequently now. Not too long ago such discussions were selective and restricted to the senior resources. Not anymore.
There are challenges in talent attraction and retention as well as when it comes to rewarding and building engagement. This is the first time that we are dealing with such multi-fold challenges with such intensity.
Q- Why employee attrition is so high in the BFSI Sector, How do you attract and retain talent
Well, mammoth talent demand could be the reason for attrition. It’s not about percentage increase in compensation anymore and at certain levels, there can be prospect to make it in multiples. While this could be a challenge for an employer, there is a silver lining of value being attributed to good firms and good roles.
Talent has also evolved to compare roles and firms and have started appreciating organizational credibility. If an organization is able to put forth their approach to doing business effectively, offers clarity on their growth strategy and how the incumbent can play a role which is aligned with the plan, the on-boarding discussion becomes much easier.
Transparency and commutation with the existing team are the key. We treat our precious resources as partners and offer them an absolute entrepreneurial environment where accountability and responsibility works in tandem. Most of our leadership team is home grown and this is a big plus.
That offers the employees motivation that if they remain committed, they too have an opportunity to assume CXO roles.
Q- How do you see skill gaps and training challenges in the BFSI industry?
The competency and skill gaps are massive at this stage and any effort to fix the gap is a moving target. The immediate and continuous transformation that the industry is going through beside sheer growth and demand is also tech driven and the way we did business landscape is undergoing a rapid change.
The new environment needs new approach, competencies and skill sets, which needs to be imparted. What organizations need to work on is building that need and self-drive among the employees. When the employees appreciate the need to change, the change is that much easier to facilitate. Also the development approach cannot any longer be restricted to class room.
As I see, most of the learning would need to be facilitated through actual work and on the job education.
Q- How AI can transform financial services training programs?
AI is already bringing about the change. It is setting the benchmark and threshold which needs to be met at bare minimum. Given that this tech is all available to all at the same time, the firms need to think beyond and more to create that unique proposition that their organizations will be known for.
The development agenda for each organisation will need to be adequately suitable to address their own development needs. The AI will act as a tool to assist on possibilities basis available information but to embark on something path-braking and original, I am afraid it is going to be same old rigour that would need to be employed.
Q- What are your hiring plans for Fy24?
We are growing rapidly across businesses and planning to augment our overall headcount by 25%. However, the growth will come with right talent and skills sets and we don’t see the same getting compromised in any manner.
We are hiring across levels, from the fresh from campus to the senior leaders, but thread will be common that the employees who would join our journey would need to share the value system with which we work.
Q- Any concluding remarks?
Change is imperative and it is amazing to see how organizations have managed to embrace the change. As a result, organizational transformation has become so rapid. Having said that, there is one winner in such times and that is talent.
The right talent has never had it this good. This is their time under the sun and I sincerely hope that this sun shouldn’t set anytime soon.
Thank You, Anil!