Human Resources in Digitalization of Banks
Why has digital HR become very important in today’s organizations?
Digitalization of HR is considered as a potential tool for cultural transformation and change management within banks. Legacy banks are under the pressure as many tech companies are venturing into apps/platforms that allow users to make contactless payments using NFC technology. Workforce 4.0 has led banks to adopt new roles, skills in terms of digital technology. Thus, digitalization of HR will help banks in changing the workforce dynamics at a faster pace in the coming years.
Banks should strategize the following to be a leader and stay ahead of competition in the market:
Ø Shift from employee engagement to employee experience
Digitalization has brought in a huge change in the demographic group of Gen Z that fall in the age group of 18 to 21 and Gen Y (ages 23 to 38 in 2020) that are familiar with digital apps/platforms. Digitalization using advanced technology allows these workforces to drive innovation, improve productivity, and create an engaging work experience within the banks.
It is important for banks to formulate strategy wherein they can choose the right HR tech software tools/platform. The HR team within banks are focusing on providing technology tools (employee wellness apps, performance management app, employee net promoter score, modern communication & productivity tools, employee effort score and pulse feedback tools) that will help in examining employee journey maps this creating a better experience for the employee.
Many banks are deploying cloud-based ERP system that integrates data sources from the entire bank, thus providing HR team and employees with real-time information about employee development, and analysis on people related data. This will help in boosting collaboration amongst employees, thus keeping them highly productive and engaged.
Ø Encourage training & re-designing career paths to stay competitive
It is important for HR to make the employees believe in embracing digitalization. Digitalization will bring a change in the bank operations by making various jobs automated. Thus, it is important for HR to re-design job descriptions, career paths, and new ways of training the employees.
Many large banks have started providing mobile gaming apps for training purposes for new as well as existing employees that helps them in understanding about bank application form, selling banking products to the customers. HR team needs to re-build business model to boost employer branding. Banks are also providing digital platforms that offer tailored online training modules. This will allow employees to pursue individual career goals. These platforms also have a specially designed algorithm that provide employees with internal mobility to find in-house jobs based on their skill set.
Ø Deploy HR analytics as a part of organizational and strategic structures
Banks are upgrading their HR analytics capabilities. They are partnering with vendors that provide various kinds of solutions like cloud ERP & talent management systems, recruitment & learning platforms, text & semantic analytics tool. Workforce analytics should align with the strategic goals of the banks that measures efficiency and value.
HR analytics is helping banks to make fact based decision in various areas like employee profiling and segmentation, analyzing & predicting compliance risks, employee compensation and benefits, employee attrition and loyalty analysis, identifying high-value career paths and leadership applicants, recruiting & onboarding high performing job candidates, employee sentiment analysis, training & development of employees, and improving retention through a churn analysis.
Conclusion
Banks need to re-structure the HR operating model for better workforce transformation and focus on taking strategic initiatives for better technological transformations. HR teams also need to focus on smart applications to leverage technology like HR analytics (People analytics, Workforce analytics), automation tools like AI & ML. to develop state-of-the-art capabilities for effective HR management system within banks.
