Position: Senior Executive Vice President and Head HR at Kotak Mahindra Bank
Experience: 25+ years in HR leadership, 15+ years in the BFSI industry (Banking, Financial Services, and Insurance)
Evolution of Talent Practices in BFSI
Industry Growth Potential:
The BFSI sector is at the "tip of the iceberg" regarding growth, particularly with the goal of achieving a $5 trillion economy.
Companies like Kotak and HDFC are expected to grow significantly in the coming years.
Workforce Dynamics:
Increasing need for talent management as workforce numbers in banking are expected to rise (e.g., 100,000+ employment becoming the norm).
Impact of Digital Technologies on Talent Practices
Transparency Demand:
Modern employees seek more transparency in HR processes.
Employees prefer data-driven decision-making over gut decisions by leaders.
Key HR Practices Affected:
Hiring processes, performance appraisals, incentive schemes, promotions, and career progressions.
Challenges with Data-Driven Decisions
Balancing Data and Gut Feelings:
Organizations face challenges when leaders' instincts conflict with data.
Importance of accurate data capturing and validation.
Example of Data Usage:
Promotion process in large organizations: Assessing candidates for supervisory positions using assessment centers to measure supervisory capabilities systematically instead of relying solely on past performance.
The assessment center provides data that complements manager gut feelings in decision-making.
Tips for HR Professionals Going Data-Driven
Understanding Resistance:
Line managers may resist data-driven approaches, preferring gut feelings.
Building Data Capabilities:
HR professionals should develop data analysis skills (e.g., using SPSS, Excel).
Access to standardized tools for measurement and analysis is crucial.
Creating Awareness:
Highlight the importance of transparency and data in decision-making.
Use data to support line managers rather than oppose their instincts.
Skills and Competencies for HR Teams
Data Savviness:
HR personnel need to become proficient in data analysis and interpretation.
Importance of having tools beyond basic Excel for data analysis (e.g., advanced analytics tools).
Training Needs:
Equip HR teams with the skills to conduct root cause analysis and establish causal relationships within data.
Credibility Building:
Increased data competency can enhance HR teams' credibility within organizations.
Conclusion
Final Thoughts:
The future of HR will depend on data-savvy professionals who can lead organizations through digital and data-oriented transformations.