Relooking the HR practices at PSU Banks
Banks had been the major attractions in the job market. In the past, they were the solace for the middle class aspirations when there were no private placements- and-existence of undependable Govt. recruitment machinery sans the Civil Services. With unemployment ruling roost the only hope for graduated youth was Employment with bank in whatever the cadre. Thus right from messenger to a PO the bank employees were looked with awe and commanded respect and premium in the society at large . In the matrimony market brides/ bride grooms from banks were in much demand and sought after. Youth at that time considered ‘lucky” and fortunate to get a bank’s job. In 80’s there used to be migrations of aspirants from a surplus state to non competitive state like MP. Orissa, etc in search of this fortune called ‘ bank job’.
No doubt that the best of the talent in the country used to get attracted to the banking jobs and these were considered as the ultimate in terms of payment and status. The need at that hour and also now for that matter, is to cherry pick the best from the market. The banking operations in those days being manual, people with arithmetic abilities, reasoning and data interpretation skills in addition to general awareness of the candidates were used to be tested for to eliminate the others.
Skills and talent required then:
As stated In foregoing, the requirement of those day skill sets , banking being near monopoly then, were synonymous with arithmetic for additions and subtractions , calculation of interest and logical reasoning for analysis of balance sheets for credit dispensations and locating differences in the account books.
The banking tests which are still considered pristine in their conduct and selections have catered to the requirement of that day efficiently and transparently, by segregating the best available from the market for admission into the banks.
The present scenario.
Technology has brought in new challenges and new threats in the recent times. With almost all banks in the country are onto the CBS platform the skills required now are totally divergent and different. No longer books are balanced manually and hundreds of ledgers are kept at the counters.. The present set of employees may not even aware of principals of calculating Savings bank interest or the maturity value of a fixed deposit. They need not to. The system is programmed to do what used to be most important thing in the past. Focus of the banks shifted from balancing of books on a daily basis.
What is required now:
In view of the new skills set required for the changed environment, PSU banks need to relook , in my opinion, at the ways they are cherry picking the aspirants. The age old pure and transparent knowledge testing exam should give way to a different system. It is not the academic excellence that is the need of the hour but the attitude of the candidate that plays a paramount role in the future bank employees. Antagonists may brush off this argument stating the availability of interview and GD after the written test qualifiers. Given the time lengths available to the judging boards- (who more often than not are constituted based on availabilities rather than expertise) – of a maximum of 7-10 minutes and given the tendency of subdued exhibition of emotions and trained camouflaged behaviors, attitude of the candidate is the least that can be tested.
The need is…..
Competition has put the banking industry at a new altar. Gen Y demands friendly dispositions and timely solutions. Courtesy and expertise have become the pre requisites from a banker. Monopoly and ‘care a devil attitude’ of yester years transformed to seeking out and reaching out customers who have ‘moolas’ and are willing to pay. No longer the banker’s skill rest on arithmetic and book keeping acumen.
Customers today are seeking advises and are expecting the banker to provide them financial advises that suit them the most. It is not opening a SB account they are looking for from the banker but an advice whether it is advisable to open a SB account in the first place, and a variant that suits them the most. The way in which they visit a medical practioner for diagnosis and prescriptions, they look to the banker to diagnose their financial ailments and provide a prescription at their first point of contact in the banking hall.
The present paying segment of customers are impatient to bureaucracy and long delays. They are resenting the sarkari babu responses and looking for a decision in a reasonable time.
Skills required now….
The bank employees of today need to posses skills and exhibit attitudes that are manifested in hospitality industry and or aviation industry.
The desired attitude and behavior put ups , no matter what is the mental status of that individual at that moment are :
1. Exhibition of patience and perseverance as a manifest behavior
2. Listening skills
3. Personal grooming
4. Negotiation skills
5. Empathy towards customer
6. Enthusiasm to deal with people
7. Extroverts
8. Seeing large picture
9. Innovation and creativity
10. Financial counseling based on product and process knowledge
It can seen that accent on communication skills is the need of the banking job today and people who possess the should be available to the customers at all interfaces,
Much akin to the airhostess and ticketing staff at aviation and service staff at hospitality and nursing.
Academic excellence may not get these desirable skills given the way our edu factories churn out engineers and B Grads . Perhaps banks may not require highly educated staff at the front lines . Perhaps the reason why they get frustrated by the routine, ritualistic job at the counters. While Managers with vision and management skills are required at senior positions where ownership comes naturally, these positions can be reserved for the most talented among the lot who show promise and caliber.
What can be done…
Banks may should recruit people who are not academically brilliant for their front lines for doing the mundane routine and the skillful jobs to be performed by a new to be introduced Floor Mangers cadre similar to the present SR Assistant/ Spl.Aassistant’
All the people irrespective of the cadre should be imparted training in soft skills where in the desired behavior is practiced to perfection. Some of the new Private sector banks and a few PSU banks are selecting people from designated colleges with whom they have strategic alliance. These colleges are offering courses in banking , more specific to the bank in alliance for a year or two where in not only banking knowledge of products and processes of the bank concerned are taught but also the ‘on the counter’ and ‘with the customer’ expected behavior is shown and practiced. This way banks can reduce the expenses of training and ‘get ready made – job ready- employees’.
Alternatively banks can entrust the job of finding suitable candidates – suitable in terms of attitude and behavior – to outside agencies who are fit to do so – who by applying psychometric methods identify right type of candidates who will be on probation and under observation for a period of say one year after which they get the confirmation based again on a 360 degree feed back.
Conclusion:
Today banking is as rigorous a service industry as a hotel and an airline company and can thrive on only when the customers are treated with respect and empathy. People not with academic excellence alone are required to be selected but people with right attitude and flavor for customer service are needed at all public touch points. Bankers service conditions which were drafted few decades ago need to relooked and suitable amends or re writing should be carried out to make a decent , courteous behavior at the counters , come whatever may as a compulsion rather than a personal choice. Way PSU banks recruit should be relooked along with the continuation of archaic service conditions.
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