With the start of 2016, the predictions for BFSI sector were quite favourable. This reflected in hiring in BFSI as well, with the financial year 2015 already proving this sector to be one of the top performers. The sector was looking at close to 10% growth in recruitment activities. This sector, so far, has lived up to these predictions and the growth is expected to get only better.
The Hiring Opportunity in BFSI
Over the last decade, the rise in income levels have created banking opportunities in all parts of the country. Banks are actively reaching out to the rural and catchment areas of expanding cities to cater to the service demands. This has eventually given a boost to employment creation in banks. It is estimated that by the year 2020, the banking and financial sector will require 9 million people to join forces.
As per the published information in indiainfoline.com early this year that resonates with our belief as well, “The BFSI sector will see a growth in demand for financial analysis, wealth management profiles driven by the insurance industry. The Mid and senior level functions such as treasury management and technical valuation will see a rise in jobs in Chennai, Mumbai and Bangalore. There will be an increase in demands for digital marketing, direct marketing and channel selling. Salary hikes are expected to be in the region of 12% to 14% for this sector.”
With the above intent, there is a clear sign of demand for skills in the BFSI sector. Combined with the niche, functional and location-wise opportunities, the overall sectoral recruitment activity would be on an all-time high. Apart from the growth in the existing banks, RBI’s licensing policy, where banks can set up branches across cities is one of the encouraging moves.
Sometime early 2014, the Reserve Bank of India issued licenses to new players giving them varied rights to banking practices. This not only supported service expansion but pushed the hiring for various roles across cities, from tier II to tier VI. In fact, HirePro is currently working with one such new bank that is hiring 25,000 people over the next 12-18 months and 100,000 by 2020.
What is there to watch for?
Retiring Baby Boomers
The recent HR trends speak very highly of the growth percentages in various sectors of the economy, BFSI being one of them. One of the factors that is going to affect the workforce in banking and financial services is the mass exit (read retirement) of baby boomers. In the next five years to come, this sector will see major hiring of the millennials. This development will go hand-in-hand with the infrastructural and skill requirements of banking.
Rise of FinTech
With more than a 100 million Indians staying connected through internet and mostly through their smart phones, the new era of financial technology has dawned. This sunrise sector is luring talent for some of the top industry names as of now. While there is an evident threat to the banks, the war of talent is set ablaze. It is predicted that the growth of fintech companies will see a rise in hiring by at least 20% and as mentioned earlier, this workforce will largely comprise of 40 to 50 percent millennials with an average age between 27 to 34. This new group of employees and leaders will have ready adaptability. It will turn these set of multi-taskers to a multi-skilled workforce, suitable for taking on the challenges of economic and technological changes.
This wave of transformation would require the BFSI institutions to carve a culture that is suitable for the new generation of employees. They will have to shape up an environment where duty is driven by sense of growth, employee engagement is fuelled by welcome ideas and independence, alongside workplace transparency. The conservative outlook of this sector, especially when it comes to employee benefits will also undergo sea-change as the diversity and nature of workforce will change. These multi-dimensional shifts will be visible in creation of spaces around digital mindset, increased engagement for employee service and empowering them with autonomy.
(The author Rishi Das, is Co-founder & CEO, HirePro Consulting Pvt Ltd.)