DAT Propels HR Transformation

Data, Automation and Talent are the most common drivers for HR transformation in NBFCs. Five HR professionls from NBFCs explain the thrust HR is getting in the age of the millennials:

Recently the Reserve Bank of India had outlined 2 measures aimed at easing liquidity pressures on crisis-hit NBFCs - one was aimed at boosting credit to the cash strapped NBFCs and the second was allowing banks to classify loans to NBFCs for key areas such as agriculture, housing and SME businesses - up to certain limits - as priority sector lending.

NBFCs have been battling a credit crunch since IL&FS, or Infrastructure Leasing & Financial Services, collapsed in late 2018 amid fraud allegations. The fall of the behemoth pushed up borrowing costs for rivals and this has sharply impacted consumer spending and stung sectors such as real estate and autos that are big drivers of consumer demand.

Apart from the liquidity crises, NBFCs in India are also facing HR challenges like employee attraction and retention, changes in management policies, lack of interest among employees. Many employees in the sector are switching to other safe industries. Recruitment across NBFC companies has slowed down and hiring is practically at a standstill other than for critical roles.

CHANGING WORK SCENARIO

Today disruptive technologies such as digitization, automation and artificial intelligence combined with demographic forces continue to transform the nature of work, how it gets done, and by whom. Implications of competition are profound. Firms that expect to benefit from a digital transformation or a promising new strategy will not get very far if they lack the people to bring the plans to fruition. What might seem like an irritating talent gap today could prove a fatal competitive liability in the not-too-distant future. While talent shortfalls arise for many reasons, the supply-side remedies can be summarized in just three watchwords: Should we build on our existing skills? Should we acquire them? Or should we rent them?