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HR: The cog in the machine
In the past decade, corporate houses in Nepal have been moving steadily towards the adoption of the best business practices from around the world. Of the many facets that make an organisation tick, Human Resource management is a bare essential.Alisha Sijapati
In the past decade, corporate houses in Nepal have been moving steadily towards the adoption of the best business practices from around the world. Of the many facets that make an organisation tick, Human Resource management is a bare essential. If once HR was not considered to be primary importance—often being lumped with the personnel department—all sectors in the country are now recognising that an organisation cannot grow organically without first investing in human resource management.
With the banking sector now emerging as one of the best paymasters in the country, banking jobs are in high demand and the competition high. Furthermore, because the size of banks and the employees that they hire continue to boom, human resource departments have become absolutely crucial to the sector. With that in mind, on Novemeber 22, a group of HR professional from the banking sector in the Kathmandu Valley came together to share ideas, knowledge, experiences and issues with the aim of further strengthening the mobility and effectiveness of HR departments in Nepali banks.
The HR round table saw various noted HR professionals from the Civil Bank, Century Commercial Bank, NIC Asia, Nabil Bank, Sanima Bank, Everest Bank and Janata Bank. The bankers discussed the tremendous opportunity for growth and the challenges that beset HR departments in the country. The problem of retention and keeping employees motivated also featured prominently. Here is what the HR professional had to say:
How has the value of Human Resources management evolved in the banking sector in Nepal over the years?
“Before I switched to the banking sector, I first worked at the Chaudhary Group which had a pretty well established HR department. However, I was surprised that there wasn’t a Human Resources department when I joined the Nepal SBI Bank. I had to start the department from the scratch there. In many other banks too, it’s only been about 10 years that HR departments have been given the chance to be a part of the decision making process. Only a decade ago, you would struggle to find students who wanted to study HR Management, but now that the demand is slowly peaking, it has emerged as a very promising career prospect. The progress might be slow, but Nepal’s corporate eco-system is definitely moving in the right direction.”
- Reetu Shrestha Nyachhyon, Head of Human Resources at Janata Bank
Many banks do not overtly invest in HR, is it that they do not see HR as a capital?
“Banks do have certain budget for HR. Previously, they may not have given much importance to it because it was a part of the personnel department, but as the workforce is getting larger, you don’t have a choice but to get involved with HR to improve the working culture in the organisation. It is crucial for banks to help their employees grow because there is a huge gap to fill in managerial positions. For that, staff need to be given constant trainings. Currently, the competition is very high at the trainee-level, but to convert those trainees into great managers of the future, HR is absolutely vital.”
- Dichhya Shrestha, HR manager at Century Commercial Bank
Banking sector is one of the industries where retention is very low. How does this impact an organisation?
At present, the turnover is high. The capital has increased and because all banks are now expanding, the supply is low and demand is exorbitantly high. Previously, there were limited banks and now there so many new banks that employees have the choice of switching from one bank to another. There is a dire need of highly talented people in higher positions; a lot of banks have been poaching employees from one another. There is a huge gap that needs to be filled. We have reached a phase where we almost have to compromise on giving undeserving candidates promotions. Over the period of time, the problem might be mitigated as new graduates keep rolling in. But as of now, unfortunately, organic growth within an organisation is almost non-existent.”
- Ramila Shrestha, Head of Human Resources at Sanima Bank
How has the NRB’s decision of expansion affected HR departments in banks?
“Undoubtedly, it’s the HR departments that will be most affected by the decision. Many banks are under merger acquisition now; this will definitely change the working culture of banks because there could be a clash between the old and new staff and management. You have to rework the entire strategy to work with new employees. You have to make them feel comfortable. If HR departments don’t stay strong during times of expansion, banks are bound to run into trouble.”
- Abhijeet Shrestha, Head of Human Resources at Civil Bank
How does banks value teamwork, what are the best ways to keeping your team motivated?
“Teamwork is a must when you are working in any organisation. Banking is all about collaboration. If there is no teamwork, an organisation fails. You need to engage yourself and work together in a team. There are many things that go into motivating the staff. As a HR officer, we need to see how we can facilitate our staff and how can we improve the working culture. There are many ways to motivate and it’s not only about perks, it’s about how you can be of help on the personal front too. The added advantage of working in a bank is it caters to the needs of its staff through loans. Also, as the workforce is so large, you need to train and develop your staff regularly, including raising their salaries every year, which has become mandatory now.”
- Ramesh Thapa, HR officer at NIC Asia Bank
It is said that nepotism is rampant in the banking sector. What is your take on that?
“I wouldn’t really agree to it that there is nepotism. Banking sector is transparent. Having worked as the head of HR, I believe I should be able to make the decision on who is hired or not. I cannot just hire someone based on personal relationships. The candidate needs to be deserving. To get into the banking sector, you have a rigorous entrance examination and group discussions, which is highly competitive. I believe in merit and core competency. Everyone needs to get equal opportunity. As a HR head, you need to identify a qualified person. For management trainees, we receive over 4,000 applications and it is tough for us to choose the best of the best. There is no room for nepotism here. You cannot get everything on your doorstep. You need to be deserving of the opportunities you get.”
- Roshan Koirala, Head of Human Resources at Nabil Bank