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Workforce Challenges in Indian Banking Scenario – Journey from Identification Till Mitigation


Affiliations
1 Department of Finance, Narsee Monjee Institute of Management Studies, Bengaluru 560 083, India
2 Department of Finance, Symbiosis Institute of Business Management, Bengaluru 560 076, India
 

The banking industry has been going through rapid transformation due to progressive economic reforms, changing demographics and fast-paced technological developments. Banks in India have been facing multitudinous challenges such as regulatory risks, upgradation of technology, intense competition, workforce challenges and operational risk. Workforce challenge plays a vital role among other challenges. The extant literature review shows that several studies have identified various workforce challenges of banks. However, their impact has not been quantified for effective risk mitigation. Such studies are more observatory than investigational. The present study aims to identify the major workforce challenges of banks through a structured approach that includes literature review, focus group discussion, assimilation of consultancy reports and conducting risk perception survey. The scope of the current study is limited to Indian public and private sector banks. As per literature review, the major workforce challenges identified are lack of required skills, performance management, inadequate recruitment and career planning and increasing staff cost. The workforce challenges are identified using factor analysis and a conceptual model is proposed for mitigation of key challenges.

Keywords

Factor Analysis, Indian Banking System, Risk Mitigation Framework, Workforce Challenges, Workforce Challenges Assessment.
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Abstract Views: 241

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  • Workforce Challenges in Indian Banking Scenario – Journey from Identification Till Mitigation

Abstract Views: 241  |  PDF Views: 70

Authors

Neha Chhabra Roy
Department of Finance, Narsee Monjee Institute of Management Studies, Bengaluru 560 083, India
T. Vishwanathan
Department of Finance, Symbiosis Institute of Business Management, Bengaluru 560 076, India

Abstract


The banking industry has been going through rapid transformation due to progressive economic reforms, changing demographics and fast-paced technological developments. Banks in India have been facing multitudinous challenges such as regulatory risks, upgradation of technology, intense competition, workforce challenges and operational risk. Workforce challenge plays a vital role among other challenges. The extant literature review shows that several studies have identified various workforce challenges of banks. However, their impact has not been quantified for effective risk mitigation. Such studies are more observatory than investigational. The present study aims to identify the major workforce challenges of banks through a structured approach that includes literature review, focus group discussion, assimilation of consultancy reports and conducting risk perception survey. The scope of the current study is limited to Indian public and private sector banks. As per literature review, the major workforce challenges identified are lack of required skills, performance management, inadequate recruitment and career planning and increasing staff cost. The workforce challenges are identified using factor analysis and a conceptual model is proposed for mitigation of key challenges.

Keywords


Factor Analysis, Indian Banking System, Risk Mitigation Framework, Workforce Challenges, Workforce Challenges Assessment.

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DOI: https://doi.org/10.18520/cs%2Fv115%2Fi4%2F739-747