2020 is here, and the banking and insurance industry will be looking at effectively tackling challenges during the year. As marketplaces are becoming more competitive, here are some of the key challenges that HR professionals in the banking and insurance sector will be facing in the coming year.
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1. Managing Intellectual Capital
Intellectual capital refers to all aspects that enhance the value of an organization, namely, relationship, human, and organizational capital. Managing intellectual capital with rapid fluctuations in the marketplace and the business can be a real trial for HR managers within an organization.
2. Personalization and Data Security
Given that the marketplace has grown leaps and bounds in recent times. Organizations and their customers will look to increase the personalization factor as well as the level of security on data. Payroll outsourcing services are an effective HR measure to tackle this challenge.
3. Skill and Competency Gap
In 2016, PwC found that “70% of CEOs saw the availability of key skills as a threat to growth.” This indicates that a lack of key skills and competencies remains a major issue for most managers and organizations. HR outsourcing services can help in this regard by assisting companies in filling gaps and positions with skilled employees for a position.
4. Changing Business Models
Many organizations go through major upheavals during a financial year, and 2020 will not be an exception. This could cause major issues for both management as well as employees within the organization. In this regard, HR outsourcing services and payroll outsourcing services can help in dealing with transitions within the organization.
5. Compliance
Labour compliance in India is subject to change. Given that laws and regulations change due to external forces, organizations will have to begin to adapt to newer rules and changes to the status quo. HR departments and outsourcing services can help in smoothing the transition during this time.
6. Changing Demographics
Given that 30% of the country’s population falls between the ages of 10-19 and 15-24, India has one of the largest youth populations in the world. A fresh set of challenges immediately pops us as demographics, and therefore marketplace and consumer demand also go through changes. HR can help in reaching a consensus between different demographics and age groups and facilitate effective working practices within organizations.
7.Blockchain
Blockchain is an industry that is poised to hit a business value of 3.1 trillion USD by 2030, according to Gartner. Its impact felt far and wide by a variety of departments and functions. Blockchain will impact HR, as well. However, it can serve a variety of functions such as background checks, improved contracts, and so on.
8.AI
Artificial intelligence in banking is estimated to be a 447 billion USD business. Artificial intelligence will also impact how HR processes work within an organization, with organizations going in for an AI-based hiring process for specific skills and specific positions.
9.Analytics
Analytics has become an integral part of organizations around the world. Organizations have adopted big data analytics, and many predictions have poised big data analytics for major growth until 2026. Changing practices and targets and goals within an organization can be smoothly done with effective HR practices.
10.Market Outlook
The banking sector in India is worth 27.33 billion USD, and the insurance sector is worth 6.7 billion USD. Given that both these sectors will continue to grow and evolve as per the fluctuations of the current market. This will place demands on the organization to continually aim to grow within their respective sectors. Outsourcing specific key HR processes to HR outsourcing services and payroll outsourcing services can ensure that areas, where growth may be lagging, can be improved.
TalentPro India is providing comprehensive services to its banking clients. Our list of happy clients in the Banking Industry keeps growing, and we are delighted to be associated with them. IDBI Bank, HDFC Bank, Karnataka Bank, and many more on the list.
