financial service sector: Salary increases in India’s banking and financial services sector are expected to range between 9 and 12%

financial service sector: Salary increases in India’s banking and financial services sector are expected to range between 9 and 12%

Salary increments in India’s banking and financial services sector is likely to range around 9-12%, according to a survey of 350 companies done exclusively for ET by executive search firm Ciel HR Services.

Based on the findings of the survey, which reached out to HR professionals of these companies, the appraisals will be around 9-12% for 57% of the organisations and greater than 12% for another 18%.

HR experts and top company executives said the recent crisis in the banking sector in the US and global uncertainties are unlikely to impact increment or hiring in the sector in India, as the exposure of domestic banks abroad is very limited.

The survey, which also looked into the talent demand in the sector based on postings on leading job portals, shows a 50% increase in talent demand for skilled professionals in the BFSI sector in April compared to the previous month, mostly in digitisation, compliance and sales roles. Demand is high particularly in the areas of technology, product, operations, risk management and compliance. Compared to a year earlier, the increase is around 30%.

“The accelerated demand for technology and focus on digitisation are the key drivers behind the growth of the BFSI sector which is leading to the need for skilled talent,” said Aditya Narayan Mishra, chief executive of Ciel HR Services. “BFSI is anticipated to emerge as a significant jobs creator in the non-IT industry,” he said.

The survey reveals that there is a significant demand for software developers in the sector. “These firms are focusing on enhancing customer experience by using data-driven techniques. This trend is expected to continue as more BFSI companies adopt digital technologies and explore new business models,” said Mishra.

The survey also shows an increase in demand for support roles such as frontline sales, business development pre-sales, and frontline operation jobs as companies focus on strengthening the customer base.Madan Sabnavis, chief economist at Bank of Baroda, said: “Banks and NBFCs are the ones who have to support the overall economic growth and hence outlook for the sector is robust in the months ahead.”

Besides, all banks and NBFCs are looking for last-mile connectivity. That will also lead to the opening up of a lot of jobs linked to tech transformation and digitisation, he said.

The banking crisis in the US is unlikely to impact the sector in India as Indian banking is primarily domestic banking with a small proportion of NRI deposits, Sabnavis said. “Also in terms of exposure, though all banks have branches abroad, their exposure and risk is very limited.”

Latest data from jobs portal show hiring activity increasing 13% in the insurance sector and 11% in the banking sector in April, compared with the same month last year.

“Right from software development engineers, software product managers, technical programme managers to domain experts, we have been hiring talent with diverse experience in tech sectors to collaborate and build platforms and operations in-house,” said Milind Nagnur, president and chief technology officer at Kotak Mahindra Bank. “Today, like never before, digitisation has become a systemic requirement to deliver exceptional customer experience. Particularly for a bank that has a million touch points, we need new-age tech to operate and offer services seamlessly,” he added.

Rajkamal Vempati, Axis Bank’s head of HR, told ET in a recent interaction that the bank would increase campus hiring by 3-4 times next year. “We are looking at making BFSI attractive for campuses when other sectors are dialing down (hiring),” she said.

The lender is also looking to ramp up lateral hiring to cater to new demand as well as to fill attrition. Customer interface, lending, assurance and tech are some of the top functions.

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Author: Shirley