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Non-banking finance companies (NBFCs) form a vital part of the Indian financial system. They play a significant role in nation building and financial inclusion by complementing the role of the banking sector in reaching out and extending credit facilities to the unbanked sections of society. NBFCs have scripted a spectacular success story in the history of the Indian economy. Their contribution to the economy has grown from 8.4% in 2006 to over 14% in March 2015. In terms of financial assets, NBFCs have recorded a substantial growth—a compound annual growth rate (CAGR) of 19% over the past few years—and today comprise 13% of the total credit exposure, and which is expected to reach nearly 18% by 2018–19.
In the last one decade, non-banking financial companies, especially Gold Loan NBFCs, have seen remarkable growth in the country. From a couple of south based players in a few years ago, the sector has seen the entry of many new players. Moreover, with the banking system clearly constrained in terms of expanding their lending activities, the role of NBFCs becomes even more significant given the strong focus of the government on promoting entrepreneurship with the objective to remake India into a country of job creators instead of job seekers.
NBFCs are using both traditional and modern tools for talent acquisition and retention. As NBFCs expand further, a lot more employment opportunities will arise across the industry. New entities, new topography, new business model and huge cross-selling opportunities will necessitate both mass and non-mass hiring in the sector. Going forward, it will be common to see a breed of niche NBFC specialists with very polished skill sets. According to industry sources, the three leading Gold Loan NBFCs have given direct employment to more than 60,000 people.
As companies in the NBFC sector grow, it’s essential for hiring managers to use technology to bridge the geographical divide in a cost-effective manner. It’s not always efficient to have a hiring manager stationed in each and every town and so using video conferencing, online assessment and other technologies for virtual hiring processes are necessary and imminent. We’ve seen that this ensures quality of the hire and, at the same time, increases efficiency of the process.
Women form an integral part of today’s workforce, especially important in the financial services sector. A large chunk of this pool is, however, seen to “drop out” of the work force at a mid-management level, mainly to focus on raising the family. At Manappuram, we realize there is a huge talent pool of women who want to return to work after having their children grow up. Therefore, there is a conscious effort on the part of our recruitment processes to be inclusive and empathetic towards women in our workforce.
Returning employees form yet another pool of talent that is being recognized by organizations. Rehiring is beneficial to the both the employee, who is choosing to return to a familiar environment, as well as for the employer who is recruiting someone who’s already familiar with the company culture and infrastructure. This also helps increase hiring process efficiency and also lower the training period and the related costs.
Hiring is no longer the sole agenda of the HR fraternity and is today being increasingly driven by business leaders including CEOs. Companies are realising that it’s equally important to attract talent as it is to attract customers. Marketing-style campaigns that traverse through traditional and social media mean substantial spends on building a credible “employer brand”. Top talent today is aware of their market-worthiness and “select” employers as much as they are selected by employers. Providing a breakthrough experience to a potential job seeker helps spread the word of mouth and serves as a brilliant marketing tool for an organization. In contrast, a bad hiring experience may cause the right applicant to turn down the job.
One of the most effective tools for employer branding is the retention of existing employees. Retention in today’s world begins from the very first day of recruitment. To motivate high potential talent within the workforce, one can offer structured leadership development programmes that focus on functional and managerial skills. A highly motivated and enthusiastic staff will positively influence the employer brand in today’s inter-connected world of social networks. Talent retention, thus, plays a crucial role in new talent acquisition.
Renjith P.R.
DGM – HRM Training