The Hindu Business Line : Banks must be prepared to nurture talent management: Leeladhar

INDIAN banks have about five years to shape up to face unfettered competition in the roadmap that has been envisaged for the banking sector, according to the Deputy Governor of Reserve Bank of India, Mr V. Leeladhar.

Delivering the 100th Foundation Day lecture of Corporation Bank on the topic `Managing talent in banks' in Mangalore on Saturday, he said that if the Indian banks get their mix of talent management, performance management and compensation incentives right, they should be on the threshold of a new era in Indian banking.

He also inaugurated the year-long centenary year celebrations of Corporation Bank. Terming talent management as a broad mandate, he said banks should be prepared to be collaborative, supportive and nurturing towards their people. At the same time, they should be more exacting. Every talent management strategy will have to be the right mix of `push' factors — motivation, recognition, career progression, capacity building and drawing out plans — and `pull' factors — higher pay, better benefits and heftier perks.

Misalignment of mutual expectations, person-job mismatch, perception of poor career advancement prospects and work-life imbalances could be huge setbacks, he said. Though compensation bedevils public sector banks, the pay packet may not be the only compensation to attract talent. The monetary and psychological needs of talent are in a melting pot today. Public sector banks could use this ambiguity as a source of opportunity, he said. An organisation can offer a host of non-monetary benefits also.

Mr Leeladhar said that a host of new industries such as information technology, media and entertainment are competing with the old industries for talent. In such a situation, banks need to look afresh not only at their recruitment strategies, but also how to retain talent.

He termed effective recruiting as the beginning of effective retention. He said the recent announcement of the Union Government on human resource autonomy incentives for better performing banks may turn out to be a talent management instrument.

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