The competition for talent in the banking, financial services, and insurance (BFSI) sector has shifted dramatically. Sagar Pandey, CHRO at Swastika Investmart Limited, notes that financial institutions can no longer compete solely on compensation. Today, a technology professional can choose between a bank, a fintech startup, a consulting firm, or a pure-play tech company. This reality demands a fundamental change in how BFSI firms approach hiring. They must compete on the quality of the career opportunity, the strength of leadership, and the overall employee experience rather than just salary or job title.
Pandey emphasizes that recruitment should start with a clear business requirement, not just a vacant position. The organization needs to understand what specific capability the business requires and what the individual is expected to deliver. Speed is also a critical factor in this process. High-quality candidates are often unavailable for long periods, and lengthy hiring cycles can result in losing the right person before compensation is even discussed. Clear requirements, structured interviews, and timely communication are now essential to securing top talent.
Shifting the Hiring Conversation
The industry is becoming more open to candidates from outside traditional BFSI backgrounds. If a professional brings the right skills, problem-solving ability, and learning agility, their previous industry should not automatically be a barrier. The hiring conversation is gradually moving away from designations and past employers toward what a candidate can actually bring to the business. This shift allows firms to tap into a wider pool of talent who can solve complex problems at the intersection of finance, technology, and data.
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Building a future-ready BFSI workforce also means investing in internal talent, strengthening leadership pipelines, and creating opportunities for employees to grow with the business.
Technology plays a significant role in this transformation, but its application requires careful balance. AI and digital platforms can make recruitment faster and more data-driven, but they cannot replace human judgment. Pandey advises against making AI the final decision-maker. A profile provides information, but it cannot fully capture a person’s potential, adaptability, or context. A candidate may not use the exact terminology in a job description but can still be an excellent fit. Skill-based assessments are particularly useful for specialist roles, as a previous designation does not always indicate what someone can actually deliver.
The ideal model uses technology to improve efficiency and bring objectivity, while retaining human judgment where context matters. Technology should make the hiring process better, not make the human part of hiring disappear. This approach ensures that while administrative burdens are reduced, the critical evaluation of leadership and culture fit remains a human endeavor.
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Retention and the Employee Journey
Retaining talent requires more than just competitive pay. Pandey argues that an employer brand is built through the employee experience, not communication alone. This journey starts with clarity during hiring and continues through onboarding. New employees should not spend their first few weeks trying to understand basic processes or systems. The organization should be prepared before the employee arrives, providing clarity on responsibilities, reporting, and support.
Communication is another pillar of retention. Employees do not expect every decision to be perfect, but they do expect transparency. Even when the answer is not what someone wants to hear, clarity about what is happening and why builds trust. HR teams are moving toward more structured and data-driven operations to provide management with visibility into hiring, attrition, and performance. This ensures that people decisions are based on facts rather than assumptions.
Aligning People Strategy with Business Results
Balancing digital tools with human interaction is a key challenge. Pandey suggests automating transactions but not relationships. Routine administrative tasks, such as accessing information or completing documentation, should be handled by digital platforms. This frees up HR professionals to focus on higher-value work, such as career discussions, performance concerns, and workplace conflicts. These sensitive issues require listening, empathy, and judgment, which a chatbot cannot provide. The mistake would be to assume that digital HR means removing people from the equation. The better approach is to use technology for speed and transparency, and people for context and empathy.
