SBI to hire consultant for 10-year HR strategy on digital and talent growth

Business Standard

3 days ago

A generational shift in employees, along with their increasing expectations and the rapid rise of digital banking, is prompting the State Bank of India (SBI) to reassess its Human Resource (HR) management practices and build a "future-ready" organisation with a rich talent pool. India's largest lender plans to engage a management consultant to develop both a 5-year and 10-year HR strategy. The consultant will be tasked with advising on how to align the state-backed lender's HR policies and processes with its overall performance goals, as well as benchmarking these against industry best practices. According to a document soliciting the Request for Expression of Interest, the mandate for the management consultant includes reviewing SBI's current HR strategy, operating model, and technology landscape. The indicative timeline for completing the project is 18 months. As expectations grow for more inclusive, agile, and purpose-driven workplaces, there is a need to realign SBI's HR strategy. The goal is to create enhanced value through the Employee Life Cycle Management (ELCM) framework, which focuses on every stage of employee engagement—from talent attraction to post-retirement transition. 'At the bank, the aim has always been to introduce and promote policies that ensure employee satisfaction and enhanced productivity,' the company added. A senior SBI executive noted that, over the past decade, expectations have changed for individuals joining at entry levels, whether in clerical roles or as probationary officers. These new hires view their careers at the bank as offering more immediate opportunities rather than being a long-term career path. As a result, preparing career development plans has gained significance. There is also heightened competition in every banking segment—retail, industrial, and agricultural lending. The growing emphasis on digital and information technology has made it essential to impart new skills, while re-skilling existing staff has become crucial. The bank is hiring more professionals with domain-specific skills and experience, particularly in risk management and digital and cyber management. Many of these new hires come in at middle and senior levels, requiring special attention to their integration with the bank's systems, organisation, and ethos, according to an SBI executive. For SBI, which employs nearly 2.36 lakh people and has around three lakh pensioners and family pensioners, ELCM is critical for ensuring smooth HR operations across all stages—from hiring to retirement. 'It (HR Policy) is vital for operational success and employee satisfaction and offers several key benefits that contribute to the overall success of the organisation,' the lender said. The management consultant will identify skill gaps and assess capabilities through skill diagnostics, reviewing the existing talent management strategy, and evaluating the adequacy of processes and technology for future readiness. The transformation plan also includes a revamp and digitisation of recruitment processes. The consultancy will define digital and AI-enabled talent acquisition models—from screening to onboarding—by diagnosing existing processes. It will also benchmark talent acquisition and AI practices across peers to identify gaps and leverage points, SBI said.