India plans to add over 1.6 million qualified professionals to the BFSI sector by 2025. This ambitious target comes at a time when the industry is grappling with an estimated 40% attrition rate in 2024. Despite the turnover, the domain has also seen a 20-25% rise in entry-level hiring. But are these new recruits truly proficient, even if not fully experienced? With the convergence of technology, evolving regulations, and changing consumer expectations, a proactive approach to skilling is essential. The potential for Learning and Development (L&D) to reshape talent and prepare them for future demands is enormous. Key trends driving this transformation are outlined below.

Setting the foundations for success

A report by the Association for Talent Development (ATD) reveals that organisations with strong onboarding processes improve new hire retention by 82%. New hire onboarding with skillsets particular to the job role, keeping in mind organisational goals, ensures enhanced productivity and quick cultural assimilation. A strong foundational programme that addresses technical and soft-skills training and outlines the parameters for success sets the professional up for success.

Digital-first to take precedence

According to a LinkedIn report, 76% of organisations have shifted their onboarding processes to virtual platforms, enhancing accessibility and engagement. A digital-first approach will ensure seamless integration and quick knowledge transfer while significantly reducing operational costs in L&D.

Specialised skills in high-demand

A study by IBM revealed that 66% of employees are more likely to remain with a company that offers tailored training relevant to their roles. Traditional banking roles have evolved to require digital competencies aligned with the industry's shifting landscape and customer needs. In-demand skills now include advanced technologies like digital wallets, UPI, cybersecurity, and others, which are critical for creating competitive banking products. This shift creates significant opportunities for engineering and tech graduates within the banking sector. Learning and Development (L&D) initiatives are key in deploying training programmes to upskill employees, ensuring they acquire these essential digital capabilities. Focused courses designed for the BFSI domain can bridge the industry's talent gaps.

Crucial role DEI plays in shaping the workforce of the future

The global emphasis on Diversity, Equity, and Inclusion (DEI) has seen a 33% year-over-year rise in diversity hiring, underlining its pivotal role in shaping tomorrow’s workforce. Major Indian cities like Bengaluru, Delhi-NCR, and Mumbai are at the forefront of diversity initiatives. According to McKinsey’s 2021 report, companies in the top quartile for gender diversity on executive teams are 25% more likely to achieve above-average profitability. To support underrepresented groups, leadership development and mentoring programmes are being widely introduced. Efforts to increase the number of women in leadership roles are gaining momentum, with organisations focusing on bias training for managers and staff. Additionally, mentorship programmes tailored for diverse groups can significantly boost retention and career growth.

The role of L&D in workforce upskilling and reskilling

Companies that prioritise employee upskilling see a 24% higher profit margin than their competitors, according to PwC’s Workforce of the Future report. Effective learning and development are essential for the BFSI sector to continue attracting and retaining elite talent. By consistently allocating resources towards upskilling and reskilling programmes, organisations may provide their employees with the skills they need to stay competitive in the quickly changing industry. Staff members' skill development and career progress can benefit from personalised learning courses. Opportunities for coaching and mentoring can also provide direction and inspiration, fostering an encouraging and dynamic work environment.

Industry-academia collaboration is key

By adopting a targeted approach and fostering a culture of continuous learning, organisations can not only attract top talent but also retain it effectively. Collaboration between industry and academic institutions is pivotal to bridging the talent gap. These partnerships ensure that educational programmes are aligned with industry trends and evolving needs, equipping learners with the relevant skills and knowledge. Internships and on-the-job training opportunities provided through these collaborations offer practical experience and networking from the outset.

Today, many organisations, such as ICICI Bank, Axis Bank and HDFC Bank are investing in centres of excellence in partnership with reputed institutions. These programmes focus on core competency training, with seasoned professionals as faculty delivering hands-on knowledge and real-life case studies. This collaboration between industry and academia creates a pipeline of skilled professionals, ensuring the BFSI sector can meet its evolving demands.

Investing in learning and development (L&D) is not just an option but a necessity for closing the skills gap and fostering a dynamic, engaged workforce. A strong focus on L&D ensures sustainable growth and success in the competitive BFSI landscape.