Banks must shift from managing human capital to unlocking human potential: Ravi Jayasekera

• Jayasekara criticises the expectations of undisputed obedience from employees, indifference to personal struggles, and the hierarchal structures of companies
• Stresses that organisations must stop treating their workforce like equipment capital to be managed
• Voicing robust support for promoting growth, lists five pillars for unlocking potential
• Skills-based talent strategies, augmentation with AI, experience driven HR practices, and leaders as coaches and enablers should serve as priorities to organisations
• Chandi Dharmaratne lists job displacements, security threats, and evolving skills requirements challenges posed by AI
• HSBC Head of Human Resources Ryan Visvanathan reiterates Jayasekera’s opposition to a hierarchal workplace
• Calls for enhanced reward incentives and greater representation of internal stakeholders at crucial meetings
• Believes this will boost employee satisfaction which is crucial for retention
• IBSL Director General warns that prioritising meritocratic appointments must be key, however

By Janani Kandaramage

Aimed at enhancing employee engagement, Hemas Holdings PLC Chief People’s Officer (CPO) Ravi Jayasekera called for reforms to the workplace aimed at supporting employee wellbeing, catering to their expectations, while promoting both professional and personal growth. He made this observation at a banking forum about ‘Economic Recovery and Revitalisation’ held at the Cinnamon Life, Colombo. 

Jayasekera criticised the expectations of undisputed obedience from employees, indifference to personal struggles, and the hierarchal structures of companies. He also spoke of the prevalent misconception among staff that members of the current Generation Z exhibit poor work ethic. This stigma, he argued, has contributed to the establishment of uninspiring work environments that fail to harness the potential of younger employees, posing challenges to retaining such employees.

“The younger generation entering our workforce today have completely different expectations of their jobs compared to our generation. In the past, employers saw work contracts as mutually beneficial and we perceived our jobs as an obligation in return for a reasonable pay. However, today’s youth values personal growth and innovation, and as managers we must prioritise on professional development programs and promoting a work environment conducive to creative freedom.”

He also called overreliance on the middle management a barrier to fostering relationships with all stakeholders. He warned that a disconnect between front-line staff and the senior management is detrimental to employee engagement and overall productivity, as it can create feelings of frustration, lack of recognition, and decreased trust in leadership. “This is the reason institutions particularly financial institutions need a complete shift in mindset. Unlocking human potential must be made the priority of employers over managing capital,” he opined.

Speaking about strategies for unlocking this human potential, the CPO listed five factors which he calls the ‘five pillars of workforce growth.’

Skills-based talent strategies: Institutions must inculcate job vacancies directed towards the emerging skills and talents of the youth who will makeup the future of the workforce

People augmented with AI: Artificial Intelligence must act as a partner to humans and not as potential replacement

Experience driven HR practices: Displaying commitment to enhancing employee experience alongside customer experience

Leaders as enablers and coaches: Management must act as role models to their staff, leading with integrity, objectivity and acceptance

Human-centred purpose driven culture: Management must focus on employee wellbeing, embedding strategies to boost morale and take accountability for employee grievances

He said: “Reimaging human capital and the way it works is fundamental if we are to adopt to the dynamic society we live in that puts emphasis on individual wellbeing.” 

Featuring experts including HSBC Head of Human Resources Ryan Visvanathan, Institute of Bankers of Sri Lanka (IBSL) Director General C.P.A. Karunatilake, ShoreTree Holdings Director Stakeholder Relations Chandi Dharmaratne, Boston Consulting Group Managing Director and Partner Varun Kejriwal, as well as Ravi Jayasekera. The distinguished panel was moderated by Senior Professor of Management Ajantha Dharmasiri.

Chandi Dharmaratne spoke of the challenges AI poses to human capital to banks highlighting potential job displacements at entry-level positions, evolving skills requirement to senior staff, and security concerns that could threaten the confidence between different stakeholders within the firm. In response to overcoming these threats, she called for increased training schemes on IT and enhanced awareness on the impacts of AI. Focus on digital education, she asserted, will enable staff to adapt and work collaboratively with AI preventing a complete overtake.   Ravi Jayasekera affirmed Dharmaratne’s argument, adding that employers and management can effectively utilise AI to personalise employee development, improve recruitment processes, and enhance decision making. “Machine learning algorithms predict learning needs based on performance data, enabling personalised development plans that foster employee growth and align with organisational goals. AI streamlines hiring by efficiently screening resumes and matching candidates to roles, minimising human biases and time constraints.” He also spoke of AI’s capacity to analyse vast amounts of data to provide insights that inform strategic decisions, improving organisational outcomes.

Ryan Visvanathan expressed his strong support to Jayasekera’s focus on employee needs, stating, “Employees are consumers of the banking sector just as customers. Just as customer expectations are rapidly evolving in today’s business environment, so are employee expectations, and as employers and HR we must respect and cater to that,” 

“As Ravi quite accurately described previously, employees today increasingly require greater autonomy in decision making, flexibility, and guidance based on growth rather than control and command. A control and command culture often creates a work atmosphere that is claustrophobic,” he noted. “Therefore, the management’s focus must be to diminish these chains of authority that bar interaction with staff, and establish a culture of equality that drives discourse crucial to innovation. Interaction with all stakeholders in a company, particularly banks, is key to capitalising on every individual’s talent as a means of advancing the companies’ capabilities. This process of breaking the barriers between internal stakeholders is ‘Intrapreneurship’ and that is the path we must strive towards,” he added.

The HSBC Human Resources Head said to create an agile and independent workforce, not only is communication across the various hierarchies necessary, but a commitment to continuous upskilling and outskilling as well as a reward systems aimed at elevating employee engagement are key to achieving these objectives. These will also help avert the cascading brain drain crisis Sri Lanka is experiencing, he emphasised.

In response to concerns over potential job market saturation and strategies to assist the underskilled, Varun Kejriwal asserted that talent is not fostered overnight, and must undergo repeated phases of further development. He said: “The question is not what can employees do to attract work? It’s more what can industries like the banking industry do to attract employees? It ultimately boils down to the way we express our commitment to addressing all their potential needs, ranging from salaries, bonuses, to mentorship programs where bosses serve as close confidantes rather than a figure of authority.”

The IBSL Director General also expressed his overwhelming support to the employee-friendly approach taken by the panel, while cautioning that boundaries should be established regarding employee-management proximity. He argues that maintaining these limits is essential to preserving a culture of meritocracy, which he considers a foremost and fundamental priority for organisations.

Pix by Upul Abayasekara