Fintechs show strongest hiring intent in BFSI sector, focus on improved employee experience

• In the BFSI segment, fintech firms lead the way with a 41% increase in their hiring intent.
• To stay competitive, companies need to foster a culture of innovation and agility, which encourages employees to experiment with new ideas and technology.
• By 2023, the gap between the best workplaces and other workplaces has increased to 5%, making the adoption of best workplaces practices even more crucial.

The Banking, Financial Services and Insurance (BFSI) sector is projected to witness a strong surge in hiring activities in the next year, with companies planning to hire 26% more employees than the current year. Fintech firms, in particular, lead the way with a 41% increase in their hiring intent, showcasing the rapid growth and impact of the industry in India's 1financial landscape, according to the Best Workplaces in BFSI in 2023 report by Great Place To Work.

The fintech companies are followed by the Non-Banking Financial Companies (NBFCs) with a 27% increase, Insurance with 21%, and Banking/Credit Services with 15% more hiring prospects.

Additionally, companies across the BFSI spectrum are showing increased interest in evaluating and improving their workplace culture, with a notable 12% rise in this aspect compared to the previous year, highlighting a commitment to creating a positive work environment for employees.

Employee experience differs across verticals

Advancements in technology have led to increased opportunities for consumers to conduct transactions across various sectors on a single platform, blurring the lines between industries. The evolving landscape is characterised by government support, domestic demand, and technological progress. Amidst these changes, the focus on people-centricity remains consistent.

Employees are now seen as enablers and facilitators in this dynamic environment, leading to a heightened emphasis on workplace culture.

Over the past four years, the overall employee experience in the BFSI industry has seen a positive increase of 5 points, moving from 79 to 84. This improvement has resulted in the industry securing the 5th position in terms of employee experience when compared to other sectors.

However, banking and credit companies have seen a decline in experience, while fintech companies have focussed on cultural assessment. Life insurance companies have come out on top when it comes to employee experience.

The need to adopt best workplace practices

By 2023, the gap between the best workplaces and others has increased to 5%, making the adoption of best workplaces practices even more crucial. Notably, the BFSI industry has experienced a significant rise of 9% in leadership behaviours associated with impartiality and active involvement in decision-making over the past four years. This indicates a growing focus on fairness and inclusivity within the industry.

Says Yeshasvini Ramaswamy, CEO, Great Place To Work India, “The BFSI sector in India is one of the most important pillars of the country's economy. The industry is witnessing significant growth due to increased digitization and government initiatives to boost financial inclusion. To stay competitive, companies need to foster a culture of innovation and agility, which encourages employees to experiment with new ideas and technology.” The increased hiring within the sector highlights its resilience and contribution to economic recovery and employment generation in India.