How Corporate Leaders See Post-Covid Challenges and Opportunities
the HRM
Mired in a deep economic slowdown caused by the Covid-19 pandemic, the last two years have been quite challenging for the Nepali private sector. After a period of relatively high economic growth from 2016 to 2019, private sector leaders suddenly found themselves surrounded by a bleak macroeconomic outlook of the country, sharp decline in business, recurring disruptions in the supply chain, and deepening uncertainty due to waves of coronavirus outbreaks. This situation was something the Nepali private sector was totally unprepared for when the pandemic was announced in March 2020.
For business leaders and chief executives of organizations, the pandemic has not only been a period of test of their leadership qualities and management skills in terms of surviving the turbulent phase but has also been an evaluation of how far-sighted they are in terms of moving forward post-crisis.
With the Covid-19 pandemic seemingly subsiding as the Omicron outbreak is gradually becoming weaker the world over, corporate leaders in Nepal are now focusing on business growth not only to recoup the losses incurred in 2020 and 2021 but to move ahead with caution and diligence in a world which has changed in many ways in the last two years.
The statistics of the Department of Industry (DoI) show that the private sector is back to what they love doing the most i.e., new investment and expansion. According to DoI, investment commitment has doubled in the first six months of the current fiscal year 2021/22 compared to the same period of FY 2020/21.
A total of 154 domestic and foreign companies with investment pledges totaling Rs 186.47 billion were registered during this period.
Business owners and CEOs take the last two years as an important period of the learning curve. According to them, maintaining operational resilience, formulating backup plans both in operational and financial terms, ability to quickly adapt to the changes, among other lessons, is what they have learned during the pandemic. The world has changed dramatically and now they have to keep in mind ensuring business continuity, fostering agility and flexibility, driving innovation and creativity, safeguarding employees’ health and well-being besides managing the expectations of stakeholders, they say.
Lesson Learned
Given the unpredictability as a result of the Covid-19 crisis, corporate leaders have to constantly evaluate and assess opportunities, monitor the shifts in consumer behavior and habits to maximize opportunities for any new emerging trends. Also, the pandemic forced the organizations to constantly reconfigure and change their business models in order to stay relevant.
“The last two years of the pandemic have only reinforced the fact that we are living in a VUCA world (volatile, uncertain, complex, and ambiguous) and organizations will need to quickly adapt to the changes in the operating environment around them if they wish to both survive and thrive,” said Harkirat Bedi, Business Head for Nepal and Myanmar of Dabur India Limited.
According to corporate leaders, the pandemic has taught them that there is an opportunity in every crisis and that efficiently run companies are best placed to take advantage of the same.
In Nepal Electronic Payment Systems Ltd’s CEO Sanjib Subba’s words, “The message is loud and clear – change the way of doing things or perish. This world belongs to those who can change, adapt and transform.”
For Sunil Ballav Pant, CEO of NLG Insurance, the biggest change the insurance sector has witnessed is the adaptation to digitization. He says that had there been no pandemic, the insurance sector would still need more time to adapt to digitization. “Digitization has helped companies to sustain and run smoothly even on very difficult days,” said Pant, adding, “Insurance claims, purchase of policies, premium payments, among other functions, was possible through digital channels.”
The other lesson, according to Pant is doing a proper evaluation of risk-bearing capacity. “The Covid-19 insurance policy has also taught a lesson,” said Pant. “We should not move forward with any insurance policies without a proper evaluation of risk-bearing capacity.” The Covid-19 insurance policy, which was launched in April 2020, has been mired in controversy as the companies issuing the policy have not been able to settle claims amounting to Rs 11.5 billion primarily due to the government’s apathy to pay the liability of over Rs 6 billion it owes to the Covid insurance pool.
In the last two years, effective human resources management (HR) has emerged as one of the biggest issues for the organizations operating in Nepal. While the initial days were full of confusion in terms of employee mobilization due to the restrictions placed by the government in the movement of people, organizations later learned the ways face the challenges related to HRM. Many institutions not only de-layered their internal structures to foster a quicker decision-making process and reduce bureaucratic hurdles but also enhanced the role and importance of HR in building stronger bonds and relationships with employees.
Suman Pokharel, CEO of IME Ltd predicts that HRM will remain as one of the biggest challenges for CEOs in the post-pandemic world. “Those companies moving together with the new generation will go far ahead than those organizations that fail to move together with the young people.”
Many problems organizations operating in Nepal are facing are similar in nature. But there are sector-specific challenges in terms of business and organizational management.
For the hospitality industry, the hardest hit sector by the pandemic, major challenges faced by hotels are related to periodic disruptions on the continuity of business recovery caused by new waves of the pandemic and the increased cost of doing business. According to Monica Scheiblauer, general manager of Hotel Yak & Yeti, lack of skilled manpower, the ever-changing government regulations related to the pandemic, change management, compensation management, employee retention and training management are the major challenges at present.
Moving Ahead
Biswas Dhakal, group president of f1Soft International, thinks that CEOs have to increase the flexibility of their business models and operations to be able to run smoothly in accordance with the situation. “The private sector has been most impacted by the pandemic and has now learned to cope with changes, increase flexibility, and have backup financial and operational assets to tackle such adversities in the future,” he said. According to Dhakal, businesses have now realized that over-dependency on the government or any public institutions can lead to major breakdown when international supply chains are affected. “Logistical difficulties caused by the pandemic have taught us all a very important lesson to try to be more self-reliant and create an environment for building a circular economy,” he said.
Corporate leaders agree that the pandemic has increased the interface of the CEOs with the HR function and during the pandemic, the role of HR has assumed great significance and became more broad-based. “And going forward into the post-pandemic world the HR function will retain the same level of significance if not more. The HR function which was seen largely as a support function has become more and more integrated into the core organization,” said Bedi.
Bedi is of the view that organizations need to prepare their workforce to skillfully handle and manage the new technologies and be digitally future-ready and digitally savvy. “HR apart from the CIO will also play a key enabling role to foster quicker digital transformation in the organization. So, the future of work might not be the conventional 9-5 physical office routine but more of a hybrid model with people working out of offices, homes and remote locations all however seamlessly connected by technology,” he said.
Scheiblauer emphasizes improving the local pool of skilled workforce moving forward. Much skilled manpower of the hotel sector, according to Scheiblauer, have either left the industry or moved abroad for jobs after the pandemic. “Hence, the other challenge will be to improve the local pool of skilled manpower to efficiently handle the upcoming boom in business,” she said.
“CEOs should also be thoughtful in maintaining the motivation level of employees amidst the technological changes”
Rajan Babu Shrestha, CEO, Sipradi
Rajan Babu Shrestha is the CEO of Sipradi, one of the largest players in Nepal’s automotive and allied business. Shrestha is associated with Sipradi for almost two decades and has worked in various capacities as Chief Operating Officer, Vice President and General Manager before becoming the company’s CEO in August 2016. the HRM talked to Shrestha about managing the operation and human resources of the company during the pandemic along with new challenges in business. Excerpts:
As CEO of one of Nepal’s largest enterprises, what big changes have you seen in doing business in Nepal in the last two years of the pandemic? What factors do CEOs have to consider more today?
Digital transformation in organizations is the biggest change I have observed so far. One of the major challenges that we faced during the last two years of the pandemic was to ensure business continuity amidst the adversity. The use of technology has helped businesses to take the leap and even cater to customers’ requirements personally. Technology has fostered a culture where employees within the comfort of their homes could connect remotely and contribute to the growth of the business.
Thus, even in our organization we accelerated the adoption of technology and partnered with online payment service providers, upgraded our websites, and digitized our core S&OP processes. Our customers could easily make bookings for test drives and even vehicles through these platforms. Customers even opted for cashless transactions during the payment of servicing of their vehicles. Innovation being one of the core values of Sipradi, we always strive to embrace a suitable technology for the organization. In fact, Sipradi App is the first automobility app introduced in Nepal.
I believe CEOs today have a better understanding of how to manage and lead change, as the pandemic brought in new challenges every day. The CEOs today have to consider factors ranging from business continuity, employee safety and motivation, understanding changing consumer behavior and needs along with other strategic pillars for the company.
What things the corporate leaders should be mindful of when it comes to people management in the post-pandemic world?
The Covid-19 pandemic has taken a heavy toll on the mental well-being of employees. Thus, as leaders, we must ensure that the safety concerns of the employees are our utmost priority during these uncertain times. We must address concerns like job security, safety, work environment, pay, and perks of the employees whilst embracing them with the right work culture and core values.
CEOs should also be thoughtful in maintaining the motivation level of employees amidst the technological changes. The new generation of employees, Gen Z are also entering the workforce and organizations must foster a culture to include new changes and thought processes that they bring to the organization.
At Sipradi, we are mindful when it comes to managing the work-life balance of our employees as we strive towards being the first choice of employees. We ensure that our employees feel secure at the workplace while engaging them to sustain their motivation level along with productivity.
As the pandemic forced us to rely on technology, how do you see the future of work?
The future of work will be highly reliant on technology. Organizations have acknowledged digitization as one of the key strategic pillars. I believe going forward we will see complete digitalization of workflow and processes with the help of technology in the workplace.
However, I also think that the emotional connection with the end consumers is equally important specifically in the sector like the automobile. Therefore, concepts like Phygital i.e., using technology to bridge the digital world with the physical world to provide a unique interactive experience for the consumers will also be essential in the future.
How do you see the prospects of post-pandemic recovery for the automobile sector? How will be the growth in commercial and personal vehicles segments?
The automotive and mobility sectors are among the hardest hit during the pandemic. The pandemic has brought about marked changes in consumer habits and behaviors. Consumers shifted away from shared mobility options, as people prioritized safety and social distancing norms. The automobile industry was gaining certain momentum post-second wave, however, with the new variants, there are still uncertainties in the automobile sector.
As mobility was curbed due to various restrictions, sales of personal vehicles were affected during the lockdown period. However, as the vaccination drive started and restrictions were lifted, the passenger car segment showed signs of recovery. Even though the recovery was not swift, slight momentum was seen in the compact utility vehicle (CUVs) segment. This momentum is expected to continue in CUVs as consumer preference is shifting towards a family car suitable for Nepal’s geography as well. So, post-pandemic the market growth will be majorly determined by entry-level hatch and CUV segment in the passenger car industry. We also envision the electric vehicle segment to grow in the passenger car industry with the increasing interest of consumers in alternative mobility.
Commercial vehicles were also hard hit by the pandemic. Especially passenger carrier segments like buses and panel vans were severely hit. Schools and colleges were completely shut for many months and the government has again closed educational institutions. This has adversely affected industry volume in the passenger carrier segment. After the second wave, the liquidity crisis also impacted the sales of commercial vehicles. We are hopeful that after the Omicron outbreak subsides, these segments will show signs of recovery and growth.
What challenges do you see for Nepali automobile businesses going forward?
One of the major challenges for the Nepali automobile business is the stability of government policy. The government is trying to upgrade higher emission standard norms directly from the existing BS III standard. Implementation of higher emission norms without proper preparations could lead to a negative impact not only on the automotive industry but also on the nation’s economy as well. The implementation of higher emission norms will directly increase the cost of the vehicle which will lead to higher freight rate/fares which ultimately would lead to inflation in essential goods and services.
Another challenge that the automotive industry will face is the capacity building of the workforce when we move to new technologies. Technological advancements and software platforms during servicing and repair come with a different set of challenges as the existing manpower needs to be trained and updated. Semi-skilled technicians may lose their jobs if their skill sets don’t match the required knowledge that comes with advancement in technology.
In the case of passenger vehicles, uncertainty stems from the government viewing the automotive business as a luxury segment. Import restrictions along with tightening of banking norms and regulations could be seen as a lurking threat in the passenger vehicle segment.
How prepared is Sipradi to face the challenges? What are the major areas of focus for the organization in this regard?
With having “Employees’ First Choice” as one of the missions, Sipradi is always assessing the risks and challenges within the industry. In the case of workforce management, our main priority is the safety and well-being of our employees. Also, being an ISO 45001:2018 certified organization, we have put out clear Safety Guidelines to ensure our employees as well as our customers’ wellbeing within our premises. We have also implemented provisions for work-from-home and multiple work shifts as well.
How is your organization working to enhance the skills of employees for post-pandemic growth?
While “Learning” is one of our core values and “People” is one of the key strategic pillars of our organization, employee development is something that is in our continuous focus. We have made sure that an appropriate HRD strategy is in place to enhance the skills of employees considering the technological shift in the current business operation. We will continue to carry out technical and non-technical training and development programs to elevate the skills of our employees. We have outlined a comprehensive training calendar considering specific requirements of our employees to make them ready for the post-pandemic era. Even during the pandemic period, we utilized online platforms to conduct more than 200 training and development programs catering to the specific needs of our employees.
“CEOs have to increase the flexibility of their business models and operations”
Biswas Dhakal, President, F1Soft Group
Biswas Dhakal is a tech entrepreneur who founded F1Soft in 2004 with an aim to create an ecosystem of digital products and services to facilitate Nepali consumers’ access to financial services, in simple, affordable and secure ways. the HRM talked with Dhakal on big changes seen in the Nepali business sector in the last two years of the pandemic. Excerpts:
What big changes have you seen in doing business in Nepal in the last two years of the pandemic? What factors do you think CEOs have to give emphasis today?
Two years have passed since the World Health Organization declared the Covid-19 pandemic and we have already endured 3 lockdowns. Many companies have made the abrupt shift to working from home, some have been flexible in this respect, whereas some had a hard time doing so depending on the nature of the business. We don’t know when, or if, our societies might even return to normal- or what kind of scars the pandemic will leave.
In these hard times, maintaining operational resilience has always been on top of my mind. We started the work-from-home model at the very beginning of lockdown. Being a tech company, this transition wasn’t really difficult for us. But as time went by, we started facing hurdles related to bridging the communication gap and building the same team integration we had prior to the Covid-19 pandemic. In Nepal, we’ve started noticing that it is increasingly important to have backup plans whether in operational or financial terms to keep businesses afloat and the employees connected to what they’re doing. I’ve also noticed that many businesses have also diversified their product and service lines to keep up with the consumer needs during the pandemic.So, CEOs have to increase the flexibility of their business models and operations to be able to run smoothly in accordance with the situation.
What are things they should be mindful of when it comes to people management in the post-pandemic world?
The entire human resources value chain of companies across the world has been disrupted by the pandemic and will probably never be the same again. While most people would only focus on the work-from-home transition when talking about people management, we tend to ignore the emotional aspects of the employees and how these changes have a psychological impact on them. When we get to see employees in the office, we tend to naturally build human connection by motivating, showing support, and conveying care; but all these emotions cannot always be delivered through computer monitors.
Business owners, CEOs, and HR managers should be more creative in creating a favorable environment for building emotional connections, be it through virtual team events where people talk about things other than work, financial or non-financial benefits towards best performers, and scheduling time for one-on-one interaction with employees who require support during this time.
What opportunities and challenges Covid-19 has brought in organizational management in Nepal for companies you are currently leading?
The opportunities that the pandemic has brought are firstly being able to capitalize on the online payment market. People who have always relied on making transactions by going to brick and mortar outlets of banks and financial institutions have almost immediately converted to online banking and payment systems. Also, when it was believed that the novel coronavirus could be transmitted through touch surfaces, there was a big transition to online payments.
What lessons the private sector has learned from this crisis?
The private sector has been most impacted by the pandemic and has now learned to cope with changes, increase flexibility, and have backup financial and operational assets to tackle such adversities in the future. In addition, I think various conglomerates have now realized that over-dependency on the government or any public institutions can lead to major breakdown when international supply chains are affected. Logistical difficulties caused by the pandemic have taught us all a very important lesson to try to be more self-reliant and create an environment for building a circular economy.
What are the major changes or strategies that F1Soft adopted in the last two half years in terms of digital transformation?
Human resources have always been our number one priority. And as we are growing externally, we are growing internally as well. Not only to our end customers but we tend to provide the best technology to our internal employees as well. As everyone is working from home, we have been focusing on security issues and been providing the best security options as well. We have been able to go digital on 90 percent of the work we do internally. The digital mindset had been here for a long time. We have also launched the product in collaboration with banks such as Foneloan where we help our customers to get loans and are also working on SME lending where they can have access to capital and I am sure this will definitely help business to grow their business as well as help economy to revive. All these products were made possible with our team members.
How do you see the reliance on technology on work in the coming times?
Although Nepal produces highly skilled manpower in the IT sector, most of our youth’s capabilities are being utilized in other countries, which is not necessarily bad as Nepal is receiving a capital inflow. But the sole reason for this is our business leaders not creating an environment for IT talent to thrive. There are only a few (successful) businesses and enterprises that have been able to capitalize on their technology systems and make work faster, easier, and more profitable. Many businesses still run on the same old business models with hand-written accounting and inventory systems, excel sheet CRMs and sales management, and word-of-the-mouth recruitment. I believe new and innovative startups will disrupt their respective industries and all the existing businesses will follow their path.
What opportunities and challenges do you see in the digitization of the financial system going forward?
There are two ways of thinking about the rapid digitalization of the financial services industry in Nepal. One is kind of rationale to think that it is only due to the pandemic that the financial system is being more technologically equipped. We have had set plans pre-pandemic to bring about bringing various digital products and services to facilitate commercial banks or any financial institutions in general. On the other hand, there is inevitably more acceptance by big financial institutions and Nepal Rastra Bank to incubate these projects due to the pandemic, in order to resume a financial system that had been brought to a halt.
Going forward, it would be great to see financial institutions follow the lead of our neighboring countries India and China to recognize the importance of future financial technologies like digital currency banking, and Direct-to-Consumer fintech. The later we adapt, the more difficult it would be to keep up with the pace of the global financial system. The major challenge we face is a lack of awareness of future fintech, poor cyber security (both public and private), and the difficulty to retain IT talent who have better opportunities abroad.
“The pandemic taught us that there is an opportunity in every crisis”
Harkirat Bedi, Business Head for Nepal and Myanmar, Dabur India Ltd
Harkirat Bedi is Business Head for Nepal and Myanmar at Dabur India Limited. Ever since its inception in 1989, Dabur Nepal has been a major consumer goods company operating in Nepal and is considered among enterprises with the best business practices. the HRM talked to Bedi about the impacts of the Covid-19 pandemic on the business sector and organizational management. Excerpts:
As the Business Head of one of Nepal’s largest joint-venture companies, what big changes have you seen in doing business in Nepal in the last two years of the pandemic? What factors do corporate leaders have to consider more today?
The last two years of the pandemic have only reinforced the fact that we are living in a VUCA world (volatile, uncertain, complex, and ambiguous) and organizations will need to quickly adapt to the changes in the operating environment around them if they wish to both survive and thrive.
The big change I saw was that organizations had to constantly evaluate and assess growth opportunities in the new normal. They had to regularly monitor the shifts in consumer buying behavior and habits to maximize opportunities for any new emerging trends. Because of the sheer unpredictability of the situation, most operational teams had to take multiple perspectives before taking a final decision. Also, as the pandemic evolved organizations had to constantly reconfigure and tweak their business models in order to stay relevant. The pandemic taught us that there is an opportunity in every crisis and that efficiently run professional companies are best placed to take advantage of the same. Another big change was the quick adoption of digital technology and overall digital transformation in most organizations in Nepal.
CEOs now have to consider ensuring business continuity, fostering agility and flexibility, building resilient organizations, driving innovation and creativity, safeguarding employees’ health and well-being, building empathetic and people-friendly organizations, apart from managing the expectations of the various stakeholders.
What things they should be mindful of when it comes to people management in the post-pandemic world?
The pandemic has definitely increased the interface of the CEOs with the HR function and during the pandemic, the role of HR has assumed great significance and became more broad-based. And going forward into the post-pandemic world the HR function will retain the same level of significance if not more. The HR function which was seen largely as a support function has become more and more integrated into the core organization.
So, in alignment with the top management and HR, CEOs need to be mindful of driving positive interventions when it comes to People Management in the post-pandemic world:
Some of these will be – creating an organization of empathy and trust, fostering better work-life balance, providing flexible working hours and WFH options, greater enablement through digital interventions like Laptop, tablets, internet connection, etc, multiskilling and upskilling for agility and nimble footedness, creating a culture of rewards and recognitions and celebrating both big and small wins and lastly, the most important being introducing several interventions to safeguard employees health and well-being both in the physical and mental realm.
What are the biggest opportunities that Covid-19 has brought forth when it comes to organizational management in Nepal?
Covid-19 made all organizations look inwards and critically evaluate how they were structured to operate in an increasingly VUCA world. This critical self-evaluation led to a host of positive changes at most organizations, which in a way was forced upon them if they wished to survive and compete in the marketplace.
We saw organizations becoming leaner, de-layering of structures to foster quicker decision making and reducing bureaucracy, sharper set of defined responsibilities and accountabilities for key management personnel, less silo-driven approach and more cross-functional integration, greater thrust on innovation and new product development, quicker and more broad-based adoption of digital technologies, severe scrutiny on costs and interventions to drive down costs and reduce wasteful expenditure, and most importantly it enhanced the role and importance of HR in building stronger bonds and relationship with employees.
It also provided organizations an opportunity to explore latent talent and assess their bench strength as a number of employees had to take up additional responsibilities or switch roles completely on account of the pandemic.
So, all in all, organizations had to bring in greater creativity and imagination to drive revenues and at the same time cut costs whilst safeguarding employees’ health and well-being. Truly a challenging situation for most leaders.
What are the lessons learned for the private sector from this Covid-19 pandemic?
I think there is a host of lessons that private sectors can draw from the experiences with the Covid-19 Pandemic. Some of them have been broadly enumerated below.
The need to be flexible, agile, nimble footedness, and adaptable to the changes around us. The need to be innovative and responsive to changing consumer needs and expectations. The importance of swift decision making and flawless on-the-ground execution, the need to critically evaluate costs, and adopt zero-based budgeting. The need to multi-skill and upskill and make employees future-ready, especially with respect to our normal way of operating and digital technologies. The need to foster a culture of cohesiveness and belongingness apart from encouraging an empathetic approach across levels. Lastly, the importance of strong and positive leadership and an engaged, motivated and loyal employee base.
The Covid-19 has pushed almost all businesses to strengthen their digital transformation efforts. What are the major changes or strategies that Dabur Nepal adopted in the last two years in terms of digital transformation when it comes to work culture, office management, and HR management?
There is no doubt that the COVID-19 pandemic has highlighted the importance of digital in everyday work-life. As work from home or remote locations became the norm on account of the lockdown, we put in place a number of initiatives to ensure seamless operations and business continuity. Some of them were – provided Laptops to maximum users with internet access and access to all relevant business applications, extended the same facilities on mobile devices for greater flexibility, conducted regular online meetings, training, and other engagement activities through a virtual medium (MS teams), installation of an advanced biometric device with face and palm (touchless) identification for attendance, installation of all-round digital support cell to facilitate all users, the introduction of Online Learning Management System, encouraging our dealers to embrace technology by gradually moving towards online payments. So greater reliance on technology undoubtedly helped organizations to navigate during the stringent lockdown in Nepal.
As the pandemic forced us to rely on technology, how do you see the future of work?
The pandemic forced us to accelerate digital transformation and created a landscape that will continue to encourage innovation and technological adoption moving forward. Digital transformation is not just the need of the hour, but it is imperative if you wish to gain an edge over the competition and seize new and emerging opportunities in the industry wherein you operate. As far as digital transformation or technology is concerned there is no going back, and the pace of digital evolution will only accelerate as businesses begin to better understand the capabilities of modern technology, they will also appreciate the opportunities that lie before them, even after the pandemic is over.
As far as are organizations are concerned, they will need to prepare their workforce to skillfully handle and manage the new technologies and be digitally future-ready and digitally savvy. So, HR apart from the CIO will also play a key enabling role to foster quicker digital transformation in the organization. So, the future of work might not be the conventional 9-5 physical office routine but more of a hybrid model with people working out of offices, homes and remote locations all however seamlessly connected by technology. However, we need to be mindful that some industries are more reliant and dependent on technology than others.
“CEOs must focus on continuous improvement and review the changing dynamics of their industry”
Sanjib Subba, CEO, Nepal Electronic Payment Systems (NePS)
Sanjib Subba is the CEO of Nepal Electronic Payment Systems Ltd (NePS). Subba, a banking sector expert, had earlier worked as the CEO of the National Banking Institute since its inception. the HRM caught up with Subba to talk about the challenges that the CEOs currently grappling with, especially in the last two years of the Covid-19 pandemic and the major areas CEOs have to work on going forward. Excerpts:
What major challenges do you see going forward, especially after the Covid-19 pandemic? What do the CEOs need to do to adapt and innovate in the post-Covid world?
The pandemic has exposed the ‘VUCA (volatility, uncertainty, complexity, and ambiguity) World’ brutally. But it has also provided a great opportunity for businesses to adapt, reflect and innovate.
The message is loud and clear – change the way of doing things or perish. This world belongs to those who can change, adapt and transform. CEOs must focus on continuous improvement, review the changing dynamics of their industry, spot the opportunities within crisis and commit to making improvements.
What are the major areas CEOs need to focus on?
The only area I can think of CEOs to bring to the table is the ability to execute. However, execution then takes you back to action items which then takes you back to setting goals. This again goes back to the ability to craft the strategy and finally to the vision. I see the CEO playing a critical role in putting all this together (Vision, Strategy, Goals, and Action) together with the team. The entire exercise then requires building a team that has winning DNA and a bunch of passionate, fired-up go-getters.
What challenges do you see for digital payment systems going forward?
The only challenge I see is how far you want to grow – and it’s a great challenge. The sky is the limit for digital payment system companies with untapped greenfield opportunities.
Yet, it’s a collective effort. The government should work on creating enabling environment and help build stacks. These stacks are mainly Unique ID, E-KYC repository, legally vetted digital signature, connectivity infrastructure such as internet, data protection and cyber security, among others.
Payments and the financial industry would then be able to innovate and ride on the digital stack highway thus reaching out to the right beneficiary who are mainly at the bottom of the pyramid.
Going forward, cyber threats would be at the epicenter of digital payments. This one area I feel is not well taken care of. The war against cybercrime is not an individual task nor that of only one organization. Everyone must come together from the government, regulators, vendors, service operators, and consumers.
What is the availability of human resources management in the digital payment business sector as more graduates are going abroad to study, work and settle in developed countries? How has this impacted digital payment companies in managing human resources management?
Yes, this is one area that needs close hand-holding from everyone – academia, government, regulators, and all of us in the payments and financial industry.
I strongly feel the immediate need for fintech talents development vertical supported by robust research and innovation facility. In addition, we must build a strong techno-savvy top management.
We must be mindful of changes of waves that are taking the financial sector by storm. These changes are backed by technological advancements. Currently only very few individuals at the board or C-suite level have the ability, skills, and knowledge to leverage the technology.
The tech knowledge and skills gap at the top are the main blockers. Unless we have a new breed of professionals at the top that understands technology, we would not only miss out on the opportunities but also expose our company to the greater risks.
How prepared is NePS to face all these challenges? What are the major areas of focus for the organization in this regard?
NePS is well-positioned as we enter our 9th year of operation. We have had our share of ups and down yet emerged stronger, more efficient, and productive.
We have been continuously making new investments in the latest technologies. These are big-ticket investments anywhere between half a million dollars to million-plus dollars.
We realize fintech or for that matter, any tech-based industry would not be able to sustain itself in long run by blocking its capital on assets only.
We are now moving towards an “Asset-light” strategy and building strategic partnerships thus creating opportunities for everyone from a solution provider to operator, enabler, and finally to consumers.
We have retained our leadership position with a 40 percent-plus market share of the card-based payments segment. Our goal is to further strengthen the card vertical and offer world-class features within the card segment to the delight of the consumers.
In 2021, we rolled out many such innovations such as contactless, cardless, Green PIN and webservices, among others. We also strengthened our cyber security capability and onboarded world-class Security Operation Center (SoC) that has 24/7 monitoring capability.
In 2022, we have already rolled out VISA Direct a unique feature that would not only address a host of payments but also the much-awaited execution of VAT refund envisioned by the Government of Nepal. In addition, we soon would be strengthening our e-commerce transactions with the latest security features.
2022 would have a host of new and exciting innovations for our 3.3 million consumers. QR-based Card payments, virtualization, loyalty modules and tokenization, among others, would be our prime focus in 2022.
In addition, 2022 would be a major milestone both in the history of NePS as well as the entire banking and payments industry of Nepal. We are not too far from launching our own digital banking platform which would have an inbuilt omnichannel, payment interface and a marketplace, among others. This is our version of Super App and would certainly delight consumers.
How is your organization working to enhance the skills of employees for post-pandemic growth?
At NePS, we say there is no budget when it comes to training and developing our people. This means investing as much you can in training the team provided these investments has justifiable ROI both for the company and individual.
We focus on coaching, mentoring, online training as well as giving exposure to our team by sending them to different countries so they could grow both personally and professionally.
The Covid-19 has been a boon to digital payment systems also in a country like Nepal. How do you anticipate this growth to continue in the coming days?
The current growth is very urban-centric. This also means huge untapped space available in the country – it’s Greenfield.
The major exciting opportunities are in the retail segment that too mainly at the base of the pyramid. Once organized sectors such as microfinance institutions (MFIs) and cooperatives join the digital payment highway together with millions of scattered mom-and-pop stores, farmers, agripreneurs, producers, manufacturers, supply chain, public transport, government payments the dynamics would certainly transform. We at NePS are also working towards making this dream a reality.
The challenge to connect the far-western frontier Tinkar in Darchula to the Far eastern frontier Olangchung Gola in Taplejung would be a dream come reality.
What new opportunities are emerging for digital payment service providers like NePS?
As I said before Nepal has immense growth potential for digital payment space. BNPL (Buy-Now-Pay- Later), POS financing, digital lending, micro ATMs and prepaid card segment are key emerging areas. The huge population segment is still out of card-based payment solutions and we are actively working towards new-age solutions.
“The pandemic has taught us that we need to be prepared for the worst scenario”
Kiran Kumar Shrestha, CEO, Rastriya Banijya Bank
Kiran Kumar Shrestha, CEO of Rastriya Banijya Bank Limited (RBBL) is among the senior bankers in Nepal. Shrestha has 35 years of experience working in the banking industry. the HRM caught up with Shrestha to talk about leadership and organizational management in times of crisis and the prospect of recovery in the banking sector. Excerpts:
Leadership and organizational management are some of the major emerging topics at the moment. What are the key areas where CEOs have to work on, especially after the Covid-19 pandemic?
When the first wave of the Covid-19 pandemic hit, we all were anxious. But we had to run the system. The responsibility of the CEO becomes more crucial during difficult times. We decided to run the bank following all the Covid-19 health safety protocols.
Even during those hard times, communicating with the staff was not difficult as Zoom and Google Meet came like a blessing.
To motivate the employees, top management officials decided to be present in the office.
Likewise, the bank had no other option than to digitize during the pandemic. We had to aggressively work to improve e-banking and mobile banking. In these areas, the bank had always lagged before the pandemic. Had there been no pandemic, we would be still behind in digitization.
And when the second wave hit Nepal, we were already prepared to face the challenges. In the second wave, we utilized the time and visited many construction sites.
For motivating employees, we ensured the bank would cover all the hospital expenses if someone catches coronavirus. Likewise, we also managed hotel quarantine for our staff. The bank also provided Rs 100,000 immediately to those diagnosed with Covid-19. These efforts motivated employees even during those difficult times.
What were the major lessons learned from the pandemic for CEOs?
This pandemic has taught us that we need to be prepared for the worst scenario. For development and growth, we have to take alternative and new paths sometimes. In the pandemic, the banking sector learned digitization helps grow the business by a huge margin. And the top management learned to be more flexible with their junior staff.
How do you see the prospects of post-pandemic recovery for the banking sector?
After the second wave of the Covid-19 pandemic, the demand for loans increased significantly. The stalled projects resumed, as a result, credit grew by four-fold. But the major challenge for the banking industry is now managing resources as deposit growth has slowed.
The government must increase capital expenditure so that the money comes into the banking channel. And the banking industry should also find new areas to invest in. The investment should be in the productive sector that creates employment for people. I feel the demand for credit would again increase after Covid-19 subsides.
What challenges do you see for banks in business growth going forward? How prepared do you think are Nepali banks in this respect?
In layman’s terms, the banking business is all about deposit and credit. But the source has been a huge problem in the banking channel lately. Nepali commercial banks are currently facing a very hard time approving even small amounts of loans. The situation has eased of late; however, it is not natural. The restriction on some sectors has helped increase liquidity in the banking channel.
The demand for credit, in the last few months, has increased significantly. The bank should now increase the deposit by identifying new financial sources. Rather than depending on deposits only, banks should go to people to generate deposits.
Likewise, the banking channel should also penetrate the informal sector to bring the money to banks. This is a challenge.
The government should try to stop remittance through the informal channel. Still, 35 percent of Nepal’s population is yet to open their bank accounts. We should also reach those people.
The banking industry should think of using other instruments to improve deposits. Currently, the bank is only relying on deposits from people. Other instruments can be debentures, international borrowing.
What new challenges have arisen for banks in human resources management?
As RBBL is a government-owned bank, the recruitment process is handled by the Public Service Commission (PSC). As PSC handles the recruitment process of all the government institutions, it is really tough to announce vacancies.
Recently, we published an advertisement to recruit 800 staff. But a case was filed in the Supreme Court, and the court issued a stay order to stop the recruitment process. Managing human resources has been a tough job. The business is growing every year, but we have the same number of staff.
And another problem we are facing is that youths want fast career growth. They move to another bank in a short period of time.
How is your organization working to enhance the skills of employees for post-pandemic growth?
Banks are required to spend 3 percent of staffs’ salaries on enhancing skills of employees. We have our own training and development department. It works to enhance the skills of our staff by providing training. We also collaborate with different HR and training firms to train our staff.
“The healthcare sector is facing an array of challenges at present”
Kishore Kumar Maharjan, Chairman, Star Hospital Group
Kishore Kumar Maharjan is the Chairman of Star Hospital Group. Former banker Maharjan has earlier led two commercial banks – Sunrise Bank and Civil Bank as the CEO. the HRM talked with Maharjan on the leadership of healthcare institutions in the time of the pandemic and the challenges of managing human resources. Excerpts:
How has Star Hospital faced the two years of the Covid-19 pandemic? What were the major challenges?
The Covid-19 pandemic has been a big challenge in terms of the hospital’s survival. Star hospital was not doing great because of numerous reasons before I joined the hospital with a new group of investors. It was undercapitalized which means it was incurring losses. During this transition i.e., entry of new investors, none of the old promoters/shareholders sold their stakes. Expressing their trust in us, they (old promoters) decided to go along with us.
But when the hospital was about to witness growth, the Covid-19 pandemic hit. The hospital was barely into the fourth or fifth month of the operation under the new management. And, the pandemic had a disastrous impact on us because the cash flow suddenly nosedived. Such was the situation, we were not even making enough money to pay 30 or 40 percent of our salary, forget about the bank debt, interest payment.
Fortunately, we managed to build our projects in such a way that we managed to win the trust of the bank who even agreed to fund us to pay salary to our staff. My banking background also helped in this regard. We were probably one of the few institutions even during the Covid period, which never defaulted on salary payment to the entire staff.
What are the major areas the head of the organization should focus on in the post-pandemic period?
We are yet to come out of the pandemic. But what the Covid-19 pandemic has taught us is, we need to be prepared for emergency situations. When the pandemic hit us, we were not prepared. We didn’t have a good infrastructure, logistics and human resources. We also did not have a lot of vital equipment for the treatment of serious diseases. Pandemics like Covid-19 may come in the future.
Now we are kind of trying to keep ourselves better prepared. I think this is what most of the hospitals have learned. Earlier, for the supply of oxygen, we used to rely totally on oxygen manufacturers. During the second wave of Covid-19, we realized that we should not depend entirely on the independent manufacturers, we must have some kind of backup plan as well. That’s how Star Hospital went ahead and set up our own 75 cylinders per day capacity oxygen plant as well.
What challenges do you see for healthcare institutions going forward? What are the areas institutions like yours should focus on?
I think there are lots of challenges in this sector. And I guess the first and foremost is the sustainability of any operation we do. To make it sustainable, we need to do a lot of exercises, and in that the government has not been that cooperative and helpful. The government thinks that the private hospitals are kind of ripping off the public and making lots of money. But, what a lot of people don’t understand is private sector hospitals have to sustain themselves on their own. The cost of the land, equipment, and salary none of them come from any other external resource or grant, or donation. It all comes from private investors’ pockets and bank loans.
As per the new hospital standards set by the government, we need at least 10 ropanies of land to run a 100-bed hospital which is something that is beyond our reach at present. Luckily, we had this land which we procured some time back. So, we are safe in the safe zone right now. But, if Star Hospital has to expand it to a 200-bed hospital, then as per the new norm, we need to add 15 more ropanies of land. And this area where the hospital is currently located, the land price is exorbitant.
The healthcare institutions in the last two years have been operating under huge stress as they have to run 24/7. What new challenges have arisen in the healthcare sector, especially in human resource management?
Human resource management in the medical sector is a big challenge. We have doctors, paramedics, and then nurses. The doctors till the time they remain just medical officers are very easy to manage. But once they (doctors) become a consultant or senior consultants, they work in more than one institution apart from their private practices. It’s very difficult to keep them rooted in your schedule or routine. Most of the time, the consultants dictate the hospital’s timing. As we don’t have that many senior consultants in our country, you have to live at their mercy also. But there are again consultants who are very good with ethical values. Regarding nurses, there’s a big deficiency gap in our nursing, what we have and what we need.
It is probably one sector where there’s the highest amount of turnover. Even at Star Hospital, every month, at least, at least five, if not 10, nurses resign. Every two/three months, we need to recruit 15-20 nurses. This is because the nurses have been continuously going abroad. There is a big demand for nurses in the Middle East, Europe, the US, the UK, and Japan. The pay scale there is probably at least 10 times higher than ours. This makes us difficult to hold them back here. The other issue is we don’t have adequate nursing colleges. And the government’s policy is such that nursing colleges now have to mandatorily tie-up with hospitals. A 40-seat nursing college has to tie up with a 100-bed hospital.
And this 100-bed hospital cannot tie-up with more than one nursing college. This means one hospital, one nursing college. There aren’t many hospitals that can now accommodate nursing colleges. In the last two years, I think dozens of nursing colleges have been closed.
And, to make things worse, our Labour Ministry has promised to sign up a contract with the UK Government whereby Nepal will be supplying somewhere around 10,000 nurses in the next five years to the UK.
How this brain drain i.e., migration of qualified professionals from Nepal will impact our medical sector?
This is going to have a huge impact because. Even now, during this Covid period, we need medical personnel more than double what is required during the normal time.
The hospitals need 10 nurses in a ward during normal time but for Covid treatment, they need more than 20 nurses in a medical ward. The Covid ICU requires at least 15 to 20 nurses all the time in each shift whereas, during normal times, we don’t require even half of that. If our nursing staff and other paramedics keep on going abroad and then if we can’t produce an adequate number of new nurses or paramedic staff, when this type of pandemic situation happens, there’s going to be a big disaster. The doctors alone can’t do everything. We need paramedics and the nursing staff who are a very, very important component in treatment.
The way our government has promised to send 10,000 nurses abroad without building capacity for producing more nurses, will make it very difficult for us to face this kind of pandemic in the future.
What are the expansion plans of the Star Hospital in the future?
During this crisis time also, we have managed to acquire one small hospital in Nuwakot and upgraded it into a 50-bed hospital. We have added one more college this year, making three colleges under our group.
The government policy of 20 ropanies of land to run a 200-bed hospital, which we cannot afford to buy right now, makes our vertical expansion out of reach for some time. We are now going for a horizontal expansion adding more modern health services. The GI center is already operational in the Star Hospital and we will start a high-quality IVF Centre targeting the international market also in the near future. Then we are coming up with geriatric services which will be new of its kind. We are planning to upscale the dermatology department, orthopedics department, and neurology department. We are also thinking of opening a few polyclinics because of the space constraints at the hospital.
“Currently, we are focusing on developing talents through multitasking”
Monika Scheiblauer, General Manager, Hotel Yak & Yeti
Monika Scheiblauer is the General Manager of Hotel Yak & Yeti, one of Nepal’s leading five-star properties. the HRM talked to Scheiblauer to discuss the impact of the Covid-19 pandemic in the hospitality business as well as challenges CEOs are facing going forward. Excerpts:
The two years of the Covid-19 pandemic were devastating for hotels and tourism businesses the world over. But amid the uncertainty, dim rays of hope have been seen on the horizon with the apparent weakening of the forces of the pandemic. How do you anticipate the prospect of recovery for the Nepali hotel industry in the coming days?
It is certainly good news to witness the weakening effects of the pandemic and we anticipate that people will be more confident to travel again – either for business or leisure. We are already seeing significant recovery in the local events business as our guests find it safe and secure to host their events with us. Overall, once international traveling and local human movements are normalized, the hospitality industry will also move towards recovery.
What major challenges are hotels in Nepal facing currently in terms of business and human resources management?
Currently, the major challenges faced by hotels in terms of business is the periodic disruptions on the continuity of business recovery caused by new waves of the pandemic and the increased cost of doing business because of the huge inflation in the prices of consumer products as well as the added cost of newer ways to clean and sanitize.
The major challenges with regard to HR management that hotels are facing are the lack of skilled manpower, the ever-changing government regulations related to the pandemic, change management, compensation management, employee retention, and training management.
What factors do CEOs/MDs have to consider more today?
The biggest change we witnessed was the shift of focus to local customers especially in terms of accommodation. It is great to see many local movements in the hotel. As there are travel restrictions for many international tourist destinations, locals are choosing five-star hotels for their refreshments. More and more star hotels are now aligning their business strategies to ensure they increase their local business. The other big changes are the heightened awareness of customers towards the sanitization process and policies while choosing which hotel to choose and a huge surge in the usage of digital media to both markets and search for products and services.
How is your organization is planning HR management for post-pandemic recovery?
During the peak pandemic time, we introduced the VRS scheme to our employees as a win-win solution whereby our members, who chose to participate in the scheme, received a lump sum fund to assist their immediate financial woes and pursue alternate forms of earning.
Also, as per the agreement between the Hotel Association Nepal (HAN) and the central trade union, we are paying minimum wages to the employees who have chosen to stay with us. Our plan for post-pandemic recovery is to work with our existing talents and to hire fresh talents with a fresh mindset, train them appropriately and grow them under the guidance of the experienced workforce we currently have. We are focusing more on employee engagement as well.
With the pandemic bringing sea changes in international travel and tourism, what new challenges do you see for the hotel industry post-pandemic?
The major challenge will be the confusion or tedious pre-travel processes because of the various rules and regulations of individual countries (or confederations of countries), ports, airlines or cruises, booking channels, and individual hotels which a traveler or tourist will need to adhere to in the post-pandemic era. The other challenge will be to improve the local pool of skilled manpower to efficiently handle the upcoming boom in business since many of them have either left the industry altogether or have moved to different countries for better income.
How is your organization focusing on human resources management for post-pandemic recovery?
Currently, we are focusing on developing talents through multitasking and we believe that workforce strategies in the recovery phase will be the most efficient through five critical actions: reflect, recommit, re-engage, rethink, and reboot. We believe these actions can help us to bridge the crisis response to the new normal by laying the foundation to thrive in the aftermath of the crisis.
“The corporate sector has started analyzing human resources keeping multiple aspects in mind”
Suman Pokhrel, CEO, IME Limited
Suman Pokharel is CEO of IME Limited, Nepal’s leading remit company. Pokharel who has 13 years of banking experience having worked in Everest Bank and Global IME Bank, is also the Chairman of Smart Choice Technologies. In his two-decade-long career, Pokharel has worked in remittance, banking, DTH and automobile sectors. the HRM caught up with Pokharel to discuss the new challenges brought forward by the pandemic, and how the CEOs are facing those challenges. Excerpts:
As CEO of one of Nepal’s largest remit companies, what big changes have you seen in doing business in Nepal in the last two years of the pandemic? What factors do CEOs have to consider more today?
Nepal was a unique market a couple of years before the pandemic. There was little or no competition. There was no emphasis on human resources. After the millennials entered the job market, the scenario changed. They are good at technology.
After the Covid-19 pandemic hit Nepal, the working style has changed completely. Those who were technology-friendly adapted to the new situation quickly. Then the corporate sector realized that there is a dearth of quality human resources in the job market. If the new generation is not handled delicately, it is hard to find a quality human resource in the market.
Realizing this, big corporate houses have already started to focus on human resources.
Although a good number of graduates are entering the job market every year, there is a huge gap in demand and supply. In the last few years, the corporate sector has aggressively started to train new recruits. Likewise, paid internships are also started aggressively. However, the gap is still there.
The big challenge of CEOs after the pandemic is to manage human resources for their organizations. Those companies moving together with the new generation will go far ahead than those organizations that fail to move together with millennials.
What things they should be mindful of when it comes to people management in the post-pandemic world?
Unlike people from the older generations, the new generation employees expect some sort of attachment with the organization. They have a different mindset. They want a flexible workspace. They want flexible working hours and want to work five days a week. They also want to enjoy the freedom and have paid leave.
In the past, employees were assigned responsibilities, but they did not have authority. The situation is just the opposite nowadays. The new generation wants to have authority. They want to make decisions. As the new generation has an entrepreneurship mindset, the corporate sector has to move forward by addressing the demands of the new generation. This is a challenge for the corporate sector.
There is a huge gap between the old generation and the new generation when it comes to technology adaptation. So, accepting the change and moving forward with the new generation is a challenge in the post-pandemic world for the corporate sector.
Every crisis brings opportunities also. What, according to you, are the biggest opportunities that Covid-19 has brought forth when it comes to organizational management in Nepal?
The corporate sector has started analyzing human resources keeping multiple aspects in mind and understanding human resources differently. This was not the case before the pandemic.
Likewise, remote working and work-from-home also started in Nepal. The corporate sector started to find new tools for performance management for remote working and work from home. Also, there was a transformation in digitization.
What are the lessons learned for the private sector from this Covid-19 pandemic?
Even during this crisis of enormous scale, the country’s economy has shown resilience. I don’t know if it is sustainable or not. We have to see if organizations were able to sustain as they effectively faced the hard times. If organizations had managed to make their fundamentals strong, then it’s good for the overall economy.
The Covid-19 outbreak has pushed almost all businesses to strengthen their digital transformation efforts. What are the major changes or strategies that IME Limited adopted in the last two half years in terms of digital transformation when it comes to work culture, office management, and HR management?
In the initial phase after the pandemic started, we had a tough time in human resources management. The pandemic was unexpected, and it was a panic situation. It was difficult to make plans. But somehow, we managed. We did not take long to start the work from home system.
We have hundreds of staff in our call centers. They started working from home. As IME was already digitized, it did not take long for us to adapt. Before the pandemic, we had introduced the IME Pay wallet, but the adaptation was really slow. But after the pandemic, customers subscribed to our services very fast. Had there been no pandemic, the transformation would be really slow.
As the pandemic forced us to rely on technology, how do you see the future of work?
I would say we realized the importance of digitization after the pandemic. In other countries, the work-from-home culture was already there. I think Nepal will not shift to remote working completely, but things will change for sure. In IME, we have many staffs who are still working from home.
We have provided all the logistics for staff to work-from-home. We even managed internet connection, chairs, and tables for our staff. As we have space constraints in the office, we decided not to call them in the workplace.
How do you see the prospects of post-pandemic recovery?
There are many industries that are severely affected by the Covid-19 pandemic. Some sectors that are dependent on foreign economies need time to revive. For example, the tourism sector will not grow unless the global economy revives. And other sectors that are not dependent on other economies have already started to recover. For now, the focus of organizations is on strengthening human resources.
The last two years were full of ups and downs for all most all businesses. The remittance sector currently is going through a turbulent phase as remittance inflow has declined, starting from this fiscal year. As CEO of IME, how concerned are you? And, what could be the measures that the authorities should take to formalize remittance inflow more effectively?
We are concerned after the remittance inflow declined. We are in discussion with the authorities concerned on how to formalize remittance inflow more effectively. I think we have lagged behind in financial literacy. Although the government has banned investment in cryptocurrencies, people are investing in such illegal assets.
The destination countries of Nepal are hit hard by the pandemic. The remittance inflow will not improve unless the situation normalizes.
What were the challenges for you as a CEO in the last two years?
The position itself is challenging. You have to be answerable to your board, your staff, and the team. There is pressure. But with pressure comes the opportunity. You have to deliver. You have to learn every day. As a CEO, you have to be familiar with contemporary issues.
“Digitization has helped companies to sustain and run smoothly even on very difficult days”
Sunil Ballav Pant, CEO, NLG Insurance
Sunil Ballav Pant is CEO of NLG Insurance Company Limited. He has over three decades of experience in the Nepali insurance sector. the HRM talked to Pant about challenges the CEOs face in the last two years of the Covid-19 pandemic and the people management in the post-pandemic world. Excerpts:
As CEO of one of Nepal’s major non-life insurance companies, what big changes have you seen in the country’s insurance business in the last two years of the pandemic? What factors do CEOs of insurance companies consider more than before the pandemic?
The biggest change the insurance sector has witnessed is the adaptation to digitization. Digitization has helped companies to sustain and run smoothly even on very difficult days. Insurance claims, purchase of policies, premium payments, among other functions, were possible through digital channels. Had there been no pandemic, the insurance sector would still need more time to adapt to digitization. Although the insurance sector has limited resources and capital, companies were able to go digital.
Sustainability is another achievement. Even during the difficult times, the industry survived. Although the ambit of insurance coverage is narrow, the mandatory insurance policies introduced by the government helped insurance companies sustain.
And the Covid-19 insurance policy also taught a lesson. We have learned that without proper evaluation of risk-bearing capacity, we should not move forward with any insurance policies. The insurance sector had to pay a huge price. But it was also a part of learning.
What things the CEO should be mindful of when it comes to people management in the post-pandemic world?
During the height of the pandemic, employee layoffs became normal for the survival of organizations. There are a lot of newly-recruited staffs in our company, and many are in their mid-career. As a CEO, I feared there would a disaster if they need to be laid off. However, at NLG, we refrained from layoffs.
The company is in this position because of the hard work and dedication of our staff. To bear the brunt of the pandemic, we decided to cut off salaries starting from the high-ranking officials. This showed that the company was there for staff even during difficult times.
However, people are still afraid. I have noticed that employees can’t work freely at home like in the office. They also feel that the output while working from home would be less, and there would not be proper development in career, so the management would be reluctant in appraisals. This has led employees to come to the office. There is a fear that the Covid-19 protocols would be flouted when all the staffs want to work in the office.
What are the biggest opportunities and challenges Covid-19 has brought in organizational management in the insurance sector in Nepal?
We learned that people can get many services from their homes. We are working on a work-from-home model currently which would be introduced soon. Under this, employees have to work from home for a week every month. This will allow employees to spend time with families. The office has also realized that the operation cost is reduced when employees work from home. So, it would be beneficial for both staff and the organization.
What lessons the insurance sector has learned from this crisis?
The insurance sector is heavily dependent on other sectors. The growth is not possible without support from other sectors. During a crisis situation, people don’t want to spend. In difficult times, insurance is the least priority of people. This has impacted the growth of the industry and is the biggest challenge.
The Covid-19 outbreak has pushed almost all businesses to strengthen their digital transformation efforts. What are the major efforts of NLG Insurance in the last two half years in digital transformation in terms of work culture, office management, and HR management?
We were not ready for a crisis like the Covid-19 pandemic. But NLG was already working on digitization to be compatible with banks and financial institutions. We had already adopted and had provided training to employees. This is the reason why the company did not have to face many problems after the pandemic started. And during the pandemic, the company developed a QR code for premium payments. This was a big opportunity.
How do you see the future of work in terms of the use of technology? What will technology mean for the expansion of the insurance business?
Technology will make a huge difference in the insurance business. Even today, technology has helped the business grow, and it would only help expand the business. The government has made necessary provisions for third-party insurance from mobile applications. The Bagmati Province has already implemented it.
We are working on digitizing our system. Customers will claim their insurance settlement through a digital channel, and we would deposit the amount directly in their bank account. Likewise, we are also working to make agriculture insurance digital. Farmers would purchase insurance policies from their farms only, and we would settle the claim digitally.
How do you see the prospects of post-pandemic recovery for the Nepali insurance sector?
With time, Nepal will have more development projects. All of them will need insurance. So, there is a huge opportunity in the tourism and infrastructure sector.
