HR has become central to organisational change management

Julie Shrestha, HR professional

With nearly three decades of experience in the banking sector, Julie Shrestha has built a distinguished career marked by progressive leadership and extensive operational expertise. Beginning in 1996 at the former Nepal Credit & Commerce Bank Ltd., she gained comprehensive exposure across Customer Service, Credit, Trade Finance, the Executive Secretariat, and Human Resources.

From 2011 to 2014, she headed the Human Resource Department, later serving as a Branch Manager for five years. In 2019, she assumed the role of Head of Human Resources until the merger with Kumari Bank Ltd. Currently, since January 1, 2023, she serves as Head of Human Resources and Development, overseeing HR strategy and operations for more than 3,000 employees.

In this capacity, she provides leadership in HR planning, talent acquisition, learning and development, performance management, organisational development, and executive advisory functions, continually contributing to the advancement of people, culture, and institutional excellence. The HRM Nepal caught up with Shrestha to learn about the transformed practices of human resource management in banks and financial institutions (BFIs). Provided below are excerpts from the interview.

Q: Could you briefly tell us about your journey in the HR profession?
A: My journey in the banking and human resources profession spans nearly three decades, shaped by continuous learning, diverse experiences, and a deep commitment to people development. I began my career in 1996 at the former Nepal Credit & Commerce Bank Ltd. as an Assistant, where I had the opportunity to work across multiple core banking functions – Customer Service, Credit, Trade Finance and Office of Executive Secretariat. These early roles gave me a strong operational foundation and a holistic understanding of how different departments contribute to organisational success.

My transition into Human Resources began in 2011 when I was entrusted with leading the HR Department. From 2011 to 2014, I gained extensive exposure to the full spectrum of HR operations, from policy development to employee relations. This role solidified my passion for nurturing talent and building organisational culture.

In 2014, I moved into branch leadership, serving as Branch Manager for five years. This role was instrumental in shaping my leadership approach, giving me firsthand insight into frontline team dynamics, customer engagement, and business strategy execution. The experience strengthened my ability to balance business goals with people-centric leadership.

In 2019, I returned to HR as the Head of Human Resources, a role I held until the merger with Kumari Bank Ltd. in 2023. This period was transformative, involving strategic HR planning, cultural alignment, and managing workforce expectations during a major organisational transition.

Since January 1, 2023, I have been serving as the Head of Human Resources and Development in the merged entity, now overseeing the HR function for more than 3,000 employees. Today, my focus is on building a future-ready workforce, strengthening leadership pipelines, and fostering an inclusive, performance-driven culture that enables both people and the institution to thrive.

Overall, my journey has been one of evolution – from operational roles to strategic leadership – but at its core, it has been guided by a genuine belief in the power of people to transform organisations.

Q: What initially inspired you to pursue a career as an HR professional?
A: In Nepal, institutions thrive on relationships and trust. I came to realise that strong systems alone do not build institutions – people do. This understanding drew me to HR, a field that allows us to shape culture, nurture leadership, and create merit-based opportunities. The ability to influence an organisation’s direction through people development inspired me to pursue HR as my long-term career.

My motivation grew naturally through the diverse roles I held in the banking sector. Early exposure to functions such as Customer Service, Credit, Trade Finance, and even the CEO’s office showed me that behind every effective process or strategic decision are people whose commitment drives results. This clarity deepened my appreciation for the human side of organisational success.

When I was entrusted with leading the Human Resources Department in 2011, I discovered a strong alignment between my personal values and the purpose of HR. I found genuine fulfillment in helping individuals grow, fostering a positive work culture, and ensuring employees felt valued, supported, and empowered. Contributing not just to systems and policies but to people’s careers, aspirations, and well-being was both meaningful and motivating.

What inspired me most was witnessing the transformative impact of HR done well – how the right policies, learning initiatives, and leadership development programmes can influence the culture of an entire institution. This belief strengthened further during key transitions, including branch leadership roles and later the bank merger, where effective people management and communication were central to maintaining stability and trust.

Ultimately, my journey into HR is rooted in a simple truth: organisations grow when their people grow. Being able to support that growth – both individually and collectively – continues to inspire me every day.

Q: Drawing from your extensive experience as an HR professional, could you share some reflections on the evolution and development of human resources within the banking sector?
A: Today, especially in the context of consolidation and mergers within the banking sector, HR has become a strategic pillar. Workforce rationalisation, cultural integration, digital capability building, succession planning, and embedding a strong risk culture are now at the forefront of organisational priorities.

Over the past three decades, the role of Human Resources in banking has undergone a profound transformation – from a largely administrative unit to a key driver of organisational performance. Having observed this evolution firsthand, I see the journey of HR marked by several major shifts.

First, HR has transitioned from personnel administration to strategic partnership. Where HR once focused on compliance, record keeping, and transactional services, it now plays an influential role in strategy formulation, workforce planning, leadership development, and cultural transformation. Banks increasingly recognise that sustainable growth relies on a well-aligned, future-ready workforce.

Second, talent acquisition has matured into holistic talent management. Recruitment previously centred on academic credentials and traditional banking experience. Today, with digitalisation reshaping the industry, banks seek diverse capabilities spanning technology, analytics, risk, and customer experience. Talent management now encompasses competency frameworks, leadership pipelines, succession planning, and employer branding.

Third, learning and development has evolved dramatically. Traditional classroom training has been replaced by blended learning, digital platforms, and continuous development ecosystems. Banks now heavily invest in upskilling, particularly in digital literacy, change readiness, and leadership capacity. Learning has become a foundation of organisational resilience.

Fourth, employee experience and engagement have emerged as critical differentiators. As competition for skilled talent intensifies, HR focuses on building cultures rooted in transparency, recognition, well-being, and open communication. Modern HR practices aim to create an environment where employees feel valued, motivated, and connected to the institution’s purpose.

Fifth, technology has reshaped HR operations. Manual processes have given way to HRMS automation, AI-enabled recruitment, data-driven insights, and self-service platforms. HR today is as much about systems, analytics, and digital fluency as it is about people.

Finally, HR has become central to organisational change management. With mergers, digital transformation, regulatory shifts, and evolving customer expectations, banks operate in a constant state of change. HR plays a critical role in guiding employees through transitions, preserving morale, and ensuring cultural alignment. My own experience during the merger reinforced how essential HR is in maintaining stability and continuity.

In essence, HR in the banking sector has evolved into a multifaceted leadership function – strategic in direction, analytical in approach, employee-centric in philosophy, and deeply aligned with organisational growth. As banking continues to transform, the future will be shaped by how effectively HR anticipates change, cultivates talent, and fosters a culture that embraces innovation and continuous learning.

Q: Do you believe HR should be granted a strategic role in workforce planning, HR audits, and succession planning, alongside its standard functional-level activities?
A: Absolutely. In today’s dynamic and highly competitive banking environment, HR must operate not only as an administrative function but as a strategic partner that shapes the long-term direction of the organisation. Functional activities, such as recruitment, payroll, and employee services, are essential, but they form only the foundation. The real value of HR emerges when it takes an active role in driving organisational strategy.

Workforce planning, for example, ensures that the bank has the right people in the right roles at the right time. With rapid technological advancements and shifting customer expectations, the banking sector requires continuous upskilling, reskilling, and proactive talent forecasting. HR is best positioned to interpret business needs and translate them into a future-ready workforce strategy.

Similarly, HR audits play a critical governance role by evaluating the effectiveness, compliance, and consistency of HR practices. In a sector where regulations are stringent and risk management is paramount, HR audits help ensure that policies, processes, and decisions support both accountability and operational excellence.

Succession planning is equally strategic. Banking institutions need robust leadership pipelines to maintain stability, continuity, and innovation. Effective succession planning minimises organisational risk, strengthens institutional memory, and prepares emerging leaders for future responsibilities. Given HR’s holistic view of talent, performance, and potential, it is the natural custodian of this critical function.

Integrating these strategic responsibilities with day-to-day HR operations creates a comprehensive, forward looking HR framework. When HR is empowered to lead at both strategic and operational levels, the organisation benefits from stronger leadership, improved employee engagement, and a more resilient culture.

In essence, HR’s strategic involvement is no longer optional – it is indispensable. Banks that recognise and leverage HR’s strategic potential are better equipped to navigate change, foster innovation, and sustain long-term growth.

Q: How would you evaluate the HRM practices within corporations, particularly in highly regulated sectors such as banks and financial institutions?
A: Human Resource Management (HRM) practices in corporates, particularly in regulated sectors such as banks and financial institutions, have undergone significant transformation in recent years. Overall, the progress has been encouraging, but there remains substantial scope for deeper integration of strategic HR practices across the sector.

Firstly, HRM in BFIs has become more structured and compliance driven. Given the stringent regulatory environment, HR practices today emphasise transparency, fairness, and documented processes. Recruitment, performance evaluations, training, and disciplinary actions all follow standardised frameworks aligned with regulatory requirements. This has strengthened governance and minimised operational risks.

Secondly, there is greater focus on competency-based HR systems. Many BFIs now assess employees not only through performance metrics but also through competencies, behavioural indicators, and potential. This shift supports more objective assessments, clearer career paths, and better succession planning. However, the maturity level varies across institutions, and some organisations are still transitioning from traditional appraisal systems to more holistic models.

Third, the investment in learning and development has significantly improved. Banks and financial institutions are increasingly prioritising employee development, especially in areas such as digital literacy, customer experience, risk management, leadership, and regulatory compliance. With rapid digitisation and evolving product lines, continuous learning has moved from being optional to being essential.

Fourth, HR technology adoption has accelerated. Most BFIs now use HRMS platforms, digital onboarding, e-learning systems, and automated HR operations. This has enhanced data accuracy, service delivery, and decision-making. Still, there is room for further leveraging data analytics for predictive HR insights, such as workforce trends, flight risk analysis, and performance forecasting.

Fifth, employee engagement has become more central but still inconsistent across institutions. Banks have begun prioritising employee well-being, recognition, communication, and workplace culture. While many corporates have introduced structured engagement programmes, the challenge lies in ensuring consistency across branches, departments, and hierarchical levels. In highly regulated and performance driven environments, balancing compliance with employee motivation remains a delicate task.

Lastly, strategic HR functions are gaining importance but are yet to be fully optimised. Workforce planning, HR audits, succession planning, and organisational development are being recognised as essential for long-term stability. However, in some institutions, HR is still viewed primarily as a support function rather than a strategic partner, limiting the impact of these initiatives.

In summary, HRM practices in regulated sectors like BFIs have evolved impressively, becoming more structured, technology-enabled, transparent, and development-oriented. The next phase of growth lies in fully adopting HR as a strategic function, where people decisions go hand-in-hand with business strategy. Institutions that achieve this alignment will be better positioned to enhance productivity, retain talent, and build resilient organisational cultures.

Q: In what ways do HR policies play a pivotal role in shaping a company’s long-term sustainability and growth?
A: HR policies are far more than administrative guidelines. They are the framework that shapes an organisation’s culture, strengthens governance, and drives long-term sustainability. In any institution, especially in regulated sectors like banking, well designed HR policies serve as the backbone that aligns people, processes, and performance with the organisation’s strategic goals.

Firstly, HR policies provide clarity, consistency, and fairness. Clear policies ensure that employees understand expectations, responsibilities, and standards of behaviour. Consistency in applying these policies reinforces trust and transparency across the organisation. When employees feel that decisions are fair and unbiased, it leads to stronger engagement, commitment, and retention, all of which directly contribute to organisational stability.

Secondly, HR policies support talent attraction, development, and retention. Organisations with well-structured recruitment, onboarding, learning, and performance policies are better positioned to attract high calibre talent. Policies around career development, leadership building, and succession planning help cultivate internal talent pipelines. This ensures continuity and reduces risk, especially in key roles critical for long-term growth.

Third, HR policies strengthen regulatory compliance and governance. In sectors like BFIs, compliance is not optional, it is foundational. HR policies ensure adherence to labour laws, regulatory guidelines, ethical standards, and industry best practices. This protects the organisation from legal risks, enhances credibility, and ensures operational integrity.

Fourth, well-crafted HR policies promote a culture of accountability and high performance. Performance management frameworks, reward systems, and code of conduct policies shape employee behaviours and work ethics. They establish performance expectations and reward structures that motivate employees to excel, innovate, and take ownership of results. A performance-driven culture translates directly into improved productivity and organisational competitiveness.

Fifth, HR policies drive organisational resilience and change readiness. In today’s rapidly evolving business landscape, organisations must adapt quickly – whether due to technological change, market shifts, or structural reorganisation. Policies governing change management, employee communication, and workforce restructuring help ensure smooth transitions with minimal disruption. During mergers, digital transformations, or branch expansions, these policies serve as guiding tools that maintain stability and employee morale.

Lastly, robust HR policies build a sustainable organisational culture. Policies related to diversity and inclusion, employee well-being, ethical practices, and workplace safety contribute to a healthy work environment. A supportive culture not only enhances employee satisfaction but also attracts younger, values-driven talent who seek organisations with purpose and strong governance.

In essence, HR policies shape the DNA of an organisation. When thoughtfully designed and effectively implemented, they create a foundation where people thrive, performance strengthens, and sustainable growth becomes achievable. Strong HR policy frameworks ensure that an organisation does not merely grow but grows responsibly, competitively, and with long-term vision.

Q: Given how HRM has advanced over the years, what specific innovations are now required within the field?
A: The field of Human Resource Management has evolved significantly, yet the pace of change in business, technology, and workforce expectations calls for even greater innovation. To remain relevant and future ready, HR must adopt forward thinking approaches that go beyond traditional practices and position people as the central drivers of organisational success.

1. Data Driven and Predictive HR Practices: While many organisations use HR analytics for reporting, the next frontier is predictive analytics – forecasting talent shortages, identifying flight risks, analysing performance trends, and planning workforce needs with accuracy. This will enable HR to make proactive decisions rather than reactive responses.

2. Digital Employee Experience Platforms: Modern employees expect seamless, intuitive digital experiences similar to what they encounter in consumer applications. HR must innovate with integrated platforms that combine onboarding, learning, performance management, communication, and well-being into a single, user-friendly ecosystem.

3. Personalised Learning and Development Journeys: Instead of one-size-fits-all training programmes, HR must move toward personalised, AI supported learning paths tailored to individual skills, interests, and career aspirations. Micro learning, virtual academies, and continuous upskilling will be crucial, especially in rapidly digitising sectors like banking.

4. Agile Performance and Talent Management: Traditional annual appraisals are becoming obsolete. The future lies in continuous feedback loops, short cycle goal setting, and real-time coaching systems that keep employees aligned and motivated. Agile talent management allows organisations to respond quickly to changing business needs.

5. Enhanced Employee Well Being Ecosystems: Well-being is no longer limited to medical insurance or occasional programmes. Innovation is required in designing holistic well-being strategies encompassing mental health, financial wellness, work-life balance, ergonomic support, and stress management. A healthy workforce directly contributes to long-term sustainability.

6. Modern Succession and Leadership Pipelines: Succession planning must evolve from naming successors to systematically developing them. Simulations, leadership labs, stretch assignments, and cross functional exposure are essential for building leaders who can navigate complexity and change.

7. Human Centred Culture and Inclusion Design: Organisations today operate in multicultural, multigenerational environments. HR must innovate culture-building strategies that foster inclusion, collaboration, psychological safety, and values-driven leadership. A human-centred culture increases engagement, creativity, and retention.

8. Automation of Administrative HR Processes: To strengthen HR’s strategic impact, routine tasks such as attendance, leave management, payroll coordination, and document verification should be fully automated. Automation frees HR teams to focus on high-value areas like coaching, engagement, and strategic workforce planning.

9. Future-Ready Workforce Planning: HR must innovate by building dynamic workforce models that anticipate talent needs for emerging roles – digital banking, AI, data science, cybersecurity, behavioural risk, and customer experience. Scenario planning and skills forecasting will be key tools for future readiness.

10. Ethical and Responsible HR Practices: As technology and AI become more integrated into people processes, HR must establish strong frameworks for data privacy, unbiased decision-making, and ethical use of AI. Responsible HR is a competitive differentiator in building trust and organisational integrity.

In essence, the future of HR will be shaped by how effectively it integrates technology, human-centric design, strategic insight, and ethical leadership. By embracing innovation across these dimensions, HR can play a transformative role in building resilient organisations capable of thriving in an increasingly complex world.

Q: Are you facing retention challenges? What are the determining factors for this – hygiene factors or motivating factors?
A: Yes, retention, particularly of mid-level and digital talent, is a key challenge. Retention challenges are a reality for most organisations today, and the banking sector is no exception. With increasing competition, evolving employee expectations, and rapid digital transformation, retaining skilled and high potential employees has become both a priority and a strategic challenge.

In our context, retention is influenced by a combination of both hygiene factors and motivating factors, though their impact varies across employee groups, roles, and career stages.

Hygiene factors, such as compensation, job security, working conditions, and policies, form the baseline of employee satisfaction. If these fundamentals are not adequately addressed, employees are more likely to look for alternatives. Competitive remuneration, transparent HR policies, timely decision-making, and supportive work environments remain essential to reducing dissatisfaction. In regulated sectors like banking, maintaining strong hygiene factors is critical because the industry operates under strict compliance expectations and high-performance standards.

However, retention today is increasingly driven by motivating factors – elements that inspire employees to stay because they feel valued and fulfilled. Career growth, recognition, meaningful work, leadership quality, and opportunities for development play a far more influential role in long-term retention. Employees, especially younger generations, seek purpose, autonomy, continuous learning, and a culture that encourages innovation and collaboration.

In our experience, the most significant retention drivers include:

• Clear career paths and growth opportunities
• Continuous learning and development programmes aligned with future skills
• Supportive leadership and open communication
• Recognition of performance and contributions
• A positive and inclusive organisational culture
• Work-life balance and well-being initiatives

When both hygiene and motivating factors align, employees feel secure, respected, and inspired, making them more committed to the organisation’s long-term goals. That said, retention is not a one-time initiative; it is a continuous process. It requires understanding employee sentiments, analysing workforce data, and proactively addressing emerging needs. Our focus has been on creating a holistic employee experience, ensuring that people do not stay merely because of necessity, but because they feel valued, empowered, and connected to the organisation’s vision.

Q: Which approach would be the best fit for effective and fair performance evaluation in BFIs, ensuring employees can better plan their careers?
A: In the context of banks and financial institutions, the most effective and fair performance evaluation system is one that balances objectivity, transparency, and developmental focus. Given the regulated nature of BFIs and the rising expectations of modern employees, an integrated and competency driven evaluation approach works best. This ensures not only fairness but also provides employees with clear direction for career progression.

1. A Competency-Based Performance Evaluation Framework: A competency-based system aligns employee performance with organisational values, behaviour expectations, and job specific skills. It evaluates not only what employees achieve (results) but also how they achieve it (behaviours). This approach reduces subjectivity, strengthens role clarity, and helps identify both strengths and development gaps.

2. Balanced Scorecard (BSC) Approach: The Balanced Scorecard is particularly effective in BFIs because it measures performance from multiple perspectives:

• Financial results
• Customer service
• Internal processes
• Learning and growth

It connects individual goals with organisational strategy, ensuring employees see the bigger picture and understand how their work contributes to institutional success.

3. Continuous Performance Management (CPM): Annual appraisals alone are no longer sufficient. Continuous performance management – regular check ins, real time feedback, quarterly goal reviews – creates a more accurate, dynamic, and supportive evaluation environment. CPM encourages timely course correction, boosts engagement, and ensures employees are not surprised at year-end discussions.

4. 360 Degree Feedback for Leadership and Critical Roles: For managerial and leadership positions, 360-degree feedback adds depth and fairness by capturing input from supervisors, peers, subordinates, and in some cases, customers. This approach promotes self-awareness and creates a strong foundation for leadership development.

5. Objective KPIs Linked to Role Profiles: Clearly defined Key Performance Indicators aligned with job descriptions and departmental goals reduce ambiguity. KPI driven evaluations help employees understand expectations and track their own progress throughout the year.

6. Development Focused Evaluation Discussions: A robust performance evaluation must go beyond rating and ranking. It should highlight:

• Strengths
• Areas of improvement
• Training needs
• Career aspirations
• Succession readiness
• Employees should leave the evaluation discussion with a clear development roadmap and actionable goals.

7. Use of HR Analytics for Fairness and Consistency: Digital tools and analytics help identify patterns in performance ratings, highlight possible biases, and ensure consistency across branches and departments – crucial in large BFIs with diverse teams.

In a nutshell, the best-fit approach for performance evaluation in BFIs is a hybrid model combining:

• Competency-based assessments
• Balanced scorecard
• KPI-driven metrics
• Continuous performance dialogue
• 360-degree inputs (for leadership roles)
• Analytics-driven fairness check

Such an integrated system not only ensures fairness and accuracy but also empowers employees with a clear career development path. It transforms performance evaluation from a once-a-year formality into a strategic tool for growth, capability building, and succession planning.

Q: Do you believe the feedback loop is functioning properly within the performance management systems of BFIs?
A: The feedback loop within performance management in banks and financial institutions (BFIs) has undoubtedly improved over the years, yet it still falls short of achieving a fully developmental and impactful standard. While most BFIs have formal appraisal systems in place, the quality, frequency, and depth of feedback continue to vary widely across institutions and managerial levels.

First, although feedback structures exist, effectiveness largely depends on implementation. Many BFIs conduct annual or semi-annual performance reviews, which provide a basic platform for discussion. However, in today’s fast moving work environment, annual feedback alone is insufficient. Employees require timely, ongoing insights to refine their performance throughout the year. In practice, feedback often becomes event-driven or clustered around appraisal cycles rather than being embedded as a continuous dialogue.

Second, feedback conversations often emphasise evaluation over development. In several organisations, discussions still revolve around ratings, compliance, and target achievement. What employees truly need, however, is constructive, forward-looking feedback that focuses on strengths, development areas, and long-term career pathways. Without this developmental focus, performance management loses its potential to improve capability and engagement.

Third, managerial capability plays a decisive role in the feedback loop. Not all managers are equally equipped or confident in delivering effective feedback. Some hesitate to provide candid assessments, while others lack the coaching and communication skills required for meaningful conversations. As a result, feedback quality becomes inconsistent across branches, departments, and leadership levels.

Fourth, technology has enhanced transparency but not necessarily dialogue. Digital HR systems and performance platforms have streamlined documentation and improved tracking. Yet, technology alone cannot substitute genuine human interaction. The real challenge is ensuring that digital evaluations are complemented by regular, two-way developmental discussions that focus on growth and career planning.

Fifth, the expectations of a younger workforce are reshaping feedback culture. With increasing participation from millennial and Gen Z employees, there is a growing demand for real-time feedback, mentorship, and clarity. These employees value continuous guidance and growth-oriented conversations. Meeting these expectations requires shifting organisational culture toward frequent touchpoints and coaching-led leadership.

Finally, the feedback loop in BFIs is functional but still evolving. To reach its full potential, it must shift from periodic, rating-centred reviews to continuous, transparent, and development-focused conversations. Strengthening managerial competence, fostering a coaching culture, and embedding continuous feedback practices will make performance management a more powerful driver of engagement, growth, and long-term organisational success. Encouragingly, many progressive Nepali banks have already begun adopting quarterly reviews and coaching based discussions. Such practices not only strengthen employee engagement but also reduce performance-related grievances and enhance overall organisational health.

Q: Have you implemented any unique practices for managing people and delivering results? Furthermore, would you like to share some novelties or significant milestones you have achieved throughout your career?
A: I have had the opportunity to lead several impactful initiatives across my banking and HR career, including competency mapping aligned with regulatory “fit and proper” standards, post‑merger cultural integration programmes, digitisation of recruitment and leave management systems, and establishing a structured succession pipeline for critical roles. A particularly significant milestone was implementing a leadership development framework that reduced dependency on external hiring for senior positions.
Throughout my journey in banking and human resource management, these initiatives have shaped not only organisational outcomes but also my own professional philosophy. Some of the most meaningful milestones include:

1. Leading HR Transformation During a Major Bank Merger: One of the defining achievements of my career was steering the HR function through the merger with Kumari Bank Ltd. Integrating two institutions – each with its own culture, systems, and expectations – required strategic clarity, empathy, and strong employee engagement. Key focus areas included:

• Harmonising HR policies and practices
• Building a unified culture across branches
• Ensuring transparent placement and role mapping
• Supporting employees emotionally through uncertainty
• Maintaining organisational stability during a period of immense change remains one of my most significant professional contributions.

2. Building a Culture of Continuous Learning and Talent Development: Recognising that the future of banking depends on agile, digitally capable talent, I helped strengthen our learning ecosystem through structured programmes for upskilling and leadership development. These included functional training, behavioural development sessions, and competency-based career planning. This approach fostered a more confident, capable, and future-ready workforce.

3. Implementing Competency-Based HR Practices: To enhance fairness and objectivity in performance and talent decisions, I championed the adoption of competency-based evaluation systems. This shift:

• Clarified expectations for employees
• Increased consistency across appraisal cycles
• Strengthened the link between performance, development, and career growth
• Improved succession and promotion decisions

These reforms helped create a more transparent and equitable environment for recognising and nurturing talent.

4. Enhancing Employee Engagement and Organisational Culture: I introduced several engagement initiatives centred around communication, recognition, and employee well-being. These included structured forums for dialogue, appreciation programmes, and wellness activities. These efforts contributed to stronger team cohesion, improved morale, and a more positive workplace experience.

5. Positioning HR as a Strategic Partner: A core part of my journey has been elevating HR from an administrative function to a strategic enabler. Through workforce planning, HR analytics, leadership advisory, and data-driven decision support, we positioned HR as a key contributor to business direction. Helping management make informed people decisions remains one of the accomplishments I value most.

6. Leading with Empathy and a People-Centric Philosophy: Perhaps the most defining element of my leadership approach is empathy. Whether managing teams, resolving conflicts, or supporting individuals through personal or professional challenges, I have always believed people perform at their best when they feel supported and respected. This people-centric approach has consistently strengthened trust, performance, and long-term commitment.

In essence, my most meaningful achievements are not limited to systems or policies. They lie in shaping a workplace where people can grow, evolve, and align their aspirations with the organisation’s vision. Each milestone has reinforced a simple belief: when people thrive, institutions thrive. This remains the guiding principle of my work in HR.

Q: How are the regulatory requirements for corporate governance effectively aligned within the HR function?
A: In the banking and financial sector, aligning HR practices with regulatory corporate governance requirements is essential for ensuring institutional integrity, accountability, and long-term sustainability. HR plays a pivotal role in operationalising these requirements by embedding governance principles into every stage of the employee lifecycle – from recruitment to retirement.

1. Alignment Through Clear Policies and Compliance Frameworks: HR ensures that all people related policies – recruitment, promotions, performance evaluation, disciplinary procedures, remuneration, and code of conduct – are designed in line with regulatory standards. This alignment strengthens transparency, uniformity, and fairness across the institution. By keeping policies comprehensive and updated, HR safeguards the organisation from compliance risks.

2. Strengthening Fit & Proper Criteria for Key Roles: Regulators emphasise the importance of competent, ethical, and trustworthy leadership in BFIs. HR ensures compliance by:

• Implementing rigorous selection and screening processes
• Applying fit & proper guidelines for senior and sensitive roles
• Maintaining documentation and verification as required by regulators

This protects the organisation from governance lapses and enhances leadership credibility.

3. Ensuring Ethical Conduct and Workplace Integrity: HR is the custodian of the institution’s code of conduct, whistleblowing frameworks, anti-harassment policies, and ethics guidelines. By educating employees, conducting regular awareness sessions, and ensuring strict enforcement, HR embeds integrity into the organisational culture. This directly supports regulatory expectations on transparency and ethical operations.

4. Promoting Fair and Merit Based Practices: Corporate governance demands fairness and accountability. HR ensures that decisions related to hiring, training, promotions, rewards, and disciplinary actions are evidence-based and merit-driven. This reduces bias, strengthens trust, and ensures compliance with labour laws and regulatory norms.

5. Enhancing Board and Management Oversight Through HR Reporting: HR regularly provides structured reports to senior management and the board on:

• Workforce strength and succession pipelines
• Diversity metrics
• Performance outcomes
• Compensation structures
• HR audit findings

These reports support informed decision-making and enable boards to fulfil their governance responsibilities.

6. Supporting Succession Planning and Leadership Development: Regulatory frameworks emphasise strong succession planning to ensure business continuity. HR leads this by identifying high-potential employees, mapping talent pools, and developing structured leadership development programmes. This ensures readiness for key roles and reduces strategic risk.

7. Strengthening Internal Controls Through HR Audits: Regular HR audits help evaluate compliance with policies, regulatory directives, and internal control standards. Findings from audits enable corrective actions, minimise risks, and enhance governance practices across the institution.

8. Ensuring Transparency in Remuneration and Compensation Practices: Regulatory bodies require banks to maintain fair, transparent, and risk aligned compensation structures. HR ensures alignment by:

• Linking incentives to long-term performance
• Avoiding excessive risk-taking behaviour
• Maintaining pay equity and transparency

This promotes sustainable growth and responsible banking practices.

9. Cultivating a Culture of Accountability and Compliance: Ultimately, corporate governance is effective only when supported by the right culture. HR facilitates this by reinforcing values, promoting responsible behaviour, and ensuring employees understand their role in maintaining governance standards.
In summary, HR and corporate governance are deeply interconnected. By embedding regulatory expectations into policies, systems, culture, and leadership development, HR ensures that the institution operates ethically, transparently, and sustainably. This alignment not only protects the organisation from risks but also strengthens its reputation, resilience, and long-term growth.

Q: How often do BFIs conduct surveys on skill gaps or capacity assessments and offer development training or other activities for skill and capacity enhancement?
A: Most banks and financial institutions are increasingly recognising that continuous learning and capability development are vital for maintaining competitiveness and service excellence. While the frequency may vary across institutions, BFIs generally conduct skill-gap assessments and capacity need evaluations on a regular and structured basis.

1. Annual Training Needs Assessment (TNA) as a Standard Practice: Most BFIs carry out a formal Training Needs Assessment at least once a year. This process typically involves:

• Reviewing performance appraisal reports
• Collecting feedback from supervisors and department heads
• Analysing regulatory and compliance requirements
• Identifying new skill demands emerging from digitalisation and market changes

This annual cycle helps institutions create structured training calendars aligned with business goals.

2. Periodic Surveys and Pulse Assessments: In addition to formal TNA, several institutions conduct periodic surveys – quarterly or bi-annually – to capture emerging training needs or skill gaps. These short pulse assessments allow HR to stay responsive to changing customer expectations, technological tools, and operational challenges.

3. Use of Performance Appraisals and HR Analytics: Performance evaluations have become valuable tools for skill assessment. Data from appraisals, competency ratings, and KPI achievements help identify capability gaps at individual and departmental levels. Increasingly, BFIs are using HR analytics to map trends, predict future skill requirements, and design interventions accordingly.

4. Regulatory Requirements Drive Continuous Capacity Building: The banking sector operates under stringent regulatory frameworks, which mandate regular training in areas like:

• Compliance and risk management
• Anti-money laundering (AML)
• Cybersecurity
• Customer service and operational excellence

As a result, BFIs conduct mandatory and refresher trainings on a semi-annual or even quarterly basis.

5. Focus on Digital and Leadership Skills Development: With rapid digital transformation, institutions now invest heavily in training related to digital banking, FinTech, data analytics, cybersecurity, and customer experience. Leadership development programmes are also being introduced on a regular cycle to groom future leaders and support succession planning.

6. On the Job Coaching and Branch-Level Skill Enhancement: Beyond formal programmes, many BFIs also implement:

• Peer learning
• Coaching and mentoring
• Job rotation
• Exposure visits
• E-learning modules

These practical learning opportunities help address skill gaps more organically and continuously.

In essence, while frequencies vary, BFIs typically conduct structured skill-gap assessments annually, complemented by periodic surveys, regulatory-driven reviews, and continuous capability-building activities throughout the year. This blended approach ensures that the workforce remains competent, adaptable, and aligned with the evolving needs of the industry.

Q: How complex is talent acquisition in today’s job market? In your opinion, what makes recruitment and selection processes more effective?
A: Talent acquisition has become increasingly competitive, particularly for specialised roles in risk management, IT, digital banking, and compliance. Effective recruitment today requires strong employer branding, structured competency‑based interviews, psychometric assessments, campus engagement, and forward-looking succession forecasting. Given Nepal’s relatively small talent pool, building internal pipelines is often more sustainable than relying solely on external hiring.

The overall talent landscape in the banking and financial sector has evolved significantly. Digitalisation, shifting customer expectations, and the rise of new financial players have made acquiring skilled, future‑ready professionals far more complex than in the past.

1. Growing Skill Gaps and Changing Competencies: While banks once prioritised academic credentials and traditional banking experience, the demand has expanded to include digital literacy, data analytics, cybersecurity, customer experience, and learning agility. The supply of candidates with this blended skill set remains limited, intensifying competition.

2. Rising Competition for High‑Potential Talent: Banks are no longer competing only with each other. FinTech firms, telecom companies, IT organisations, and global digital platforms attract young professionals with flexible cultures, innovation-driven environments, and rapid growth opportunities, making it harder for traditional institutions to stand out.

3. Evolving Expectations of Job Seekers: Modern candidates seek more than job security; they look for meaningful work, clear career pathways, development opportunities, supportive culture, work‑life balance, and transparent leadership. Meeting these expectations requires stronger employer branding and a compelling employee value proposition.

4. Retention Challenges Affect Recruitment: In areas with high turnover, institutions face constant pressure to fill roles quickly. This urgency makes hiring more complex and can compromise the quality of recruitment decisions if not managed strategically.

Q: In your opinion, what are the key factors that make recruitment and selection more effective?
A: To address these challenges, recruitment must evolve into a strategic and holistic function. Several factors significantly enhance effectiveness:

1. Competency‑Based Recruitment: Hiring based on clearly defined technical, behavioural, and leadership competencies ensures stronger role fit, long‑term performance, and cultural alignment. This reduces subjectivity and elevates the quality of hires.

2. Strengthening Employer Branding: Institutions must position themselves as employers of choice by showcasing their culture, development opportunities, stability, values, innovation, and growth pathways. A strong brand attracts better talent and reduces hiring costs.

3. Leveraging Technology and Digital Platforms: Utilising HR analytics, AI‑enabled screening tools, online assessments, and digital interviewing enhances accuracy, efficiency, and candidate experience – accelerating the recruitment cycle.

4. Expanding the Talent Pool:
Organisations can widen access to talent by exploring:

• Campus recruitment
• Lateral hiring from diverse industries
• Internal mobility programmes
• Returnship or second‑career hiring

This brings in fresh perspectives and a broader mix of competencies.

5. Structured Interviews and Assessment Tools: Behavioural interviews, case studies, psychometric tests, and role‑based assessments promote fairness and deeper evaluation of a candidate’s capabilities.

6. Strong Talent Pipeline and Succession Planning: By investing in internal talent development, institutions reduce dependency on external hiring for critical and leadership roles. Succession pipelines ensure continuity and readiness.

7. Enhancing the Candidate Experience: Transparent processes, clear communication, and timely feedback significantly influence a candidate’s perception of the institution, improving acceptance rates and reputation.

8. Close Collaboration Between HR and Business Leaders: When HR and line managers work together to understand role requirements, team dynamics, and business priorities, recruitment becomes more targeted and impactful.

In a nutshell, talent acquisition is becoming increasingly complex due to tightening skill markets, heightened competition, and shifting workforce expectations. Yet, by adopting competency‑based hiring, leveraging digital tools, strengthening employer branding, and investing in strategic workforce planning, recruitment can become a distinct competitive advantage. Ultimately, the goal is to hire candidates who are not only capable of meeting today’s demands but also prepared to grow with the institution in the future.