“Transparency and fairness in HR practices and decision-making are the key to building trust among employees,” says Lekhnath Paudel, Head of the Human Resource Department at Shangri-la Bank and Secretary of the Human Resources Society of Nepal. As an enthusiastic and aspiring HR professional, Paudel has cultivated a stellar career in both day-to-day HR functions and strategic human resource management. His expertise spans crafting and implementing HR policies, talent acquisition, negotiation, reporting, and professional networking. Holding a Master of Business Administration (MBA) degree from Apex College, Kathmandu, Nepal, Paudel is dedicated to advancing the HR profession.
Recently, HRM Nepal sat down with Paudel to discuss his career, his thoughts on shaping HR culture in organisations, and his vision for the future of HR practices in Nepal. Below are excerpts from the conversation.
Q: Could you briefly tell us about your journey in the HR profession?
A: My journey in Human Resource Management started in 2015 as an HR Officer at the Spinal Injury Rehabilitation Centre. This was my first exposure to the challenges and rewards of managing people in a structured environment. Over the years, I have grown professionally and personally. For the past seven years, I have been serving as the Head of Human Resources at Shangri-la Development Bank, where I have been actively involved in building a robust HR framework.
Beyond my work at the bank, I have been associated with the Human Resource Society of Nepal since 2017. This organisation serves as the apex body of HR professionals in the country, and I am proud to serve as its secretary on the executive committee. I also hold the position of Deputy Coordinator of the HR Sub-Committee of the Development Bank Association of Nepal. These roles have enriched my understanding of HR practices across various organisations and allowed me to contribute to shaping HR policies on a broader scale.
Q: What are the key HR strategies you have executed at Shangri-la Development Bank?
A: At Shangri-la Development Bank, our HR strategies revolve around several core areas: employee engagement, HR process automation, strategic learning and development programmes, and succession planning. Transparency and fairness in HR practices are at the heart of everything we do. This ensures that employees trust the system and feel valued.
A critical focus of our strategy is linking employee performance to Key Result Areas (KRAs) and Key Performance Indicators (KPIs). By establishing measurable objectives, we aim to create a performance-driven culture that aligns individual goals with organisational objectives. This approach helps us build accountability and fosters a spirit of collaboration among team members.
Q: Having extensive experience in HR, could you reflect on some milestones your department has achieved?
A: The HR landscape has changed significantly over the years, particularly post-COVID-19. Managing challenges like employee mental and physical health, adapting to technological integration, and navigating remote work have been transformative milestones for us. Aligning our people-management strategies with these evolving challenges has strengthened our organisation.
One of the most rewarding achievements has been developing recruitment and selection policies that prioritise fairness and equity. By actively engaging with young job seekers through colleges, public vacancies, and community outreach, we have been able to connect with a diverse pool of talent. This has not only enhanced our recruitment process but has also helped us build trust and confidence among potential candidates.
Q: What are effective HR management practices for organisational development in BFIs?
A: In the banking and financial institution (BFI) sector, aligning HR strategies with the organisation’s overall business plan is essential. HR should function as a business partner, supporting organisational goals while addressing the needs of employees.
While HR often deals with emotions, feelings, and values, a data-driven approach is critical for making informed decisions. Implementing transparent, process-oriented systems reduces bias, builds trust in leadership, and improves overall employee satisfaction. Additionally, fostering open communication and promoting a collaborative culture are foundational to successful HR management.
Innovation in organisational development is another key area. HR professionals must create an environment where employees feel encouraged to experiment, learn from failures, and contribute to the organisation’s growth.
Q: How do HR policies contribute to a company’s sustainability and growth?
A: The sustainability and growth of any organisation depend on the alignment of HR policies with its objectives and goals. HR policies that focus on attracting and retaining talent, fostering innovation, and implementing fair performance evaluations have an immediate and long-term impact on the organisation.
When HR strategies are integrated into the company’s broader vision, they drive employee engagement, enhance productivity, and strengthen the organisation’s reputation in the market.
Q: How often does your bank conduct skill development or capacity-building programmes?
A: At Shangri-la Development Bank, we prioritise designing impactful learning and development programmes tailored to the needs of our employees. On average, each employee participates in skill development programmes three times per year.
Some of our notable initiatives include the Annual Shangri-la Quiz, a 10-Day Residential New Employee Orientation Programme, and the Internal Trainer Development Programme. These programmes are designed to address skill gaps, foster a culture of continuous learning, and ensure that our employees are equipped to meet evolving business demands.
Q: What gaps have you identified in creating an enabling workplace environment for effective results?
A: Several trends in the banking sector highlight the need for a more enabling work environment. For instance:
Employee Turnover: Over 30% of employees in development banks who left during the last fiscal year sought opportunities abroad.
Decline in Interest: The number of youth applicants for banking vacancies, particularly trainee positions, is decreasing.
Work-Life Balance: Reports suggest a decline in mental health and overall employee well-being in BFIs.
To address these issues, HR leaders, top management, and regulatory bodies must collaborate to restore the appeal of banking jobs. Employees, on the other hand, should focus on productivity, skill development, and loyalty to ensure mutual growth.
Q: Why has HR management not been prioritised in Nepal as a key to organisational growth?
A: Human Resource Management in Nepal is still evolving. However, as more business leaders recognise its critical role in organisational sustainability, we can expect a paradigm shift in the coming years.
Thanks to the efforts of senior HR professionals, the importance of HR in Nepal is now being acknowledged. As young leaders take over prominent business houses, the role of HR is bound to expand. Strategic HR management (SHRM) will play a pivotal role in linking HR practices with business outcomes, driving growth, and ensuring sustainability.
The government of Nepal also has a crucial role to play. Strategic investments in education and skill development are necessary to address the national skill gap. Through lobbying efforts, we are advocating for the establishment of a dedicated Ministry of Human Resources to focus on these priorities.
Q: How challenging is it to retain mid-career professionals in the banking sector?
A: Retaining mid-career professionals has become increasingly challenging due to rising turnover rates. Many professionals are transitioning to other industries or seeking opportunities abroad. If this trend continues, the banking sector may face a shortage of experienced leaders in the coming years, which could hinder long-term growth.
Q: How does your bank approach succession planning amid high turnover rates?
A: Succession planning is a critical part of our HR strategy. At Shangri-la Development Bank, we focus on developing talent for key leadership positions, such as Branch Managers and Credit In-Charge, through our Succession Planning Policy and Long-Term Strategic HR Plan.
For example, our policy specifies the minimum number of Branch Managers we need to develop internally each fiscal year. This ensures a steady pipeline of qualified leaders ready to take on higher responsibilities.
Q: What factors enable readiness to adopt technology-based learning practices?
A: The integration of technology into learning and development is essential. Our HR department is committed to developing a long-term digital strategy that includes virtual training, employee learning chatbots, online forums, and short, interactive courses. Strategic investments in these technologies will ensure that employees remain engaged and updated on the latest industry practices.
Q: How important are team-building activities and open discussions?
A: Open communication and collaboration are fundamental to building trust and fostering a positive work environment. At Shangri-la Development Bank, we organise weekly informal tea meetings among Heads of Departments (HoDs) to share stories, discuss challenges, and strengthen relationships.
Horizontal and vertical discussions allow for better alignment between teams and management, creating a culture of transparency and mutual respect.
Q: Are you satisfied with the regulatory guidance on HR practices in the banking sector?
A: While I am generally satisfied with the regulatory framework, there are areas that need attention. Issues such as high turnover rates, mental health concerns, and the widening gap between salary and workload require a more proactive approach from regulatory bodies.
HR management directly impacts banking risks and financial performance. Therefore, regulators must promote best practices in recruitment, performance management, and employee productivity to ensure the sector’s long-term sustainability.
Q: Could you share any unique practices in managing people and delivering results?
A: At Shangri-la Development Bank, we believe in giving employees a second chance to grow and succeed, even if they have struggled in certain areas. This approach has helped us develop a supportive and growth-oriented work environment, leading to positive outcomes for both employees and the organisation.
