Central Bank of India has implemented a human resource management solution (HRMS) package to improve the productivity of its 36,000 odd employees, ensure skill development and chart out succession planning.
After automating all customer-centric functions through the core banking platform, the bank has done the same for its internal customers (employees), said Executive Director V.R. Iyer.
The HRMS package, which has been implemented by IBM, has automated 30 human resource (HR) processes, including pay roll, leave application, reimbursement of hospitalisation, newspaper, and leave travel concession, and booking of holiday homes.
“The HRMS package is based on the self-service concept. It has brought about considerable reduction in the turnaround time of the processes involved.
“Earlier, payroll processing in the central office used to take 12 hours. Now it takes just 20 minutes. We have provisionally estimated this would lead to savings of around 2,000 person days every month. The benefits are clearly visible,” said Iyer.
The public sector bank expects to see significant reduction in costs as a result of the HRMS.
Due to automation of the 30 HR processes, every month it will save on one lakh sheets of paper.
Further, it will save on the cost of courier and stationery.
“With all the HR processes being put on the self-service mode, sanction goes within a day or two.
“Otherwise, in the normal course it used to take about a week, 10 days, even 15 days for settlement of claims.
“There is transparency in the processes. There is no subjectivity involved and it is all rule-based. Centrally also, monitoring of the HR processes takes place,” said the ED.
Vanitha Narayanan, Managing Partner (Global Business Solutions), IBM, said the HR process transformation will give the bank sustainable benefits in terms of talent management, improvement in productivity, and support green agenda even as employees get transparency.
Central HR repository
The HRMS has a module for central HR repository. At the click of a button, officials can know the profile of staff; the qualification, experience, expertise, performance appraisal and posting.
Iyer observed that the repository is helping the bank in taking decisions on promotions, skill development, and transfers.
“Any type of HR analysis that we want can be done at the central office based on the management information system generated by the HRMS. So, it will also help substantially in succession planning,” she said.
Going forward, the bank plans to incorporate an e-learning module in the HRMS.
Any employee who goes for training will be encouraged to post on the module what he has learnt. “This way knowledge will be shared. This way talent building and skill development will happen,” said Iyer.
The bank also plans to have online tests on each product for employees.
It will incentivise staff members to periodically take tests so that it helps them gain product knowledge. This, in turn, will help the bank identify key resources for deployment in growth centres in each of its 16 zones.
To objectively assess the contribution based on various parameters (low-cost current account and savings account deposits, recovery, third-party accounts, etc.) of every staff member, the bank will leverage the HRMS so that it can disburse incentives at monthly or quarterly intervals.