Apexon’s Anand Kabra Suggests AI Solutions for BFSI’s Attrition Problem

Anand Kabra, Chief People & Transformation Officer, Apexon, writes about the transformative role of AI, analytics, and automation in HR practices, particularly within the rapidly evolving BFSI sector. He also highlights how technological advancements have the potential to reshape talent management while acknowledging the inherent challenges they pose.

The advent of AI, analytics, and automation has major, long-lasting implications for how human capital leaders manage talent, promote excellence, and increase efficiencies throughout the HR function. Digital disruption is an especially pressing imperative in the dynamic BFSI sector, which is both expanding fast and evolving rapidly in response to new technologies. Data-driven insights are having a transformative impact on HR practices, increasing automation, AI-powered decision-making, and employee development.

While AI, automation, and predictive analytics technologies can assist the HR function in developing high-performing, diverse workplaces that inspire and elevate individuals, there are undoubtedly ethical concerns as well as privacy and trust issues that HR leaders must demonstrably address. In a volatile business environment, AI has a valuable role to play in helping HR leaders unlock human potential and strategically plan for the workforce of the future.

Free up resources for high-value priorities

We’re already seeing the impact of automation, one of the key benefits AI has to offer. From relatively simple robotic process automation (RPA), which automates single tasks, to more complex forms, which automate whole processes, automation technologies are helping to ensure HR teams are more responsive, efficient and smart. Streamlining resource-intensive, time-consuming tasks such as resume-screening and candidate shortlisting helps save time while ensuring objectivity. It also enables HR teams to focus on high-value activities, fostering a more efficient and effective talent acquisition process.

Also read: What is an Automatic Resume Parser and Why Does a Recruiter Need One?

Develop and retain talent with data-driven insights

HR leaders are only too aware of the higher risks and costs associated with both losing talent and replacement hiring. Despite the growth prospects for top talent in the BFSI sector, attrition has been a significant challenge. AI can play a key role here, helping organisations to improve talent retention. By analysing employee data, performance metrics and engagement surveys, AI algorithms unveil patterns, trends and correlations that may elude human analysis. This data-driven approach empowers HR leaders to make evidence-based decisions regarding talent management, employee development, engagement and succession planning.

Transform workforce planning with AI-driven analytics

AI can help HR leaders identify employee development needs and address them with relevant training. With its predictive capabilities, HR leaders can proactively spot performance trends, identify risks and skill gaps, and design targeted strategies to address them. AI, increasingly, helps HR teams to strategically plan for the workforce of the future: developing relevant skills, adapting to market conditions, improving employee career paths and boosting employee productivity.

Also read: 5 Ways To Boost Employee Experience With HR Analytics!

Despite the growth prospects for top talent in the BFSI sector, attrition has been a significant challenge. AI can play a key role here, helping organisations to improve talent retention. By analysing employee data, performance metrics and engagement surveys, AI algorithms unveil patterns, trends and correlations that may elude human analysis. This data-driven approach empowers HR leaders to make evidence-based decisions regarding talent management, employee development, engagement and succession planning.

Improve candidate and employee experience

AI-driven recruitment tools streamline recruitment experiences in a competitive talent marketplace, ensuring engagement is personalised, relevant and seamless right from the very first point of contact. AI’s ability to deliver hyper-personalised insights is also transforming how employees engage with an organisation, also known as employee experience (EX), a powerful tool that can significantly shape employee sentiment and advocacy. AI-driven tools can improve this experience at every stage.

Some examples of ways in which AI can help with candidate engagement include initial assessments, resume screening and providing prompt feedback at every step of the process. Meanwhile, employees can use AI chatbots and virtual assistants for round-the-clock support with common HR-related questions, providing information on company policies, and as a guide to various HR processes. This not only enhances EX but also frees up time that HR professionals can use to focus on more strategic initiatives, fostering a more agile and responsive HR function.

Reducing bias and increasing diversity with AI

AI algorithms can help mitigate bias in hiring decisions by anonymising candidate profiles during screening, promoting unbiased evaluations and diverse hiring. Having robust AI governance ensures that AI systems used in HR adhere to ethical and fair practices. Establishing guidelines and frameworks for responsible AI usage helps prevent bias, discrimination and privacy breaches, in turn ensuring that AI-driven HR processes uphold principles of fairness, transparency, and respect for individual rights. A proactive approach to prioritising AI governance puts organisations on the front foot demonstrating their commitment to responsible and accountable AI. It’s a win-win for all concerned: employees, candidates and other stakeholders. 

Seamlessly support talent with AI

In an increasingly connected society, digital technologies are bringing about fundamental changes in the way we work. While AI brings numerous benefits, the true magic lies in combining human expertise and AI-driven insights to create an environment where productivity soars and employee well-being thrives. HR leaders can leverage AI tools to streamline routine tasks, allowing them to focus on building meaningful connections with employees, understanding their needs, and fostering a positive work culture. Automation streamlines processes, chatbots offer real-time answers and guidance, while data-driven insights enable evidence-based decision-making. Additionally, AI revolutionises employee development and training, fostering a skilled and adaptable workforce. By integrating AI-driven analytics with human insights, organisations can create a deeply human-centric HR approach, ensuring that employees are supported, engaged, and empowered to reach their full potential.

About the author: Anand Kabra has over 25 years of experience in the industry, and in his current role as Chief People & Transformation Officer at Apexon, he focuses on strategic talent transformation. His past positions in leadership at renowned companies such as Wipro, Cognizant, HP, Genpact, and Tata Technologies.