With the increasing demand for skilled professionals and the emergence of new players, organisations must adopt innovative strategies to attract and retain talent in the highly competitive landscape of Non-Banking Financial Companies (NBFCs) in India. Harshita Khanna, Chief People Officer at Home Credit India offers a glimpse of what it takes.
Can you provide an overview of Home Credit’s market presence and employee standing since its establishment in the Indian market in 2012?
Home Credit is a part of the PPF Group, a Czech-based multinational corporation with a strong market presence in seven countries. We exited the Russian market but continue to expand and innovate in India. We prioritise financial inclusion and responsible lending, serving around 16 million customers through a network of 50,000 point-of-sale (POS) locations. By transitioning to a digital lending model, we offer a seamless customer journey and a range of lending products, catering to new-to-credit borrowers. We also acquired Rajshree Auto Finance Pvt Ltd, further solidifying our unique position as an NBFC that is also an MNC. With user-friendly digital platforms, we ensure a smooth experience for both customers and retail partners, spanning various business verticals such as mobile financing, consumer durables, personal loans, and value-added services. Our vision is to support domestic consumption and empower underserved populations, contributing to economic development.
Do most of your business take place through partnerships at the point-of-sale (POS) level, or do you directly engage with clients?
Initially, we had our sales associates at the POS, but now we have transitioned to an unmanned POS model where we work directly with shop owners. We train and onboard them, and our street teams cover multiple POS locations. Additionally, we have formed partnerships with companies like Pine Labs, leveraging their existing infrastructure to acquire customers. Our business model includes cross-selling, such as digital cash loans through our app and telecallers.
Do you have a combination of manned and digital POS among the 50,000 POS?
In 2021-22, we pivoted our business model. At present, it is a combination of manned and unmanned POS setups working directly with shopkeepers and retailers. Now, we have an employee who oversees an area and is responsible for approximately 50 POS in that region. If a shopkeeper faces any issues during the paperless journey with a customer in the shop, they can reach out to that employee. Alternatively, they can contact our team for guidance and support.
Also read: From Front desk to Manager, Salaries Have Gone Up in BFSI Sector: Santosh Joshi, BankEdge
Can you provide an overview of your global company and its presence in India, including the contribution of the Indian market to the overall organisation?
Our global company operates in several markets, including Czech, Slovak, China, Vietnam, Indonesia, Kazakhstan, and India. With a customer base of over 100 million, our organisation employs around 32,000 individuals worldwide. In India, we have a workforce of approximately 3,300 employees and serve more than 16 million customers, making it one of our largest markets alongside Vietnam, where we serve around 12 million customers. India plays a significant role in the overall success of the Home Credit International Group.
Our attrition rate for frontliners is 5% to 6%, lower than the market average of 10% (of comparable sectors). In management and IT, attrition rates have been higher, particularly in technology-driven roles and the credit and risk domain, due to the influence of Fintech companies. However, these trends have stabilised, and we anticipate a more stable attrition landscape in 2023. – Harshita Khanna, Chief People Officer, Home Credit India
Could you provide some insights into your employee base and its composition?
Among the 3,300 employees, 20% are management staff, which includes professionals in technology, IT, data science, credit and risk, sales, legal, finance, and HR. The remaining 80% are frontline staff, focusing on risk management, including collections, anti-fraud, and underwriting. Our office locations include our corporate office and offices in Mumbai, Bangalore, and Gurgaon, which serve as our call centre and house our frontline agents. We also have a team of approximately 500 customer care employees handling inbound and outbound queries.
How has the consumer loan market evolved over the years, and what trends have you observed in terms of talent attraction?
The financial services domain, particularly the BFSI sector, has experienced significant growth in India, attracting both international and traditional players. However, this growth has intensified the competition for talent, leading to challenges in retaining and attracting skilled professionals. Factors such as remuneration, limited growth opportunities, and the evolving nature of the job contribute to attrition rates. To address these challenges, organizations must provide development opportunities, foster innovation, and seek candidates with banking and financial knowledge who can drive transformation in the dynamic landscape of fintech and venture capital. The industry’s constant talent war is further fuelled by the emergence of new BPOs and NBFCs, and cost reduction strategies often involve workforce outsourcing to achieve scalability and flexibility.
Also read: Inside NBFC Hiring Landscape: U GRO Capital’s Pia Shome on Building a Strong Talent Pipeline
How does our hiring strategy align with the market scope and growing consumer demand? What is the ratio of fresh hiring to backfilling due to attrition?
Our attrition rate for front liners is 5% to 6%, lower than the market average of 10% in the BPO sectors (NBFC’s frontliners are usually outsourced and are on the payroll of third-party BPOs). In management and IT, attrition rates have been higher, particularly in technology-driven roles and the credit and risk domain due to the influence of Fintech companies. However, these trends have stabilised, and we anticipate a more stable attrition landscape in 2023.
What is the ratio of fresh hires to backfills in terms of management positions?
From a management perspective, we primarily focus on backfilling positions rather than making new hires. On a monthly basis, we hire around 30 to 40 individuals for management roles. In the case of frontliners, the number is higher due to both backfilling attrition and expanding business needs. These frontline hires range from approximately 200 to 250 per month.
It’s important to note that attrition figures typically exclude frontliners outsourced to third-party payrolls, like the payrolls of Teamlease or TCS. In the NBFC sector, attrition numbers often reflect employees on their payroll, while outsourced frontliners are considered contractual employees. At our organisation, we take full responsibility for the employee life cycle management, with a 5% attrition rate for frontliners and approximately 2-3% monthly attrition for management staff, which goes up to around 24-25% annually. It’s worth mentioning that our transition to a digital lending model, in 2021-22, and a revised business strategy resulted in a reduced employee count from around 17,000-18,000 to some-3,300.
How did you navigate the transition to a digital lending process and the significant downsizing of your workforce? Can you take us through the planning and challenges involved?
During the pandemic, Home Credit India underwent a transformative journey to adapt its business model for the Indian market, resulting in a shift to digital lending and a significant reduction in its workforce to approximately 3,300 employees. This transition involved extensive organisational restructuring and internal challenges, which were effectively managed through transparent communication and a clear vision for the future. The company also prioritised investments in talent with expertise in data science and technology, while fostering a culture of continuous learning and development. These efforts led to a successful transformation within a span of six to eight months.
How do the HR practices and policies in India differ from those implemented in global offices? What unique innovations have been introduced in India?
Although ours is a Czech-based organisation, we have the autonomy to develop HR practices tailored to local market conditions. In addition to a strong maternity leave policy mandated by the government, we also encourage our male employees to take paternity leave and spend quality time with their newborns. We offer various types of leaves, such as adoption leave and sabbatical leave, to cater to the diverse needs of our employees. The company’s commitment to creating a positive work environment is reflected in its recognition as a ‘great place to work’ and its high engagement scores in internal surveys. The return of former employees, known as ‘home returnees,’ highlights the trust and confidence they have in Home Credit as a fair and supportive employer.
We prioritise internal talent and provide opportunities for employees to explore new roles, fostering a supportive and inclusive culture where individuals can thrive and achieve their full potential. Our hybrid work arrangement allows flexibility for roles that permit remote work while investing in our employees has resulted in success stories of individuals who have grown from frontliners to managing teams and leading significant business functions.
Has your employer branding practice been impacted, and has it affected your image in the job market where people perceive your organisation as unstable?
Although there may have been a temporary impact on our employer branding and image in the job market, we have proactively addressed any negative perception through strong communication. Our robust outplacement program, which has achieved a success rate of nearly 43%, demonstrates our dedication to supporting employees even after they leave. Our investment in training and development has equipped our frontliners with the skills needed to excel in various roles, such as call centre executives, sales, and collections, and we proudly endorse them as highly skilled professionals. This commitment to outplacement and ongoing support has resulted in a positive trend of ‘home returnees,’ reflecting our strong organisational culture and effective management practices.
How much of the HR budget is allocated to learning and development (L&D) for internal talent skilling and creating a succession pipeline, considering the emphasis on internal mobility?
I will address this question from two perspectives: internal movement and international movement. We take pride in promoting internal talent mobility within Home Credit, fostering a diverse workforce that includes both Indian and expatriate employees. Our talent often moves across countries: Our entire Indonesia team is Indian, and we have Indian talent in the Philippines, too. Simultaneously, we prioritise internal mobility through our Internal Job Postings (IJP) program. We have frontliners who can transition into various roles such as sales, customer care, and collections, affectionately referred to as ‘super agents’.
Most of our learning and development occurs on the job, aligning with industry models where around 80% of training happens through practical experience. We complement this with formal and informal interventions, providing a platform for skill enhancement. Our career ladder offers clear progression paths. For example, a customer care caller can become a proficient super caller, and those with people management skills can aspire to become team leaders. Further growth opportunities include roles like panellist, quality analyst, or trainer. Our learning platform offers targeted training modules that employees can access at their convenience, allowing for self-paced development.
One notable initiative is ‘Vision Vikas,’ a job shadowing program that encourages employees to attend trainings in finance, credit and risk, marketing, HR, and other areas. We provide classroom-based trainings and leverage our learning platform for online courses. However, it is up to the employees to take ownership of their development journey and proactively engage in these opportunities.
We also invest in our high-potential employees through functional interventions. Additionally, we have global programmes such as Junior Odyssey for first-time managers, Middle Odyssey for mid-management, and Senior Odyssey, which is a prestigious year-long group program aimed at nurturing leadership skills. These programmes bring together participants from various countries, fostering collaboration and knowledge sharing.
We allocate a significant portion of our HR budget to L&D, ensuring the creation of a robust succession pipeline and a culture of continuous growth and development.
With a customer base of over 100 million, our organisation employs around 60,000 individuals worldwide. In India, we have a workforce of approximately 3,300 employees and serve more than 16 million customers, making it one of our largest markets alongside Vietnam, where we serve around 12 million customers. India plays a significant role in the overall success of the Home Credit International Group.” – Harshita Khanna, Chief People Officer, Home Credit India
What kind of challenges and changes in the HR role have you observed, particularly in the NBFC and financial services domain?
The challenge of employee attrition is significant in the NBFC and financial services domain, especially among frontliners. This necessitates continuous upskilling and hiring, particularly for frontliner roles. Similarly, the manufacturing industry faces attrition challenges due to job nature and compensation factors. Unlike IT, our industry cannot create a bench due to its unique requirements. Minimum wages make it easy for employees to be lured away by even a slight increase in pay, impacting loyalty.
Designing a remuneration structure that retains talent while considering cost constraints is a challenge. Creating an inclusive culture and leveraging data-driven decision-making are also key challenges for HR professionals. HR is now seen as a strategic business partner in various domains. We are collaborating with platforms like Naukri and implementing tools like Zwayam’s Applicant Tracking System (ATS) to enhance our HR processes and provide a seamless employee lifecycle experience. We are excited to partner with these platforms that enhance our self-sufficiency and optimise HR processes in India.
About the author: A seasoned HR professional, Harshita brings 15 years of rich experience, driving various facets of Performance Excellence in India and International markets across diverse industries. Prior to Home Credit, Harshita worked with large multinational corporations such as Computer Science Corporation, Schneider Electric India Pvt Ltd and AON Hewitt.
