HOME » Best Workplaces » Insights into Workplace Dynamics in India’s BFSI Sector

Insights into Workplace Dynamics in India’s BFSI Sector

Giving presentation

Within this vibrant financial landscape of BFSI, notable advancements are observed across various fronts. The BFSI sector, alongside manufacturing, emerges as a frontrunner with a robust 25% hiring intent, signalling a strategic emphasis on both industrial expansion and talent acquisition within the financial domain. Significant developments, including the fortification of banks, the proliferation of fintech ventures, and a surge in investments and insurance activities, further fuel this fervent pursuit of growth. Such advancements not only signify the sector’s upward momentum but also underscore its pivotal role in driving India’s economic evolution towards greater prosperity and inclusivity.

The Financial Inclusion (FI) Index for March 2023 stands at 60.1 vis-a-vis 56.4 in March 2022 and 53.9 in 2021, with growth witnessed across all sub-indices.

The trajectory of financial inclusion emerges as a testament to progress. Recent data paints a vivid picture of growth, with the Financial Inclusion (FI) Index soaring from 56.4 in March 2022 to an impressive 60.1 in March 2023. This upward trend reverberates across all sub-indices, reflecting a concerted effort towards broader accessibility, deeper engagement, and enhanced quality within the financial ecosystem. Crafted in collaboration with governmental bodies and sectoral regulators, the FI-Index articulates its narrative through three fundamental parameters: Access (35%), Usage (45%), and Quality (20%). These metrics not only underscore the sector’s unwavering commitment to fostering inclusive financial practices but also lay the groundwork for a more empowered and resilient future.

Perception of Workplace

Despite an overarching sentiment of positivity, organizations experienced a marginal 1% dip in the overriding sentiment, with 86% of employees affirming their workplace’s greatness in 2024. Concurrently, the industry’s Trust Index Grand Mean has consistently declined since 2022, signalling a nuanced narrative within the sector. Particularly noteworthy is the perceptible decline in workplace perception, marked by diminished credibility, fairness, and pride among BFSI employees in 2024. The erosion of trust is reflected in waning belief in the integrity of management, perceptions of justice in the workplace, and a fading sense of pride in one’s job, team, and corporate identity.

The overall sentiment was consistently at 84% from 2018 to 2020, and it increased to 86% in 2021 and 88% in 2022. However, it decreased to 87% in 2023 and further to 86% in 2024. The Trust Index Grand Mean showed a similar trend, with a constant rating of 79% from 2018 to 2020, followed by an increase to 82% in 2021 and 86% in 2022. Then, it decreased to 84% in 2023 and 83% in 2024.

Compared to other industries, the BFSI sector experienced a slip in key areas of fairness, pride, and overall sentiment from the preceding year. There exists a discernible opportunity to enhance employees’ perceptions of service excellence, improved facilities, the commemoration of special occasions, and the addressing of biases related to gender and sexual orientation.

The decline in perception is particularly notable across three verticals, registering a dip ranging between 2% to 4%. Within the BFSI sector, the most significant drop in perception is observed in the Fintech, Health & General Insurance, and Investment verticals. Furthermore, this decline is most pronounced, reaching approximately 10%, among Millennial and Gen-Z managers in the early stages of their tenure. These insights underscore the imperative for proactive measures to bolster workplace culture, foster inclusivity, and nurture a conducive environment for all employees across the BFSI spectrum.

For BFSI employees, belief in the integrity of management, justice at work, and pride in personal job, team, and corporate image has declined.

Workplace Perception across Gender

1 out of every 4 women employees in the BFSI sector feel they lack opportunities to get special recognition. 

1 out of every 4 women employees in the BFSI sector feel they lack opportunities to get special recognition.

The biggest difference in workplace experience between male and female employees lie in the opportunities they get for special recognition, receiving fair pay and a fair share of profits, and experience with workplace favoritism and politicking.

Equity Perception Across Gender

4 out of 5 employees in the BFSI industry feel positive about equity in the workplace, however female employees are 5% less satisfied with workplace equity compared to their male colleagues.

Workplace Perception across Generations

Almost 21% of Gen Z and 15% of Millennials in the BFSI sector do not intend to stay long in the organization. The biggest difference in workplace experience between Gen Z and Millennials of BFSI lies in their intent to stay for a long time, feeling that they make a difference at work, believing that their job has a special meaning, and management laying of people as a last resort.

Almost 21% of Gen Z and 15% of Millennials in the BFSI sector do not intent to stay for a long time in the organisation.

Equity Perception Across Generation

Even though almost 80% of Gen-Z and Millennial employees in the BFSI sector are satisfied with equity in the workplace, Gen-Z employees have a 6% lower perception of fair pay compared to their older peers like Gen-X and Boomers.

Highest And Lowest Perceptions Of BFSI Industry In 2024

Most employees within the BFSI industry find their workplace physically safe, find their management competent, and do not perceive gender/age/race or caste/sexual orientation-based discrimination. However, they are most dissatisfied with their fair share of profits, managers’ favoritism, and instances of politics and favoritism in the workplace.

Highest Scoring Perceptions showing physically safe place to work at 93%. Management competence at 89% and fair treatment regardless of gender/sexual orientation/race or caste at 89%. Lowest Scoring Perceptions showing fair share of profits at 72%, manager avoiding favoritism at 73%, absence of politicking and backstabbing at 76% and special and unique benefits at 76%.

Amidst the evolving dynamics of the BFSI sector, the imperative to prioritize care at the workplace emerges as a beacon of necessity. As organizations navigate through shifting paradigms and strive for sustained growth, fostering a culture of compassion and empathy becomes paramount. Recognizing the pivotal role of a caring work environment as a cornerstone of workplace culture and employee satisfaction, it becomes incumbent upon BFSI entities to redouble their efforts in this regard. By nurturing an environment where employees feel valued, supported, and empowered, organizations not only cultivate loyalty and commitment but also fuel innovation and productivity. As we look towards the future, let us reaffirm our commitment to prioritizing care at the workplace, thereby fostering a culture that thrives on compassion, inclusivity, and collective well-being. Visit us here for more information.