'There's a soft skills gap that calls for attention'

IN CONVERSATION

A recent KPMG report titled 'Global Skills for Graduates in Financial Services' states that companies looking to expand their global operations are hamstrung by a 'talent gap' when hiring fresh graduates.

Ian Gomes, chairman, new & emerging markets, KPMG, who released the report in India, spoke to S Lakshmi Chopra on what most companies in the financial services sector expect from fresh talent.

The report states that 58 per cent of Indian financial services organisations experience difficulties in recruiting the right people with the right skills. Why is there a sudden dearth of talent in financial services?

Financial services in India are operating in a competitive global arena, during a period of intense growth in products and the consumer base.

With many international organisations tapping into India's talent through outsourcing and off-shoring, the demand for the right people with the right skills is increasing, causing a dearth of quality talent in the Indian market.

The burgeoning financial sector in India"" retail banking, asset management, insurance"" coupled with the entry of foreign players, only exacerbates the problem.

The report also speaks of financial services organisations' growing concern about soft skills among young employees. How important are soft skills for Indian organisations today?

There is a soft skills gap that calls for immediate attention. Financial services organisations are looking for individuals with a portfolio of soft skills including the right attitude, commitment to learn, teamwork, communication, client relationship management, customer services, business acumen, problem solving and achievement orientation skills, to operate on a global platform in a fast paced environment.

Soft skills in the past were not considered as important as technical requirements.

However, as financial services become more and more customer-facing, and with increasing competition from peer group financial institutions testing a customer's loyalties to his current financial services provider, the relative importance of soft skills has increased. Soft skills set applicants apart during the recruitment and selection process.

This allows organisations to spend less time on developing these skills in individuals and provides individuals who can hit the ground running and contribute to the performance of the organisation.

Do you think Indian companies should also consider conducting entrance tests for graduates just as in UK?

Entrance tests are used to assess particular skills. The success of such tests depends on why they are used and how they will measure an individual's capability.

They are also used to sift applicants and can be powerful in reducing large numbers to a suitable sample of applicants. Organisations should only use such methods if they will enhance current tools for recruitment and selection.

As India becomes a global platform for corporates, are the opportunities available influencing talent movement across the industry?

Talent retention strategies may vary across continents but the core ingredients are universal. Companies must focus on HR polices that monitor and review how employees are attracted, trained and developed.

Open communications during performance assessments are also useful methods to ensure that managers are aligning individual career aspirations to the needs and direction of the organisation.

Career progression based on merit, transparency in decisions involving promotions and a competitive remuneration structure are "must haves".

How would you rate the Indian talent pool in financial services, and what must educational institutions do to close the skill?

Often, there is a disconnect between industry and educational institutions. Indian corporates must work in collaboration with educational establishments to bridge the gap through sponsorships, delivery of guest lectures and an active involvement in course design.