Condolence or Compliance

 

The Changing Scenario of the Banking Industry and Women Empowerment Over Four Decades

By Lokesh Mishra, Secretary, AIBOBOU

Over the past four decades, the banking industry has undergone significant transformations, particularly concerning the role and representation of women. As women empowerment has been fervently championed, the demographic composition of the workforce in banks has seen a substantial shift, with women entering the sector in sizable numbers.

#### Early Stages: Low Female Representation and Sensitivity in Trade Unions

In the initial years, the presence of women in banking jobs was minimal. This was a time when trade unions were acutely aware of the challenges faced by female employees, especially in balancing their dual responsibilities at work and home. Recognizing the unique difficulties faced by women, especially regarding relocations, banks often exempted female officers from lateral transfers, particularly those involving inter-region or inter-zonal moves. This approach was aimed at mitigating the stress associated with long-distance transfers, allowing women to manage their professional and personal lives more effectively.

#### Increasing Female Representation and Changing Dynamics

As the years passed, the ratio of female to male employees in banks began to improve. Women increasingly pursued careers in banking, contributing to a more balanced workforce. However, this growing presence of women in the industry led to new challenges and perceptions regarding transfer policies.

One significant debate that emerged was the notion that households with two earning members (both husband and wife working in the banking sector) were less destabilized by transfers compared to single-earner households. Male officers, who were frequently subjected to long-distance transfers, began to voice their concerns more vehemently. They argued for equal treatment in transfer policies, suggesting that the exemptions previously granted to female officers should be reconsidered to ensure fairness.

#### Erosion of Human Touch in Transfer Policies

Over time, the exemptions for female officers, guided by government policies, began to be overlooked. The growing unrest among male officers necessitated a reevaluation of transfer policies. Consequently, the application of human judgment and empathy in handling transfers diminished. Instances emerged where even female officers with young children were subjected to inter-zone transfers, exacerbating the challenge of maintaining work-life balance.

#### The Advent of Artificial Intelligence in Transfers

In a bid to streamline and perhaps depersonalize the transfer process, major banks in India, such as Punjab National Bank, Union Bank of India, and Bank of Baroda, have introduced artificial intelligence (AI) systems to manage inter-zonal transfers. While AI can bring efficiency and objectivity, it also raises concerns about the lack of a human touch in dealing with sensitive HR issues. The reliance on algorithms to make transfer decisions neglects the individual circumstances and needs of employees, potentially leading to increased dissatisfaction and morale issues among the workforce.

#### Strategic Plan for a Rational Transfer Policy

To address the current challenges and create a more rational and humane transfer policy for bank officers, the following strategic measures are recommended:

1. *Human-Centric Approach*: Reintroduce a human-centric approach to transfer policies. Ensure that individual circumstances, such as family responsibilities, health conditions, and personal preferences, are considered before making transfer decisions.

2. *Transparent Criteria*: Establish clear and transparent criteria for transfers. Employees should be aware of the factors that influence transfer decisions, ensuring a fair and predictable process.

3. *Balanced Transfer Frequency*: Limit the frequency of long-distance transfers to minimize disruption to employees' personal lives. Consider rotational policies that allow employees to serve in their home regions periodically.

4. *Support Systems*: Implement robust support systems for transferred employees, such as housing assistance, spousal employment support, and educational facilities for children. These measures can alleviate the stress associated with relocations.

5. *Feedback Mechanism*: Create a feedback mechanism where employees can voice their concerns and experiences regarding transfers. This feedback should be used to continually refine and improve transfer policies.

6. *Use of AI with Oversight*: While AI can aid in managing transfers, it should be used in conjunction with human oversight. HR departments should review AI-generated transfer lists to ensure that compassionate considerations are not overlooked.

#### Conclusion

The evolution of the banking industry, particularly concerning women's roles, highlights the need for balanced and fair transfer policies. By integrating human judgment with technological efficiency, banks can create a work environment that respects the personal lives of their employees while maintaining operational efficiency. The goal should be to foster a supportive and inclusive workplace where all employees, regardless of gender, can thrive both professionally and personally.

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For further reading and reference on the impact of AI in HR practices and gender dynamics in banking, see:

1. *"The Impact of AI on HR Management: Benefits and Challenges"* - Journal of Human Resources, 2023.

2. *"Gender Diversity in Indian Banking Sector"* - Economic Times, 2022.

3. *"Balancing Work and Life: The Evolving Role of Women in Indian Banks"* - Harvard Business Review, 2021.

By adopting these strategies, banks can address the complexities of transfer policies, ensuring a more equitable and empathetic approach to managing their human resources.