YES BANK: Human Capital Initiatives of a Startup in the Indian Banking Industry

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When Yes Bank was preparing to enter the market, many industry experts questioned the rationale of its decision to make so late an entry, especially when the Indian banking arena had so many established players. They pointed out that it was entering an already overcrowded market dominated by public sector banks such as the State Bank of India (SBI) and private banks such as ICICI Bank and HDFC Bank.

In addition, there were many cooperative banks and a few foreign multinational banks. Moreover, many of the product lines of these banks had become commoditized. While Yes Bank had high ambitions for the Indian market, analysts felt that many challenges lay before it. Being a startup, it had to not only take care of infrastructure and lease agreements for setting up branch offices, etc., but also of the recruitment of staff and management, which in itself could be an overwhelming task. From an early stage, the promoters of Yes Bank focused on human capital as an enabler of the bank's business strategy of differentiating itself from its competitors...

Initially, the company relied heavily on employee referrals, consultants, and web-based hiring to source talent. The bank worked out its recruitment strategy with the help of consultants Kom Ferry, ABC Consultants, Planman Associates, and Emmay HR. Kapoor said, "As a start-up, the immediate deliverable of the HR team is to attract high quality talent and build a strong Yes culture based on the core values of the bank.

Retaining talented employees in the organization was also one of its main focuses because of the huge scarcity of talented employees in the financial services sector in India. It realized that in order to achieve its objective of being a preferred employer, it had to establish a strong employer brand.

It, therefore, strove to build an enterprise based on its Employee Value Proposition (EVP) of 'Creating and Sharing Value' that would help it emerge as the "Young and Dynamic Bank" of the developing Indian economy.

With this proposition, the bank aimed to transmit its internal brand from its employees to the external brand i.e. to its customers. The crux of this proposition was that the bank expected its employees to absorb organizational values so that the same values were communicated to the customers (Refer to Figure I)...

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