HR honchos earning Rs 80 lakh to Rs 1.5 crore plus bonus and stock options
The expanding gamut of the financial services sector is leading to an increase in crorepati human resource professionals, with salaries of chief HR officers catching up with those of chief executive officers in finance and compliance functions.
The emergence of new segments like small finance banks and financial technology companies, and the expansion of non-banking finance corporations, with a flood of private equity money backing these businesses, are opening up highprofile opportunities for HR executives, driving big movements and payouts in this space.
According to industry experts and search firms, the salaries of chief human resources officers (CHROs) and HR heads in these segments could range from `80 lakh to `1.5 crore, excluding 2030% bonus and stock options.
Some of the recent top-level movements in HR include Agnel Victor, who joined as head HR at Avendus Capital in April 2016; Ladwa Srinivas, who moved to Reliance Nippon Life Insurance in May 2017 as CHRO; Sharad Vishvanath, who was appointed as group head, digital banking, analytics & HR at Au FINANCIERs (India) in April this year; Debraj Sinha, who joined Magma Fincorp as chief people officer in November; and Kavita Shrivastav, who moved to Piramal Finance as head HR in November.
“There is a growing trend of institutional capital backing domestic platforms that is creating new opportunities in financial services beyond traditional banking,“ said Vivek Kapadia, director at executive search firm Vito India. HR is no longer considered a support function and increasingly promoters and management are demanding seasoned HR professionals who act as key business drivers. “HR heads with strong HR transformation experience, ability to scale businesses with a focus on people and technology, and put in place a robust framework to enable some of these platforms to unlock value, are in high demand,“ said Kapadia.
Avendus Capital CEO Ranu Vohra said: “We wanted to take on board someone to head our HR function, someone who had the experience of growing and nurturing businesses, someone who could spot and groom talent, someone who could create a cultural synergy across our businesses.“
Last year, Avendus Capital, a provider of cross-border merger and acquisition, and financial advisory services, hired Agnel Victor to head HR function.The company, which has diversified into credit solution business after the US private equity firm KKR picked up a majority stake, has doubled headcount over the past year and a half to support its strategy of diversification and inorganic growth.
“He is a key member of our management team and partners closely with our business stakeholders on talent acquisition and retention strategy, culture building and creating an organisation that allows people to grow while enjoying what they do,“ said Vohra.
There is an increasing recognition among the investor community about the critical role HR heads play in an organisation’s strategy. “To bring in a lot more focus and accoun tability, PE funds tend to discuss upfront with (the promoters) where management teams need to be augmented … HR head is one such role with a 360-degree view on organisational goals and drive a human capital management strategy to drive it (the goal of the company),“ said Rupen Jhaveri, director, private equity, KKR India.
Experts said small finance banks were making a big difference to the sector. Some players have moved from being microfinance institutions to small finance banks.
“There is a need for human resource heads to understand the banking environment,“ said Rajiv Krishnan, managing director, Korn FerryHay Group. Earlier, the HR function of these companies was managing a large number of employees but now they need someone who has an understanding of the banking industry. “There is an explosion of demand and opportunities for HR people,“ he said.
“When the people strategy is aligned to overall business strategy, it helps build sustainable and scalable business. This coupled with a digitised work environment will help business achieve efficiency and enhanced customer experience and engagement. HR head and the senior management must work together to define and drive this agenda,“ said Khushru Jijina, managing director, Piramal Finance.
Source- The Economic Times