How COVID-19 Changed HR Approaches in the UK Banking Sector

This research report investigates the transformations in Human Resource (HR) approaches within the UK banking sector following the COVID-19 pandemic. The study examines the changes businesses implemented in their HR policies to navigate the complexities of the pandemic and regain their market position. The research employs a quantitative methodology, utilizing a deductive approach to address the research questions. The findings highlight various HR strategies adopted by UK banks, such as remote working and online recruitment, to manage their workforce and maintain business functions during the outbreak. The report explores the significance of HR in the banking sector, emphasizing the importance of employee management and the ability to adapt to the changing environment. The study also identifies challenges faced by the banking sector due to changes in HR approaches. The report concludes with recommendations for future HR strategies in the banking sector, offering valuable insights for managing organizations in the post-pandemic era.

HOW HAS HR APPROACHES HAS
CHANGED POST COVID IN THE
BANKING SECTOR OF THE UK
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ABSTRACT
Purpose
The current research report is based on analysing the changes introduced by the
businesses within their HR policies so that to deal with complication of COVID-19 and to regain
business position after the crisis. The report has examined that COVID-19 has given massive
changes to the industries in which they adopted different measures so that to manage their
employees and to manage business functions as well. On the other hand, this has also examined
that these changes strategies are such as remote working, online recruitment and many others. So
that using these HR approach organisation may develop their businesses and acquire success.
Methodology
In the current research the investigator have used quantitative research methods so that to
align the research methods with objectives of the research. In this research, deductive research
approach is being used so that the research topic can be addressed.
Findings
From the current research this has been analysed that there are different HR approaches that can
be used by the banking sector of UK so that to manage business functions within the COVID
outbreak. Using such methods this will be easier so that to gain market success and to align
business functions with needs of their customers.
Practical implications
The present research study mainly emphasise on evaluating the extent the extent at which
HR approaches have been changed after the outbreak of COVID-19. In addition to this, present
research also offers aid in evaluating the roles of HR approaches to manage the changes
experienced by organisation after covid-19.
Originality/ Value
The aspects that has been duly collected through the present research significantly aid in
evaluating elements that affected organisation after covid-19 along with HR strategies to manage
them. This research significantly offer valuable in depth detail of HR strategies to manage
organisation after the pandemic.
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ACKNOWLEDGEMENT
First of all I would like to thank my parents for their blessing and support which they had
given to me throughout the research. I would also like to draw my gratitude to my professor as
they have helped me to manage my research in more appropriate manner. I would like to express
my gratitude to friends and team mates as they supported me throughout the journey in which I
was able to acquire higher opportunities to accomplish my research needs. At last I would like to
thank my seniors as well for assisting me in gaining authentic and accurate information.
Yours sincerely
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Table of Contents
ABSTRACT ....................................................................................................................................2
ACKNOWLEDGEMENT...............................................................................................................3
INTRODUCTION ..........................................................................................................................5
Overview of the topic.............................................................................................................5
Research aim..........................................................................................................................5
Research Objectives ..............................................................................................................6
Research Question..................................................................................................................6
Rationale of the research........................................................................................................6
LITERATURE REVIEW................................................................................................................7
What is concept and significance of HR approaches in context to banking sector?..............7
What are the changes in HR approaches in the UK banking sector after Covid-19?...........10
What are the challenges faced due to changes in HR approaches by banking sector in UK?13
RESEARCH METHODOLOGY...................................................................................................16
FINDINGS AND DISCUSSION ..................................................................................................19
Data analysis ........................................................................................................................19
Discussion.............................................................................................................................29
CONCLUSION AND RECOMMENDATIONS..........................................................................36
CONCLUSION....................................................................................................................36
RECOMMENDATIONS.....................................................................................................37
REFERENCES..............................................................................................................................39
APPENDIX....................................................................................................................................43
APPLICATION FOR ETHICAL CLEARANCE FORM....................................................43
Questionnaire .......................................................................................................................44
Frequency distribution table ................................................................................................45
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INTRODUCTION
Overview of the topic
The current study is based on the topic of human resource department which is
considered as the most important part of the company as it helps in recruiting and selecting
talented staff for working towards achieving the goals and objectives in the competitive market
(Zhu, 2019). The HR approaches are the most effective method that helps in deriving employees
to work more efficiently and effectively for achieving high growth and productivity in the
business market. Covid-19 has effected the banks adversely and this has reduced the working
capability of the employees to produce effective work quality. Covid-19 has resulted in
decreasing the value of the banks as customers are not visiting the bank for doing transactions
and for this the banks needs to improve their online presence so that they receive business online
also. Human resource management helps the bank in hiring employees online so that they do the
work according to the norms and procedures mentioned by the government. The HR department
mainly focuses on maximising the performance of the employees that are working for the
organisation towards the employer strategic goals. Human resource department is the soul of
every organization as it helps in motivating and inspiriting employees to do work for producing
more enhanced results and for gaining high success in the time of pandemic (Liu and Meyer,
2020). bank of the UK is of great importance from the view point of the customers as it helps in
delivering better service to the customer so that they receive huge business for enhanced growth
in the business market. The HR department mainly focus on developing online facilities so that
employees can work from heir home in order to get them prevented from the effect of the virus
(Bell, 2005). The current study defined about the importance and role of HR approaches in
reducing the impact of Covid-19 in the life of the employees that are working in the bank for
earning their basic livelihood. The research also identifies various challenges that bank face with
the effect of the Covid-19 across the world which results in decreased profitability and
productivity.
Research aim
The main aim of this research is “To identify how has HR approaches has changed post
coved in the banking sector of the UK”.
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Research Objectives
 To know the concept and significance of HR approaches in context to banking sector
 To understand the changes in HR approaches in the UK banking sector after Covid-19.
 To examine the challenges faced due to changes in HR approaches by banking sector in
UK.
Research Question
 What is concept and significance of HR approaches in context to banking sector?
 What are the changes in HR approaches in the UK banking sector after Covid-19?
 What are the challenges faced due to changes in HR approaches by banking sector in
UK?
Rationale of the research
The main purpose of carrying out thus present research is identifying the importance of
HR approaches in improving the position of the banks of the UK during Covid-19 pandemic.
This is considered as an important topic of the research that helps in gaining knowledge about
the given topic in an effective and efficient manner for the overall development of the bank
(Reis, 2018). The investigation is helps the researcher in gaining in depth information about the
chosen research topic so that future research can be conducted in a proper manner and quality
and reliable information for other researcher in case they want to perform future research. The
following research fulfils two types of objectives from the view point of the researcher which are
defined as personal and professional objectives. In context of personal objective, this helps the
researcher in gaining detailed information about the given selected topic so that the improve their
way of working and also for engaging in the working activities effectively and reliably. In
context of professional objectives, the researcher will gain effective information about the
chosen topic which is easily understandable. It helps the companies in gaining new and
innovative ideas fro dealing with the present situation effectively and efficiently.
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LITERATURE REVIEW
It is the chapter that covers second-hand in relation to the research topic. This is the
section which majorly focuses over addressing each research question with great quality
information. It is the chapter which holds major data about the whole investigation and also aims
at finding research gap by collecting in-depth insights. Some of the secondary sources used in the
current study are: books, publications, articles, magazines, newspapers and so on.
What is concept and significance of HR approaches in context to banking sector?
According to Shaban (2019), bank is one of the significant financial pillars of every
economy. In today's increasing volatile and complex business world, companies are putting great
efforts to continue their business operations and succeed. In an organisation, HRM practices hold
great importance because it helps in their survival and existence in the presence of high
competition. In simpler words, human resource management practices define the organisational
activities focused at managing employees and ensure the resources are used towards the
attainment of company's objectives and goals.
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Illustration 1: Functions of Human resource department
The above illustration states that there are 12 major functions of human resource
department which are associated with providing edge to the employees so that overall personal
and business benefits can be provided. The first function is related with career planning in which
HR personnels are needed to provide career planning for their employees so that they can be
retained for longer duration of time. Another major function is related with recruitment and
selection so that under this skilled employees are recruited so that employees skills and
capabilities can be used in order to attain business objectives. Another prominent function is
related with performance management which means that the HR department is needed to use
several methods so that they can manage individual employee performance and acquire success.
On the other hand, another function is related with providing health and safety measures to
employees so that they can enhance their time of retention can be increased. During the time of
COVID-19 the major focus of all the organisations were to increase safety and hygiene measures
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so that safe environment can be provided to employees and customers. For banking industry as
customer footfall is high so that this can be said that the organisation is needed to adopt various
strategies. In the terms of banking industry as the banking functions are executed by employees
so that this is imperative that to have HR management so that individual needs of employees can
be understood.
Skilled and efficient employees are necessary in the organisation because they focus on
managing the financial risks that the banks require to take on continuous basis. The department
of human resource is majorly responsible to find talented employees and assigning them right
positions and responsibilities in the bank. For every company dealing with employees needs an
effective human resource management (Mwita, 2019). For bank, the significance of human
resource management has gained a lot of because of volatile nature of banking industry and the
main reason behind its volatile nature is that it is service-based. An effective management of
people in a company along with controlling the financial and economic risks at broader level is
one of the biggest challenges especially for banking industry.
Financial risks within banking industry can be controlled only by having skilled and
efficient manpower. Thus, the human resource department of banking industry is mainly
responsible to find talented employees and place them in apt jobs. Besides risks, an employee
working in a bank needs to handle day to day activities by keeping customer satisfaction in mind.
The employees working at the front of the bank become the face of the bank and it is the duty of
HR to appoint a candidate who is eligible to working up front (Rowland, Hall and Altarawneh,
2017). HR of the organisation makes sure that applicants chosen in the banks are provided with
necessary trainings so that they commence their work and get familiar with the nuances of the
customer relationship and core banking industry. The management of HR always thinks about
the quality as well as quantity needed in the bank and deal with the lack of skilled employees in
the organisation effectively and efficiently. Some of the significance of human resource
management in bank are:
Planning ahead for recruitment: The changing and volatile nature of banking industry,
with a steady growth and development in the past decade, has given outcome of many vacancies
and overall development in the banking industry. The management team of human resource is
majorly responsible for analysing future needs of bank in respect of new candidates and
applicants to carry out business functions and operations (Mousa and Othman, 2020). Thus, HR
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steadily calibrate recruitment procedure in the organisation so that every function and operation
of the organisation can be carried out effectively and efficiently.
Maintaining a balance of experienced and newly graduates in the workforce: The
changing nature of banking industry with emergence of core banking services and online
banking, there is a requirement to commence youth energy and exuberance in operations.
However, with an effective HR team, bank maintains the fine balance between experienced
professionals and youth energy, to form it a fruitful and successful combination (Mahmood and
et. al., 2019). Thus, the HR management is mainly responsible to maintain the balance and
undergo some management and cultural adjustments to fit in the employees operating.
Training and development of the manpower: The method of operating and technology
within bank is continuously changing with a faster pace. It not only includes machines, but
methods to several schemes, banking facilities and policies are changing with time. The newly
recruited candidates and the older employees, require to undergo essential training sessions for
grasping the knowledge and skills time to time (Cuéllar-Molina, García-Cabrera and de la Cruz
Déniz-Déniz, 2019). The human resource management of the bank makes sure that employees
operating are not facing any discrepancy. Encouraging and motivating employees with the
necessary training and comparing the performance afterwards, is what mainly the human
resource department requires to look after.
Talent spotting and performance management: The human resource management is
responsible to measure the overall performance of the whole workforce operating in different
departments of the bank. They majorly focuses over employees who lack the needed motivation
to work in the workplace and try to assist them in improving their performance for the success of
the bank (Eneizan and et. al., 2021). For giving the significance to the hard-work and dedication
of workforce, the HR department gives the right promotion and praise to them.
Keeping an eye on resignations and retirements: Retention of talent working in the
organisation is one of the most important responsibility of HR department. This team is majorly
responsible for making arrangements to stopping the resignations that the workforce is providing
to a specific company (Budhwar and Mellahi, 2018). They require for analysing and assessing
the reasons behind employees leaving the organisation so that they can be put into better
condition and situation. The HR team also focuses over having an appropriate record about the
planned retirements in forthcoming years.
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Understanding personal needs of the employees: Workforce in an organisation seeks for
great value. They focus on working and operating even harder one they get to know that they are
significant source for an organisation (Khan, 2017). Offering pay perks for good operations,
keeping some personal data and wishing them, allowing leaves and offering promotions to
employees etc. All these needs of employees are fulfilled by the HR department of the bank
because they always keep open and transparent communication in the organisation.
What are the changes in HR approaches in the UK banking sector after Covid-19?
As per the view of Kutieshat and Farmanesh (2022), change is the new trend that helps in
developing new practices that results in creating a positive working environment for employees
so that they work efficiently and effectively. Human resource department is the main part of the
company that helps in recruiting and selecting new employees for the business in order to attain
the aim and objectives of the business in a more successful manner. COVID-19 has effected the
business operations of UK bank as customers are not visiting the banks due to complete lock-
down situation all over the world (Lelissa, 2020). Employees are the strategic asset of the
business as they are the only one who work in an effective manner in order to achieve high
growth and success in the highly competitive bank. It is the responsibility of human resource
management to train employees in an effective manner so that they work in a proper and efficient
way for achieving the predetermined goals of the business (Jackson, 2022). The approaches used
by human resource department helps in delivering high performance from the employees in the
bank for attaining large number of customers towards receiving the services of the prescribed
bank. Change in the HR approaches helps during the time of COVID-19 pandemic helps in
improving the working culture of the company in an appropriate manner. Strategic human
resources is considered as creating a strong connection among the human resources of the bank
and with its strategies, objectives and goals of the business in the competitive market.
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Illustration 2: Changes in HR approaches after COVID-19
The illustration stated above demonstrates that there are several approaches which has
been used by HR after the outbreak of COVID-19. Approaches such as using digitalisation,
resilience, sustainability and business strategies are the major HR approaches which are being
used by the banking industry so that situational of crisis can be handled and needs of employees
can be managed. The banking industry is directly related with executing business functions with
the help of efforts of employees so that using significant changed HR approaches this will be
helpful for the industry to manage the situation of crisis.
The main aim of the strategic management of human resources during the time of
pandemic is to boost the culture of the workplace so that they feel safe and protected while
working. It is the main responsibility of the human resource manager of the bank to make
strategic changes in order to promote a healthy and positive working environment for employees
so that work in a same manner for achieving the business objectives (Hemachandra and Sharkasi,
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