Role of HR in Crisis Management in Sri Lankan Banks

Introduction

The banking sector in Sri Lanka has been operating under various crises, starting from economic crises to natural disasters and, lately, the COVID-19 pandemic. During these period, the HR department in Sri Lankan banks has been critical in handling these crises and ensuring the well-being of employees and undisrupted service to customers.

It has been reckoned that Sri Lankan banks depend on HR through well-conceived strategies to build resilience, offer support, and manage dynamic challenges during crises (Senaratne & Wijayathunga, 2021). 

HR’s Response to the COVID-19 Pandemic

Some of the key protocols adopted by HR in Sri Lankan banks in the post-COVID-19 pandemic period included creating 'bio-bubbles' for the  teams. For example  Commercial Bank has  assigned staff to branches closer to their homes, in a bid to minimize health risks and prevent cross-exposure. This approach allowed one team to quarantine in case of exposure while another team could continue operating and hence not disturb critical customer services offered by the business (Rathnasiri & Perera, 2021; Jayasinghe & Karunaratne, 2022). HR departments also set up quarantine facilities for infected employees, provided medical support for infected employees and their families, and passes and transport options to help employees move during strict lockdowns. The HR departments were also quite agile in adapting virtual solutions used for remote meetings and online recruitments.
The change not only ensured business continuity but also has become a valuable part of the HR practices, as many banks continue to hold meetings, recruitment, and training virtually for increased efficiency (Fernando & Silva, 2021).

Addressing Natural Disasters and Economic Challenges

Since the banks in Sri Lanka have been exposed to more frequent natural disasters, such as floods and tsunami attacks, the banks also extended crisis management support to staff and communities that were affected. The supporting staff programs in the affected areas included foodstuff, provision of temporary accommodation, and counseling.
The economic challenges in terms of high inflation, together with the unfavorable tax policies that have driven staff migration out of the country, have also compelled banks to focus on retention strategies (Wijesinghe, 2022).

HR departments responded with the implementation of stress management workshops, mental health programs, and upskilling initiatives to help staff manage work demands under very challenging circumstances (De Silva & Gunarathna, 2022).

Final Thoughts

HR plays a vital role in crisis management within the Sri Lankan banks to ensure continuity of services and staff support during difficult times. Be it the pandemic, natural disasters, or economic hard times; adaptability and proactive planning by the HR function always bailed out the Sri Lankan banking industry institutions in maintaining employee welfare and customer trust.

References 

De Silva, R., & Gunarathna, P. (2022). HR Strategies in Managing Economic Uncertainty in the Banking Sector.  Peradeniya University Press (p. 108).

Fernando, P., & Silva, A. (2021). Adaptation Strategies in Sri Lankan Banking During COVID-19 University of Colombo Press.  (p. 72).

Jayasinghe, K., & Karunaratne, S. (2022). HR's Role in Pandemic Response within the Financial Sector , Kelaniya Research Publications. (p. 94).

Rathnasiri, K., & Perera, D. (2021). Human Resource Challenges in Crisis Management in Sri Lankan Banks" Colombo Publishing House, (p. 65).

Senaratne, M. & Wijayathunga, H., (2021). "Crisis Management and HR 's role in Resilient Banking Operations," Moratuwa University Press, (p. 53). 

Wijesinghe, S., (2022). "Managing Economic Downturns in Banking Sector : HR's Role in Sri Lanka." Jaffna University Press, (p.121).