WITH AI reshaping workplaces at an unprecedented pace, organisations are evolving rapidly — from hiring and performance analysis to efficiency-driven tools. Companies that adapt to these changes stay ahead. ESAF Small Finance Bank, which has been ranked third in Fortune India’s Future-ready Workplaces study this year, is transforming its HR strategies to build a resilient, performance-driven, and innovation-led workforce.

MD & CEO K. Paul Thomas says the bank is integrating AI-driven HR solutions to streamline recruitment, enhance performance management, and engage employees efficiently. “Our digital-first approach ensures seamless hiring, particularly for tech-savvy young talent, while fostering a culture of continuous learning and upskilling,” he says.

George Thomas, executive vice president (HR), says the lender works with the ethos of a “future-ready organisation” that starts with internal improvements and leads to efficiency, transparency, and strong employee engagement.

The Thrissur, Kerala-based bank, works across multiple areas to ensure future readiness — digitalised recruitment system, online data migration, user access management, and resource allocation, and continuous technical and soft skills training for its 5,000-strong workforce. “We are integrating AI-driven HR solutions to streamline recruitment, enhance performance management, and engage employees efficiently. Our digital-first approach ensures seamless hiring, particularly for tech-savvy young talent, while fostering a culture of continuous learning and upskilling,” says George Thomas.

The bank has implemented a digital recruitment system that automates hiring and integrates AI to connect with young, tech-savvy talent. George Thomas highlights the bank’s Performance Management System and incentive dashboard that provide real-time insights into rewards, fostering transparency, and motivation. “Employees see performance-based incentives, thus boosting engagement. Our learning & development programmes equip employees with functional, technical, and soft skills for career growth,” he says.

A company’s core values are the basic foundation of its growth as they define the workplace culture. Thomas says the bank works on the core of “servant leadership”, alongside customer-centricity, accountability, transparency, and commitment. “Rooted in the ‘People First’ approach, this principle is deeply embedded in our culture and is celebrated annually as Servant Leadership Day on our MD’s birthday (on May 21),” says George Thomas.

ESAF received the Reserve Bank of India’s approval to establish a small finance bank in October 2015, and started operations on March 10, 2017. The bank’s HR chief says its initiatives like ‘Cake of Compassion’ and ‘Shramjyoti’, where employees distribute cakes to the underprivileged during Christmas and take part in voluntary community service, have strengthened engagement with employees. “We also follow the Kaizen principle to maintain an organised workplace and introduce a corporate theme each year to align employees with our mission. This year’s theme is ‘Envision. Embrace. Empower.’”

ESAF’s initiatives like the Young Leaders Programme, Aspire Leadership Programme, and SMART Programme have equipped youth, women, and senior management with the right skills. “Our mentorship programmes connect employees with experienced leaders for career growth. Structured programmes like the Young Leaders Programme and Aspire Leadership Programme — focussed on developing youth leaders and women leaders — help build a strong pipeline,” says George Thomas.

Under the SMART Programme, leadership workshops and targeted training in people management and business execution have provided opportunities for employees to grow, says the HR chief. “High-performing employees benefit from skip level (double) promotions for accelerated career growth. We also partner with the Institute of Rural Management Anand to provide specialised leadership training, ensuring a steady flow of internal talent into strategic roles,” he says.

Thomas says to support employees’ mental health, financial security, and overall work-life balance, ESAF prioritises employee well-being and engagement. “Our ESAF SARG initiative supports employees through programmes focussed on physical well-being (walkathons), mental health (well-being seminars), intellectual growth (wisdom talks), and emotional development.” The ESAF Staff Welfare Trust also celebrates every important festival.

According to Thomas, ESAF’s priorities in terms of HR strategy in the next three to five years is to boost employee efficiency and their overall work experience. “We are streamlining processes through automation, certification, and digital learning platforms to enhance efficiency and employee experience.” The bank seems well on the path to become a future-ready workplace.