Axis Bank’s bold bet on human capital fuels growth, cuts attrition

WHEN YOU THINK of a bank, numbers often take centre stage. But success isn’t just measured in figures; it’s about people who drive those numbers and the culture that transforms a workplace into a talent hub. This focus on people has secured Axis Bank the fifth position in Fortune India’s Future-ready Workplaces Study.

Business cycles are inevitable, but how an organisation navigates them determines its success. One of modern banking’s biggest challenges is adapting to technological disruptions and increased regulatory scrutiny. “Unlike 15-20 years ago, power has shifted to the customer. Processes that worked before are no longer as effective, and the pace of change is increasing,” says Rajkamal Vempati, the bank’s chief human resources officer.

This transformation has put immense pressure on managers. With 104,332 employees, 5,377 branches, and ₹25 lakh profit per employee, Axis Bank is building a people-centric model that fuels growth. “During uncertainties, people expect managers to have answers — even when they don’t. They manage performance pressure and expectations,” says Vempati.

A key initiative proactively involves addressing employee distress. “Often, it’s not harassment but a new employee struggling to adjust. Instead of a punitive approach, we use proactive HR reach-out to counsel and educate. This is done discreetly to avoid a ‘Big Brother is watching’ atmosphere,” explains Vempati.

The bank fosters a thriving environment backed by transformational initiatives. Project Thrive, for instance, prioritises internal career growth over external hiring. Last year, it helped 4,500 employees transition into new roles. “Every job is posted transparently, allowing employees to explore opportunities without manager interference,” reveals Vempati.

Leadership development programmes AHEAD and ASTROS groom high-potential employees for top management. Partnerships with IIMs and IITs ensure a strong, diverse leadership pipeline. The talent strategy also focusses on inclusivity. The #ComeAsYouAre initiative and WomenInEveryTeam movement have increased representation, with women making up 25% of new hires in FY24. The ARISE programme has brought fresh talent from non-traditional backgrounds, with over 26,000 women employees. Women’s hiring in the microfinance business has risen from 4% to 27%. “We have changed the narrative where women leave due to life-stage events. Today, women’s attrition rates have matched or fallen below men’s,” says Vempati.

Even amid tighter market conditions, the bank has expanded key workforce areas, adding 2,729 employees in FY24, mainly in growth-focussed businesses and technology. “Organisations must become more human as they go digital. Leaders must engage, listen, and shape workplace culture,” Vempati notes. Investing in human capital aligns with its digital expansion, including new banking solutions like Neo for corporates and businesses.

It’s often said that a fat paycheque brings employees in, but a strong culture keeps them there. “High attrition results from mismatched expectations,” says Vempati. To counter this, Axis Bank has implemented peer training, supervisory coaching, and workgroups. Employee engagement is now a real-time, ongoing effort. The results show: attrition has fallen from 34.8% in FY23 to 28.8% in FY24. Notably, after integrating Citi’s retail business, 97% of employees stayed on. “Attrition among Citi staffers is far lower than before,” Vempati adds.

Even as the bank is subject to quarter-on-quarter assessment on the Street, it is keen to build an institution that thrives across business cycles. Understanding that traditional learning methods are becoming obsolete, the bank has introduced Instagram reels-style microlearning. “We analysed employees’ content consumption habits and realised that long training sessions were ineffective,” Vempati shares. Instead, employees are sent five-to-seven-minute videos daily — covering sales pitches, service handling, and much more. “Employees watch a short video, take a gamified quiz, and see their progress,” explains Vempati.

In the coming days, microlearning, AI-driven training nudges, and learning-in-the-flow-of-work will be major priorities at the bank. In other words, it’s a validation of a vision where business and employee successes are deeply intertwined.