Blog 06 :Talent Acquisition and Recruitment Strategies in Sri Lankan Banks: An HRM Perspective

Introduction

Human Resource Management is the crucial function that ensures the correct people are in the right jobs and roles in a bank. In Sri Lanka, the banking industry is part of a competitive financial sector where skilled staffing has become a key enabler for efficiency, regulatory compliance, and customer satisfaction. Effective talent acquisition is not a recruitment exercise but reflects strategic HRM aimed at aligning workforce planning with organizational goals.

From an HRM perspective, recruitment in Sri Lankan banks involves both strategic and operational functions. Strategic HRM places much emphasis on making sure that talent acquisition is in line with the bank's long-term objectives. For example, Commercial Bank of Ceylon PLC recruits trainees and develops them into leadership positions, reflecting HRM's role in succession planning and human capital development (Commercial Bank, 2025). Similarly, HNB PLC's HR transformation shows how HRM integrates performance management and job-banding with training to retain talent and improve productivity (HNB, 2025).

Operational HRM functions can also be observed in the systematic selection process followed by banks. Apart from conventional practices like campus recruitment and internal promotions, the new ways of competency-based selection, online assessment, and social networking sites are also being used. Such practices reflect some basic concepts of HRM: job analysis, workforce planning, and selection to get appropriate skills and culture fit (Noe et al., 2020). Onboarding and training programs further establish how HRM works in employee development for changes in technology and regulatory requirements (Dessler, 2019).

Employer branding and employee engagement initiatives illustrate the retention and motivational focus of HRM. Sri Lankan banks apply these HRM theories of Maslow's hierarchy and Herzberg's two-factor theory through the creation of an attractive work culture, offering career progression opportunities, and performance-linked rewards that improve satisfaction and commitment (Bratton & Gold, 2017).

Conclusion

Talent acquisition in Sri Lankan banks represents a clear reflection of strategic and operational HRM practices. The blending of recruitment, selection, on-boarding, training, and retention strategies at banks like Commercial Bank and HNB helps explain how HRM adds to competitive advantage. Effective HRM ensures banks not only recruit skilled employees but also develop, motivate, and retain them to achieve long-term organizational success.

References

1.Armstrong, M. (2020) Armstrong’s Handbook of Human Resource Management Practice. 15th edn. London: Kogan Page.

2.Bratton, J. and Gold, J. (2017) Human Resource Management: Theory and Practice. 6th edn. London: Palgrave.

3.Dessler, G. (2019) Human Resource Management. 15th edn. Boston: Pearson.

4.Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2020) Human Resource Management: Gaining a Competitive Advantage. 11th edn. New York: McGraw-Hill.

5.Commercial Bank of Ceylon PLC (2025) Annual Report, available at: https://annualreports.lk/combank2016/mda/human_capital.html (Accessed: 3 November 2025).

Student ID- 25026307