HUMAN RESOURCE MANAGEMENT AS A STRATEGIC TOOL FOR BANKING SECTOR GROWTH

Abstract

In an era marked by rapid technological change, regulatory complexity, and intense competition, banks can no longer treat human resource management (HRM) as an administrative function. This paper argues that HRM—when oriented strategically—becomes a core driver of sustainable growth in the banking sector. Drawing on contemporary HRM theory and sector-specific challenges, the paper synthesizes how strategic HR practices (workforce planning, talent acquisition and retention, competency development, performance management, and employee engagement) align with organizational objectives to improve productivity, innovation, customer satisfaction, and regulatory compliance. A conceptual methodology is used to integrate literature and best-practice examples into an actionable framework that bank managers can deploy. The paper concludes with practical recommendations for embedding strategic HRM in banking institutions and suggests directions for empirical research to validate the framework.