In a strategic move aimed at mitigating concentration risk and strengthening its micro-banking vertical, ESAF Small Finance Bank has absorbed 5200 employees from its business correspondent (BC) partner, ESAF Multi-State Agro-Cooperative (ESMACO). This integration allows ESAF SFB to directly manage microloans and expand its reach in serving the rural population. The transition marks a significant milestone in the bank’s efforts to bring business operations in-house while maintaining a strong focus on employee well-being and operational efficiency.
ESAF SFB’s Strategic Transition
The goal of ESAF’s integration process was twofold: to bring ESMACO’s micro-banking operations seamlessly into the bank’s system while ensuring the well-being of the employees during the transition. “We took an approach that balances strategic objectives with a commitment to employee well-being,” said George Thomas, Executive Vice President of ESAF SFB. By keeping this balance at the forefront, ESAF carefully structured the process in phases, each designed to deliver a smooth transition driven by leadership involvement, meticulous planning, transparent communication, teamwork, and a people-centric approach.
Challenges in Transition
Many employees were anxious about the shift, particularly in a multi-location setup where logistical and communication challenges are amplified. Another significant hurdle was executing the transition while maintaining business-as-usual (BAU) operations, ensuring that day-to-day functions were not disrupted.
One of the critical success factors in this transition was effective communication. The bank issued regular updates, shared clear timelines, and offered transparent explanations of the changes ahead, helping employees understand what to expect and how it would impact their roles. “Communication was key to overcoming employee resistance and uncertainty. We made sure that everyone was kept in the loop and felt supported throughout the transition,” emphasized George.
Teamwork & Operational Continuity
The HR, finance, company secretariat, IT, admin, and business teams worked in close coordination to manage essential tasks such as data migration, user access management, and resource allocation.
Their meticulous planning ensured that all employee information was accurately transferred and operational systems were functional from day one. This collaborative teamwork played a crucial role in preventing disruptions to daily operations, maintaining the smooth functioning of the bank’s business units throughout the transition.
With a tight timeline of just 60 days, ESAF executed the integration with precision and attention to detail. The target transition date was set for July 1st, and the teams worked intensively to ensure all essential operations were ready for that day.
George, noting the importance of the employee-centric strategy, asserted: “Training and support were key in helping employees transition smoothly. Our focus was to create an environment where employees felt supported every step of the way, ensuring they could align with our operational goals.”
By prioritizing open communication and personalized engagement, ESAF created a positive, reassuring atmosphere for the transitioning employees.
Tailored Training Programs
To ensure seamless integration, ESAF’s L&D team designed an extensive 2-month employee orientation and support program. This program was specifically tailored to prepare both existing and incoming employees for the operational and cultural shifts that the transition entailed. The training focused on onboarding employees to the bank’s policies, processes, and expectations, equipping them with the necessary skills and knowledge to excel in their roles.
The highlight of this effort was the ‘unnati program.’ The goal of the unnati program was to orient transitioning employees and align them with ESAF SFB’s organizational mission. The program covered essential topics such as: (i) Organizational mission, vision, values and HR policies (ii) Banking and small finance banking, including the importance of financial inclusion (iii) Regulatory compliance, know your customer (KYC), anti-money laundering (AML) and (iv) Opportunities within the bank and work etiquette
Ongoing Training & Communication
Even after the initial integration, ESAF continues to focus on training to ensure the workforce remains aligned with the bank’s evolving goals and operational culture. A one-week ‘business workshop’ was conducted for zonal heads and territory heads of the micro banking channel to familiarize them with the bank’s business strategies and operational frameworks.
Additionally, a ‘pan-India training program’ is currently underway for customer service managers and area managers. The next phase of training is also planned for ‘customer service executives’, ensuring that all levels of staff are continuously developed and aligned with the bank’s goals.
From the onset of the transition, ESAF placed a strong emphasis on communication to ensure that employees felt informed, supported, and engaged throughout the process. According to George: “Communication was pivotal to the success of the transition. We prioritized a people-first approach by engaging each transitioning employee personally.”
This people-first strategy began with issuing intimation letters to each transitioning employee, formally informing them about the transition and their roles within the bank. The bank’s management also held regular meetings to keep employees updated and ensure transparency in the process.
Seamless Transition Initiatives
To facilitate a smooth transition, ESAF conducted a sensitization program led by its top management for cluster heads and branch heads. This program was designed to brief them on the transition process and onboard them effectively. One of the standout initiatives was the introduction of a ‘buddy system,’ where members of ESAF’s HR team were assigned to partner with transitioning employees from ESMACO’s HR team.
In addition, ESAF’s talent acquisition team conducted dedicated training and briefing sessions for the recruitment team from ESMACO. The goal was to orient them on ESAF’s recruitment processes and procedures, thereby aligning them with the bank’s talent acquisition and onboarding practices.
A significant aspect of the integration involved aligning the HR policies and practices of ESAF with those of the incoming employees. As part of this effort, ESAF provided the transitioning employees with detailed documents covering the terms and conditions, code of conduct, grade structure, and policies of the bank. These documents were accompanied by a welcome kit, which served to introduce the employees to ESAF’s operational and cultural framework.
Warm Welcome
ESAF organised a grand launch event to formally welcome the transitioning employees. The event featured addresses from ESAF SFB’s management team, who personally greeted and congratulated each new team member. Employees received a joining kit along with a rose, a gesture that not only symbolized the warm welcome but also reinforced the bank’s commitment to valuing its employees.
With the successful management of this large-scale workforce integration, ESAF SFB has made significant strides in building a resilient, diversified, and future-ready organization. The bank’s strategic foresight, meticulous planning, and exceptional execution have laid a strong foundation for the continued success of its operations.
ESMACO’s Continued Operations
ESMACO will continue its role as the bank’s largest business correspondent (BC). George stated: “ESMACO will continue to be the biggest BC of the bank.” While ESMACO’s operations have been streamlined, its branches are not being shut down. Staff who were working from bank premises have been transitioned to the bank’s rolls, becoming part of the workforce.
ESMACO previously operated 2 types of offices, and while those based in bank branches have integrated into the bank, the standalone Customer Service Centres will remain under ESMACO’s management, ensuring uninterrupted service for customers.
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