| Abstract: |
The pandemic has been the primary catalyst for rapid digitalization of the banking sector, leading to a fundamental change in the nature of work, the skills required to perform such work, and the performance expectations of employees. By employing quantitative research to study employees of a few India banks, this empirical study examines the influence of digital technologies on employee development and performance. A structured questionnaire was designed and distributed among the sample size of 384 banking employees (in public, private and cooperative banks). This research investigates the interplay between adoption of digital technologies, training interventions, skills for improvement and employee performances. The statistical correlations, regression, and ANOVA analysis showed that digital technology use has a high positive relationship with employee performance (r = 0.782, p < 0.01). The results indicate that operating in an organization that fosters digital ways of working adds up to 34 % performance outcome for employees with higher digital literacy as opponents to employees that have lower levels of digital skills. Moreover, results recognize technology-enabled training as an important mediating variable, leading to enhanced employee adaptability and productivity. The research also identifies challenges like digital anxiety, resistance to change and lack of training infrastructure. Findings reveal that digital upskilling initiatives (as long as they are ongoing) lead to better level of confidence, strategic decision making and customer service capabilities. This study adds to the ongoing discussion by providing empirical insights into the multifaceted roles of digital technologies in reshaping the skill needs of bank employees and the implications for human resource management and policy, providing practical directions for bank HR managers and governmental policymakers to better align digital transformation strategies with the skills requirements of talent development in banking. |
