The financial services sector has been one of the sunrise industries all over the world. HR issues in the financial sector have been distinctly different and should be seriously viewed considering the sensitive nature of this sector. There has been increasing realization in the financial services sector also as in other sectors, that HR strategy needs to be aligned with the business strategy. This article explains different HR strategies that could affect the productivity and profitability in financial services industry with respect to the key result areas in the financial services sector.business strategy.

In the words of Colin Powel, `Organization doesn't really accomplish anything. Plans don't accomplish anything, either. Theories of management don't matter much. Endeavors succeed or fail because of the people involved. Only by attracting the best people will you accomplish great deeds.'

Organizations, in India, that wish to excel in the global arena must seamlessly weave HR along with their vision statement. Aligning HR strategy with business strategy is the contemporary challenge.

Till the early1990s HR was concerned with activities that were perceived to be mundane such asPayroll, Staffing, and Employee welfare. So much so, that some people when transferred to HR considered it a punishment posting. Post liberalization, the scenario changed completely. The rules of the game changed drastically. Hitherto, we were secure in the closed economy and now we had to reckon with global competition on home turf.

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