A Comparative Study of the Impact of COVID-19 on the Workforce of Selected Health, Banking & Insurance Sectors

Abstract

Background
The COVID-19 pandemic, which emerged in early 2020, imposed unprecedented challenges on organizations globally. Sectors such as healthcare, banking, and insurance faced significant operational and workforce management difficulties. Human resource management (HRM) had to adapt quickly to ensure continuity while maintaining the safety and morale of employees. The healthcare sector, due to its direct contact with patients, faced particular strain, while banking and insurance sectors had to navigate rapid digitalization and work-from-home arrangements. This study investigates the organizational responses of HRM in these sectors during the COVID-19 crisis, focusing on the strategies employed to maintain workforce efficiency and service delivery.

Materials and Methods

This cross-sectional study was conducted in Raipur, India, over one month (December 2021 to January 2021). Data was collected from HR departments, hospital administrations, and branch heads in Chhattisgarh using online surveys and semi-structured interviews. The study focused on large-sized organizations in the health, banking, and insurance sectors. A total of 100 participants were surveyed, including HR managers, administrators, and policy makers. The questionnaire collected data on sociodemographic profiles, organizational policies, and HR practices during the pandemic. Thematic analysis was applied to qualitative data to identify common themes and strategies used across sectors.

Results
The study revealed that the healthcare sector faced severe workforce shortages and high attrition rates, with nearly 40% of healthcare workers reporting fear and anxiety about exposure to COVID-19. HR strategies such as providing mental health support, training for crisis management, and implementing reward systems were crucial in mitigating these challenges. In the banking and insurance sectors, digital transformation accelerated, with 75% of respondents acknowledging the success of remote work models. However, challenges such as maintaining customer service quality and employee engagement persisted. Approximately 65% of participants reported increased productivity, though cost-cutting measures were prevalent across all sectors.

Conclusion
COVID-19 has permanently altered HRM practices in service-based sectors, particularly healthcare, banking, and insurance. While the healthcare sector relied on immediate workforce management strategies, the banking and insurance sectors embraced digitalization to minimize disruptions. The findings suggest that HRM must focus on developing adaptable workforce strategies, emphasizing employee well-being, digital skill development, and flexible work models to manage future crises effectively.