"We have an attrition level of 35%," said the founder-CEO of Surya SFB. "We have introduced education allowance and health insurance benefit schemes to retain employees. The limits are the same across all employee levels." We have also introduced free group accommodation for junior staff who come from outside Mumbai to ensure they are saving up on rent outgo. Banks are seeing high levels of attrition among their junior staff. At the junior level, the churn is around 32%, and it's happening across the industry in the tech and frontline support staff; managing this is not possible beyond a certain point," said Sumant Kathpalia, managing director of Indus Ind Bank. At the senior level, we have had no exits at all. High attrition rate as new-age companies compete for talent by offering lucrative salary packages, particularly in the IT sector.
Banks like HDFC Bank, Axis Bank, and Indus Ind have seen attrition of between 30-50%. The worst affected is where companies have seen attrition as high as 60% among young employees.
HDFC Bank, which has seen attrition levels of more than 40% in sales officers, is seeing an overall attrition rate of 19%.
"The bank's attrition has gone up to 19% with the reopening of the economy post the pandemic-induced slowdown," said Sashidhar Jagdsihan, managing director of HDFC Bank, at the recently held annual general meeting. The number is "embarrassingly" higher than the efforts that will be made to reduce it.
Axis banks, too, are seeing high levels of attrition among their junior staff. At the junior level, the churn is around 32%and it's happening across the industry in the tech and frontline support staff; managing this is not possible beyond a certain point," said Sumant Kathpalia, managing director of Indus Ind Bank. At the senior level, we have had no exits at all.
Banks across the board have continued to see high levels of attrition, especially among the junior staff, attracted by lucrative pay packets and a surge in talent seeking, especially in the IT sector. They are resorting to giving perks like rental accommodation to new hires from other states and cities. Surya Small Finance Bank is offering an education allowance for children of up to 500 per child to employees whose salaries are less than 25,000 a month. There are 250 employees who have benefited from this.
"As a policy, we focus a lot on building and developing our staff; we recruit freshers; we have our own training center," said Chandra, managing director of the Bank. "We have this infrastructure in place where we keep getting people, training them... To that extent, the impact will be lowed. "
Axis banks, too, are seeing high levels of attrition among their junior staff. At the junior level, the churn is around 32%and it's happening across the industry in the tech and frontline support staff; managing this is not possible beyond a certain point, said Sumant Kathpalia, managing director of Indus Ind Bank. At the senior level, we have had no exits at all.
Banks across the board have continued to see high levels of attrition, especially among the junior staff, attracted by lucrative pay packets and a surge in talent seeking, especially in the IT sector. They are resorting to giving perks like rental accommodation to new hires from other states and cities. Surya Small Finance Bank is offering an education allowance for children of up to 500 per child to employees whose salaries are less than 25,000 a month. There are 250 employees who have benefited from this.
As a policy, we focus a lot on building and developing our staff; we recruit freshers; we have our own training center.
According to data, the total attrition rate among lenders is 48.7%, while those on probation—less than six months of employment—is 76%.
Banks such as HDFC Bank and Axis Bank have experienced attrition of 30 to 50%. The worst affected is the microfinance sector, where companies have seen attrition as high as 60% among young employees in the banking industry.
Thank you for reading this article by Mr Nandhakumar
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