The Hindu Business Line : Banks faced with attrition, poaching woes

Mumbai, Aug. 24 The ICICI group is looking to hire about 20,000 people a year through direct employment for the next few years, said Mr K.V. Kamath, Managing Director and CEO.

The three back office hubs of ICICI Bank, in Bhubaneshwar, Hyderabad and Ahmedabad, have about 20,000-30,000 people at each location.

The bank sees an attrition rate of 15-16 per cent, said Mr Kamath.

One way of addressing the problem of attrition is to create and increase the pool of people with the right skill sets, he said.

For this, ICICI Bank has tied up with educational institutions such as NIIT, ICFAI and Manipal University for integrating the bank’s training modules as part of the curriculum.

Mr Kamath was speaking to reporters on the sidelines of the seminar on human resources development, organised by the Indian Banks’ Association.

Public sector banks are losing more people to private players as a result of poaching, said bank chiefs.

According to Dr A.K. Khandelwal, Chairman and Managing Director, Bank of Baroda, “Each large bank loses about 100-200 people every year.”

The industry sees an attrition of about 1,000 people on a yearly basis. Though poaching is not yet a big concern, it may assume huge significance if it continues to grow at this rate, Dr Khandelwal said.

Senior bankers felt that compensation and incentives were essential to arrest poaching.

“There should be redesigning of the performance management system and banks should work hard on incentives,” said Mr Khandelwal. The government’s performance-based scheme required certain revisions for effective implementation, he pointed out.

The attrition figures of Union Bank of India stand at 27 per cent, said Mr M.V. Nair, Chairman and Managing Director.

He also said that work culture of public sector banks is not in synch with the needs of young customers.

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