How banks can retain talent?

In countries like USA, youngsters never leave an opportunity of working in a bank since there, not only the job of Bank is considered as highly attractive, but the workers are being paying high salaries as well. In India, the work environment in banks prohibits youngsters to opt from banking as Indian banks cannot give such challenges as American banks and high salaries as well.

giving better growth prospects environment and salary

Indian Banks grow slowly and consistently, over a period of time. They require to serve a vast clantile some of them are rich and most of them are not rich. In a PSU Bank, you do not get thrill and challenge everytime, here things are learnt thrugh experiences and in a passage of time only.

In an Indian PSU Bank, U  may require to work in a Metropolitan city or even at the remotest village of the district where electricity has not reached as yet. U may require to deal in Foreign Exchange or some years after U may be seen disbursing Agricultural Loans to the farmers.

In a PSU Bank, premises may not always be posh, most ideally situated, may not be AC necessarily. Some of the clients may be illetrate and vey old, they may ask same thing time and again as they are not so confident, U may require to fill up their forms and papers, no outside agent will bring business for U, no performance bonus / incentives are offered to the staff, U get increment only once a year etc. etc.

Not that U may require to take risky decession everytime in a PSU Bank. The main theme : try to bring wealth for your customers, if possibel, but never let them suffer a loss. A real "low profile" activity  .. some may say. So, if things do not fit you : U simply leave... may be some other country ( say USA) is calling U.

................ Salary and Parks : The salary is decided by Industry Body (IBA) and workers in every four years. All uniform in all PSBs ( they are huge in numbers to cover rural / semi-urban / urbans and Metros) barring a few fringe benefits in some. Initial pay is not high but grows in course of time. For promotions, generally Professional  Degrees like CAIIB is honoured most - even one may be a MBA or anything.

The major reason why people quit bank jobs is the kind of pressure they are taking and like many shared, better rewards, both monetary and non monetary should be considered.

Even for entry level jobs, the selection, training, job profile etc should be based on what the bank and the employee can jointly offer towards the different verticals like – corporate banking, rural area banking, agriculture lending and support , industrial credit etc. So that through proper resource allocation, while the employee gets better job satisfaction, the bank and the society can benefit from the better performance.

Also most of the people who clear bank tests are not interested in a career in banking.  PSU banks will only consider the banking test ( which tests the candidates ability in English, reasoning, mathematics and general knowledge) for selection. While this on one hand allows people from all backgrounds to have equal chances and is appreciated on that ground, but on the other hand, I surmise a considerable degree of slack in prospects of the entire procedure

I personally know many people from engineering background with no genuine interest in banking career ( who have better aptitude and mathematical skills vs candidates from other back grounds ), taking banking jobs as a resort till they get a government job in their core areas. Under the existing selection procedure they will have an edge over those with genuine interest and later will leave making the whole exercise a waste of time and resources.

Banks consider and recommend courses like CIIB provided by institute of bankers for promotions. Then why can’t they consider the diploma in banking ( which tests ability in mathematics, banking functions and procedures, bank laws and finance etc) given by the same institute as an entry criteria for junior level openings for a percentage of the available seats . Even for people from non finance background, clearing is not difficult. This will allow the potential employee to have a taste of what his future will look like, will aid them during their initial years of employment and most importantly will foster and capacitate them to excel in their career ( as they will look forward to professional and expert level knowledge   –  for promotions banks will give credit to professional education in the field of banking).

Or to be precise just turn the concept of Banking job to Banking career and appreciate genuine interest.

Leena

I would say the facilities including monetary benefits are not provided well in nationalised banks.In a MNC bank, a performer gets cash awards,international trips,huge bonuses,offsite at gud locations,these all benefits are in addition to the salary which they get.You go to a Branch of MNC Bank and a nationalised bank,the aura is completely different.The Nationalsied banks should hire more agreesive guys and pay them gud salaries with the other benefits.

Youngsters general come with high expectations that they will be able to play a role in changing the banking scenario. They get mostly routine jobs where there is no decision making opportunities mostly implementing some one else's ideas. They get disillusioned. Salary also plays a part. It is for the banks to recruit youngsters in decision making position for infusing new blood and new thought process to give a new direction to the banking scenario and its development