Thursday, 25 April 2013

Performance Linked Pay in PSU Banks

State-owned banks, which employ over 800,000 people, could move towards performance-based pay soon, a move that would put them on the same platform as their private sector peers, while helping keep costs under check.

A committee headed by Anil Khandelwal, former chairman and managing director of Bank of Baroda, which had looked into outdated human resource practices at public sector banks, had proposed that salaries be linked to performance. The committee submitted its report two years ago.
This suggestion could now become part of the new wage structure. Talks have already started between banking unions and IBA on wage revision. In 2009, when the last pay revision was announced, public sector bank employees got a 17.5% hike, with retrospective effect from November 1, 2007.
While Indian Banks’ Association is in favour of bringing uniform compensation culture among private and public sector banks, banking unions are opposed to moving to a performance-based pay structure.
About 30% of the staff in government banks would retire by this year. “Talent crunch is a major factor and until we look into the HR policies, it would be difficult for us to attract talent, especially in this competitive environment,” a senior executive at large public sector bank, who did not wish to be identified, told Hindustan Times.
The attrition rate in stateowned banks has also increased significantly in the last few years, with a large number of banks coming up in the private sector space and offering substantially more attractive pay packages.
The Khandelwal Committee report noted that there was an acute shortage of talent in PSU banks, and fresh graduates were reluctant to join a government bank as they failed to provide concrete career growth path to their employees.
The report also underlined that instead of the present industry-level arrangement, wage decisions should percolate to the bank level.

Source: Hindustan Times, 25 Apr 2013

12 comments:

Anonymous said...

its a good news ...............
when implement ?

Anonymous said...

kya chutiyapa hai govt ka?kabhi mantri ya ias ya cent govt employee ya state govt employee ka performance based pay suna hai kya? bank employees ki lene ke mood mein hai govt.being a bank employee is tough.itna zyada work load.bank chodo ssc cgl ki tayari karo.the idiot bank management aise behave krta hai jaise ki bank ka kam rocket science ho.salary wise bank employee to bhikhari hote hain.

Anonymous said...

any news regarding waiting list candidates IBPS PO-II...????

Anonymous said...

ditto man there's no committee for these politisions..isse acha hai private main job karo

Anonymous said...

There wouln't be any waiting list for po2 so start prep for 3rd best of luck 4 that.

Anonymous said...

any chance for waiting list of sbi associate clerk.. plz reply admin.. thanku...

ChetaN said...

Probably It will be there by June or July,,, after initial joining process gets complete in all the banks...

Neeraj said...

Sabse pahle ye system politicians par lagu hona chahiye...

Gayathri Puppala said...

age limit for po3 is 28 r 30

Anonymous said...

bhai sbi milne se koi chodta hai kya...i dont think any waiting list for sbi

Anonymous said...

is system se kya faida hoga...recuitment badhega kya admin..plz reply

POO T said...

I CALL THE INDIAN BANK YESTERDAY REGARDING ALLOTMENT THEY TOLD 60% MARKS MUST REQUIRED IN GRADUTIONFOR JOINING. PLEASE ANYBODY ALLOTED INDIAN BANK PL CALL TO THIS INDIAN BANK NO.044-28134300 FOR ADDITIONAL DETAILS

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