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Private Banks Set to Hire 50,000 Entry-Level Employees to Tackle High Attrition
November 29, 2023
In response to the escalating challenge of high attrition rates, private banks in India are gearing up to hire a substantial workforce of at least 50,000 individuals for entry-level positions in the coming year. Faced with what they term as “infant mortality,” referring to the trend of freshly recruited employees swiftly departing for roles in logistics, delivery services, and other sectors, banks are increasingly turning to campus recruitment as a cost-effective solution.
Upasana Agarwal, Partner at ABC Consultants, an executive search and talent advisory firm, emphasized that attrition at junior levels can reach alarming rates of 50-60%. To counter this, banks are turning to campus hiring, allowing them to build a talent pool efficiently and cost-effectively.
Attrition has affected private banks across the board, with HDFC Bank experiencing 34.15% attrition in FY23, IndusInd Bank at 51%, and ICICI Bank at 30.9%. Junior levels in non-supervisory segments are particularly impacted by early departures.
Experts warn that while the short-term effects of attrition may be manageable, the long-term consequences could significantly impact the quality of talent within organizations, affecting growth and profitability prospects.
Axis Bank, for instance, plans to hire around 12,000 individuals from campuses in 2024, a significant increase from the previous year. The emphasis will be on profiles related to lending, corporate and branch banking, as well as roles in information technology (IT) and analytics.
The surge in campus hires aims to address the rising demand for digital skills in sales and marketing, especially in the realms of insurance, retail, and fintech. To remain competitive, banks are offering attractive salaries ranging from ₹5 lakh in tier 2 and 3 colleges, reaching up to ₹8 lakh for candidates with digital skills. Premier business schools and engineering colleges are witnessing salary ranges of ₹20-30 lakh and ₹15-20 lakh, respectively. The move is not only seen as a response to talent loss but also as a strategic effort to stay relevant in the evolving banking landscape.
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