State Bank of India (SBI) has a much lower attrition rate than private sector banks. In the current year, there were only 540 resignations out of a total employee base of 250,000. This is about 3% attrition, which is much lower than the 30-35% attrition rate in private sector banks.
There are a few reasons for this difference in attrition rates. First, compensation packages in PSBs are generally better than those in private banks. Second, there is a talent crunch in the state-owned banking space, especially in functions like risk management, compliance, analytics, and technology. This means that PSBs are able to retain their employees more easily than private banks.
However, the attrition rate in PSBs is starting to rise at higher levels. This is because the expansion of industry and the economy are producing ample job opportunities, which is making it more difficult for PSBs to retain their top talent.
In addition, young employees are increasingly taking a second look at their career choices. This is partly due to the post-Covid phenomenon, which has prompted many people to re-evaluate their priorities. As a result, we are likely to see even higher attrition rates in the banking sector in the coming years.
- The difference in attrition rates between PSBs and private banks is likely to widen in the future.
- PSBs need to find ways to attract and retain top talent in order to remain competitive.
- The rising attrition rate in the banking sector is a challenge for both PSBs and private banks.