In a move to combat rampant employee turnover, private banks in India are planning to recruit over 50,000 freshers for entry-level positions in the coming year. This surge in hiring is a direct response to the alarming trend of “infant mortality” among newly hired employees, who are increasingly leaving for greener pastures in logistics, delivery services, and other industries.
To combat this issue, banks are turning to campus recruitment, a more cost-effective and efficient strategy compared to recruiting experienced professionals from the open market. This approach allows banks to tap into a pool of young talent with the potential to grow within the organization.
The high attrition rate has been particularly pronounced at the junior levels, with some banks experiencing turnover rates as high as 50-60%. This mass exodus of early-career employees has raised concerns about the long-term impact on the talent pool and the overall growth and profitability of these institutions.
To address these concerns, banks are increasing their campus recruitment efforts. Axis Bank, for instance, plans to hire 12,000 freshers from campuses in the batch of 2024, a four-fold increase from the previous year. This expansion will encompass tier 1, 2, and 3 institutions, and will focus on roles in lending, corporate and branch banking, IT, and analytics.
In addition to traditional campus recruitment, banks are also partnering with educational institutions to offer short training programs, known as academic programs, designed to equip students with industry-ready skills before they graduate. This strategy aims to reduce the time required for onboarding and training new hires.
The surge in campus hiring is also driven by the increasing demand for young workers with digital skills in sales, marketing, and technology. These skills are highly sought after by insurance, retail, and fintech companies, leading to increased competition for talent.
To attract top talent, banks are offering competitive salaries ranging from ₹5 lakh to ₹8 lakh for freshers in tier 2 and 3 colleges, and up to ₹30 lakh for those with digital skills and experience from premier business schools and engineering colleges.
By ramping up campus recruitment and offering attractive compensation packages, private banks are hoping to stem the tide of attrition and secure a steady pipeline of skilled professionals for the future.