A recent survey conducted by 1 Finance Magazine has highlighted the intense pressures faced by Bank Relationship Managers (RMs) across India. As the banking sector adapts to new technology, changing organizational structures, and evolving labor markets, bank employees are struggling with increasing stress. This environment has led to a significant impact on both job satisfaction and overall wellbeing for bank staff, making stress management a critical concern in the industry.
Key Findings: Sales Pressure and Mis-selling in the Banking Sector
The survey collected responses from 1,655 Bank Relationship Managers across various Indian banks, shedding light on some concerning trends:
- Sales Pressure: 84.3% of respondents reported experiencing high levels of sales pressure, rating it as 3 or more on a 5-point scale.
- Pressure to Mis-sell: More than half (57.56%) of RMs admitted they were encouraged to mis-sell financial products to meet targets.
- Job Security Concerns: 51.52% of RMs revealed they felt insecure in their roles due to fears of job termination for missing sales goals.
- Performance Improvement Plans (PIPs): 26.83% of respondents were put on a PIP at some point in their careers, further increasing job-related stress.
Kanan Bahl, Chief Editor of 1 Finance Magazine, stated, “Bank RMs are being made to sell products they do not themselves understand. This ultimately leads to poor quality advice for customers, with end-users bearing the consequences.”
Job Satisfaction Varies by Bank Type
The survey found noticeable differences in job satisfaction among RMs based on the type of bank:
- Small Finance Banks: 75% of employees at small finance banks reported high job satisfaction, rating it 4 or higher.
- Large Private Banks: Only 33.56% of employees at large private sector banks rated their satisfaction at 4 or higher, reflecting the lowest satisfaction levels in the sector.
- Medium and Small Private Sector Banks: These banks saw moderate satisfaction rates, with 46.53% and 43.79% of RMs, respectively, reporting higher satisfaction.
- Public Sector Banks: 40.74% of RMs from public banks rated their satisfaction at 4 or above, placing them in the middle range.
Bahl added, “We need entry barriers for Bank RMs. Regulators should introduce minimum experience requirements, certifications, and education standards similar to those in place for brokers and advisors.”
High Incidence of Mis-selling in Large Private Banks
An alarming 61.74% of RMs from large private banks admitted they had mis-sold products or were asked to do so, followed closely by medium private banks at 58.42%. This trend, coupled with low job satisfaction, paints a concerning picture of the working environment in private banks, particularly the large ones.
Challenges Faced by RMs: Lack of Support and Unrealistic Targets
Interviews conducted by ETHRWorld with several RMs revealed further insights:
- Target Pressures: RMs noted that monthly targets are often set at levels they feel are unrealistic, contributing to job insecurity. One RM shared, “Management assigns higher goals so we at least meet the minimum required, but this creates constant job insecurity.”
- Limited HR Support: Most RMs reported inadequate support from HR. While some senior executives have access to wellbeing and upskilling programs, frontline RMs are typically excluded.
- Mental Health Impact: The demanding environment has pushed some RMs to depression or resignation. One RM stated, “I would not recommend anyone to join this industry due to the immense pressure and lack of support.”
Call for Industry Reform: Rethinking RM Job Roles and Support Systems
The survey findings suggest an urgent need for the banking industry to reconsider its approach to managing Relationship Managers. Measures like introducing entry-level requirements, improving training, setting realistic sales targets, and providing support systems for employees could enhance job satisfaction and benefit customers.
Without addressing these issues, experts warn the ongoing stress and job insecurity could further damage the mental and professional wellbeing of bank employees, potentially leading to long-term repercussions in the industry.