RBI Governor Shaktikanta Das said on Tuesday that attrition at some private sector banks is high and the central bank is closely monitoring the issue. Das made the comments at an industry event in Mumbai, amid reports of some major banks reporting attrition rates of over 30%.
He said that the career outlook of youngsters has changed with regard to job switching, and that the youth is “thinking differently” on this aspect. He attributed the high attrition rate to the fact that this is an “impatient generation”, where youngsters are switching jobs faster than the earlier generation.
Das said that the RBI is looking at the issue closely because it understands that the times have changed, and that banks need to give greater focus on reducing attrition. He added that the RBI prefers leaving it to the management of banks to deal with the issue, rather than prescribing any specific solutions.
What is attrition?
Attrition is the gradual reduction in the size of a company’s workforce due to voluntary employee departures. It is a natural part of any business, but high attrition rates can be costly and disruptive.
Why is attrition high in private sector banks?
There are a number of reasons why attrition rates are high in private sector banks:
- The banking sector is becoming increasingly competitive.
- The work pressure is increasing in banks.
- The working hours are not flexible in banks.
- The salary is less in banks compared to other sectors.
Apart from these, there are various other reasons for attrition in banks.
What can private sector banks do to reduce attrition?
There are a number of things that private sector banks can do to reduce attrition. These include:
- Offering competitive salaries and benefits
- Providing opportunities for career growth and development
- Creating a positive and supportive work environment
- Investing in training and development programs
- Offering flexible work arrangements
By taking these steps, private sector banks can attract and retain top talent, and reduce attrition rates.
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