New recruitment process in PSU Banks - a report

Public sector banks are embarking on a hiring spree to make up for a constant loss of talent at many levels. CNBC-TV18’s Mitra Joshi and Kritika Saxena report that in a move to retain talent, simpler recruitment steps and integrated HR plans are also in the works. One lakh people can get a job at a public sector bank in the next 12 months. That's because these banks are trying to make up for a personnel exodus seen across management levels to higher-paying private banks. Experts say PSU banks could well pick up around 7 lakh people over the next 10 years. And since attrition is an industry problem, banks are pooling resources. MV Nair, CMD, Union Bank of India says, “We are first time trying common entrance test, the idea behind CET is that one from pool each bank can get the candidates they want, through an interview process they can take up for themselves, the idea is to bring down the delay in recruitment itself.” Banks say 40-45% of attrition is seen at the higher management levels... so senior bank executives are also in demand. And banks prefer employee retention to replacement-hiring. MD Mallya says, “We keep on recruiting keeping in mind the requirements at different levels, to ensure that proper grooming is done, proper skill set development is done, and proper leadership development is also addressed so succession plan is adequately ensured. So an integrated HR plan is being discussed at the board level.” However, some experts say this streamlining will not help much. A revamp of pay-grades is a better long-term solution... but the Khandelwal Committee, which was set up in 2009 to improve public sector compensation packages, has not been effective. source: http://www.moneycontrol.com/news/cnbc-tv18-comments/psu-banks-embarkhiring-spree-to-counter-attrition_553948.html