Banks pull up socks on attrition

Over 800 employees of the erstwhile IDBI Bank, now a part of the Industrial Development Bank of India, have left the organisation in the recent past. If the number surprises you, consider this: ICICI Bank lost over 4,000 employees last year.

Attrition (average industry rate is 25 per cent) is more than a way of life for the country's private and foreign banks, but the industry is meeting the challenge head on. Super-fast replenishment of stock is the most common way.

ICICI Bank, on its part, has taken 13,500 freshers on board "" 4,000 replacements and an additional 9,500 to create a cushion against future attrition, and meet the demands of business growth. IDBI has already appointed over 900 people.

To stem mass exodus, some banks have also started putting an "exposure limit" on the maximum number of employees they hire from another bank.

For instance, the headquarters of a European bank has directed its Indian operations against hiring any more executives from a private sector bank from which it has already taken some people.

"This is part of the HR prudential norms. If you have too many people from one organisation, you become vulnerable culturally," said an HR consultant.

The consensus among banks is that the surest way of meeting the attrition problem is training, considering that the exit rate is the highest in junior management levels.