 "Pvt banks push work-life balance, new policies to combat employee burnout")
Indian banks are placing greater emphasis on promoting a healthier work-life balance for their employees, with initiatives to curb extended work hours and limit after-hours communication gaining momentum throughout the industry.
Private banks saw a significant increase in attrition during 2022-23, although it has eased in FY24. High turnover has driven banks to explore policies that help retain talent and address burnout. Meanwhile, public sector banks, which typically have lower attrition due to perceived job stability, have also experienced complaints about workload, with employees increasingly raising concerns about work pressure on social media, according to a report by Mint.
The conversation intensified recently after a video surfaced of Union Bank of India’s executive director, Nitesh Ranjan, advocating for branches to close by 6.30 pm. In the video, which reportedly came from an internal meeting, Ranjan discusses the need to avoid late-night work-related messages, recommending an 8 pm to 9 am break in official communication unless in emergencies.
Work communication
Despite efforts to establish work limits, some leaders in the financial sector question the practicality of strict time-based policies. The Mint report quoted a non-bank financier noted that for non-banking financial companies (NBFCs) expanding into smaller towns, longer hours are sometimes essential to meet sales targets.
The founder argued that similar to the flexibility seen in retail during peak sales periods, financial companies must adapt to market demands, and blanket time limits may not always apply, the report mentioned.
Private banks’ initiatives to control extended hours
In response to high turnover, private banks are implementing policies aimed at reducing overtime. Axis Bank, for instance, introduced a ‘7Up’ policy after the Covid-19 pandemic, encouraging employees to complete their work by 7 pm to avoid additional tasks at day’s end. Axis Bank has seen its attrition rate drop to 28.8 per cent in FY24 from 34.8 per cent the previous year, indicating some success with this initiative, the report said.
Similarly, HDFC Bank has adopted wellness programmes that include confidential support for personal or work-related challenges and hosts webinars promoting well-being and work-life balance. In 2023, HDFC also took action against toxic behaviour by suspending an executive who was seen verbally abusing subordinates in a group video call over missed targets.
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This incident highlighted the industry’s struggle with workplace stress and the need for respectful interactions in high-pressure environments, the report said.
Compensation and expectations: Private vs public sector banks
The report quoted experts as saying that work pressure in private banks generally surpasses that in public sector institutions due to higher performance targets. Veinu Nehru, managing partner at Fynehand Consultants, points out that private-sector pay scales are often more competitive, which increases productivity expectations. This disparity is especially noticeable in sales roles, where meeting targets may necessitate extended work hours, the report said.