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To retain manpower in the face of high attrition and rising competition, firms in India's banking, financial services and insurance (BFSI) sector are marshalling promotions, incentives and career progression plans, according to a report by The Economic Times (ET).
At a time when retaining manpower is becoming difficult, IIFL Finance, Motilal Oswal Financial Services and Axis Bank are providing internal career switch opportunities with promotions, upskilling opportunities, festival bonuses, quarterly incentives and employee stock ownership plans (Esops) across the ranks in order to create more earning opportunities.
Motilal Oswal Financial Services has begun a new policy facilitating cross-functional role changes for employees and promotions. Niren Srivastava, chief human resources officer of the company, was quoted as saying that Motilal Oswal has planned about 600 such role movements or promotions as a retention tool in the current financial year. Around 800 people were promoted last year. Motilal Oswal also provides flexible work options in roles such as technology. The company has quarterly incentives, Esops, and aggressive variable pay plans for key senior employees.
Srivastava said that the company's new employee value proposition leads to more learning opportunities and encourages more accountability. Motilal Oswal's attrition is much lower than the industry average, and the company wants to focus on reducing poaching by creating more opportunities.
BFSI companies have an average annual attrition of around 30 to 35 per cent. Attrition in frontline roles such as credit card sales, agriculture loan sales and housing loan sales is one of the main problems companies face.
Kartik Narayan, chief executive officer (CEO) of staffing, TeamLease Services, said that the annual attrition in frontline roles could be as high as 120 per cent, where the entire workforce is getting churned on a rolling 12-month basis. He added that lower frontline salaries compared to other industries, paucity of on-job training and poaching are some of the reasons why many change jobs in less than a month.
Rajkamal Vempati, head of human resources (HR) at Axis Bank, said that the bank employees don't have to wait for the annual appraisal cycle to look for jobs internally and are provided the needed promotion and compensation correction.
