. The new private sector banks have rewritten banking experience in India and been a game changer in banking and retail banking in particular; though the PSU Banks have now caught up though inspite of their staid image with the public. The role, ambit and performance of the new age private sector banks is well recognised and justly so and cannot be doubted in any manner. However what has puzzled me is the sheer churn at private sector banks and the staff turnover, that is at entry level of trainees recruited by most of them with designations such as Assistant Managers or Officer Trainees, normally for the operational areas. Coming out of a bank which claims to have founded modern retail banking, I ran into Ramesh (name changed), I asked what he was doing at a rival bank as he was employed at a bank which claims to be having the finest systems and processes in India. He laughed and said, ‘Sir, have been working in two banks and this is the third, where do I go, the stress of targets and sheer work pressure is killing me’. On my way to another bank whose name corresponds to what the earth revolves around, I met Tavleen (name changed), she is hardly 30 years, suffers from blood pressure and says she feels so stressed that there is no time for even personal grooming. There are many such employees I meet every now and then and at times I really do feel they are the not given their due in terms of recognition, some state they are expendable, used up fast and hence switching banks to escape the ever increasing stress, only reality catches up again and again. As I said this is anecdotal, but when I discussed this with the head of HR of a major private sector bank, he said the trainees should come prepared for this and the best would be the cream that would be churned out. But I find even middle ranking executives claiming stress was too high and unrealistic targets, specially for insurance being foisted on them.
The fact is that contrary to what the bosses who conceive strategy may think, or the ones who push products from controlling offices, customers can at times feel diffident entering private sector bank branches many a time. If you sit down for a query on any product, rest assured for a sustained pressure to be applied for selling any of their other products, specially the fascination with insurance puzzles me. Or maybe the commissions are high but at most banks, the insurance products are attempted to be retailed the maximum. I can personally add that at the best in systems bank, at the branch I bank, the lady heading personal banking, a mature person, heard out my query and need to initiate a SIP in a MF but started selling me a ULIP. I retreated and now she does not even look at me and as for the MF SIP, well its now initiated through a NBFC, atleast they do not chase me. Trainees tell me tales of how they are suddenly told in the morning its ULIP Day or Gold Sales Day or week, they are constrained to approach customers with these products. Then come sales targets even for ULIPS, MF’s etc. One new trainee related to me that she was advised to generate Rs 35.00 lakh between September and November. Even a cashier mailed me some brochures on ULIPs, I asked her the reason, she said it was to achieve her target !!.
This brings me to my subject, what about the trainees. Their training, grounding in the knowledge of banking, the charter for banks in India and their place in the scheme of strategy and organisational growth is not really accorded its due importance. I first hand know through my own network of friends and relatives the actual seriousness with which recruitment is organised at these banks even at the entry level. This entails a cost but on an anecdotal basis, I find that it’s the follow up to recruitment which leaves a wide gap between the trainee and the bank. Most of the new age private sector banks recruit from the tier II MBA schools and administer tests and even interviews subsequent to the tests for selecting trainees. The level of tests is not generally as tough as the PSU banks but does facilitate weeding out the aspiring trainees. After the tests and interviews, referral checks are normally conducted with reasonable seriousness. At one bank, a full fledged security check for Assistant Managers is organised which can be quite vigourous. Medical examinations are also conducted now. All of this entails a cost and yet the banks seemingly fail at the threshold, that is at the actual entry level.
Trainees are mostly placed without actual training, which may itself be organised after an interval, this overwhelms most of the trainees as even a short course would actually be sufficient to absorb what they are headed for and the basics of banking operations expected from them. Add to that, the stress on mentors and guides, referred to in flyers / communications and letters is also not borne out at the branch, specially the branches located in major cities or the main branches. Seemingly endless work and deadlines and products make most branch heads and their operational heads forget that the trainee requires handholding, a degree of confidence building and even knowledge, something as essential as to where to place the cheque, how to enter it etc. Ask most trainees in major branches, the mentor / guide is a myth, as is any guidance from seniors or on the job training as prescribed. It’s a swim or sink scenario and introduces stress straight away. I have asked most trainees if any manual was handed over on operations, mostly they manage by making notes and asking around !.
What puzzles me genuinely is the care taken on recruitment and initial placement, the appointment letter is generally comprehensive, the joining and reporting system quite formal, salary accounts are opened. One bank insists upon a PAN Card (and even opens a DMAT account). Then employees are made eligible for a host of benefits such as Group Insurance, Mediclaim etc. Thereafter entries are made in the HR systems or HRMS as most trainees choose to call it. All this entails as I said a cost, but post this, the follow up is lacking, most trainees I know report hardly any follow up by HR or the Branch Heads. In major branches, the Branch Head is a distant figure for the trainee, any undue pressure being generated by the head of operations or any section the trainee is posted to may find the trainee unable to find a channel to see any form of resolution. And as for HR, the function seems to very understaffed and follow up seems to be low on their priority.
Another myth being propagated is that the staff Private Sector Banks work harder than at PSU banks, this should be buried as a myth. Working late, having lunch at 4.00 pm regularly, going home at 7.00 pm or even 8.00 pm, setting accounts in order post 5.00 pm etc are not the signs of hard work and need not be taken as such. Systems and processes obviously need to be realigned and the points of stress recognised as legitimate. I write this as related by some ex trainees, at one private sector bank, the Bank organised a major interaction of all trainees with the regional head, he refused to take any feedback, advised them to cope up and also stated they should join PSU banks if the work load was tough. This was also advised to me for operational trainees by a head of a functional area in another private sector bank. I can only say that PSU banks are performing reasonably well by any yardstick and instead of such advise, the better option is to re-examine the internal scenario of the environment at work also. There could be aberrations at particular branches also, if a particular region or branch loses staff regularly, its time to focus on such issues. But its also true that the sheer flow of business and pressure may constrain the need to address such issues upfront. As one Branch Head said to me, if financial results flow, HR issues are on the slow lane of priority.
As an aside, a Deputy Manager and an Assistant Manager said to me wisely that you have to work the system. So they made calls for business to prime customers etc with enough leeway in the day time while the donkey’s work was left to the new trainees, but when it was late afternoon or evening, it was time to return to the seats for actual work as also to impress the bosses. The stress on the new trainee was laughed off, either he/ she would palm it off later to another trainee or quit, which was no great shakes. As to my query from many trainees and quitters if the HR had conducted any follow up or contacted them for the reasons to quit, never was the unanimous answer. In any case a HR head at a region I called up to discuss the particular issue of a trainee totally stressed out at a branch by the head of operations , said he was himself stressed out, was quitting and the only advise he had was to smile and bear it. He also said that you had to be street smart to survive the pressure. Stranger still was the advise from the Zonal HR Head located at a major metro, he said the private sector banks were another world and at the front operations level, you either performed or moved out.
The issue of entry level training and the pro active role of HR as also sensitising branch heads on its importance thus cannot be wished away. The need is there genuinely as per anecdotal experiences, maybe finer research would be required to ascertain it and to realign the structure and processes. While the impact of churn in operational staff or stress maybe minimal on business persently, there is no reason to have stress beyond optimal levels either.
===========================================================================
(Reactions from readers on mails are posted below in comments.)
The fact is that contrary to what the bosses who conceive strategy may think, or the ones who push products from controlling offices, customers can at times feel diffident entering private sector bank branches many a time. If you sit down for a query on any product, rest assured for a sustained pressure to be applied for selling any of their other products, specially the fascination with insurance puzzles me. Or maybe the commissions are high but at most banks, the insurance products are attempted to be retailed the maximum. I can personally add that at the best in systems bank, at the branch I bank, the lady heading personal banking, a mature person, heard out my query and need to initiate a SIP in a MF but started selling me a ULIP. I retreated and now she does not even look at me and as for the MF SIP, well its now initiated through a NBFC, atleast they do not chase me. Trainees tell me tales of how they are suddenly told in the morning its ULIP Day or Gold Sales Day or week, they are constrained to approach customers with these products. Then come sales targets even for ULIPS, MF’s etc. One new trainee related to me that she was advised to generate Rs 35.00 lakh between September and November. Even a cashier mailed me some brochures on ULIPs, I asked her the reason, she said it was to achieve her target !!.
This brings me to my subject, what about the trainees. Their training, grounding in the knowledge of banking, the charter for banks in India and their place in the scheme of strategy and organisational growth is not really accorded its due importance. I first hand know through my own network of friends and relatives the actual seriousness with which recruitment is organised at these banks even at the entry level. This entails a cost but on an anecdotal basis, I find that it’s the follow up to recruitment which leaves a wide gap between the trainee and the bank. Most of the new age private sector banks recruit from the tier II MBA schools and administer tests and even interviews subsequent to the tests for selecting trainees. The level of tests is not generally as tough as the PSU banks but does facilitate weeding out the aspiring trainees. After the tests and interviews, referral checks are normally conducted with reasonable seriousness. At one bank, a full fledged security check for Assistant Managers is organised which can be quite vigourous. Medical examinations are also conducted now. All of this entails a cost and yet the banks seemingly fail at the threshold, that is at the actual entry level.
Trainees are mostly placed without actual training, which may itself be organised after an interval, this overwhelms most of the trainees as even a short course would actually be sufficient to absorb what they are headed for and the basics of banking operations expected from them. Add to that, the stress on mentors and guides, referred to in flyers / communications and letters is also not borne out at the branch, specially the branches located in major cities or the main branches. Seemingly endless work and deadlines and products make most branch heads and their operational heads forget that the trainee requires handholding, a degree of confidence building and even knowledge, something as essential as to where to place the cheque, how to enter it etc. Ask most trainees in major branches, the mentor / guide is a myth, as is any guidance from seniors or on the job training as prescribed. It’s a swim or sink scenario and introduces stress straight away. I have asked most trainees if any manual was handed over on operations, mostly they manage by making notes and asking around !.
What puzzles me genuinely is the care taken on recruitment and initial placement, the appointment letter is generally comprehensive, the joining and reporting system quite formal, salary accounts are opened. One bank insists upon a PAN Card (and even opens a DMAT account). Then employees are made eligible for a host of benefits such as Group Insurance, Mediclaim etc. Thereafter entries are made in the HR systems or HRMS as most trainees choose to call it. All this entails as I said a cost, but post this, the follow up is lacking, most trainees I know report hardly any follow up by HR or the Branch Heads. In major branches, the Branch Head is a distant figure for the trainee, any undue pressure being generated by the head of operations or any section the trainee is posted to may find the trainee unable to find a channel to see any form of resolution. And as for HR, the function seems to very understaffed and follow up seems to be low on their priority.
Another myth being propagated is that the staff Private Sector Banks work harder than at PSU banks, this should be buried as a myth. Working late, having lunch at 4.00 pm regularly, going home at 7.00 pm or even 8.00 pm, setting accounts in order post 5.00 pm etc are not the signs of hard work and need not be taken as such. Systems and processes obviously need to be realigned and the points of stress recognised as legitimate. I write this as related by some ex trainees, at one private sector bank, the Bank organised a major interaction of all trainees with the regional head, he refused to take any feedback, advised them to cope up and also stated they should join PSU banks if the work load was tough. This was also advised to me for operational trainees by a head of a functional area in another private sector bank. I can only say that PSU banks are performing reasonably well by any yardstick and instead of such advise, the better option is to re-examine the internal scenario of the environment at work also. There could be aberrations at particular branches also, if a particular region or branch loses staff regularly, its time to focus on such issues. But its also true that the sheer flow of business and pressure may constrain the need to address such issues upfront. As one Branch Head said to me, if financial results flow, HR issues are on the slow lane of priority.
As an aside, a Deputy Manager and an Assistant Manager said to me wisely that you have to work the system. So they made calls for business to prime customers etc with enough leeway in the day time while the donkey’s work was left to the new trainees, but when it was late afternoon or evening, it was time to return to the seats for actual work as also to impress the bosses. The stress on the new trainee was laughed off, either he/ she would palm it off later to another trainee or quit, which was no great shakes. As to my query from many trainees and quitters if the HR had conducted any follow up or contacted them for the reasons to quit, never was the unanimous answer. In any case a HR head at a region I called up to discuss the particular issue of a trainee totally stressed out at a branch by the head of operations , said he was himself stressed out, was quitting and the only advise he had was to smile and bear it. He also said that you had to be street smart to survive the pressure. Stranger still was the advise from the Zonal HR Head located at a major metro, he said the private sector banks were another world and at the front operations level, you either performed or moved out.
The issue of entry level training and the pro active role of HR as also sensitising branch heads on its importance thus cannot be wished away. The need is there genuinely as per anecdotal experiences, maybe finer research would be required to ascertain it and to realign the structure and processes. While the impact of churn in operational staff or stress maybe minimal on business persently, there is no reason to have stress beyond optimal levels either.
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(Reactions from readers on mails are posted below in comments.)
BK SHARMA - Stats this prolonged and needless stress constrined his daughter to give up her banking jab, migrate to the USA and start teaching.
ReplyDeleteARVIND MAHAJAN - States overall agreed but the employee has to account for the salary by higher productivity.
Ravi Bhandari - Advises not to write so much in old age!!
Reaction from Rahul Tandon - work a lot with such banks these days...front line guys are recruited dirt cheap to man either OTC ops or frontline sales...the bank expects a churn in such cases at an accelerated level; at the middle management level in bks like ICICI and HDFC targets get amplified @ 400% each year and churn from one bank to the other is no help as the scenario is the same at each place..one incentive that anchors them at BKs like HDFC is that post DVP levels they get ESOPS; At vertical head levels apart from the sales targets there is the incremental pressure of thinking out new business and this is both bane and a blessing. One thing though as a business guy I can neither think aloud or even carry forward new ideas with PSB verticals...one difficult to get response on a critical time scale plus they are too incestuous with their current policies and fiscal diktats in the guise of schemes. I have been able to do craete new business ideas/use cases with their alter egos, i.e. pvt sector bks, even though we were just a start up, just because we got their verticals excited about prospects...succinct reaction, well written piece gentleman
ReplyDeleteMy Reaction - Rahul, thanks, agreed the reaction time and receptivity at Private Sector Banks is more but target setting must be realistic. I know of a guy at mid level who quit the profession saying he could not cope up. They transferred him to the back end but still gave him a reduced target. Some degree of sanity must prevail, in Chandigarh, its saturated market, a recession is on, how much new busines can be generated, complain mid level guys heading branches.
ReplyDeleteRahul Tandons Insightful Response - point taken but business does not work on these lines; especially for entities that are listed on exchanges and even with relatively healthy bottom lines. market, kind of, forces them to create results with at least moderate CAGRs; who in the world is interested in trendlines? its all about market capitalisation and investors. believe you me even in saturated markets there is space for business and creativity. anyway, cut to chase, business does not recuse targets however unrealistic they may seem...esp at bking levels with new BASEL norms drumming in.
ReplyDeleteMY VIEW - Can it last, as of now its only stress management which can be attempted.
Dinesh Soni wrote: "Surprisingly, the levels of targets, long work hours, stress and resultant loss of generation does not happen in financial sector entities in so called matured markets like US, UK, HK, Sing , Germany etc.... . Entities like ICICI and others have contributed immensely towards this unjust culture.....Now the larger issue is should regulator or Government should be bothered at all...or they should keep their eyes closed and let this continue......pressures are there in PSU also but not so enormous..... I am nearly sure Basel norms in any way do not compel the banks to adopt such inhuman measures....though other pressure like markets and market capitalisation would surely bother the CEO and board......so let us agree that all this is necessary for market oriented economy model we have adopted in financial sector.....but even in Basel they lead a very comfortable and enjoyable life with solid work during the working hours ......kids joining pvt banks though will never have that in near future.... . But one thing I could not understand....I have SB account in sec 35 branch of pvt sector branch with miniscule balance ...on visit to sec 32 branch two times I was told both the times to shift the account to 32 branch....what was the interest of bank staff in that ......i could not identify the reason ...."
ReplyDeleteSomesh K Kapila wrote - nice comment .............it reflects the reality of the private banks, and leaves a sad taste that new joinees are treated in such a fashion.
ReplyDeleteThe article is well thought and written after considerable interaction with different levels of personnel working in private sector banks.
ReplyDeleteMy experience while banking with Private sector banks (I can name at least 3 now), is not different. Though they came with a bang, with technology, posh interiors, well-dressed and 'well mannered' officials et al, but the enthusiasm faded away once the mass banking in urban areas started. They started creating various hurdles and 'conditions' for banking with them... You need some work to be done with them, new 'boys and girls' will talk to you, but they mouth only few rehearsed sentences. Beyond that, they look confused. You pursue, somebody 'expert' from inside comes and disposes of your case (for good, ie) and next time you go to follow up, you find entirely new set of 'new boys and girls' and the 'expert' inside too. No point in even developing personal rapport with the personnel there, as they themselves don't know how long they will be there (at least in public sector banks, you can get by with procedures and red tape if you have personal rapport with 1-2 'important' counter people!).
I was travelling in a bus to a district headquarter in Maharashtra, when I happened to get a neighbour who looked in his late forties. Conversation veered around his profession, and he happened to be a senior manager with a prominent private bank. We talked about his daily routine, work pressures, leisure activities, targets, staff turnover in the bank etc. I asked him, what his children were doing. he said he is yet to be married and plans to get married this year. I asked him why delay, were there any family commitments? I was zapped when he said, he is only 27 but looks old, thanks to the stressful life in the Bank. He said he will work in the bank for 2 more years and then quit...
On the other side, whether the public sector banks got the wake up call? Not really.... go to any public sector bank, you find the same lackadaisical approach..chalta hai attitude. Customer is ignored, and is attended to only if they do not have any other pressing personal business to do. Officers look busy and tired, you don't feel like disturbing them. Computerisation has helped them get some more free time and freedom to walk out at 5.30 leaving the cleaning up operations to the 1-2 responsible hardworkers.
May be, it is in our culture, that we can't expect professional banking services where customer gets delight of banking experience either from private bank or a public bank.
my addition - Media Report in local editions at Shimla - A private sector bank at Kasumpati, a suburb of Shimla, the branch head was slapped by a junior officer after being repeatedly refused leave and called up for on Sundays even. It turned into a scuffle later and the police brokered a compromise. Ominous, a sign of what prolonged stress can do or a one off, one cannot say.
ReplyDeleteBhagwant K Sharma wrote: "There is always a choice.My daughter opted to teach in a USA university instead of accepting a world bank job offer keeping view her earlier job experience in ICICI bank and UTI bank."
ReplyDelete