The Banking industry is in doldrums due to inadequacy of the workforce. The
lopsided policies and the conventional approach of the Government and the
Managements of the banks at the instance of the IBA and the Ministry of Finance
have created a big gap in the average age of the various groups of employees in the
banks. There were no recruitments virtually for more than 2 decades and as a
result, the age difference between the old employee and the new employee is so
wide that the average age of the workforce is adversely affected.
A close review of the situation should be considered and necessary steps to be
taken for a pragmatic succession plan. The large scale retirement is adversely
affecting the workforce since experienced hands are getting retired where as a
large chunk of new recruits are forced to take up higher positions and the
promotions are getting accelerated in comparison with the earlier situation
thereby causing serious problems of seasoning and grooming of higher level
officers in the banking industry.
A crash programme should be worked out to tackle this serious issue. IIMs can be
used for this purpose.
In view of shortage of manpower, the retirement age should be re-fixed. We have
the following suggestions:-
To cater to the emerging needs we have to go for massive recruitment of clerks and
Officers and also agriculture graduates, commerce graduates, Computer
Engineers etc immediately.
Redefine the voluntary retirement and re-fix the minimum eligibility for the
AGE OF SUPERANNUATION:
The age of superannuation to be raised to 65 years for all officers, as there is a
huge shortage in the middle order and seniors due to non recruitment for 10
STAFF WELFARE CEILING :
Present Ceiling of 3% of net profits to be increased to 3% of Gross profit without
LIFE COVER :
Suitable Life Cover should be taken for normal as well as accidental death. This is
available in few Banks but there is no unanimity.