Public sector banks able to retain new hires better than private banks: Report

http://www.thehindubusinessline.com/industry-and-economy/banking/article3855139.ece

Management consulting firm BCG has found that, on an average, 12 per cent of the new recruits hired by public sector banks quit within the year.

This compares favourably with the corresponding figures of 22 per cent and 20 per cent for new and old private sector banks, respectively.

“Contrary to popular perception, public sector banks are not losing their fresh hires in large numbers.

“Clearly, there is an element of public sector culture and work environment that is working for the fresh hires to stay,” said BCG in its report on productivity in Indian banking.

PSBs may not be facing attrition today because relative compensation at junior levels in good.

However, the firm cautioned that as the new hires reach middle management levels, the threat of losing the best people will be very high due to compensation mismatches.