The state-owned bank is hoping to put a new hiring as well as appraisal policy in place.
State Bank of India, the country’s largest PSU bank is looking forward to an HR upheaval. This could change the way the company hires, promotes and transfers its employees.
As a norm, all state-owned banks in the country, including State Bank of India, hire new recruits through nationwide entrance exams, both for clerical and officer grades. As per the system, every new recruit joins at the entry level and moves up the ladder with time and experience.
However, as these state-owned banks compete with the private banks for business, the senior management now wants an updated HR policy which would allow them to hire professionals at mid-level. The bank is hoping that if not for core banking positions, mid-level hiring should be allowed for other specialised functions, such as economic research, analytics, credit and risk management, human resources and information technology.
State Bank of India employs more than 2.3 lakh people across its branches.
The transfer policy of state-owned banks is driven by a consensus between the senior management and the union. There is no cash reward awarded as incentive for deserving employees.
SBI now plans to introduce a new performance-driven evaluation system and incentivise top performers with cash rewards, and also offer employees stock options and promotions.
If SBI, the leading PSU bank, is able to bring in this radicle change, other state-owned banks will follow suit sooner or later.
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