Those days are long gone when a fresh graduate retired after devoting 40 years of life to one company. Those were the days of ‘starting and retiring with the same company’. Times have changed and the changing times have brought about a new issue – “job hopping”.
Job hopping is of two kinds – changing jobs in the same industry and changing the industry altogether. Job hopping, especially in the banking industry, has both positive and negative aspects. Let’s see what these two kinds of job hopping mean to the banking industry.
Changing Jobs in the Same Industry
In this, a candidate hops from one bank to the other every 2-3 years looking for growth or change. If the candidate is from the private banking sector, this attitude gives short-term advantage because with every job change, there is a 20-30 percent increase in salary package. However, its long-term effect is not so advantageous because banking is considered to be a ‘traditional’ or ‘conventional’ career choice and hence, frequent job change is perceived negatively. It leads to reliability, dependability and loyalty issues.
If the candidate is from the public banking sector, changing jobs is not that much prevalent as most of the employees prefer to take transfers within the same bank. Even if an employee changes from one place to the other, it has the same short-term and long-term repercussion as above.
Changing the Industry
The trend of people switching their career and come into banking and vice-versa is of a bigger concern for the banking industry. People who are coming into the industry are a good trend because a lot of people are retiring and the banks need people to replace the retired lot. In-house training makes up for the lack of required skills. Moreover, when people come from a different industry, it adds to the overall repertoire of any financial institution.
However, in the last couple of years, there is an emerging trend of youngsters leaving the banking industry for other domains after few years of work. C. H. Venkatachalam, the General Secretary of the All-India Bank Employees Association says that “a good number of people will be retiring in the next five-six years and banks need trained hands. But this generation is not sticking to one job for even two years. They hop jobs very frequently” and he thinks that “youngsters fail to understand that the career growth can be phenomenal for those joining the industry today.”
There is a need for better human resource management system to not only attract but retain the youngsters entering this industry. Boredom, lack of challenges, competitive pay and growth are some of the basic reasons cited by youngsters who leave the banking industry for better options. If these causes are ruled out as much as possible, the banks will definitely see a lower attrition rate and better management.