Why banking sector expansion may increase attrition

Once the new banking licences are cleared, the financial services industry is likely to witness a significant surge in recruitment activity so much so that attrition rates are expected to hover around 18 per cent in 2014, according to staffing services firm Kelly Services.

According to Kelly, one can expect to see significant rise in poaching within the industry in 2014 once the new banking licenses are cleared.

The BFSI (banking, financial services and insurance) sector is expected to see a flat year till new banking licences are cleared in the budget - which may lead to setting up of new private banks and creation of more jobs, the report said, adding that attrition rates are expected to "hover around 18 per cent in 2014".

With the new licences in place, one can expect rise in employment in lot of technology services companies too that cater to banks.

Moreover, one can expect to see lot of employment created in rural areas too as the government plans to push financial services.

According to a recent Kelly Workforce Index survey, titled 'What talent wants' in 2013, around 55 per cent of workers said they are looking for better job opportunities and are evaluating the external job market.

The report further noted that as many as 43 per cent frequently think about quitting their current job.

Commenting on the findings, Kelly Services India managing director Kamal Karanth said there is a need for today's HR to bridge the gap between what an employee seeks and what most employers provide.

"Increased responsibility needs to be built into tasks, processes and decisions if organisations are to extract real value from the talent they hire, be it on a permanent or contingent basis," he added.