High employee turnover to persist in India's financial sector in FY24: TeamLease

A senior executive at TeamLease, one of India's leing staffing services providers, has predicted that high staff churn in India's financial sector will continue into next fiscal year, citing a persistent demand-supply mismatch.

HDFC Bank, India's largest private lender, witnessed a rise in its employee turver rate to 34 per cent in last fiscal year from 27.6 per cent previous year. Similarly, Axis Bank experienced an increase to nearly 35 per cent from 31.6 per cent.

Kotak Mahindra Bank faced a surge in attrition to about 50 per cent, while its smaller peer, Yes Bank, followed closely at 43 per cent.

" demand for salespeople (selling personal, home, agriculture, and or loans) is huge," said Kartik Narayan, Chief Executive for Staffing at TeamLease, during Reuters Tring India forum. He highlighted that se employees are often underpaid and undertrained, making even a modest salary hike of 1,000 rupees ($12) per month sufficient to prompt job switches.

Narayan anticipates this trend to persist, emphasising that employment landscape in Banking, Financial Services, and Insurance (BFSI) sector is under "tremendous pressure," with frontline attrition rates remaining at 30 per cent-40 per cent.

Despite recent measures by Reserve Bank of India to tighten rms for personal loans and credit cards, potentially impacting loan growth, Narayan believes that central bank's actions will t significantly affect sector's employment needs, at least in immediate future.

"While general staffing business is growing robustly, tech staffing is going through a different cycle," Narayan ded. He ted that hiring boom in techlogy during pandemic has moderated, but expects a recovery in tech hiring within next two quarters as sector justs to evolving demands.

(With Reuters inputs.)