Private Banks Drive New Work-Life Balance Policies to Curb Employee Burnout Amid Rising Attrition

Private Banks Drive New Work-Life Balance Policies to Curb Employee Burnout Amid Rising Attrition

Amid mounting attrition and increasing concerns over employee burnout, Indian private banks are rolling out initiatives to promote a healthier work-life balance. These measures, aimed at limiting after-hours communication and managing work hours, come as the industry experiences high turnover. Attrition in private banks spiked in 2022-23, but some improvement has been observed in FY24 as banks adopt policies to retain talent. However, public sector banks, while often perceived as more stable, have also seen employees voicing concerns over workload and work pressure on social media, according to a Mint report.

The issue gained prominence after Union Bank of India’s Executive Director, Nitesh Ranjan, suggested branches close by 6:30 pm, discouraging non-urgent work-related messages between 8 pm and 9 am. This move, showcased in an internal meeting video, reflects a growing trend among financial institutions to reduce extended work hours. Yet, some executives argue that time restrictions may not always be practical, especially for non-banking financial companies (NBFCs) expanding into smaller towns where extended hours can be necessary for meeting sales targets.

Private banks like Axis and HDFC have introduced specific policies to counter employee burnout and high turnover. Axis Bank’s ‘7Up’ policy, established post-COVID-19, urges employees to finish work by 7 pm, resulting in a drop in attrition rates from 34.8% in FY23 to 28.8% in FY24. HDFC Bank, similarly, has rolled out wellness programs offering confidential support and promoting work-life balance. In a notable step to address workplace stress, HDFC Bank suspended an executive who displayed abusive behavior toward subordinates over missed targets, underscoring the industry's commitment to fostering respectful environments.

The contrasting work cultures in private and public sector banks are further highlighted by differing compensation structures. As noted by Veinu Nehru, managing partner at Fynehand Consultants, private banks’ higher compensation packages come with greater productivity expectations, often leading to longer hours—particularly in sales roles where targets can drive extended work commitments.