SBI to re-hire retired officers for non-core jobs

To overcome the knowledge and experience gap arising from the retirement of senior officers, State Bank of India has drawn up a comprehensive policy to engage former officers.

Former officers will be hired on short-term assignments in select areas, such as inspection and audit, advances, bad loans management, and legal counselling.

The engagement of retired officers comes in the backdrop of a few thousand officers hanging up their boots from the bank every year over the last few years due to superannuation.

According to a Finance Ministry report, around 90 per cent of the current crop of General Managers in public sector banks (PSBs) will retire by 2017, leading to a leadership gap, loss of knowledge and continuity. This situation has been compounded by sub-optimal succession planning in these banks.

SBI’s policy on engaging officers (Chief Manager to Deputy Managing Director) who have retired from its services has been approved by the Executive Committee of the Central Board (ECCB). Other PSBs may take a leaf out of this policy to cope with the HR challenges that they are up against.

India’s largest bank will use the services of old hands for non-core functions/areas. They cannot be hired for routine day-to-day banking assignments, which have to be performed by regular staff. The engagement of former officers has been restricted to a period of six months. Any extension, if required, will be reviewed and approved by the central human resources committee up to a maximum of a further six months.

Under the new SBI policy, user departments have to ensure that a second line of personnel are identified in-house well in time for the jobs that may be required to be assigned to retired officials so as to facilitate smooth transition/completion of the job even as the new incumbent is groomed.

Source:http://www.thehindubusinessline.com/banking/sbi-to-rehire-retired-officers-for-noncore-jobs/article7322554.ece

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