SBI and PNB may move out from 11th Bipartite Settlement

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According to media reports, State Bank of India and Punjab National Bank are exploring possibilities to move out from 11th Bipartite Settlement. SBI and PNB are exploring to move to performance linked variable pay structure.

SBI is looking to give stock option plans to its employees to retain talent. Punjab National Bank has formed a committee of General Managers to explore possibilities of moving out from bipartite settlement and to introduce variable pay structure.

Government has already sent two letters to Banks and IBA to initiate the process for 11th bipartite settlement. Some Banks have given their consent to IBA for being part of 11the bipartite settlement.

MD and CEO of Punjab National Bank, Usha Ananthsubranium said that ‘we need to move out of old things as time is changing and need to recognize the performance and give remuneration to manage talent.

Although this is initial thoughts only, but if internal committees give positive feedback, the issue may be taken to board level.

 

The problem with existing wage structure is that employees in one rank are paid equally irrespective of their talent/ potential of performance. But moving from bipartite settlement to performance linked variable pay structure will not be easy for state run banks because they are not following established performance tracking systems.

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Unless the performance appraisal of employees is not fair, transparent and undisputable, implementation of variable pay structure will not help the banks to attain the objective of rewarding performing employees and retaining talent.

Please give your opinion in comment box below.

11 COMMENTS

  1. If porformanc is not judged electronically then instead of fair it will be tool punishment for hard working employees

  2. Still it is hard to implement variable pay structure as there is need for much much improvement in HR DEPARTMENT before all this….

  3. Yes it should implement because there are so many bankers who never work never show performance but enjoy all benefits so what about the person who give best performance … So public sector banks want to survive in this competitive market it’s should implement .. I wish all the best to SBI and pnb for initiative.. pls go ahead for sure that time u can give justice to the person who work hard… If u implementing make sure it should be done same like MNC as biometric capturing performance electronically and many more thank u

    • What do you mean by performance? A clericaldoes whatever work comes to his table all norms are to be followef, new type of norms r coming up before passing a cash payment or clg, of rs, 2 lakh or high value bank should contact is it possible to contact each customers what performance could be shown a normal banj employee carries out mich more work and labours regularly note bandiwas if successful it s due to solely extra ordinery work on the part of bankers the above person who darenot reveal his idenitty perhaps he is a failure or non performer in his profession he is coward come to light how to perform he will be shown

  4. Yes I agree with in but the thing is who will decide the performance of employees …? If it is implemented then all employees will have to obey managers and and it may effect employees in daily lyf … Employees may have to sit late work on Sunday etc for impressing managers and higher authorities ..

  5. Based on performanceand service promotions are given .do u think that these promotions are given fairly???as in corpatate culture show off ,politics will increase .genuine hard workers will suffer and discouraged… And here main thing is targets not only depend on bank employee perfirmance but the branch location I.e village,city,state,drought areas,unexpected atmospheric changes..then how can u treat all of them equally and evaluate..

  6. Before employing these sort of idiotic thoughts they should consider what the public sector banks should concentrate on. To render service to the nation or to make profit? 90% customers in these PSUs are poor people, people who do basic banking activities, people who are not tech savvy. Most of the business hours of PSBs are gobe in addressing the poor and government schemes. You don’t make a lot of profit doing government business. Once you implement performance based benefits employees will be forced to ignore the general public and concentrate on high value customers only. If goes against the very basis for the existence of PSBs.

  7. It is not bad to think about new things and thought. In the changing world we should have some fresh ideas and policies. Performance base variable pay package will encourage the govt ishard working and performance oriented people vis-à-vis bringing change, competitiveness in the industry. For example I am not getting any increment or additional pay for last 5 years and maintaining a very good performance rating. In the other hand people with 15 years less service and in equal scale are getting the same without a similar performance rating. Simultaneously, peoples should be posted in difficult areas compulsorily under transfer policies to prove their efficiency and not a particular group of people get posted in such places repeatedly.

  8. It is good idea but again there is a big ??? Mark, who will judge the performance. Variety of work in banking sector, which nither can be a man or electonically.

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