HDFC bank slashes employee notice period from 90 to 30 days
HDFC bank slashes employee notice period from 90 to 30 days
HDFC Bank, the country’s largest private bank, has implemented a significant change in its HR policy by reducing the notice period for outgoing employees from 90 days to just 30 days. This move aims to provide greater flexibility for employees while ensuring smooth transitions within the organization.
The decision, which was communicated to employees via email on May 6, marks a substantial shift in the bank’s approach to employee management. Under the revised policy, employees under probation will also serve a notice period of 30 days. Additionally, employees may even be relieved in less than 30 days if their request is approved by their reporting manager, adding a layer of flexibility to the process.
This adjustment places HDFC Bank in alignment with other major private lenders like ICICI Bank, which reduced its notice period to 30 days from 90 days back in 2020.
However, it still stands in contrast to banks like Kotak Mahindra Bank and public sector banks such as State Bank of India, Punjab National Bank, and Bank of Baroda, which maintain a notice period of 90 days.
The move comes as HDFC Bank continues to grapple with high attrition rates, which stood at 34.15% in FY23, surpassing the industry average of 24.7%. By streamlining the notice period, the bank aims to enhance productivity by ensuring that employees on their way out are not demotivated or disengaged during their remaining time with the organization.
This policy adjustment reflects HDFC Bank’s commitment to optimizing its workforce management strategies in response to evolving market dynamics and employee expectations. As the banking sector navigates ongoing challenges and competition, initiatives like these are essential for fostering a conducive work environment and retaining top talent.
