INTRODUCTION OF VARIABLE PAY IN BANKS

INTRODUCTION OF VARIABLE PAY IN BANKS IDEA MOOTED BY RBI DEPUTY GOVERNOR


Bank unions and associations can make an in depth study on the proposal and come to a conclusion in consultation with its members after initiating a debate on the subject.

POSITIVE FEATURES
. It should act like a variable pay which is prevailing almost in every target based industries.INCLUDING IT GIANTS .
It will act as a stimulus to the employees to achieve more profit for the individual banks
Many more innovative features can be introduced and the employees can be compensated as an additional package branch wise for reaching deposit target/advance target/recovery of npa/house keeping/

Most important point is that a certain percentage of net profit can be fixed for distribution for the bank as a whole in lieu of bonus by calling it as INCENTIVE TO THE STAFF. This alone will ensure benefit to the bank as a whole as otherwise it is very difficult for bringing the administrative staff in to the variable pay component.
After finalizing this settlement with addition of proviso that from 2010-2011 financial year onwards variable pay will be introduced for the remaining period of the settlement ie FY 2010-11,2011-2012,2012-2013 in addition to this 17.5% settlement as additional package and with the result if both employees gross package on CTC basis AND PROFITABILITY IS IMPROVING this can be implemented for future settlement .
This alone will ensure some parity.
Definitely some sort of this should definitely ensure better productivity resulting in better pay packet for the bankmen.
NEGATIVE FEATURES:
There may not be uniformity in distribution of profits and element of adhocism will enter resuting in better managed employees some times may get less incentive then a comparable bank with less profit figures .
As usual our cunning IBA and ministry bureaucrat will bring some formula to the disadvantage of the employees making an attempt to even allocate variable pay with in this notorious 17.5% increase . UFBU will definitely agree because they are so much frightened because any protest will result in NO SECOND OPTION FOR PENSION. Hence their lips and hands are tied .
So anything can be talked only after inking this settlement and give another option for pension by the pf optees. TILL THEN ONLY PATIENCE PATIENCE PATIENCE –ONLY MANTRA.

KBALASUBRAMANIAN