Last year, a video from HDFC Bank went viral, showcasing a senior manager publicly berating his team for not meeting targets. This abusive behaviour is not an isolated case. Recently, similar incidents involving private banks such Bandhan Bank and even a public sector bank, Canara Bank, have come to light again, painting a grim picture of a workplace driven by numbers, devoid of empathy, and where personal time is seen as a luxury. The absence of accountability for such behaviour allows it to cascade down, perpetuating a cycle of stress and hostility.

“The relentless pursuit of numbers can lead to a culture of fear and anxiety, ultimately diminishing productivity.”

Ramesh Shankar, seasoned HR leader

Why are private banks, in particular, breeding grounds for such intense pressure? The answer is a complex web of factors, with unrealistic targets, communication breakdowns, and leadership shortcomings at its core.

Crushing targets, stifling communication

Every interaction becomes a transaction, the pressure to perform overshadowing the human element. This, unfortunately, is a reality for many in private banking. Ramesh Shankar, a seasoned HR leader, aptly points out, “The relentless pursuit of numbers can lead to a culture of fear and anxiety, ultimately diminishing productivity.”

Stringent sales targets are a cornerstone of performance in any organisation. However, in private banks, these targets often morph into unattainable benchmarks, leading to a culture of fear and anxiety.

Further intensifying the pressure is the fierce competition within the banking sector. New players and fintech startups are challenging the established order, forcing traditional banks to constantly prove their mettle. This relentless pursuit of performance translates to a culture of urgency, where results are expected not just annually, but quarterly or even monthly.

“The influx of new players in the market has intensified competition, forcing banks to adopt a more aggressive approach, which often translates into pressure on the workforce,” says Satyajit Mohanty, VP-HR, Dabur India.

“When there’s a lack of accountability or repercussions for toxic behaviour, it can cascade down the organisational hierarchy, perpetuating a cycle of stress and hostility.”

Nihar Ghosh, senior HR leader

Leadership by intimidation: A recipe for toxicity

Leadership styles play a pivotal role in shaping organisational culture. “Respectful environments foster dignity, while others inadvertently cultivate toxicity,” highlights Nihar Ghosh, a senior HR leader. Recent incidents serve as stark reminders.

Recent incidences serve as stark reminders. The issue escalates when such behaviour emanates from the upper echelons of management. Senior leaders, tasked with setting targets and driving performance, inadvertently set the precedent for acceptable conduct within the organisation. “When there’s a lack of accountability or repercussions for toxic behaviour, it can cascade down the organisational hierarchy, perpetuating a cycle of stress and hostility,” cautions Ghosh.

Furthermore, the relentless focus on short-term gains, driven by investor demands, creates a myopic approach.

“The focus on short-term gains has become ingrained in the banking sector, driven by the need to satisfy shareholders and investors. Listed entities are particularly vulnerable to this pressure, as they are beholden to quarterly performance reports and shareholder demands,” Mohanty emphasises.

Long-term employee well-being and sustainability take a backseat as employees prioritise immediate profitability.  Compounding this issue is the communication gap between management and employees.  Many managers lack the skills to provide constructive feedback, resorting instead to intimidation tactics. This not only erodes employee morale but also stifles innovation and critical thinking, crucial ingredients for long-term success in a dynamic financial landscape.

“The influx of new players in the market has intensified competition, forcing banks to adopt a more aggressive approach, which often translates into pressure on the workforce.”

Satyajit Mohanty, VP-HR, Dabur India

The perfect storm: Young leaders, shifting values

The changing demographics of leadership also contribute to the problem. Younger managers, lacking experience in handling complex situations and managing pressure, often clash with older generations who value stability and respect. Additionally, the evolving values of some company promoters prioritise aggression and results over traditional values of loyalty and respect for employees. This shift can lead to a culture that prioritises immediate results over employee development, hindering long-term talent retention.

“This generational shift in leadership has resulted in a clash of values and management styles, with older generations valuing stability and respect, while younger leaders prioritise innovation and results,” asserts Mohanty.

The path forward: Beyond the pressure cooker

The onus falls on private banks, and the banking sector as a whole, to implement effective strategies to create a healthier work environment. This involves holding individuals accountable for their actions while incentivising respectful behaviour. Regular performance reviews can be used for course correction and support, focusing on development alongside goal achievement. Training managers in emotional intelligence, conflict resolution, and effective communication can equip them to navigate human behaviour and build a supportive environment.

“Addressing these issues requires a collective effort,” emphasises Ghosh. “From senior management to frontline employees, everyone must be committed to cultural transformation and behavioural change.” By prioritising people alongside profits, private banks can move beyond the pressure cooker and create a sustainable work environment that fosters employee well-being and long-term success. After all, a thriving bank isn’t just about numbers; it’s about empowered and motivated people working towards a shared vision. This can be achieved by fostering a culture of open communication, where employees feel comfortable raising concerns and offering suggestions. Additionally, investing in employee well-being programs, such as stress management workshops and flexible work arrangements, can significantly improve employee morale and productivity.

In conclusion, the pressure cooker culture in private banking is a complex issue with deep roots. However, by acknowledging the problem and implementing targeted solutions, banks can create a work environment that is not only profitable but also fosters a sense of purpose and well-being for its employees. This shift towards a more sustainable and human-centric approach is not just ethical but also essential for long-term success in today’s competitive financial landscape.

The post Boiling point: Inside the ‘pressure cooker culture’ of banks appeared first on HR Katha.

What is even more surprising is that my friend is not the only one who holds such an opinion. Many like him, in the initial stages of their career, prefer to work with big brands and names that may not necessarily have the best track record in terms of the way they treat their employees.

For Instance, a global e-commerce Company which doesn’t really have a good image when it comes to how it treats its employees. Multiple cases have surfaced over the years, which clearly indicate a toxic work environment in the company. Yet, it seems to have a greater employer value proposition than other companies operating in the same space.

Presently, with the talent market leaning towards being more of an employees’ market, companies operating across levels are investing extensively to ensure optimal employer branding. Hence, talent ending up preferring to be associated with corporations that are infamous for their toxic work culture may seem a little off.

“People may look at associating with toxic workplaces just because of their market presence”

Ramesh Shankar S, former EVP & head of HR, Siemens

Why does this happen? Why do large-scale companies with toxic work cultures still have a higher EVP than others? Let us look at some of the multiple reasons behind this phenomenon.

Market presence: As Ramesh Shankar S, former EVP & head of HR, Siemens, points out, brand image is built over time, and requires a lot of effort. Therefore, “for prospective employees, the brand image may hold greater significance while making a decision,” he says.

After all, “for the kind of companies we are speaking of here, the brand name stands for excellence in terms of their products and customer satisfaction. The name itself is reflective of a market leader. Hence, talent may look at associating with such names just because of their market presence,” he explains.

Compensation: Criteria for decision making will vary from professional to professional, depending on their level. Junior-, mid- and senior-level professionals may consider different factors before deciding to engage with a certain company, believes Shankar.

“They may look at switching jobs on the basis of the kind of compensation or raise they’ll get from the move,” he states. Bigger brands and market leaders generally compensate their employees extremely well, significantly more than what the market is offering. “Some professionals may even consider taking up a job in an organisation because of the location they will be posted in,” he points out. “However, professionals may not necessarily be aware of the company’s work culture before joining. That is something they ascertain during their engagement,” reveals Shankar.

Money is obviously a big factor when it comes to a person’s professional choices, especially for people in a country such as India.

“What they don’t understand is that no company pays a person for free. They’ll expect something in return, in equal measure if not more. A company that pays good will also expect good results, and therefore, the individual would be expected to work under extreme pressure,” cautions Manish Majumdar, former head – HR CoE, Novo Nordisk. He also adds that accepting such large packages may put the talent in the ‘out of the reach’ category in the job market, posing difficulties while switching further.

“I’ve worked with big names that overstretch in order to ensure that only the good things are highlighted more in public”

Senior HR leader working in the IT sphere

Social status: While Majumdar admits that compensation may be a big deciding factor for a professional, another important factor is the social status that comes with associating with a certain brand name. “Engagement with an Amazon or a Google will definitely look good on one’s resume or LinkedIn profile. The connect with such companies begins at a very young age,” points out Majumdar. He goes on to explain that such brands are very strongly positioned in our heads as we have been seeing or hearing of them almost on a daily basis. These brands also have a fantastic social-media presence. “Given the way our lives are going digital, the presence of such brands has grown stronger, leading to a subconscious preference in our minds,” he enunciates.

Limited awareness: Majumdar also draws attention to the top-tier employer branding of the corporate giants. While candidates are usually aware of the thousands of positive stories about these companies, they may not be as aware of the horror stories of their employees, while joining.

That is because, a majority of the large companies invest heavily on PR and marketing. They definitely limit the reach of the negative incidents and stories that threaten to tarnish their public image.

“Engagement with an Amazon or a Google will definitely look good on one’s resume or LinkedIn profile”

Manish Majumdar, former head – HR CoE, Novo Nordisk

A senior HR leader working in the IT sphere tells HRKatha anonymously that many of the leading companies allocate separate budgets to camouflage the negative stories that may give them a bad name as an employer. “I’ve worked with big names that overstretch in order to ensure that only the good things are highlighted more in public,” the leader reveals.

Pursuit of a dream: Lastly, some of these big companies are dream brands for many professionals — names they have always dreamt of being associated with. The true inside story, with regard to the work culture, is rarely known to many prospective employees. However, even after being exposed to the work pressure and toxicity that takes a toll on work–life balance, professionals may still prefer to work with such companies. Many feel they shine more in a work environment which is not as comfortable and entails challenges and extreme work pressure. Such people, despite being exposed to the negative and toxic aspects of the culture at their ‘dream companies’, find it difficult to switch loyalties.

The post Why some big brands have higher EVP despite their toxic work culture appeared first on HR Katha.

Interestingly, with 360-degree feedback, it is clear that bosses are not the reason for employees to quit. Moreover, amicable work culture is a given norm today and most companies are raising the bar as far as workplace culture is concerned.

Human resource is trying very hard to keep employees engaged so that the attrition rate can be brought down. From its innovation lab, practices are being rolled out to foster a happy work culture.

Then, why are employees quitting?

“The young business school pass-outs often change career direction, There is a growing trend among them to join startups or start one of their own.”

 

Research says that employees quit when their work ceases to be challenging. This is especially true for workers who are below thirty years of age, because they have just started their careers and are open to experimenting and trying out different jobs before they finally settle down.

“The young business school pass-outs often change career direction,” says Ramesh Mitragotri, CHRO, UltraTech Cement. He adds, “We have fresh recruits, who after working for some time realise that their calling is different. They move on to pursue passions related to their hobbies or join the family business.”

Millennials are more prone to quitting, but so is Gen X and the baby boomers as well if they do not see growth and purpose in their work.

It is clear that employees do not need an external reason to quit. The decision need not be driven by toxic work culture or bosses, but can simply be a personal choice that they are making.

“After entering a particular profession, people feel they are not cut out for it. They quit and join another company to try out a different role,” says Mitragotri.

Even though things appear to be running smoothly in an organisation, workers do quit.

Higher salary, though not the most common reason, still accounts for employees quitting work. After all, who will not like to get paid more for the same number of work hours?

Employees today like to be more involved with the work that they are doing. Merely receiving information and acting upon it is not exciting enough for them. It is very important for them to see how their contribution is fitting into the overall goal of the organisation.

When they fail to see themselves make a mark, they quit to consider other opportunities.

A galore of opportunities is available for the young and daring in the present market. People also do not have any qualms about reskilling and recreating themselves for new ventures.

Entrepreneurs are being born every day. Employees are increasingly quitting jobs to try a hand at the start-up business.

“There is a growing trend among young employees to join startups or start one of their own,” says Mitragotri.

Relocation needs can also influence a worker’s decision to quit. If employees want to be close to their homes and the company does not have an office in that location, they will quit.

Although employee engagement continues to take a lot of HR’s time and attention, employees do not always leave because of a lack of it.

The post It’s not toxic culture and bad bosses that make people resign appeared first on HR Katha.