HDFC Bank Reduces Employee Notice Period from 90 to 30 Days
HDFC Bank, India’s largest private bank, has implemented a significant policy change by cutting down the notice period for outgoing employees from 90 days to just 30 days. This move follows a trend in the banking sector, with HDFC Bank being the second major private lender to adopt such a change.
The decision aims to offer employees greater flexibility while ensuring smooth transitions within the organization. A senior official from HDFC Bank highlighted the importance of this policy alteration, emphasizing its role in facilitating more seamless exits for departing staff members.
Employees were notified of this change in the HR policy through an email communication on May 6, as per insider sources. However, a query directed to HDFC Bank regarding this matter remained unanswered at the time of press.
Under the revised policy, even employees under probation will now serve a notice period of 30 days. Moreover, there’s provision for employees to be relieved in less than 30 days if their request is approved by their reporting manager, providing additional flexibility.
This initiative by HDFC Bank aligns with ongoing industry trends. Notably, ICICI Bank had also reduced its notice period to 30 days from 90 days in 2020. However, other banks like Kotak Mahindra Bank and various public sector banks still maintain a notice period of 90 days.
HDFC Bank’s workforce has been steadily expanding, with the total number of employees surpassing 200,000 to reach 208,066 in the third quarter of FY24.
This policy amendment comes amidst the backdrop of continued pressure from high attrition rates within the private banking sector. HDFC Bank witnessed an attrition rate of 34.15% in FY23, exceeding the industry average of 24.7%.
The official from HDFC Bank expressed optimism regarding the change, suggesting that it would benefit both the bank and its employees. Improved productivity is expected as employees on notice periods tend to work with less dedication, hence the reduced period could mitigate this issue.
