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| Name : | S.Balachandran |
| Subject: | VRS for Bankers |
| Reply : | SEBBATICAL AS A MEASURE FOR REDUCING SURPLUS STAFF WILL NOT BE COST EFFECTIVE IN THE LONG RUN FOR THE FOLLOWING REASONS: EVEN THOUGH THE BANKS CAN SAVE ON THE SALARIES AND ALLOWANCES DURING THE LEAVE PERIOD, ONCE THE EMPLOYEE RETURNS HE WILL HAVE TO BE ABSORBED AND AS SUCH REDUNDANCY OR SURPLUS CANNOT BE CUT TOTALLY. RETRAINING COST FOR THE RETURNING STAFF WHO ARE 45 PLUS ( ASSUMING AN EMPLOYEE LEAVES FOR 5 YRS AT 40 AND RETURNS), IN A TOTALLY CHANGED BANKING ENVIRONMENT WILL BE MUCH HIGHER THAN THE COST YOU SAVE DURING LEAVE. THUS ULTIMATELY THE BANKS END UP HAVING THE REDUNDANT/SURPLUS EMPLOYEE BACK IN ITS ROLLS AND INCURRING A HIGHER COST. HENCE IT WOULD BE BETTER TO OFFER THE SEBBATICAL TO JUNIOR LEVEL EMPLOYEES FOR WHOM RETRAINING COST WILL BE MUCH LOWER. TOTAL BAN ON NEW RECRUITMENT WILL NOT BE FEASIBLE AS LATERAL RECRUITMENT WILL REQUIRED . |