In order to accurately assess employees’ performance, the State Bank of India (SBI) has introduced automated employees’ appraisal system which would depend on the pace and frequency at which the bank’s staff deal with customers. The bank has done away with appraisal of employees’ by their bosses.
The new system is also aimed at giving prompt response to customers and ensuring better services across the board. The automated system would assess an employee’s efficiency to determine promotions, perks and incentives.
SBI Chairman Arundhati Bhattacharya said the idea behind opting such system is to reward those who make a lot of efforts to improve customers’ experience and improve those not trying hard enough. “70% of the marks during an appraisal will come from the automated system while the branch heads would give qualitative feedback about employees’ that constitutes remaining 30%. That apart, customers’ feedback will also be sought by the bank via SMS and interactive voice response calls after a transaction,” Bhattacharya added.
“Besides promotions, we are linking their performance to posting and placements. Employees’ have been informed that if they work well, they can choose their posting. Not only this, but you can also choose the department that you want,” she remarked.
“A lot of efforts made to hire competent people and even after rigorous process if they are not performing, there must be something wrong. If they feel that they are watched and being given the right incentives, I am optimistic they will perform,” said Bhattacharya.
The bank will also use whatever headroom it has to provide cash incentives to performers. “If you look at employee benefits on a cost-to-company basis, we are better than the private sector. SBI provides employees with housing, newspaper and petrol reimbursements which do not show up in salary. Now, the thinking is to allow all of these to be put together and taken as cash,” the Chairman said.