PSU banks - unattractive employers?

There is major unemployment in lower and middle levels but when it comes to the top management, looks like there aren’t enough people.  It’s a reverse case, less people and more jobs to fill, especially in PSU sector.

In FY14, around nine chairmen and managing directors of PSU banks are due for retirement and the Govt is not able to get able men to fill their shoes. The Khandelwal committee, which was set up to address the human resource challenges of PSU banks has stated that 80% of general managers, 65% of deputy general managers, 58% of assistant general managers and 44% of chief managers would be retiring in the next five years. RBI, in fact has called the 10 year period of 2010 to 2020 as the ‘decade of retirement’.

Banks are going through a major manpower crunch as in the next 10 years, these PSU banks will need to hire around one million people to keep their branches running, after taking into account their retirement and natural attrition. On the other hand, the private sector banks have no such issues. So why is this aversion to work with PSU banks? The image of being slow, dowdy, no performance-linked pay is prime. The Khandelwal Committee has listed the reasons to be poor employee compensation package, skill sets, skewed age profile, restrictive deployment and performance management system which prevents people preferring the private sector banks to the PSU banks. Well, if getting people lower rungs is becoming a problem, how will these PSU banks get the top positions filled up?