RBI tries its hand at contract style recruitment

For long now, a government job has meant official accommodation, easy working hours and a wholesome retirement kitty, among a host of benefits. However, this is changing, as state-run organisations increasingly tilt towards contract basis employment, where the benefits are limited to bare essentials such as medical benefits and salary.

So it is at the Reserve Bank of India (RBI), which is currently looking for executive interns on a three-year contract.

The search is for 200 executive interns, way more than the number of direct recruit probationary officers (POs) the central bank takes in every year.
The selected candidates would neither be entitled to company accommodation, pension, provident fund or gratuity, nor have any claim to seniority. In fact, they could get sacked even before the contract period ends if their performance is not up to the mark.

This is the first time RBI has issued an advertisement for mass recruitment of entry level executives on contract basis. Earlier this year, it was looking for media relations executives at the middle and top on contract basis.

The entry level jobs could well be served by employees on contract now. In fact, RBI had advertised for vacancies for recruiting POs in July last year. However, it is yet to issue any such advertisement so far this year.

Going by experts, RBI may stick to this mode of employment.

“Employing on a short-term basis makes it easier to weed out non-performers. So the clear indication is that people shouldn’t come here to park themselves,” said Aneesh G Laikar, CEO, Selectema Consulting, a Mumbai-based recruitment firm.

“In contract basis employment, you cannot be a part of a trade union, which will make the exits easier. It is a sign of times to come. We cannot rule out the possibility of RBI using this way of employment on higher levels too,” said Laikar.
T Shreedhar, managing director of Hyderabad-based talent management firm TMI Network, feels the RBI move will legitimise contract staffing.

The eligibility criteria for the executive interns are the same as those for the POs recruited by RBI every year.

However, the procedure of examination has been shortened. It would now be limited to the aptitude test and an interview. The descriptive test on economic and social issues, finance and management has been skipped.

The emoluments are in the range of Rs5-6 lakh per annum. The cost to the bank for a PO also works out to around Rs6 lakh per annum, though in case of POs, it spreads across perquisites like bank accommodation, various reimbursements, provident fund, pension and gratuity, besides medical benefits.

The closing date for receiving application from candidates for executive interns is August 30, while the written examination will be held on October 24.