100000 Man years of Experience Lost | Retiral Effect on SBI

Most PSUs (public sector units) in India report to market how much they provision for gratuity every year.

And gratuity is a simple calculation, viz. Gratuity = 15 / 26 X Number of years of experience X Base salary

With this we can calculate

Number of Man years (experience) lost for the year = ( Gratuity provision X 26 / 15 ) / average base salary

I did this for one of the largest PSUs of India namely State bank of India and here is what I got

Number of employees = 222933

Total Staff Cost = 14480 Cr

Provision for Gratuity = 1565 Cr

Provision for Pension = 2473 Cr

Average Salary = 0.0468 Cr (4.68 lakhs) (this number includes both base salary and other perquisites/bonuses)

Number of Man years (experience) lost for the year (min estimate) = ( 1565 X 26 / 15 ) /0.0468) = 57962 man years

Even if you consider double this average salary as Base salary this accounts for 26000 man years (experience) loss per year.

That is a significant level of experience to lose every year and seeing that provisions have increased by almost 40 times this issue will only get much worse going forward

That is one of the grandest problems of KM I have ever encountered

UPDATED: doubled average salary at retirement as it was more realistic



When did you last send a voice sms?

You may be familiar with the following message
“the number you are trying to reach is switched off or out of reach, to leave a voice sms, please dial * followed by the 10 digit mobile number”
I cut the call and redial after some time to hear the same message. Think about it I have 200+ numbers on my mobile and do not remember more than 5 numbers. While the mobile operator knows the number every time I call, then why should I dial the 10 digit number to leave a voice sms, I hesitate because of the extra effort, to see and type.
1/10 calls reach this message, a billion calls made every day per operator, even if 1 % of those calls become voice sms for 10 paise each…do the math. All by just asking me not to dial the 10 digit mobile number, I want to hear only
“Just dial * to leave a voice sms”
Just saying


Fixed Price versus Time and Material billing

You know in Bangalore you can buy a Pre Paid auto ride from station to anywhere in the city.

You just buy a token for 1 INR to ride and pay the amount at the end of journey.

This is Fixed Price, you do not care which route the driver takes and do not try to influence him in anyway. If you are lucky you get a driver who knows the route and you reach your destination safe.

In some rides something interesting happens during the journey, you will get to know a totally different alternate route to the destination that you have never tried before or aware, it also happens to be the shortest. The shorter the route the better it is for the driver in terms of ROI.

Even if the driver is no genius or mostly does not know how to collaborate with you or the city, you won’t make a loss, till he gets to your destination, as all effort and expenses are the drivers’. But you will still lose time.

But the journey back from anywhere in the city to station is never pre-paid and it is a journey in which the meter is running, and you as a rider is managing which way the auto is going and trying to optimize your journey for less time (lesser traffic signals) and fare (shortest route).

Remember you don’t have control on the meter, you are less likely to get a heart attack by just believing it is a honest meter, but you have to pay what it shows at the end of the journey. The return journey to the station is TnM model (Time and Material).

You can think of yourself as a success when you can beat the pre-paid amount on the return journey. But remember there is always a better route home with another genius auto driver.

Image Credit Autorickshaw 2 by Knile