With technology invading every aspect of daily work, from card processing to online banking to social media strategies, it has become all too easy to overlook your financial institution’s greatest asset — its people. Your employees’ interaction with account holders sets the tone of the organization and builds its culture. Value them appropriately, and your bank or credit union will likely flourish. Undervalue them, and you’ll probably experience a recurring cycle of low morale, high turnover, and account holder dissatisfaction.
Start Off on the Right Foot
The first step in valuing employees is to hire people you actually value in the first place — finding not just the candidate with the strongest skill set, but the best fit for your bank or credit union. Having a vigorous recruiting process will help ensure a compatible match. From an initial deep dive to discover the intricacies of your organization’s culture to profile testing and evaluating candidates on real-world scenario performances will narrow the field down to the people who will best further your institution’s goals.
Having a smooth onboarding process helps people adjust to the social and performance aspects of their new jobs quickly and also makes them feel valued. This, in turn, encourages them to stay with an organization longer. But don’t make the common mistake of thinking that onboarding begins on an employee’s first day — a successful onboarding program actually begins during the recruiting and hiring process.
Keep Them Coming Back for More
Once you have the people you want in place, it takes a conscious effort to keep them there — especially in the financial industry. The turnover statistics in our field are not pretty:
• The Banking & Finance industry has one of the highest turnover rates among all industries, at 18.6% (Compdata survey)
• 48% of Millennials surveyed said they were actively looking for new opportunities, while 42% said they would be open to new opportunities (PricewaterhouseCoopers survey)
• Analysts and associates at 12 global investment banks stayed in their roles for an average of 17 months in 2015, compared to a 26-month average in 2005 and a 30-month average in 1995. (LinkedIn study)
Therefore, the second step in valuing your human capital is to have a robust retention plan in place. This can change over time as your institution evolves, but it should address a number of factors, including:
• Culture. What does your organization stand for, and how is that seen and felt on a daily basis by those working there?
• Environment. Do employees have a place to congregate and take a break? Are they confined to cubicles and desks all day? Is the atmosphere stale or vibrant? Does your company participate in service events or team building activities to strengthen the bonds between each other and the community?
• Monetary Incentives. Are your compensation packages competitive? Do you offer attractive benefits to executives, like Supplemental Executive Retirement Plans? Do employees feel their salaries and bonus structure match their performance?
• Non-monetary Incentives. Are employees recognized for their contributions? Do you offer perks such as telecommuting, continuing education opportunities, and pathways to advancement within the institution, where applicable?
• Employee Input. Are your people invited to voice their opinions, concerns, and suggestions to upper management?
At the end of the day, it boils down to offering more than — or at least something different than — the competition. When people feel their employer is actively implementing ways to value its employees and provide them opportunities to both grow as individuals and grow the organization, they’re more likely to stick around.
With deliberate thought and prioritization, through successful recruiting and retention planning upfront, you ensure that your financial institution is placing a high value on its most important asset: its people.
ABOUT JOHN M. FLOYD & ASSOCIATES (JMFA)
For the past 38 years JMFA has been considered one of the most trusted names in the industry helping community banks and credit unions improve their performance and profitability. Whether it’s recovering lost revenue, uncovering savings opportunities, serving your account holders better, finding the perfect personnel fit or delivering a 100% compliant overdraft program, JMFA has the right solutions to help you not only meet, but exceed, your goals. We are proud to be a preferred provider among many industry groups. To learn more please contact your local representative or call (800) 809-2307.