Employee Engagement for the Long Haul: The Best of Coaching, Development, and Career Pathing
Like many other industries across the world right now, the banking sector is experiencing a crisis of talent. The business of attracting and retaining quality personnel has become more challenging than at any other point in living memory and solutions are needed if businesses are to remain viable.
According to American Banker, whilst banking saw solid retention rates during the COVID-19 pandemic, more recent figures have suggested that employees have since begun to hemorrhage to other employers. Between 2019 and 2021, the turnover rate for bank employees fell from 23.6% to just 16.2%, before shooting back up to 23.4% in 2022.
However, according to Crow LLP, the accounting and consulting firm which carried out the research, compensation and benefits are just part of the puzzle which needs figuring out to halt the tide of people abandoning the business.
"The industry cannot compete for talent based on compensation and benefits packages alone, so organizations must work to improve their training programs and culture," said Thomas Grottke, Managing Director and a specialist in financial services consulting at Crowe.
Employee Engagement
One of the main areas where banking needs to improve is engaging with its workforce and listening when it tells employers what they want and need in the post-pandemic workforce.
For example, before the pandemic it was highly unusual for banks and other financial organizations to offer their employees flexible or remote working options. However, once brands were forced to facilitate these methods of working due to COVID restrictions, the mask has slipped, and employees are now fully aware of how simple they are to implement.
There’s no turning back now, employers must offer remote and hybrid working where it is possible or risk losing workers to more progressive firms. There is no evidence that remote working reduces productivity and the benefits to employees – such as childcare savings, the lack of commuting, and a healthier work/life balance – are too good for most people to pass up.
In fact, a significant body of research now shows that employees rate remote working incredibly highly in their priorities when choosing a job – in some cases even higher than factors such as health insurance – and are more than willing to jump ship and relocate to an alternative employer if their current role does not allow for it. In short, offering remote or hybrid working is no longer a "nice to have” option, but an essential consideration for many people.
A Culture of Learning
Another way banking needs to evolve is to improve the culture around training and career development amongst its employees. Creating and nurturing a culture of learning has been repeatedly shown to improve employee engagement and retention and will empower your brand to produce more educated and intelligent workers far better equipped to, not only progress in their careers, but provide a markedly improved experience for your customers.
"While this requires nurturing and engagement from every corner of the bank, it is time and resources well spent,” says Independent Community Bankers of America (ICBA). "Encouraging and supporting an environment where people help each other learn constantly can be a positive game changer. In addition to increasing productivity, performance, and satisfaction, it can lower attrition rates and absenteeism – creating a healthier workplace.”
It is critical that your culture of learning does not only focus on the skills immediately relevant to banking as well. Whilst these technical skills will be important to grow and nurture, of equal importance are so-called soft skills such as team building, critical thinking, strategic thinking, problem-solving, and communication and presentation strategies. This will help turn your workforce into, not only terrific bankers, but also forward thinking and initiative taking futurists able to apply their skills to taking your brand to the next phase of its evolution.
"One very important way to demonstrate bank leadership’s commitment to continuous learning is by linking learning and performance goals,” concludes ICBA. "At the end of the day, providing all employment levels opportunities to learn and grow has profound benefits for a bank. Drive engagement through learning. Do this early and often, and always, remember to make learning fun!”
Final Thoughts
Employee engagement and a renewed focus on training and development are going to be key brand differentiators in the post-pandemic scramble for top talent. It’s a buyers’ market right now, and people are searching for employers which listen to their wants and needs and provide clear and transparent routes of learning and career development.
Engagement, training, and development are sure to be hot topics at Future Branches Boston, being held in June at The Westin Copley Place, Boston, MA.
Download the agenda today for more information and insights.