With current unemployment at an all-time low, financial institutions are still finding it hard to fill positions, especially tech-focused roles that are imperative to implement much needed technology and digital strategies. According to the most recent Crowe Horwath Bank Compensation Survey, US banking turnover rates are at a 10-year high, which is also coming off of a 10-year low. This ongoing talent crisis emerged from the 2007 financial crisis which greatly damaged the banking sector’s reputation and public trust, making the industry a less than desirable workplace. Banking employees that are voluntarily leaving positions are moving to high-tech companies seeking higher pay and a more positive work culture that these companies are known for.
Banks must acknowledge the talent issue at hand and work to identify the root causes. The top reasons employees leave a company within their first year include: lack of appreciation, communication issues, non-competitive pay, and a lack of professional growth. By developing a retention strategy and shifting culture to a more favorable and flexible workplace, banks can start to win the battle to preserve their top talent. Below are some significant approaches the banking industry can easily put into place to reduce turnover and increase retention rates.
Focus on Keeping Junior Staff Happy
Not only is the Banking Industry struggling to compete in recruiting IT talent, these institutions are now facing losing their top performers that lead to future leadership. Younger generations in the workforce are expecting to be rewarded more often for a job well done. Promoting your junior tech staff more quickly and offering recognition programs will help ensure a better retention rate, keeping a pool of future management prospects within the company.
Provide a More “Tech Savvy” Culture
As more millennials enter the workforce, they are paving the way for a new cultural era in the workforce. Because of this shift, an organization’s culture is one of the top factors candidates look for when deciding where they want to work. And this means offering more than the occasional ping pong break or free beer fridays. More important factors such as employee recognition programs, creating clear career paths, embracing flexible work hours, and providing strong communication all are shown to motivate top performers.
Provide Professional Growth Opportunities
According to a recent study containing valuable data from over 234,000 exit interviews, the Work Institute’s 2018 Retention Report, career development was the number one reason people leave or remain within companies. Providing employees more growth opportunities, such as providing a debt-free education, will build company loyalty, increase productivity, grow satisfaction and lower absenteeism.
College Gateway for America partners with financial institutions to attract and retain quality tech-focused employees to help build a recruitment advantage. To learn more about how CFGA can help your financial institution win the war on talent, click here.