The battle for talent is heating up at banks, according to several findings from the Crowe Horwath LLP 2016 Financial Institutions Compensation Survey. Turnover is up, staffing levels are increasing and plans to pay employees at an above-market rate also increased.
During and after the recession, many more banks reduced or held back on staffing increases. However, the survey found that banks returned to pre-recession levels with only 3.6% planning to reduce staffing and 34.1% planning to maintain staffing levels; 36% are planning for normal growth and 13.8% aim to expand. The survey also found bank employees are changing jobs at the fastest pace in 10 years, with nonofficer turnover at 18.7% and officer turnover at nearly 7%.
Tim Reimink, a managing director in the Crowe financial services performance consulting group, noted that the planned staffing increases combined with the increased employee turnover imply that the battle to find and retain talent is becoming even more heated, and many leading firms have implemented strategies and tactics to attract more millennials as part of this battle.
“Banks realize that attracting and engaging millennial employees requires some different approaches, and we’re starting to see relaxed dress codes and more ability for employees to work off-site,” Reimink said. “A community bank in Texas recently located its new call center in a city with a high number of colleges to purposely attract tech-savvy millennials.”
The survey also found the percentage of banks that plan to implement an above-market compensation strategy has increased steadily over the past four years. This year, 28.5% of banks reported plans to pay more than 10% above market, a 5% increase over last year
The annual survey, now in its 35th year, compiled data from 378 financial institutions.