Banks do not have scores of top candidates clamoring to get jobs at their institutions, like Google and other tech companies — who typically get more applicants every year than the entire population of multiple small countries, combined. With employees being the strongest asset at any financial institution, it’s not hard to make the case that recruiting and retaining top talent is one of the most strategically important initiatives during any given year.
Besides the competitive differentiation and huge revenue uptick associated with having the best employees, losing employees to shiny tech company positions and then refilling openings is equally as impactful. Per Glassdoor, recruiting costs an organization $4,000 per hire, and turnover is worse, at $15,000 per incident.
Why banks often fall way short of pulling in and retaining top talent
The Googles of the world have many perks, including free meals and massage therapists on site. While these certainly help, the strongest candidates want to work someplace that is innovative and is making a difference. To put it simply, they are looking for meaning in their work. Banks historically have in many ways the opposite of what candidates are looking for — a traditional, innovation-poor reputation.
With the hyper-acceleration of increasing volume of information and changing consumer expectations, financial institutions in recent years have, despite common belief, been very innovative. They’re developing state-of-the-art mobile apps and artificial intelligence, all while reinventing the branch experience. These innovations are anything but boring, and banks need to change their stories to reflect this, in order to attract and keep the best candidates.
Ok, you have your new recruitment and retention story down pat, now what?
Your story is now revolving around working at an innovative company at the forefront of both revitalized retail experiences and revolutionary digital fronts, and top talent candidates are rolling in. Employees appreciate your technology-driven work environment, but do you have the right HR systems in place to ensure your employee engagement is high?
Modern HR systems and strategies place a high priority on preventing employee burnout in banking before it formally leads to churn. Career mapping and ongoing performance evaluations help individuals align what they are doing and where they would like to be with the bottom-line impact of the institution. Remember the making a difference desires mentioned earlier in this blog? These tactics can help employees see your institution as the perfect environment for them to thrive.
When employees feel they’re making a difference they are undoubtedly more engaged, and in-turn are stronger performers. A recent article in Harvard Business review connects the dots around this critical point when it stated that companies that are recognized as outstanding in customer experience have 60% more engaged employees (Temkin Group research).
The right blend of modern approaches and modern technology
The right HR technologies help managers be more prescriptive in getting their financial institution employees more engaged. They can easily leverage predictive insights to collect and analyze data related to, among other things:
- Flight risk
As employee roles evolve, so will the need for Human Resource’s efforts to identify, recruit and enable the right candidates for each position.
There is one word of caution related to creating an amazing culture and reputation based on innovation and meaningful work. When you only hire the best candidate’s year-after-year for decades, like Google, the career path for entry-level employees can be difficult. The median tenure at Google is 1.1 years, according to Payscale’s recent employee turnover report. While this is a word of caution, it’s likely a situation many banks would love to be in.