They’re leaving, and commercial banking groups are feeling their absence.
Thanks to the pandemic arriving simultaneously with their potential retirement, baby boomers have opted to leave the workforce in large numbers. In 2020, the number of retirees nationwide grew by 3.2 million, for 28.6 million workers.
Banks have always had a clear transition of workplace talent. When retirees leave, those already employed in the commercial lending department usually step up into vacant positions. Eager graduates take on newly opened positions. The process has always been neat, orderly, and predictable. However, that isn’t the finance trend we’re seeing today.
Banking employees who once would have taken senior banking positions are discovering opportunities elsewhere in private equity, including biotech, fintech, startups, and venture capital. They’re grabbing these chances while they’re still available in the hopes of changing their career trajectories.
That leaves financial institutions facing a leadership void unless organizations prepare for the transition by retaining their best employees and attracting new talent.
Preserving Institutional Knowledge
Before retirees leave, you’ll want to plan for how you will preserve their institutional knowledge and close any potential gaps in service.
Some financial organizations have become creative in the ways they tap into the know-how their leaders developed over years of experience. They recommend that you:
- Develop a diminishing schedule that phases out senior executive time in the office.
- Retain retirees as consultants and mentors.
- Request that retirees consider other advisory roles.
Keep retiring leaders around long enough to search for, hire, and onboard recruits. You can make the process more seamless when you partner with experienced professional recruiters.
Hiring Trends on the Rise in Commercial Banking Groups
You’ll need the kind of top talent that can help your commercial banking teams automate functions and analyze data in a digital environment. It’s time to try non-traditional recruiting strategies.
Begin now by identifying some of the most promising candidates in your organization. Prepare them for a series of successions by encouraging them to serve on committees or take the lead on projects and initiatives.
- Use your mission and vision to guide your search.
- Eliminate minimum requirements, such as years of experience in the industry or department.
- Focus on personality rather than skills for which you can train.
- Look for motivation and other intrinsic character traits
- Avoid limiting your search to only candidates with college degrees.
- Hire for diversity to foster multiple viewpoints.
Base pay salaries are higher than ever, often starting in strong six figures, but offering a robust paycheck isn’t the only thing that will help you retain your new employees. They’ll need professional development, great benefits and flexibility.
Most importantly, they need you to create an environment where they’ll succeed.