Commercial banking divisions may find themselves hitting some turbulence in mid-2022 when retaining their leaders and top producers. Nearly 50% of the workforce may turn over, and an exit this large could leave commercial lending divisions with multiple critical positions open by the summer.
During the pandemic, employees have been trying to keep up with work demands amidst a changing landscape for more than a year. When the workforce transitioned to remote work, so did many of their partners. Their children also joined them at home, and together families tried to navigate an unfamiliar environment. The result has been pandemic burnout.
The banking industry has not been immune to the transformation taking place. Like many firms, you may have noticed that employees suffer from disengagement resulting in malaise. There’s a disconnect. The firm’s corporate culture no longer aligns with what workers want – if it ever did.
What Matters Most to Employees
Since employees have had time to reflect on what matters most in their lives, they’re more interested in creating a work-life balance that centers around their personal needs.
To attract and retain the best in the industry, you’ll have to offer:
- Meaningful benefits that show you care about your employees. That could mean providing healthcare and sick leave immediately upon hiring, as well as rethinking vacation time and retirement packages.
- Flexibility in remote and hybrid work arrangements. Employees have lives and responsibilities outside work. Remote arrangements allow workers to tend to a sick child or run an errand because they can flex their time.
- Opportunities and professional development. Be sure that your hires have personalized training that helps them grow as leaders and into new positions.
By providing employees with the benefits they want, you show you appreciate them for their work. You also trust them to make good decisions about getting their job done.
The Turnover Cost to Commercial Banking Divisions
Despite offering outstanding benefits, some of your employees may decide to leave anyway. You can be prepared for the transition if you know what to expect.
Hiring replacements for your top talent can be costly. You can prepare for turnover by:
- setting aside up to 2.5 times the open position’s salary in hiring and training costs.
- planning for the loss of institutional knowledge; decide who will service accounts and mentor new hires.
- upskilling talent rather than replacing skills lost.
If you find yourself in a position to replace your top leadership talent, consider how you’ll hire for diversity, equity, and inclusion. We recommend relying on a recruiting firm with a quality process for hiring and recruiting.
Competition for top talent will be at an all-time high. Will you be ready to attract and retain the best in commercial banking?