If you’ve tried to hire a new employee recently, you know that it’s a seller’s market these days. In what can only be described as a perfect storm, the convergence of factors including an impending recession, unprecedented inflation, and a post-COVID redefinition of the workplace have culminated in one of the tightest labor markets in recent history. This has created significant challenges for financial institutions seeking to retain top talent or hire the best and brightest new talent.
Bank turnover at the non-officer level was 23.4% in 2022, its highest level since 2019, according to the 2022 Crowe Bank Compensation and Benefits Survey.
The quit rate is only part of the problem, especially for financial institutions, as talent is disproportionately leaving the industry. McKinsey found that while 35% of workers who quit in the past two years took a new job in the same industry, 65% of workers in insurance and finance either changed industries or left the workforce altogether. This exodus of industry specific talent leaves in its wake significant knowledge gaps that institutions are desperately trying to fill while competing in a dwindling talent pool for the same scarce resources.
Related: How to Get a New Risk or Compliance Officer Up to Speed
In a bit of a double-edged sword for employers, engaging current employees is also an issue. A 2022 Gallup poll found that the proportion of employees that are engaged has declined from 35% to 32%, and the proportion of employees that are actively disengaged has increased from 13% to 18% since pre-pandemic 2019.
How do we engage employees? There are many strategies, including:
- Promoting meaningful work by reducing or automating repetitive tasks. This increases the feeling of alignment between the employee and the institution, as the employee is focused on discretionary tasks and not just repetitive ones. Streamlining tasks can also be effective, for example utilizing a ticketing system with defined process flows to reduce repetitive emails and foster internal communication as well as increased productivity.
- Centralizing resources. A well-designed, continually updated virtual employee engagement platform (VEEP) that gives employees a central resource to stay up to date on company news, access to benefits and other HR functions, and other information can help keep employees engaged. This allows them to participate in the social aspects of their job, which is especially important if they are remote. Having access to the tools they need to perform their job functions helps employees feel empowered which further fosters engagement.
Related: Creating a Company Culture Based on Connections
- Targeted internal communications. Internal communications are another area where flexibility and variety of messaging help foster employee engagement. An engagement platform can help with this communication by allowing certain messaging (such as a letter from the President or kudos to a particular employee) to be broadcast institution-wide, while limiting other communications to key individuals or departments as needed. This targeted messaging allows employees to feel empowered and engaged but not inundated with extraneous communications that aren’t applicable to them.
- Promoting a two-way dialogue between leadership and the workforce. A VEEP solution should offer functionality that allows employees to communicate directly with leadership. This can be done any number of ways, such as allowing employees to comment on communications received from the C-suite, comment on policy or procedure changes, or participate in polling that will be used to help shape management decision-making.
- Offering support and chances for advancement. According to 2020 data from Glint, employees rated “opportunities to learn and grow” as the top driver of a great work culture (1). According to LinkedIn’s 2012 Workforce Learning Report, companies that excel at internal mobility by giving employees access to on-the-job learning opportunities retain their employees for twice as long as institutions that struggle with it. Employees feel engaged when they believe they have the appropriate support and resources necessary to perform their job functions. This includes the ability for in-service training as well as visibility into internal job postings.
While these are the main themes and strategies utilized to promote employee engagement, the journey is not a cookie-cutter path to success. Every institution’s corporate culture is unique, as is their leadership and their employee base. What works for one institution may not work for another. The challenge becomes finding the right combination of approaches to support employee engagement and then partnering with the right provider to deliver the functionality necessary.
Want to learn more about leveraging technology to fight quiet quitting?
Download our whitepaper Employee Retention, Engagement & Productivity in the Era of Quiet Quitting: The Value of Engagement and Productivity Platforms at Financial Services Companies
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