Four Despite a number of headwinds facing banks this year, including high inflation and an uncertain economic environment, one of the top concerns for community banks is retaining talent. Around 70% of banking leaders said retention was a challenge, as was maintaining “a large enough workforce to do work,” according to a recent survey from Arizent, the publisher of American Banker. Employees are quitting for several reasons, ranging from burnout to a desire for more flexibility to an interest in doing meaningful work. They also have more options and better career prospects. Before the pandemic, bankers were predominantly limited to local opportunities. Today, they can work virtually for institutions located anywhere. Even with a recession looming, leaders who don’t adapt to these new dynamics risk seeing their best people leave. According to the results of our most recent quarterly survey, 66% of bank executives have increased compensation to retain (and attract) qualified employees, but higher salaries and performance-based pay may not be enough to keep people around. Employees also want fulfilling roles and growth opportunities. Below are some ideas to help prevent staff departures. Create a mentoring program With employees increasingly focused on well-being and self-improvement, and since a lack of interpersonal connections appears to be one of the main reasons people quit their jobs, mentoring programs can help retain staff. “Rapport is what makes mentoring truly transformative and more than just an organizational responsibility,” CEOs Marianna Tu and Michael Li wrote in a recent article for Harvard Business Review. “The quality of this human connection is critical to retaining employees, especially those who are underrepresented in your company or industry.” Mentoring programs can benefit everyone. Junior-level bankers develop new skills and perspectives, learn how to navigate organizational politics, and expand their professional networks, while senior bankers gain new perspectives and give back to their organizations and industries. If you’re worried about the efficacy of a mentoring program in a remote environment, don’t be. It may seem counterintuitive, but virtual mentoring has several distinct advantages over in-person mentoring, such as increased flexibility and myriad technology applications. In fact, not launching a mentoring program might be a mistake. “During the COVID-19 pandemic, our personal and professional worlds have steadily intruded into one another,” Tu and Li wrote. “Companies who embrace that reality will tend to keep their best people while others lose great talent.” And banks don’t have to spend a lot to get mentoring programs up and running; all their prospective mentors are already in-house. Consider an ESOP Employee stock ownership plans (ESOPs) aren’t for every bank, and instituting one obviously isn’t a decision to take lightly. That said, ESOPs can foster a culture where employees feel a greater sense of belonging. Employees who feel taken care of are typically more loyal to their employers, which means they’re more likely to stick around and tend to go above and beyond for customers. In addition, ESOPs can help banks increase productivity, save on taxes, and attract talent, among other benefits. One bank CEO with an ESOP claims the plan has made a tremendous difference to employees and their families. for Community Banks to Retain Talent By IntraFi T ps www.coloradobankers.org 22
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