Hoosier Banker 29 20+ YEAR PARTNERSHIP WITH INDIANA BANKERS ASSOCIATION Years But Who’s Counting? © 2019 Krieg DeVault LLP. This constitutes attorney advertising. Krieg DeVault LLP, Indianapolis, IN, is responsible for this content. Brett J. Ashton Kay Dee Baird John B. Baxter Julia A. Carpenter Maria M. Vladimirova Michael J. Messaglia James J. Schwabe Robert J. Wild Nicole R. Finelli Michael E. Williams PARTNER PARTNER PARTNER PARTNER PARTNER ASSOCIATE PARTNER ASSOCIATE PARTNER PARTNER 317.238.6291 bashton@kdlegal.com 317.238.6306 kbaird@kdlegal.com 317.238.6311 jbaxter@kdlegal.com 317.238.6273 jcarpenter@kdlegal.com 317.238.6374 nfinelli@kdlegal.com 317.238.6268 mvladimirova@kdlegal.com 317.238.6249 mmessaglia@kdlegal.com 317.238.6298 jschwabe@kdlegal.com 312.235.1119 rwild@kdlegal.com 317.238.6220 mwilliams@kdlegal.com OVER 20 Financial Services Team FUTURE LEADERSHIP DIVISION SPONSOR MEGA CONFERENCE 2019 SPONSOR ANNUAL CONVENTION SPONSOR BANKING ON WOMEN CONFERENCE SPONSOR WOMAN OF THE YEAR AWARD SPONSOR Krieg DeVault LLP has been involved in every major event that has shaped the evolution of Indiana’s financial institutions. In addition to leading commercial and investment banks, our clients include specialty finance companies, insurance carriers and agents, broker-dealers, and investment advisers. www.kriegdevault.com Turnover in the banking industry continues to increase, and retaining and recruiting talent are major considerations for banks, according to data from the 2019 bank compensation and benefits survey conducted by Crowe LLP. The 38th annual study compiled data from 778 financial institutions, collecting information on benefits, incentives, director compensation and human resource practices, as well as bank salary and bonus benchmarks for 273 job positions. Turnover for nonofficer and officer positions rose again in the 2019 survey, a continuation of a longer-term trend. Over the past six years, the turnover rate for nonofficer positions has more than doubled to 23.5%. Although the officer turnover rate for banks is not as high percentage-wise, it also has more than doubled in the past six years, from 3.6% to 7.5%. Attracting younger talent is crucial, with 56% of banks reported that retaining younger talent is somewhat or very challenging. This percentage coincides with the 71% of banks that reported having no strategy for recruiting younger talent, but plan to develop one. Issues with recruiting younger talent may further be amplified when examining the age breakdown of current bank employees. The percentage of professionals younger than 25 is only 11%. This recruitment gap causes concern as the largest group of employees by age (55 to 65), constituting 22%, approaches retirement. On a positive note, more respondents than the prior year reported taking action in response to correcting gender pay differences, including: performing an analysis of pay differences between men and women (21.5%); making necessary adjustments during salary review (19.7%); being more transparent with staff (9.9%); raising awareness of women’s issues in the workplace (2.4%); or other actions (10). All of these results represent increases since last year. Banks also reported on the average time elapsed between posting a job to filling the open position. Although the length of Recruiting and Retaining Talent Top of Mind per Survey Results time ranges from a few days to multiple months, just over half of the banks reported an average time of one month. Banks with turnover rates above 20% reported a higher rate of two months to fill positions than those with lower turnover rates. The Indiana Bankers Association, in partnership with Crowe LLP, makes available to IBA members the 2019 Indiana Financial Institutions Compensation & Benefits Report. The report can be specified to Indiana only, the Midwest region (IN, IL, MI, OH), or for all participating institutions in the United States. For ordering/pricing information and other details, visit indianabankers.org/compensation-survey or contact Rod Lasley at rlasley@indianabankers.org. HB
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