A recent article in The New York Times said that though members of the New York Philharmonic earn at least $75,000 a year there (and can double that by giving lessons and doing other work), there is considerable job dissatisfaction.
They're dissatisfied because they feel they have no control over what they do and when they do it. The decisions are all made for them.
I read of this just after attending a state bankers convention where I heard similar sentiments of dissatisfaction.
If I had to sum up the advantages of community banking in one word, it would be "empowerment." The people at the front line have the power to make decisions and to make a difference that the customers can feel.
Behind this, of course, is an attitude. Management must instill in staff members a feeling that they are important, that they are the bank.
One former CEO, now a high executive (but not a decision maker) at the bank that bought his old one, told me of the pizza parties they'd have at the old bank.
The top staff would meet after work, order in pizza, and discuss every aspect of the bank - good and bad.
"They would go out raring to sell the bank and build it further the next morning," he said, and this feeling would permeate the entire staff.
"Now," he said, "I work for a bank that has profit sharing for the employees - while we, the newly acquired operations, are called a division, and do not have that benefit.
"Think of how an employee feels. Morale is killed, and it shows."
Another banker told of a staff meeting at which one branch manager complained to the CEO: "Our people are working harder than ever, but they haven't had a raise in three years. Can you do something about this?"
The answer: "You still have a job yourself, so shut up and sit down."
Not only was the manager red-faced and beaten down, but everyone else at the meeting left with an attitude that "management feels my yearend bonus is to still have a job on Jan. 2."
Another banker put it this way: "You have to have job security in order to work for a bank 10 hours a day."
How different is the attitude when there is empowerment and appreciation?
As I have related before, Bank of America used to have a branch network second to none in the world. It didn't pay the branch managers all that well, but it gave them the freedom of action to be able to state proudly and honestly, "In my town, I am Bank of America."
Some banks are trying to win such of loyalty by giving branch managers the authority to raise CD rates by, say, a quarter of a percent, or eliminate fees for good customers if they want to.
Even in high executive positions, the feeling of empowerment can make a difference.
I remember one CEO who sold his bank to a larger group and lamented:
"I used to be able to do good. I could help a widow finance her son's college, I could help an auto mechanic put a second bay on his garage. "Now, even though I am second in command, all I do is look at reports."
This is the key.
Sure, acquirers hurt the banks they buy when they change the names too rapidly, or change personnel or systems so fast that customers find them unfamiliar.
But it is when the employees stop talking about the bank as "we" and start calling it "they" that the spirit of community banking dies.
Saving this spirit takes empowerment - a feeling that the bank really is a team of decision makers, from top to bottom.
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We are still accepting responses for our latest contest. The topic: What does your bank look at in deciding whether to hire or reject an applicant for employment?
Aside from specific skills needed, we want to know how you determine whether an applicant will help the bank grow and prosper over the long haul.
The winner will, of course, become president for a day of Schmidlap National Bank, with appropriate certificate.
Mr. Nadler is a contributing editor of the American Banker and professor of finance at Rutgers University Graduate School of Management.
