Economic upheaval of late has had me reflecting on a conversation I overheard a few years ago in a hotel restaurant. Three gentlemen were sitting in a booth adjacent to mine and sharing their thoughts on the day’s events.
I surmised that their company held meetings that day and that two of the fellows were mid-level managers. They reported to the more-senior gentleman at the table.
After one made a comment about how expensive a remodeling project at his home had become, the senior manager spoke up. Without sounding like a scold, he referenced conversations he witnessed that day.
He said, “You both work hard and are doing well. I appreciate that. But…let me offer a piece of advice. Don’t talk about the ‘problems’ of having an in-ground pool installed, or how high tuition is at your kids’ private schools in front of your teams.”
He went on to point out that no one begrudged anyone the fruits of their labor. However, employees might be forgiven if hearing those kinds of complaints from their managers led them to believe they might be detached from their realities.
I remember resisting the urge to applaud as that senior leader said that. I wasn’t trying to listen in on their conversation but was glad that I couldn’t avoid hearing it.
That conversation has come back to my mind over the past few months as the U.S. economy has faced headwinds many folks have never seen. A recent report pointed out that 64% of U.S. households now live paycheck to paycheck.
That number is only rising as significant inflation persists and U.S. households are forced to make increasingly difficult decisions. A person would have to live in a bubble to be unaware of that fact.
And yes, most of the executives I’ve communicated with in recent months are keenly aware of the challenges customers are facing. That said, I’ve asked several of them a question that has caught them off guard.
I asked, “How many of your own employees are living paycheck to paycheck? How many do you think may be, newly or not, financially insecure themselves?”
When one told me that he had honestly never stopped to think about that, I told him he wasn’t alone. Most competent professionals at any level within an organization do not openly publicize their personal financial situation.
In recent conversations, I’ve been openly wondering if we might be moving from pandemic-related disparities to economy-related ones. We went through a stretch in which many of our frontline employees were back in branches and masked for more than eight hours each day.
Many others in their banks weren’t. This may not have been under leaders’ control, but some of the divisions created were real.
Now, customer-facing employees are increasingly likely to be interacting with larger segments of people facing economic pressure. They will be asked to remain empathetic and engaged in more and more stressful conversations. To overlook or ignore that fact would be imprudent.
Beyond that, why would we think national working-class and hourly employee financial challenges would somehow miss our own teams?
I’m not arguing that frontline bankers and customer support personnel are necessarily underpaid. In most markets, competition tends to keep everyone in line and bankers tend to be paid fairly in comparison to similar job classes.
Yet even fairly paid folks who are prudent with their spending are feeling pressures that show no sign of letting up quickly.
Promoting financial literacy and practical budgeting practices to customers is always a smart move. Banks frequently provide the only financial education some of their customers ever receive.
Proactive messaging promoting ways for customers (and employees) to save money resonates more than ever today. Whether in business meetings, social settings, or even social media, now is not a time to unintentionally appear disconnected from our customers’ and teams’ realities.
In challenging periods, folks are more attuned than usual to identify the people who appear to be on their sides and understand them. This is a particularly fitting time for leaders to avoid appearing tone-deaf.
