Over the course of more than two decades of speaking with banking leaders, I’ve asked hundreds the same question: “What makes your organization a better choice than the competition?” Almost without fail they tell me that their people are the difference.
Some refer to their “culture,” but that’s a different way of saying their people’s behaviors and attitudes differentiate their company.
I agree. Over time, other factors tend to offset. Technology advancements are quickly copied. Facility designs are duplicated. Marketing campaigns mimic each other. Pricing becomes standardized in a highly competitive industry.
In a seemingly homogenized and increasingly technology-driven industry, the roles of customer-facing personnel have never mattered more. Those roles are evolving, but the importance of employing high-quality personnel has never been greater.
I’ve witnessed scores of new strategy implementations, reorganizations, etc., over the years and based on my observations, the success of any plan comes down to the quality and engagement level of the folks in the field. It’s no great mystery why organizations with consistently high employee turnover rates and/or understaffing issues tend to struggle with everything from customer satisfaction scores to new-account production levels.
There have been periods in which the available pool of talent is deep. In other times, finding quality employees is far more difficult.
Even as banks of all sizes continue to raise minimum pay as a means of attracting and keeping workers, bankers say this is one of the more difficult labor markets they’ve faced in their careers. While most banks have not faced the existential challenges, places such as restaurants and small businesses have faced, the strain on staffing is real.
Interestingly, with many reorganizations and restructurings around the industry, quality middle managers appear to be available. Quality bankers with a decade or more of leadership and/or project management experience appear obtainable.
Entry level and customer-facing positions, however, are another story. In many markets, the beginning pay for hourly employees at any number of retail establishments is higher than the starting pay at the banks in that market.
That said, the amount of responsibility and training required to perform a new banker job tends to be far greater than what is asked in other comparably paid jobs. Helping potential — and even actual new hires — get over that hurdle has become even more of a challenge than usual for many.
Bank managers everywhere are sharing stories about the high number of new hires leaving within their first 90 days on the job because they have found jobs elsewhere, often for comparable pay.
That suggests that turnover is not just about money. Pay must, of course, be competitive, but if banks are losing good employees, then their onboarding, training and coaching programs should be reviewed again and honestly assessed. Maybe the way things were done before the pandemic is still fine. Maybe it’s not.
Helping new team members see beyond the challenges of today gives them incentive to work through the struggles of adjustment and the process of becoming competent and confident in their roles.
Senior leaders must remember that the people who directly support, train and lead customer-facing team members need support as well. Now more than ever is a time for leaders to be personally communicating with individuals, ideally in person because there is nothing more impactful for employees than actual face time with their leaders. If in-person is not possible, then use other channels. Personal phone calls and email have more impact than some realize.
Addressing a group is one thing. Communicating with individuals personally as often as possible is another. Few things convey their importance more than a leader giving them his or her time and attention.
Our better employees tend not to burn out from difficult jobs. Most are actually motivated knowing they do jobs that not just anyone can. They do burn out, however, when they feel confused, ignored or unappreciated. Effective leaders continually strive to make sure their teams never are.
