The banking industry is thriving. Recent estimates show there are over two million people working in various capacities for banks in the country.
Along with increased challenges associated with managing a large number of people, the banking sector faces some unique human resource challenges. Due to the unique nature of the banking environment, human resource departments are dealing with employees with diverse skills, and varying degrees of experience. Front line employees are also tasked with interacting with the public, and navigating the tricky area of occasionally having to turn down a customer that has applied for a loan.
Here are some of the biggest HR challenges the banking and financial sectors are going to be dealing with this year:
The Skills Gap
The skills gap in the financial industry is increasing every day. With the advancement of digital technology, banks are reporting having a challenging time finding IT pros and digital experts that are well-versed in rapidly changing banking technology.
Retaining Millennial Talent
The majority of entry level banking roles are filled by millennials. Having such a large percentage of this category of employees can be challenging, since according to a survey, only 10% of millennials plan to work long-term for a single organization.
That means over 90% of millennial employees aren’t planning on sticking around. This has significantly increased the cost of hiring and training new employees. As a result of this anticipated attrition, the banking sector is wise to be continuously trying to find new strategies that help them retain employees.
Creating an Attractive Company Culture
According to a recent survey, over 86% of millennial employees would choose a healthy culture that is in line with their values, over income.
HR departments should ensure that their banks work environment offers an inclusive and healthy culture if they wish to be able to attract & retain top talent. This includes actively seeking out diversity, highlighting a culture that encourages a healthy balance between work and play, and giving employees a clear career path which offers room to grow.
Candidates have more Choices and More Power
With today’s historically low unemployment rates, jobseekers now have more choices, and thus, more power. This has made it difficult for many industries, including the banking sector, to attract and retain top talent.
These conditions have allowed job seekers the leverage to negotiate better employment terms and salaries.
In order to be competitive, many banks are now offering attractive incentives beyond monetary compensation, such as wellness programs, tuition reimbursement, competitive bonus potential, increased vacation time, and an inclusive company culture to stand out from competitors.
Workers with Student Loan Debt
Student debt concerns has greatly impacted employees across the board. Surveys show that over 78% of the employees with student debt want repayment benefits as a part of their salary packages. Offering loan repayment can dramatically help attract and retain employees and boost their performance.
This can be an extremely effective recruiting tactic when targeting entry level employees straight out of college.
Are you looking for reliable and skilled candidates who can become valuable assets for your bank?
International Search Consultants has been a leader in providing exceptional candidates for banks since 1999.
Contact us now to strategize on your current hiring needs, and your ideal candidate profile.
Kim Garrison is Director of ISCs Texas Banking Recruiting Team. Kim has worked in the banking world since 1998 and has held positions such as Banking Recruiter for a 60 branch bank and Vice President of Human Resources.