The Biggest Challenges That HR Faces in the Banking World

 

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.

Kim can be reached via direct dial at 800-270-3974 or e-mail at