Dedicated employees are key to a bank’s success as they drive everything from customer engagement and operations to financial analysis and consulting. However, recent research shows that many financial institutions struggle to attract, engage and retain good talent.
Last year, the turnover rate among non-officers was nearly 20%, and nearly one in three employees said they were experiencing burnout and wanted to leave the industry.
For banks to thrive, they must improve talent acquisition and employee retention strategies. Understanding employees’ needs and leveraging various technologies to meet them can help banks boost employee engagement.
Current talent acquisition and retention challenges in banking
Banking has always been a high-pressure industry in which professionals work long hours. However, in recent years it seems these issues have intensified for employees.
A recent study found that 42% of employees report heavy workloads contribute to more pressure at work, as do longer hours (32%) and tight deadlines (26%). Employees are leaving the field at high rates for various reasons, chief among them being the lack of career development, according to the 2023 Crowe Bank Compensation and Benefits Survey. Employees also cite inadequate pay and limited workplace flexibility as the most common reasons they want to leave the industry.
These factors contribute to employee disengagement or a lack of satisfaction with and connection to their work. Employees want the opportunity to learn, grow and advance within their organizations. In the wake of the pandemic, they no longer wish to be confined to a desk for at least 40 hours a week. Many banks implemented hybrid work models that gave employees more flexibility. Still, as Forbes points out, over the last year, several financial institutions have scaled back on remote work and required employees to once again return to the office full-time.
There’s a clear gap between what employees want and how banks address their needs. If this gap widens, we could see even higher turnover rates, contributing to delayed revenue, reduced productivity, and a loss of institutional knowledge that affects the customer experience. Banks could also incur higher expenses, as it costs as much as two times an employee’s salary to replace them.
To attract and retain great talent, banks must prioritize employee wellness and enhance on-the-job training and learning opportunities, especially for high performers. They must also implement secure digital tools that enable enterprise mobility without compromising compliance obligations.
Employee satisfaction is closely linked to the effective use of digital tools, as these technologies can help streamline workflows, improve communication and provide valuable professional development resources. When employees feel supported by digital solutions, they are more likely to remain engaged and satisfied in their roles, which can help reduce turnover and contribute to a more loyal, productive workforce.
Though some banks have already adopted these practices, more financial institutions can make these changes to improve the employee experience.
Strategies for unlocking a better employee experience
Technologies such as AI and cloud-enabled mobile and tablet devices can help banks strengthen employee engagement and improve the overall employee experience in banks.
AI-powered smart tablets that connect to customer relationship management and digital workspace platforms can automate repetitive tasks for employees, such as data entry, compliance checks and document processing. These tools can also give employees access to timely, relevant information as they serve customers remotely or within a branch.
For example, rather than waiting for a customer associate, a branch employee can use a tablet to pull up a customer intake form, streamlining the new account opening process. A personal banker working remotely can securely log into their tablet from home and conduct a video call with a wealth management client to review their investments. They can use an AI note-taking feature to capture key highlights from the meeting in easy-to-digest bullet points.
Employees can use an AI tablet translation feature for colleagues in different countries to automatically translate their texts or in-app communications, converse in different languages, and send workplace communications that strike the right tone.
Banks can also use AI-powered learning management systems to design personalized training programs that align with each employee’s role, career goals, or learning style and pace. These tools can support initiatives such as certification or management training programs and digital enablement whenever the organization introduces new systems.
Employees want to feel their employers are responsive to their needs. User-friendly digital tools offer the support necessary for employees to thrive in their roles, leading to increased job satisfaction and overall employee wellness.
Satisfied and supported employees are more engaged, productive, and loyal. By using technology to support employee retention strategies, banks can drive greater enterprise mobility and flexibility and better support employees’ career development. This leads to less burnout, more engagement, and a greater likelihood of attracting and retaining the best and brightest talent.
Would you like to discuss how technology can help with improving employee experience and productivity? Contact us and we will set up an appointment.
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