Financial institutions are bracing for the probable recession that’s on the horizon. In board rooms and meetings across the financial industry, executives and their teams are trying to find answers to...
Chances are, your financial institution is currently looking to fill open positions—but we all know that work doesn’t stop coming in just because you don’t have the employees needed to handle it. As the Great Resignation shows no signs of slowing anytime soon, retaining your current team members is more critical than ever.
The high demand for employment has created favorable conditions for employee resignation. Current labor market data indicates that people who quit their current jobs are quickly and easily re-entering the workforce in the same industry at a higher rate of pay.
According to CNBC, “wage growth has been higher for job-switchers than those who keep the same job — they’ve gotten raises of 5.8% versus 4.7%.”
Anytime you have an open position, productivity suffers. Further, if you divvy up the tasks and responsibilities to other employees, not only can they become overwhelmed, affecting their morale, but they become less productive at their jobs since they are not dedicating their complete focus and energy to their original responsibilities. And, unfortunately, the demand on their primary role doesn't stop, leaving an overflowing amount of work to maintain.
Given the current labor market, focusing on employee retention is paramount when it comes to reducing employee turnover and maintaining business continuity. Consider implementing the following five strategies to boost employee retention for your organization:
Tip #1: Empower and Engage Your Employees
No matter the size of your institution, attracting and retaining strong employees should always remain top of mind. Your employees keep everything running smoothly; they are your company’s greatest asset, so keeping them happy should be a priority. To have successful employees, you need to ensure they have the skills and knowledge that allow them to be more productive and an environment that promotes their professional betterment.
When employees become disengaged with their job, it not only affects them on an individual level, but the company as a whole may suffer, too. As a result, companies may experience lost productivity and higher employee turnover, which can be extremely costly. Creating a culture in which employees feel empowered to better themselves and develop their professional skills will help enhance employee engagement within your financial institution.
Tip #2: Offer Professional Development Opportunities
Employees want the opportunity to develop their skill set, regardless of the stage of their career. Consider implementing training or certification courses to allow professional growth within their position or the company. Some institutions even develop mentor programs where tenured employees assist in the personal development of the newly hired through coaching and advising.
Tip #3: Offer Competitive Pay and Benefits
It’s important to understand that top talent isn't going to work for you and be loyal to your organization just because you want them to. To retain the best of the best, you have to show them you care by offering competitive compensation and benefits. This shouldn't be used as a stand-alone asset to achieve your ultimate goal of employee engagement, but if your company has the means, it can be used as a great tool in your arsenal.
Tip #4: Create a Positive Team Environment
Developing a positive team atmosphere can be tough, but if achieved, it will not only increase employee engagement but overall production as well. Strong employee engagement is reliant on how well your employees get along, interact, work together, and participate in team activities. Employees need to feel like they belong to something important or worth working for, like a community or family. And they should also feel safe knowing that everyone else on their team has their back, can pick up the slack, and will offer a helping hand should the going get tough.
Tip #5: Don’t Overwork Your Current Employees
One negative effect of the Great Resignation is the increased levels of stress and burnout experienced by overworked employees who are expected to take up the slack when their teams aren’t fully staffed. A recent Deloitte survey found that 77% of respondents have experienced employee burnout at their current job, with more than half citing more than one occurrence.
If your employees are being pulled in too many directions at once and are trying to manage HR-related tasks instead of their daily duties, consider delegating these time-consuming tasks to SWBC PEO. We’re dedicated to helping your financial institution streamline operations so you can direct your energy where you need it most.
When you work with us, our team of experts can take over tasks such as payroll, employee benefits, HR, workers’ compensation, and compliance, allowing you to introduce more balance into your employees’ workday and ensure business continuity through a tight labor market.
Norman L Paul, Jr., J.D. is CEO of SWBC PEO. He is responsible for overseeing the company’s professional employer services, including payroll, employee benefits and benefits administration, workers’ compensation, and HR support for more than 14,500 shared employees in Texas and 40 additional states. Norman also serves as Corporate Counsel for SWBC PEO, providing guidance on compliance issues and conducting client training.