The news: Despite higher-than-normal pay increases, banks are still struggling to hire new talent and slow turnover, according to a report from consulting and accounting firm Crowe LLP.
The 2022 Crowe Bank Compensation and Benefits Survey polled 429 financial services organizations about salary and bonus benchmarks for 271 job positions.
Key stat: In 2022, bank turnover at the nonofficer level reached 23.4%—its highest level since 2019. At the officer level, turnover in 2022 hovered around 4.8%, below the average 7% to 8%.
Finding the right fit: When it comes to talent acquisition, 95% of those surveys listed “finding and hiring the right people” as the most important element of their search. But that’s becoming more difficult—especially when it comes to younger workers, as the banking industry has tended to favor more experienced workers.
Benefits and perks are falling short: Many factors attract workers to their companies, like compensation, opportunities for advancement, and flexibility. In some areas, banks might not be doing enough. In others, their concerted efforts still aren't making a difference.
Banks still have an advantage: Though banks face some challenges in attracting and retaining employees, there is hope. Our report on The Future of Work highlights current trends on what’s attracting workers, and offers guidance on hiring to banks.
The big takeaway: To make their workplace a stronger asset that helps with hiring and retention, executives are encouraged to think in four modes:
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.