Retention: A growing concern in banks today

You want your bank to be a great place to work. But at this very moment, one of your key officers might be about to walk out the door. Unsurprisingly, there are countless reasons why employees quit or leave their jobs, but the cost of employee turnover can be staggering — especially for senior officers.

Replacing key officers can cost as much as two to four times their annual salary. From advertising and recruiting to training and lost productivity, costs add up quickly for banks that do not invest in their rising stars.

To combat this, banks must now alter or customize benefits to retain employees at all levels in the bank, especially young, high performers. The next generation of leadership is often a target of competitors looking to bolster their own executive talent. It is important for banks to identify and then personalize benefits for top performers with the potential for greater leadership roles in the future.

Customized benefits addressing financial burdens, such as student loan debt and college tuition, are excellent tools to recruit and retain key talent. For example, one Texas bank is making a meaningful impact on the lives of several key officers by helping pay college tuition for their children. Benefit payments begin when the children reach age 18 and continue for four years. After these payments are made, the plan then converts into a supplemental retirement program.

To retain your best employees in the face of competition, innovative strategies to compensate top performers is now required. One-size- fits-all retention packages are usually unsuccessful in persuading a diverse group of key employees to stay. Contact us for a complimentary analysis of various compensation plans.

Ken Derks
[email protected]
469-252-1037
Trey Deupree
[email protected]
469-252-1038