Take your top talent to new heights
How do you make sure that your most valuable assets — your top-performing employees — feel rewarded, valued and motivated to continue making your bank great? It all comes down to showing you care about your employees, both before they’re hired and once they are part of the team.
Whether you’re a privately held Sub S bank or publicly traded, it’s time to change your thinking about compensation. Not all employees are the same, with different generations holding different values. It is critical that you tailor your offerings to better suit individual needs by thinking about your workforce in population segments.
For example, baby boomers are finding it difficult to save enough to make up the typical 70% to 90% replacement income goal for retirement. Many banks provide nonqualified deferred compensation (NQDC) plans as an executive retirement benefit because 401(k) plans, with their contribution limits, often are inadequate for high earners. Supplemental executive retirement plans (SERPs) can offset this retirement income gap.
Conversely, in terms of financial stress, the ability to retire is not what keeps early-career employees awake at night. Both Gen Z and millennials are looking for benefits that can be tailored to their needs. A growing number of banks are providing incentives and clear paths for advancement to retain young talent.
In addition, forward-thinking banks have implemented NQDC plans that are designed to help with shorter-term financial goals, such as repaying student loan debt or funding their child’s college tuition. The flexibility to design shorter-term NQDC plans fits with the design of overall compensation strategies that appeal to younger generations and their needs.
Securities offered through Kestra Investment Services, LLC, member FINRA/SIPC. Kestra Investment Services, LLC IS / is not affiliated with Equias Alliance, an NFP Company-Plano.