Turnover crisis looms for banking

Financial institutions are facing near total decimation of their workforces unless they improve working conditions, banking and financial services recruitment firm Profusion Group CEO Rod Jones told HRR.

Jones said a survey of 3000 banking sector employees found a staggering 92% were looking for other opportunities within the sector, while 78% said they would move out of the sector for the right opportunity.

He said employees were looking to jump ship primarily because of perceived lack of career progression and unchallenging work. “The GFC has meant career opportunities working in the industry have largely dried up, and whereas banking used be a risk taking, dynamic industry the GFC has meant the sector has had to curtail some of those activities,” he said.

He said third issue contributing to discontent was inadequate remuneration, but its significance was down the list from concerns about career progression and unchallenging work.

Jones said the survey served as a warning bell for HR to start “listening to the needs of star performers” and addressing their dissatisfaction.

He said while the banking sector was still reasonably flat in hiring trends “star performers will always find a role” and employers needed to work with them to identify how to retain them. “If a star performer sticks up their head to see what’s out there, they’ll find a job regardless of the market,” he said.

Jones said the results were consistent across all levels of employees, gender and longevity, meaning HR needed to look at organisational wide changes to arrest dissatisfaction.

He said the results revealed HR could go a long way towards improving satisfaction levels by better communicating vision and leadership to employees. (continued)

Drive, leadership and strategic thinking

Jones (above) said drive, leadership and strategic thinking were the three attributes most important for employees to possess and for HR and employers to nurture.

He said communicating the organisation’s strategic vision would help tap into the drive of an employee while also giving them comfort to see where they can contribute.

“It’s up to employers to create a culture where employees want to stay,” he said. “By targeting leadership, career progression and strategic thinking employers can help improve retention and engagement.”

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