It is a well-established fact that over the last few years, companies specially banks across the world have witnessed a huge layoff. A number of factors, including the pandemic are the culprits. Besides, some small organizations have had to shut down completely, owing to the economic crisis.
In the case of banking, it is more about being able to retain the employees. The employee turnover rate, according to Crowe LLP, stands at 23.4 percent. Therefore, retaining the talent is as important to the banks as recruiting it.
So now, the question is what is the reason for this high rate? And how can banks retain their talent?
How to Retain Talent
Firstly, the good news is that over 60% Gen Z, and 66% young millennials are interested in being bank employees. However, a few of them feel that careers in the banking sector are stressful, involving the same repetitive tasks. And thus a banking environment is perceived a little unexciting for work.
Hence banks must try and clear the misconceptions about the working environment in the banks, And if indeed there is some truth to the above, they should make efforts to improve the environment.
Secondly, banks must ensure a good starting pay as the Gen Z pay a lot of attention to the starting salaries and naturally, look for higher salaries. Since the banks have high potential for growth, it is an attractive option to many youngsters if the starting pay is sorted out.
Thirdly, banks must know what else the Gen Z and the young millennials are looking for and play on those strengths. For example, they must constantly make the benefits more attractive. Also, the Gen Z are keen on learning about managing their own finances and also wish to give back to the society. Looking and working on these points will definitely give an edge to the banks and reduce the employee turnover rate.
Fourth, with advancements in technology, banks are now easier to work in. The significance of this advancement in technology and the digitization of banks was realized in its entirely only during the pandemic. These digital advancements must be focused upon as they are a good way of attracting the talent.
Conclusion
It has been recognized in various banking summits that allowing the employees to work remotely is a big plus factor among the new generation. Providing flexibility will not only help in retaining the talent, but will also increase the productivity of the bank.
As we move into the technological future, there lies a huge demand for employment and no shortage of talent or skill. Considering the above factors will help boost the overall productivity of the banks.
The article has been published by the editorial board of the Fintek Diary. Happy Reading. For more information please visit www.fintekdiary.com
