ABA Banking Journal - November/December 2017 - 42

>>> HUMAN RESOURCES

On the Front Lines
of the Bank Talent Wars
While rising salaries remain key theme of
recent survey, signs of stabilization appear.
BY TIMOTHY J. REIMINK AND PATRICK COLE

new survey of bank executives indicates that the
competition for talented employees is likely to
continue in the near term. At the same time, though,
there are signs that the demand for employees
could be starting to ease slightly, and some banks
could be preparing to adjust their talent management
strategies in response.
Every year, Crowe Horwath LLP surveys financial
services companies throughout the United States about
compensation trends, benefits, incentives, and other human
resources issues. The responses to the 2017 survey show
that employee salaries and turnover rates still are rising,
continuing a multiyear trend. Yet while overall staffing levels
are still increasing, some of the underlying factors that drive
the competition might be starting to shift, and banks should
be prepared to adapt their approaches in the coming years.
Business growth and staffing plans. One of the most striking
trends in the 2017 Crowe survey relates to banks' overall
employment strategies (see graph 1). For the first time since
the 2008-09 recession, more than half (54.9 percent) of
the survey respondents reported they planned to increase
staffing levels during the coming year, either in response to
normal growth (41.7 percent) or as a result of expansions or
acquisitions (13.2 percent).

Turnover rates and compensation strategies. As more
banks plan to increase total employment, other factors-
particularly rising employee turnover rates-are adding
further upward pressure on salaries. Average employee
turnover rates among both officers and nonofficers climbed
for the third consecutive year in 2017, reaching their
highest levels in more than a decade-7.3 percent average
turnover for officers and 18.9 percent for nonofficers (see
graph 2).
Graph 2: Employee Turnover
Employee Turnover
18.7%

20%
18%
16%
14%

16.6%
13.8%

16.5%

15.4%

14.4%

16.3%
11.6%

12%

18.9%

10.9%

10%

Graph 1: Staffing Plans

8%
6%

Total Employment Plans

3.9%

6.6%

4.9%

7.0%
5.1%

4.9%

7.3%

4.5%

4%

70%
Reduce staff overall

60%

3.5%

2%

3.5%

0%

50%

Increase via expansion
or acquisition

40%

Increase through
normal growth

30%

Maintain current levels

20%
Selective additions
and reductions

10%
0%
2008

42

Moreover, the number of banks that planned to increase
staffing levels solely in response to normal growth shot
up sharply in 2017, significantly surpassing the number
that planned to maintain current levels. Those positions
had been reversed for more than 10 years, before the
two numbers became roughly equal in 2016. The 2017
results suggest employment growth is now the dominant
expectation among survey participants.

2009

2010

2011

2012

2013

2014

2015

ABA BANKING JOURNAL | NOVEMBER/DECEMBER 2017

2016

2017

2008

2009

2010

2011

2012

Nonofficer Turnover

2013

2014

2015

2016

2017

Officer Turnover

It is worth noting, however, that while reported turnover
levels were slightly higher in the 2017 survey, the rate of
increase was noticeably more modest than in the previous
two years. This could be interpreted as a sign that the labor
market is beginning to stabilize to some extent.



Table of Contents for the Digital Edition of ABA Banking Journal - November/December 2017

Chairman’s View
Upfront
Legal Briefs
Economic Outlook
Power Up Profile
Pitching In
Choices and Options Down on the Farm
Eager or Not, Every Board Needs an M&A Strategy
Adapting to Survive
More Than Just a Drink
Operations
Payments
Small Business Lending
Human Resources
ABA Compliance Center Inbox
From the States
Corporate Social Responsibility
Index of Advertisers
From the Vault
ABA Banking Journal - November/December 2017 - Intro
ABA Banking Journal - November/December 2017 - ebelly1
ABA Banking Journal - November/December 2017 - ebelly2
ABA Banking Journal - November/December 2017 - cover1
ABA Banking Journal - November/December 2017 - cover2
ABA Banking Journal - November/December 2017 - 3
ABA Banking Journal - November/December 2017 - 4
ABA Banking Journal - November/December 2017 - 5
ABA Banking Journal - November/December 2017 - 6
ABA Banking Journal - November/December 2017 - 7
ABA Banking Journal - November/December 2017 - Chairman’s View
ABA Banking Journal - November/December 2017 - 9
ABA Banking Journal - November/December 2017 - Upfront
ABA Banking Journal - November/December 2017 - 11
ABA Banking Journal - November/December 2017 - 12
ABA Banking Journal - November/December 2017 - 13
ABA Banking Journal - November/December 2017 - 14
ABA Banking Journal - November/December 2017 - 15
ABA Banking Journal - November/December 2017 - Legal Briefs
ABA Banking Journal - November/December 2017 - 17
ABA Banking Journal - November/December 2017 - Economic Outlook
ABA Banking Journal - November/December 2017 - Power Up Profile
ABA Banking Journal - November/December 2017 - Pitching In
ABA Banking Journal - November/December 2017 - 21
ABA Banking Journal - November/December 2017 - 22
ABA Banking Journal - November/December 2017 - 23
ABA Banking Journal - November/December 2017 - 24
ABA Banking Journal - November/December 2017 - 25
ABA Banking Journal - November/December 2017 - Choices and Options Down on the Farm
ABA Banking Journal - November/December 2017 - 27
ABA Banking Journal - November/December 2017 - Eager or Not, Every Board Needs an M&A Strategy
ABA Banking Journal - November/December 2017 - 29
ABA Banking Journal - November/December 2017 - Adapting to Survive
ABA Banking Journal - November/December 2017 - 31
ABA Banking Journal - November/December 2017 - 32
ABA Banking Journal - November/December 2017 - 33
ABA Banking Journal - November/December 2017 - More Than Just a Drink
ABA Banking Journal - November/December 2017 - 35
ABA Banking Journal - November/December 2017 - Operations
ABA Banking Journal - November/December 2017 - 37
ABA Banking Journal - November/December 2017 - Payments
ABA Banking Journal - November/December 2017 - 39
ABA Banking Journal - November/December 2017 - Small Business Lending
ABA Banking Journal - November/December 2017 - 41
ABA Banking Journal - November/December 2017 - Human Resources
ABA Banking Journal - November/December 2017 - 43
ABA Banking Journal - November/December 2017 - 44
ABA Banking Journal - November/December 2017 - ABA Compliance Center Inbox
ABA Banking Journal - November/December 2017 - From the States
ABA Banking Journal - November/December 2017 - 47
ABA Banking Journal - November/December 2017 - Corporate Social Responsibility
ABA Banking Journal - November/December 2017 - Index of Advertisers
ABA Banking Journal - November/December 2017 - From the Vault
ABA Banking Journal - November/December 2017 - cover3
ABA Banking Journal - November/December 2017 - cover4
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