Employees understand that they may need to give a little bit more of themselves during challenging times. During the Great Recession, many companies were forced to lay off employees, freeze hiring, postpone raises, and even eliminate 401(k) matching. It was a tough lesson, especially for the banking and financial services industry. And even though our economy is recovering, the banking and financial services industry still has one of the highest turnover rates. As quality talent becomes more and more difficult to recruit and retain, the industry needs to do something to slow that trend.
Keep Employees Motivated During Difficult Times
According to compensationforce.com, Banking & Finance has been the leading industry in both total and voluntary turnover. Those high numbers mean that this industry desperately needs to start recognizing its best employees.
Recognition, while often overlooked, is key to improving and maintaining employee engagement, reducing turnover, and improving customer service. Simply put: employees want to be recognized for good work. And not just once at the end of the year with a bonus. They want to be recognized while the moment is still fresh. And the good news for companies? Recognition does not have to be dollar signs. In fact, a study done by the Forum for People Performance Management and Measurement found that non-cash rewards are actually more effective.
Traditional Recognition Programs Don’t Cut It Anymore
It isn’t always as simple to execute an employee recognition program as it sounds. Traditional reward and recognition programs are limited in their ability to inspire and motivate employees for service-oriented companies, such as banks. The right recognition solution must be customized to focus on the customer service outcome. It will have to provide ongoing and consistent feedback. It will have to be easily administered and flexible. It must be focused on results and bottom-line impact.
It’s a tall order, but in this industry, it’s essential to get the most from your employee/customer interactions.
With so many unpredictable situations, the recognition programs that work best are the ones that acknowledge employees for unprompted behavior that exceeds their normal responsibilities, like creating positive service interactions and outcomes. The bottom line is employee recognition has to provide timely, meaningful rewards to employees when they succeed at supporting corporate and customer goals.
When banks and finance companies start recognizing these behaviors and establishing an effective program, they’ll really start benefiting from an engaged workforce.
The Right Program Makes a Big Difference
So, what’s the solution? Finding the right partner will make all the difference in the world because an effective reward and recognition program isn’t out-of-the-box. A great partner understands the unique needs of banks and financial institutions and has the experience necessary to customize and implement a truly effective reward and recognition program.
For an honest conversation about the right solution, contact MI now.