More than money needed to attract talent

Recruiters say a complicating facet of attracting and retaining key bank employees is a surplus of retirement-age bankers and the deficit of college graduates entering the industry. Stuart Kazor at Omaha, Neb.-based financial recruiting firm Adams Inc., noted other industries or roles, especially fintechs and IT positions, are more lucrative..According to the 2021 Bank Director Compensation Survey, nearly 80 percent of financial institutions said they could effectively compete for talent against tech companies and other financial service providers. However, the smallest banks expressed less confidence, indicating a growing gap between those who can attract needed talent and others forced to make do with dwindling resources..Kazor said he's seen Midwest banks use sign-on bonuses, waive 30-day delays in starting benefits and offer perks such as country club memberships and catered luncheons to attract workers. .Brandon Koeser, financial services senior analyst at the consulting firm RSM, said one client has told him that potential employees now ask how much the bank is willing to pay them instead of immediately accepting an offer. Kazor noted some employees seem content to take less money and work from home, while others seek higher wages. .Harlow Whiting, partner at the bank recruiting firm York & Associates, attributes part of the competition to some community banks entering new markets and trying to acquire top employees from other banks. He said the introduction of remote work for some banking employees leaves community banks needing to offer flexible scheduling for potential employees who desire that option. To Whiting, community banks could offer potential employees an equity stake or stock awards to attract and retain them..According to a survey conducted by Bank Director, 82 percent of respondents said their bank expanded or introduced remote work options in response to the pandemic, a number that decreased for smaller financial institutions. Most offered bonuses for frontline workers and said their bank awarded bonuses tied to Paycheck Protection Program loans, primarily to lenders and loan production staff. .Whiting, who works with many bankers, noted that salary pressures are also based on whether the community bank is in a rural area or major metropolitan region: Commercial loan officers whose base salaries nearly two decades ago ranged from $70,000 to $80,000 now make $110,000 to $120,000 in one major city.