Banks experience lowest turnover in years, data shows

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Crowe Bank Compensation and Benefits Survey Reports Increase in Employee Benefits and Retention

CHICAGO, October 6, 2021 / PRNewswire / – As many industries struggle to retain top talent – so much so that the ‘big resignation’ is used to describe the U.S. workforce in 2021 – banks have made strides in reducing the Staff turnover in the past three years, based on data from the 2021 Crowe Bank Compensation and Benefits Survey.

Crowe Bank’s 2021 Compensation and Benefits Survey reports increased employee benefits and retention.

Crowe, an accounting, consulting and technology firm in the United States with offices around the world, has conducted its 40th annual Bank Compensation and Benefits Survey. The study compiled data from 437 banks and credit unions and includes information on benefits, incentives, director compensation and human resource practices, as well as bank salaries and benchmarks for 271 posts.

Over the past two years, the average turnover rate for non-commissioned and officer positions has declined significantly, with results showing a significant decrease since 2019 for all positions. The turnover rate for officer positions has been reduced by more than half over the past four years, from 7.3% in 2017 to 3.3% in 2021. Although the turnover rate for non-officers higher than that of officers, it fell from 23.6% in 2019 to 16.2% in 2021, the lowest for four years.

“The data shows that banks have made great strides in reducing turnover, even at a time when many industries are experiencing high attrition of their workforce,” said Timothy Reimink, Managing Director specializing in financial services consulting and performance improvement at Crowe. “Banks are investing in their people and have taken steps to improve retention and their recruiting efforts by offering better benefits, more flexibility and higher pay increments.

Of those surveyed in 2021, 62.4% of financial services organizations have a pay-for-performance program, which, according to best practices, is the best compensation strategy for boosting employee morale. According to data collected in this year’s survey, there was a 5.5% salary increase for employees who exceed expectations, which is the biggest increase for top performers in 10 years.

In addition to performance-based pay increases, more and more banks are retaining and recruiting top talent by recognizing the importance of work-life balance. “Fewer banks are demanding extended tenure to qualify for three or more weeks of paid vacation and are turning to increasingly generous PTO plans for new hires, especially at the officer level,” said Marc Walztoni, Managing Director specializing in employee benefit plans at Crowe. According to the survey, 30% of banks granted agents three weeks or more of PTO as part of their hiring benefits.

Other main findings of the survey include:

  • Survey respondents have a more confident view of the economy and their organization’s performance, with just 11% anticipating below-normal increases, compared to 44% in last year’s survey.

  • Seventy-five percent of banks said they allow some employees to work remotely at least one day a week. Before the pandemic, remote working was actively discouraged by many financial institutions. Reimink therefore noted that it would be interesting to monitor the effect this will have on recruitment and retention over the next several years.

  • Almost 48.2% of employees in leadership positions are over 55, but only 27.3% of respondents believe their institution is prepared for the succession of leaders to the next generation. According to Reimink, it is essential that banks have a longer-term view of succession for the health of their organization.

  • The median salary of CEOs / chairmen has increased 2.5% since 2020, compared to a 2021 median salary of $ 251,082.

  • The Cashier I position, which does not require prior industry experience, reflected a 4.6% increase in median salary since 2020, one of the largest percentage increases reported of any position in the ‘investigation. According to Reimink, this is likely the banking industry’s response to rising minimum wages and the competitive advantages of large-scale retailers and other entry-level positions available in the market.

The Chief Information Officer (CIO) and Chief Compliance Officer (CCO) positions saw the largest salary increases over the previous year with an increase of 6.8% and 6, 7%, respectively. “Many customers have turned to digital banking solutions in the wake of the pandemic, so the importance of analytics and better data governance cannot be overstated,” said Reimink. “The need to collect quality data in order to understand the customer is strong and may explain the increase in wages in some lower level positions beyond the impact of rising wages from competitors. For example, the median salary for data entry / item processing clerks increased 16.4% from 2019 to 2021. “

In addition to the national investigation, Crowe prepared regional compensation reports for the Midwest, Northeast, South Central and Southeast regions, as well as State Reports for Illinois, Indiana, Minnesota, New Jersey, Ohio, Tennessee and Texas.

For more information on the survey results, please read the Crowe Bank 2021 Compensation and Benefits Survey Report.

About the 2021 Crowe Bank Compensation and Benefits Survey
The 2021 Crowe Bank Compensation and Benefits Survey was conducted by 437 financial services companies with varying asset sizes and geographic locations. Use of data from March 31, 2021, the distribution of participants is as follows: 138 establishments had less than $ 250 million in total assets; 121 had between $ 250 million and $ 500 million in total assets; 94 had between $ 500 million and $ 1 billion in total assets; 72 had between $ 1 billion and $ 5 billion in total assets; and 12 were over $ 5 billion in total assets.

About Crowe
Crowe LLP is an accounting, consulting and technology firm with offices around the world. Crowe uses its deep industry expertise to provide audit services to public and private entities. The firm and its subsidiaries also help clients make smart decisions that create lasting value through its tax, advisory and consulting services. Crowe is recognized by many organizations as one of the best places to work in the United States As an independent member of Crowe Global, one of the world’s largest accounting networks, Crowe serves clients around the world. The network consists of more than 200 independent accounting and consulting firms in more than 130 countries around the world.

Crowe LLP logo.  (PRNewsFoto / Crowe Horwath LLP) (PRNewsFoto /)

Crowe LLP logo. (PRNewsFoto / Crowe Horwath LLP) (PRNewsFoto /)

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