2022 Compensation Survey
The 2022 Compensation Survey, sponsored by Newcleus Compensation Advisors, has been published. The survey found that intensifying competition for talent is putting pay front and center, indicating banks should expect increasing wages for both new hires and existing staff.
The annual survey conducted by Bank Director identified wage pressure, managing compensation costs and navigating a changing workforce as key challenges.
“Our most recent survey of talent and compensation challenges facing community banks affirms these pressures we have observed in the current environment – escalating compensation and benefit costs and a struggle to find and retain good employees,” said Flynt Gallagher, President Newcleus Compensation Advisors. “Today, community banks are competing with diverse industries for talent, and there just aren’t enough qualified candidates to go around, driving up compensation costs.
Over three-quarters of the 307 independent directors, CEOs, HROs and other senior executives of U.S. banks below $100 billion in assets who were surveyed said it was harder to attract and keep talent compared to past years. And 71% of them expect to add commercial bankers in 2022, as demand in that sector increases.
“Banks are challenged to find specialized talents like commercial lenders and technology personnel, but they’re also struggling to hire branch staff and fill entry-level roles,” said Emily McCormick, Bank Director VP of Research.
Compensation and benefits remain a critical aspect in securing the right talent for your organization.
“There are a few ways to control or reduce related expenses, but the real key is making sure you are efficient with your compensation dollars and that you address the expectations of new employees,” Gallagher said. “Some examples include offering payments to meet student loan obligations, providing 401(k) plan management education and reducing administrative costs. For executives, implementing a cost-effective lifetime SERP – LINQS+ – may be the answer to retaining key people. Clearly, the findings in our survey reveal the struggle our industry faces to find and keep the people necessary for their success.”
Read the 2022 Compensation Survey Summary for industry trends, how your peers are preparing for the competition and how some organizations are strengthening their reputations as employers here.
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