The Biggest HR Challenges for Banks

In any industry there are a number of issues that can arise internally, and employers must be aware of these human resources challenges and know the best ways to prepare for them. From cyber threats to workplace violence, employee wellbeing to intra-office relationships, there can be risks faced every day.

The banking industry is no different. Even with busy schedules and plenty of work to get done there is the same amount of risk that needs to be prepared for. The most important issues that banks face today have to do with recruiting and retention of employees looking to stay long-term. With the seismic shift to become a more digital-friendly atmosphere and the encroachment of cryptocurrency, the banking industry is seeing a traditional human resources effort evolve rapidly.

Compliance

Sales practices at banks and banking institutions were thrust into the spotlight recently with the discovery that some banks were inflating numbers or even creating fake accounts for customers without their knowledge. While this is a top-down controversy, banking employees need to be aware of the compliance risks they face just for working for a company, and prepare for the worst by looking for coverage like bankers professional liability insurance.

A disconnect between HR and compliance was a big issue and those working in the former need to be more privy to the company’s risks. HR can help identify enterprise-wide risks that can surface, which is also part of the evolving environment for those in that area.

Recruitment

Recruitment, leadership development and employee engagement all roll into one big challenge that can act as a hurdle for the banking sector. Banks are on the lookout for top-tier talent in general, but with the constantly updated digital world of banking and finance there needs to be impressionable and innovative minds at work together to steer the course for the new environment of banking.

Different industries related to finance, but not related to banking necessarily, are looking for strategic minds to help their businesses grow. Those companies consider bankers to be honed in on the industry and helping businesses know how to navigate funding and maximizing return. They’ll offer big paychecks and bonuses to essentially poach bankers away from the traditional banking job.

Universal Bank Model

The switch to a more universal bank model has created challenges for recruiting entry-level employees, such as customer service representatives and tellers. Now, banks are looking to cross-train their employees, making them more versatile, but also doing away with a number of employees working at a branch.

Banks have to recruit those with strong interpersonal skills as well as math skills, and who are good at problem solving and sales. This all-in-one approach to finding the perfect candidate may seem like a setback, but it will help to attract those looking for the opportunity to rise fast in both position and pay.

 

About Financial Guaranty Insurance Brokers

Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for entities of all types. To receive timely, personalized service from a knowledgeable and experienced staff, call us today at (626) 793-3330 to speak with one of our professionals.

Please follow and like us: