An Overview of the Banking Industry and Their HR Problems

The banking industry is one of the few industries not known for "openness to fast change," technological or otherwise.

This is because banks deal with a large amount of sensitive information, so it makes more sense to go with what works best. For example, people strategies or technologies that have worked flawlessly in the past are more likely to be used in the present and the future.

The pandemic forced banks to undergo crucial changes that were not all usual for them.

HR leaders in these banks were forced to lead remote teams, IT heads were tasked with providing top-notch security and equipment for these employees who worked from home, and the employees themselves were pushed to adapt to the new normal.

These circumstances gave birth to newer challenges that the banking industry faces today.

Problems with Implementing HR Solutions in the Banking Industry

Feeling Continuous Strain: Pandemic stress, as an emotion, has become a common problem for employees in many industries.

In addition to this problem, banking workers have been unsettled by volatile markets and a futuristic trend pushing the industry towards automation.

According to an independent study performed by meQuilibrium in eight different industries, employees working in banking or other financial services companies reported the second-highest level of sleep disorders and job stress.

According to this study, employee motivation also dropped 30% in employees who worked in financial services.

The pandemic has acted as a catalyst, speeding up changes in the banking services workforce that would've been inevitable.

Remote working, adopting AI, and focusing on accurately matching the skills of their employees to their actual jobs, were just some of the changes that would be implemented sooner or later, irrespective of a pandemic happening.

Virtual Connections: According to PwC's Remote Work Survey, just 30% of financial services companies had at least 60% of their employees working from home once a week or more before the COVID-19 pandemic began.

88% of banking employees identified WFH arrangements as the most helpful form of support they received from their employers, according to meQuilibrium, a digital coaching platform.

Setting up employee resource groups around shared interests like pets, knitting, exercising, Lego building, films & television series, parenting, minorities, veterans, LGBTQ employees, women in leadership, etc., provides a chance for employees to connect, share advice, get to know each other better, and form strong bonds with each other, especially in a high-stress banking work environment.

Such resource groups and platforms allow people to mentor each other on subjects useful for many people, like meal-prepping or maximizing banking credit card points.

Such connections are difficult to form in an office-based setting which can be problematic when creating deeper relationships with other employees.

Valuable Employee Support: Studies have shown a strong correlation between the mental health of employees and how much support they felt they got from their employers or direct managers.

Like many industries, employees are stressed out in banking, which causes them to struggle and eventually burn out.

If a desperate employee comes to ask for help or concession, most management teams will probably move forward with granting their request, but they will also probably never announce to everyone the availability of such help.

This benefits employers and hurts employees because most employees assume that they will never get the help they need from their employer or are too fearful or shy to ask for help.

Upskilling Existing Talent: As technology and financial markets evolve rapidly, many banking companies have experienced a struggle to keep employees updated.

Such employers need to invest heavily in cybersecurity training and data visualization courses because of how more and more banking business is conducted digitally today.

HR needs to upskill itself on digital tools to serve employees and candidates better, especially in this context.

HR also has a vital role in ensuring that new talent does not get impatient and bored in the very traditional culture of the banking world.

The millennial and Gen-Z generation of employees are thinking more than ever about their own careers, the skills they need, and the popular training.

Providing such opportunities to your employees is a highly effective way to retain top talent in an industry where people are the only variable that makes your business a success or a failure.

If employees are well taken care of, clients will always be well taken care of too.

Conclusion

The financial services sector consists of a wide range of businesses, including banking, insurance companies, credit unions, mortgage corporations, investment funds, and stock brokerages.

The years following the 2008 financial crisis have seen this industry forced to deal with increased regulation, higher capital requirements for banks and insurers, and the need to implement robust processes across the board.

This has resulted in unique challenges for HR leaders, IT heads, and employees.

The strain of the pandemic, coupled with market volatility and the push for automation, has affected employee well-being, motivation, and overall work environment.

However, embracing remote work, leveraging AI, fostering virtual connections, providing valuable employee support, and investing in upskilling existing talent can help the banking industry navigate these challenges and retain top talent.

The banking industry can ensure exceptional client service and long-term success by prioritizing employee well-being.

Need help? Exela HR Solutions offers world-class HR outsourcing services to businesses across multiple geographies and industries. Speak with our experts to learn more about our offerings.

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