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A good friend of mine runs a large retail branch network. Over dinner recently, while we were talking shop, he shared
I mentioned that I have been interested lately in gaining a fresh understanding of why so many front-line employees and managers
It is not a new topic, but it remains one that sits at the core of many sales and service challenges. A team can never reach its full potential when the customer-facing employees whom customers interact with are constantly new faces still “learning the ropes.”
In those situations, customers seldom experience our best. Tenured team members are continually asked to carry a bit more of the load while also, officially or not, training their co-workers. While that may be a common fact of life in business, if it becomes the norm rather than an occasional challenge, it is a cause for concern.
He winced and said, “Sometimes I feel like I’m running a training program for other banks and businesses. And, intuitively, I know it costs me more to be continually hiring and training new people than it would be to raise salaries and keep more people.”
His intuition wasn’t bad. Recent estimates suggest replacing front-line employees costs roughly 40% of their salary. Why not
While it did not do much to ease his frustration, I assured him he is not alone. Many of his peers at other institutions feel the same way, including some who do pay notably more at various job levels.
My point was that yes, money matters. Always has and always will. But if the only differentiator a bank offers an employee is the salary, then loyalty and engagement will always come down to money.
It is the same principle I emphasize when talking with bankers about communicating their value proposition to customers. If you cannot clearly explain “why you,” every customer decision inevitably focuses on price. And competing on price alone is not a comfortable or sustainable position over the long haul.
Granted, new or younger employees with little vested in where they work rarely feel deeply connected to their employer yet. That is not a criticism of them.
There is often a honeymoon period when someone joins an organization and feels motivated to be part of a new team. But once the shine wears off the “welcome to the team” apple, and depending on the situation they were hired into, the challenges begin to surface.
One of the things I ask leaders to examine is whether there is a discernible time frame when most of their turnover occurs. Are you losing more people in the first three months? The first six? After a year?
Are certain positions more prone than others to hit the revolving door at predictable stages? Too many leaders accept these patterns as a fact of life rather than a manageable leadership challenge.
And if you’re losing a lot of people around the same point, it’s a fair bet they mentally left you before they physically did.
Of course, every person is different, and there may not be one clear reason employees tend to leave at a certain point. Still, if the most common explanation you hear is that they left for a higher salary, that may or may not be the full truth.
It is the easy answer to give because it feels less personal. But I would suggest it is rarely the only or even the primary reason.
If we want employees to see their work as more than just a paycheck, we have to show them that the value of being and staying on your team is more than their next direct deposit.
Connection, recognition and fairness are the true differentiators that build loyalty.
It is worth remembering that retaining good people is not a single program or policy. It’s the result of numerous small, intentional actions that make people feel seen and supported.
Something as simple as getting them business cards quickly is impactful. And yes, there is a monumental difference between seeing your name professionally printed on a card and having to write it in yourself.
Talk about the future with them early and often, whether or not your organization has a formal career progression plan. One of the best ways to have people stay is to speak as if you expect them to be part of the bank’s team well into the future.
Remind managers that their own success is simply the sum of their team’s successes and failures. A manager who takes a genuine interest in their people’s growth and performance tends to have teams that choose to stay with them.
Experienced and engaged front-line teams may be the greatest competitive advantage any bank can have in today’s business environment. Focus on retention with the same urgency and commitment you focus on business growth … because one fuels the other.
