Banks are experiencing a “dramatic increase” in non-officer turnover despite offering attractive compensation and benefits, according to the most recent bank compensation and benefits survey by consulting firm Crowe. The company polled 429 financial services institutions of various sizes and found that the non-officer turnover rate among respondents had increased from 16.2% in 2021 to 23.4% this year. That is close to the 23.6% turnover rate the company measured in 2019, before the pandemic. The turnover rate for officers grew from 3.2% last year to 4.8% this year, still below the roughly 7%-8% average annual rate measured before the pandemic.
Given the competitive job market, banks have found it more difficult than in the recent past to attract and retain talent, according to Crowe. Fifty-four percent of respondents said that retaining younger talent is “somewhat challenging,” up 19% from 2021. Financial institutions are having a hard time holding onto talent despite generous job perks, with 64% saying they have a pay-for-performance program and 52% planning on allowing employees to work remotely in the future. The average salary increase for non-officers in 2022 was 5%, up from an average of 3.4% the year before. The average salary increase for officers was 6.8%, up from 3.7% in 2021.