A Gallup survey finds only 37% of people age 18-34Ys old are invested in the stock market vs. 61% of those 35Ys or older. Researchers say this variance is likely the result of higher student debt, lingering fear from the 2008 market crash and ongoing market volatility.
In another sort of investing, having quality employees who are invested in the success of your business is crucial for community banks. Attracting the right employees is not enough, though, as retention is equally (and possibly more) important.
According to a Gallup study, experienced and engaged employees with 10Ys+ at a company tend to dramatically outperform even the most talented new hires. The problem is that at many companies, by the time employees have been with a company for 10Ys or more, some operate more on autopilot and can become disengaged.
It turns out that such disengagement is not limited to veteran employees either, as a recent study from BambooHR found that 31% of people have left jobs within six months of their date of hire, while the majority of millennials have no intention of staying with their employers for more than 3Ys.
One way of counter-balancing boredom and disengagement is to provide employees with input regarding what their job is all about. Focus on their day-to-day responsibilities, the training they will receive and provide them with a chance to expand their horizons. Growing and gaining expertise in new areas of interest are important because doing so not only allows employees to feel challenged, but gives them a sense of accomplishment. Employees who feel like they are succeeding in their role and contributing something significant are less likely to jump ship.
Money is important too, but only 12% of employees actually leave a company for more money, according to studies. Instead, keeping employees happy and healthy is more about appreciating them and the work they do. Studies find about 79% of people who quit their jobs say it was due to a lack of appreciation.
Fortunately for community banks, making employees feel valued is something everyone can do with a little work. Allowing employees to explore new roles, where they can work with new people, learn new skill sets, and even relocate to a new location, can be enough to re-energize long-time employees.
Management also plays a critical role in whether or not employees are happy and engaged. Shockingly, a CareerBuilder study finds almost 60% of managers say they never received any management training. Given the impact of these jobs, that is not acceptable and all companies can do more to improve.
One simple way for managers to support their employees is to give them the opportunity to provide feedback without any repercussions. Employees that feel their input is taken seriously and is valued, also feel more vested in their roles.
Similarly, managers should also take the time to regularly provide employees who work for them with feedback about their performance. This should cover both what they are doing well and any areas where they can work to improve. As long as the latter is constructive criticism, with concrete suggestions for improvement, employees are much more likely to feel that they are valuable and will want to stay with the company.