Did you know the word “deadline” once meant a literal line that, if crossed, could cost you your life? During the American Civil War, Union prisoners faced a “dead line” inside the prison walls — if they stepped over it, they’d be shot by the guards. Today, deadlines aren’t deadly, but they can still significantly shape how we work. If used inappropriately, they can increase stress, disengagement, and burnout and reduce productivity. For community financial institutions (CFIs), enhancing employee productivity can take many forms. Employee engagement has a major impact on performance. Luckily, there are plenty of things CFIs can do to create working environments where their people feel trusted, valued, and inspired to do their best work.Why Employee Engagement MattersEmployee engagement is the mental and emotional connection that employees feel toward their work and colleagues, and their commitment to their employer’s goals. When they feel engaged, staff often go above and beyond what is expected of them. Research shows that organizations with engaged employees benefit from the following:
- Increased productivity, collaboration, and innovation
- Improved customer service
- Stronger compliance culture
- Lower staff turnover and higher morale
- Higher profitability
However, keeping employees motivated and connected can be a challenge in today’s rapidly evolving world. Hybrid and remote models, accelerating technological change, shifting employee expectations, and ongoing political and economic uncertainty are just some of the factors reshaping how organizations operate. Recent Gallup data shows that global employee engagement declined from 23% to 21% in 2024 — the lowest level since the pandemic — driven largely by a drop in manager engagement. Younger managers (under 35) and female managers were most likely to report decreased engagement. These findings highlight the importance of paying close attention to how these changes impact both CFI leaders and their teams.While global engagement has slipped, there is a potential upside: Gallup estimates that as much as $9.6T in productivity could be added to the global economy if the world’s workforce were fully engaged. For CFIs, this reinforces the strategic importance of employee engagement. Given that trust, relationships, and operational excellence are key differentiators for institutions, highly engaged employees can drive performance, innovation, and lasting community trust.Ten Strategies To Strengthen Employee EngagementWhile one size does not fit all, CFIs can implement several tailored strategies to foster stronger employee engagement and, in turn, enhance performance and retention.
- Invest in your leaders and managers. Research shows that disengagement rates are cut in half when managers receive proper training. Employees need leaders who are visible, transparent, and fair. It is important that leaders are equipped with the skills to coach, communicate effectively and openly, and recognize their teams’ contributions.
- Align recognition programs with the organization’s values. Recognizing and appreciating effort and achievement reinforces positive behaviors, helps people feel valued, keeps motivation high, sustains engagement and performance, and reduces turnover. CFIs should develop recognition systems that celebrate achievements in timely and meaningful ways. Digital platforms can make it easier to share feedback and acknowledge performance that reflects the organization’s values.
- Offer flexible and remote working options. Providing hybrid or remote work options where possible enhances work-life balance and job satisfaction, while reducing turnover. CFIs can adapt to evolving industry trends and leverage technology to enable employees to manage their time effectively while maintaining productivity and service quality. It is important that expectations are communicated clearly to maintain productivity while granting autonomy.
- Implement strong communication systems. Transparent, two-way communication builds trust and alignment. CFIs should consider implementing advanced internal communication tools that enable quick, open, and secure information sharing across departments. Leaders should communicate clearly about business goals, policy updates, and operational changes, while also creating feedback loops that allow employees to voice ideas and concerns. This can foster genuine dialogue and a stronger sense of inclusion.
- Promote health and wellness initiatives. As North American employees report some of the highest daily stress levels globally, according to Gallup, CFIs should prioritize physical and mental well-being. Encouraging workplace wellness challenges and providing access to mental health resources, services, and educational sessions are helpful initiatives that can promote healthy habits and improve resilience, morale, and engagement.
- Offer ongoing skills and knowledge development opportunities. Opportunities for professional and personal growth signal an institution’s investment in its employees. In this era of rapid technological advancement, targeted upskilling and reskilling are essential. Providing clear career pathways and access to training ensures employees feel prepared to thrive alongside emerging technologies. CFIs should establish clear career paths, succession plans, and mentorship programs for employees as well as offering specialized training in banking-specific areas such as risk management, compliance, and digital transformation.
- Foster belonging, inclusion, and a sense of purpose. Engagement deepens when employees understand the organization’s mission and the role they play in achieving it. CFIs should create a culture that encourages authenticity, open dialogue, and empowerment, and supports employees to feel seen and respected. What’s more, when employees feel they’re contributing to something bigger than themselves, engagement soars. As CFIs are deeply rooted in their communities, they can also encourage volunteer programs, charity drives, and local impact projects.
- Encourage team building. When employees feel connected to their peers and supported by their teams, their productivity is likely to rise. Design team-building activities specific to banking teams that encourage collaboration, strengthen relationships, and increase job satisfaction.
- Empower employees to be financially secure. Competitive pay and job security remain fundamental to engagement. Empower employees with financial wellness education, such as workshops on personal budgeting, investment strategies, or retirement planning, to support their financial health and literacy.
- Ask for feedback — and respond to it. Employee engagement is dynamic. It is important that CFIs regularly seek employee input through surveys, focus groups, and informal feedback channels. Use the insights to guide business initiatives, improve processes, and demonstrate that leadership listens and acts on employee perspectives.
Employee engagement can provide a performance advantage for CFIs. By recognizing employee contributions, developing effective managers, promoting flexibility, and investing in professional growth and well-being, CFIs can cultivate a culture in which employees can excel. In turn, engaged teams deliver superior service, foster innovation, and strengthen community relationships and trust — all foundations essential to sustainable, long-term success.