MANAGEMENT SUCCESSION AND TALENT MANAGEMENT

Transcription

1 MANAGEMENT SUCCESSION AND TALENT MANAGEMENT November 14, 2016 Robert R. Messer Stephanie L. Verner Patty Gorzycki

2 In 1997, The McKinsey & Company consulting firm proclaimed that the war for talent would separate winners from losers in the years ahead. Sixteen years later, the banking industry is on the cusp of losing the war. Richard J. Parsons RMA Journal, December

3 CURRENT STATE OF THE INDUSTRY: WHERE ARE WE? 3

4 EMPLOYMENT GROWTH BANKING IS A CONSOLIDATING INDUSTRY WITH SLOW EMPLOYMENT GROWTH

5 GEOGRAPHY IS A PROBLEM FOR MANY 5

6 GEOGRAPHY IS A PROBLEM FOR MANY 6

7 AMERICA S CONFIDENCE IN BANKS REMAIN LOW PERCENTAGE WITH A GREAT DEAL OR QUITE A LOT OF CONFIDENCE IN THE INSTITUTION 7

8 MILLENNIALS QUESTION THE FUTURE OF BANKING 73% More excited about a new offering from Google, Apple, Amazon or PayPal 71% Would rather go to the dentist 70% 68% In 5 years the way things are paid for will be different In 5 years the way money is accessed will be different 33% Do not believe they will not need a bank Source: The Millennial Disruption Index, April 2015

9 MILLENNIALS ARE ON THE MOVE: FUTURE PLANS WITH CURRENT EMPLOYER 66% Plan to leave organizations by % Plan to leave within two years 25% Plan to leave now 16% See themselves at current employer in 10 years Source: Deloitte Millennial Survey 2016

10 MILLENNIALS REASONS FOR LEAVING Stagnant Pay 78% Lack of Advancement Opportunities 75% Excessive Overtime 72% Work Environment that Does Not Encourage Teamwork 66% No Flexible Schedule 66% Leadership Skills Not Being Developed 63% Source: Ernst & Young 2015

11 TECHNOLOGY IS RESHAPING THE WORKPLACE AS THE ECONOMY MOVES DEEPER INTO A KNOWLEDGE FOCUSED AGE. Source: PewResearchCenter, October 2016

12 HOW DO WE OVERCOME THESE CHALLENGES TO ATTRACT, TRAIN AND RETAIN TALENT? 13

13 CURRENT CHALLENGES Banking is a consolidating industry with slow employment growth. Geography is a problem for many. America s confidence in banks remain low. Millennials question the future of banking. Millennials are on the move. Technology is reshaping the workplace as the economy moves deeper into a knowledge focused age. 14

14 WHAT S IMPORTANT FROM A YOUNG PROFESSIONAL S PERSPECTIVE Work Life Balance Compensation Transparency Manager Investment in Career Development Value Add to Team Strong Working Relationships Recognition 15

15 WHAT CAN WE DO? Attract top talent to your organization. Onboard and train new employees well. Retain top talent through mentoring and development. Evaluate the culture. Communication, Coaching and Feedback 16

16 ATTRACT TOP TALENT Corporate Culture Understand and be able to clearly communicate your corporate culture and values Look for talent that is a good fit Be able to articulate growth opportunities and career paths to potential employees Internship Programs Allow students entering the workforce to try you out Partnerships with Local Colleges Smart Sourcing Specialized Talent Attend job fairs Speak to graduating students about our industry Recruit students for intern and new grad programs Source candidates from Banking programs and employee referrals Know which roles are more challenging to fill Be creative and develop a strategy for recruiting specialized talent 17

17 ONBOARD AND TRAIN THEM WELL Make it easy to be a new employee Develop structured learning paths and training programs (new-to-bank and new-to-role) Establish hiring and training practices geared to college graduates Assign a peer mentor or coach to support new employees during onboarding and training Communication, Coaching and Feedback 18

18 RETAIN YOUR TOP TALENT Define career paths and growth opportunities including promotions and lateral movement Opportunities for Growth Investment in Talent Invest in your talent through mentoring programs, stretch roles, job rotations, and ongoing learning opportunities Communication, Coaching and Feedback Compensation Compensation needs to be competitive 19

19 EVALUATE YOUR CULTURE Define and measure your culture Ask the hard questions and challenge the status quo Is this a great place to work? What are current gaps in your corporate culture? What does your company offer that makes people want to work there? Would current employees recommend your company to jobseeking friends? Do we make it easy for new employees to join our organization? Do our benefits reflect the needs and passions of a changing workforce? Do we offer development opportunities for employees to learn new skill sets? 20

20 WHAT CAN YOU DO AT YOUR ORGANIZATION? Be organized but flexible Develop a plan for attracting, training and developing key roles, but with enough flexibility to tailor your plan to adapt to unique situations Provide growth opportunities Develop people through lateral and upward movement (remember a career path isn t always a straight line) Use challenging situations as opportunities for development Invest in talent Mentor and develop the next generation of leaders Understand your organization Develop a talent strategy that emphasizes your company s culture Define and address gaps in your corporate culture that may be hindering execution of your talent strategy 21

21 THE RISK MANAGEMENT ASSOCIATION AND TALENT The RMA Educational Foundation The Community Bank Council Collaborations with Colleges and Universities The Chapter Network 22

22 Those with the best people always win. Cass Bettinger 23

23 MANAGEMENT SUCCESSION AND TALENT MANAGEMENT November 14, 2016 Robert R. Messer, EVP/CFO American National Bank of Texas (214) Stephanie L. Verner, SVP BBVA Compass (214) Patty Gorzycki Amegy Bank of Texas (713)