Author - Jon Burkhart

As we navigate through a rapidly changing banking landscape, several key recruitment trends have emerged, shaping how financial institutions approach talent acquisition and workforce planning. As The Richmond Group USA's Banking & Financial Services Division, we've been closely monitoring these developments. In this article, we delve into the most significant trends from the second quarter of 2024, offering insights that can help banks stay ahead in a competitive market.

Cost of Missed Opportunities

In an era where cost-saving measures are paramount, banks are more discerning about their hiring choices. However, the emphasis on reducing expenditure should not overshadow the critical importance of securing top-tier talent. While partnering with a specialized recruitment firm like ours may incur an upfront fee, the long-term savings far outweigh the initial investment. The caliber of talent we deliver can prevent costly missteps, ensuring that your institution thrives with the right individuals in place. The question is, can you afford to miss out on the opportunity to secure the talent essential for your bank’s success? We believe the answer is clear.

The Hidden Job Market with Stringent Hiring Practices

One of the most intriguing shifts we’ve noticed in banking recruitment is the growing reliance on referrals and networking to fill roles, rather than public job postings. This doesn’t mean banks have stopped hiring—it simply means the game has changed. The hidden job market is alive and well, but with a twist: banks are becoming increasingly selective about where and how they invest in new talent.

In this environment, open roles may not always be publicly advertised, and the competition for these unlisted positions is fierce. Banks are exercising caution with their spending, making it more important than ever for candidates to deliver a compelling message tailored to the current climate. As recruiters, we play a pivotal role in bridging the gap between exceptional talent and banks that are quietly seeking their next key player.

For candidates, this means working with a recruitment partner who understands how to present your resume and skillset effectively, increasing your chances of securing the right opportunity in a competitive market. Now is the time to leverage our network and expertise to navigate this hidden job market and connect with the opportunities that align with your career goals.

Future-Proofing Banks

Succession planning and future expansion are on the radar for many banks, but there’s still a lot of work to be done. With employees aged 55 and older set to make up over a quarter of the global workforce by 2030, the urgency to implement effective succession plans is growing. Banks must start strategizing now to ensure smooth leadership transitions and continued success in the years to come. Our team is here to help you identify and prepare the next generation of leaders who will drive your bank forward.

The Human Touch in Banking

In an increasingly automated world, the value of human interaction in banking cannot be overstated. A 2023 Foolproof study highlighted that 46% of customers still prefer more human interaction, with a significant portion expressing a desire for more local branches. This trend is particularly pronounced among older customers, but even younger generations appreciate the presence of a local bank. Banks that prioritize the human touch in their customer service and recruitment strategies are likely to foster stronger relationships and, ultimately, greater success. We can assist in finding the right talent to maintain this personal connection with your customers.

Optimizing the Interview Process

A streamlined and efficient hiring process is crucial for attracting and securing top talent. Our team has observed that having a clear plan in place before interviews begin is essential for a smooth recruitment experience. This includes outlining who will participate in interviews, ensuring their availability, and syncing calendars to accommodate everyone involved. By working together, we can optimize your hiring process and secure the best talent for your organization, avoiding unnecessary delays and frustrations.

Return on Information

Data is the new currency in banking, yet many community and regional banks are sitting on a goldmine of information without fully leveraging it. Our team has observed a growing need for skilled Data Analysts who can sift through, analyze, and extract actionable insights from this data. Banks that invest in the right talent to harness their data effectively will be better positioned to make informed decisions, stay competitive, and drive growth.

The banking industry is evolving, and so are the strategies needed to attract and retain top talent. By staying informed about these trends and adapting your approach, your institution can navigate the challenges ahead with confidence. At The Richmond Group USA's Banking & Financial Services Division, we’re here to help you every step of the way, from identifying hidden opportunities to optimizing your hiring process. Let’s connect and explore how we can help your bank secure the talent needed for long-term success!

Why you might not be winning your top candidates over, and what to do to fix it: Like banking, the environment for recruiting moves in cycles, and much of what makes up those cycles comes down to motivation -- motivation to hire and motivation to be hired. Motivations are constantly changing, but if you look closely enough, there are patterns you can follow over the years to help navigate this current environment. In many ways, this hiring environment looks a lot like it did a decade ago. Coming out of the Recession, few banks were posting for new positions, but nearly all banks were keeping an eye open for when the right candidate came along. Banks still had succession planning needs, like they do now, and that next great candidate could potentially help fill in the gaps. But here's where it gets tricky, and why many banks in this environment end up losing their top prospects... When banks aren't in the middle of a hiring frenzy, they tend to have less of a formal process. Over time, this process becomes more and more relaxed to the point that the process is built from scratch every time a great candidate comes along. When the hiring managers aren't sure exactly who needs to be involved in the hiring process, they often end up just having the candidate meet with every senior and executive level person in the bank, one by one, over the course of weeks or months. If you think that sounds exhausting, you're right. And, for a passively interested top candidate, it can be a complete turn off. Many candidates across the US tell us that one of the main reasons they backed out of a process was due to the amount of time that process took. So, what can you do about it? Here are three easy steps you can take to make sure you can win your next top candidate: 📌 Have a condensed process. There is no need to have one meeting per week if you can fit two or more meetings in the same week. This allows you to still do a high level of due diligence, but keeps the process from dragging on for what candidates think feels like forever. 📌 Know exactly who needs to be involved for any given hire. Hiring a commercial lender? Your commercial lending leadership should know exactly who needs to be involved in the process without having to ask around. Hiring a new executive? Your board and your C-suite should know exactly who needs to be involved without any guess work. 📌 As soon as you start a hiring process, know the schedules of everyone involved. Too often, it comes as a surprise that one or two executives will out of the country for two weeks smack dab in the middle of a recruiting process. There's often no way around the vacation, so it's important to either start the interview process after vacation, or have your candidate engaged in local conversations until everyone is back in town. Remember, candidates will lose motivation when there is a perceived lack of momentum. Communicating with your candidate is critical, but even more critical is a process that shows behaviors that suggest a high level of interest. Actions speak louder than words. Good luck, and let us know where we can be helpful for your team in the next couple of quarters!