If you’ve been paying attention to the job market in the US in the last couple of years, you’ve probably seen a frenzy of hiring activity. As a result, there has been a significant increase in salary and wages. In banking, some roles have experienced over a 50% increase in just 3 short years. Bankers having experienced this kind of salary increase must consider the challenge of a looming recession.
In 2023, many clients are reviewing the candidates they fought so hard to hire at inflated salaries under the lens of an impending recession. Bankers across the country are being put under a magnifying glass, as directors scrutinize bank performance and staffing strategies in anticipation of what’s ahead. The banking industry is no stranger to recessions, but this time around it’s more important than ever to be prepared for what lies ahead.
High Salaries are Under a Microscope
Paying unprecedented salaries to underperforming bankers has become a burden to many banks ahead of a pending recession. After wage growth peaking at a hefty 9% in March 2022, current year-over-year wages have seen a rapid decline creating more caution amongst banks and staff salaries.
In our sampling, our team has heard from multiple banking leaders who have asked their lenders to slow down on bringing in new business in part because of the market rate, while others have asked their teams to continue to bring in new deals only in niche markets.
The good news is 48% of hiring professionals are still frequently adding staff to their businesses.
What Can Banking Leaders and Candidates Do?
The bottom line.
For hiring managers, this is a great time to evaluate and improve your current team. For banking talent this is an ideal time to assess and sharpen your skills.
The Richmond Group Banking and Financial Services team has helped hundreds of banks and banking professionals navigate through uncertain markets and has remained a stable partner for many throughout economic fluctuations.
While providing top tier talent and insider industry knowledge to our clients, we also provide resume help, interview coaching and expert advice to clients and candidates alike.