13 July 2010
Financial firms seek to engage and retain top talent
New research shows that optimism in the financial sector is increasing, despite limits on rewards and bonuses.
The recession that struck the UK in 2008 not only affected financial practice, with bankers being hit with a variety of restrictions and levies, but has also reminded many of the importance of employee engagement. The large-scale animosity felt towards the banks from the public, encouraged by politicians happy to see another group taking the blame and amplified by relentless media coverage, ruined employee morale within the financial sector and led to the possibility of the most talented seeking employment abroad – only serving to decrease confidence and performance further.
In order to cope, new research from Thomsons Online Benefits reveals that financial services organizations will be focusing to a greater extent on employee engagement (up to 48.9%) in 2010, with 42.5% reviewing their benefits/rewards strategy. This, it's hoped, will not only improve employee satisfaction but also go further and ensure commitment to colleagues, the organization and the values they advocate.
Will bonus limits make a difference?
The research, in which 47 financial services organizations took part, indicates that an increase in employee engagement may already be having a positive effect on financial sector organizations, with 65.9% predicting a better year than last – showing them to be more enthused about the future than respondents from other sectors. This increased optimism is imitated by the belief of the majority of financial organizations that the newly imposed limits on reward strategies and bonuses will not affect the UK’s ability to preserve or add to the top talent; 38% percent claiming it won’t make a difference and 34% claiming it will.
It seems that two years after the banking crisis hit, HR teams are beginning to successfully reverse the swing to disillusionment. Nearly a year ago Colette Dorward, a contributing writer to the Internal Comms Hub, wrote that 77% of employees in the financial sector reported their senior leaders had become more visible in the workplace, 16% more than employees from other sectors. This trend of increased employee interaction has continued over the last year and the newly released figures by Thomsons, showing nearly 50% of financial organizations to be focusing on employee engagement, illustrates the attempts to reassure and motivate their staff and ultimately re-enamor them to the general public.
Have your say
Are you involved in employee engagement in the financial sector? Or have you notice a change in policy by senior leaders hoping to re-engage their staff?
Recommended resources:
How to engage employees during extreme uncertainty
OPINION: Communicating and rebuilding trust in the finance industry
Essential techniques for employee engagement
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