A conversation I was involved in with several senior leaders recently centered on the importance of their front-line employees. It actually began as a conversation about the vital role branches play even in today's technology-driven banking world.
The conversation shifted when I revived one of my oldest mantras: Customers do not visit branches. They visit bankers. The quality of your customer experiences and the productivity of your branches are driven by the quality and productivity of your bankers.
When one of the executives then referenced recent performance challenges of her organization, I was reminded of a clever automobile tire commercial from years ago.
That commercial talked about the fact that no matter how high performance your vehicle was — no matter how powerful the engine or sophisticated the suspension — the only things that touch the road are your tires.
Whether your priority is speed or traction or off-road performance, you are dependent on your tires to keep you "on track," so to speak. Now, I made sure to point out that I intended that comparison as a compliment.
The effectiveness of the best-designed products, smartest marketing campaigns and even impressive branch facilities are greatly impacted where "the rubber meets the road." In our case, that's the personal customer/banker interactions happening in branches and call centers each day.
I've frequently found talk of the importance of front-line team members to be more lip service than the actual focus of some leaders. Now, I'm not suggesting they did not appreciate the importance of these employees.
Their attention to the subject, however, often suggested that it was not quite the focal point some claimed it was. Turnover rates on their front lines did not seem to remain top-of-mind.
Over the course of more than two decades working with financial institutions, I've seen that the issues senior managers are passionate about are the ones that get addressed. And you can discern their passions by observing what they spend their valuable time monitoring and remaining personally involved in.
I would suggest that the front-line employee turnover rate is one of the most telling metrics of the health of any operation. Simply put, even the best strategies and campaigns are hamstrung if the experience and skill levels of our front-line teams are perpetually undermined.
JP Morgan Chase and Carver Federal Savings are applying fast-acting security tools more broadly — regardless of how fast the transaction is.
At the risk of over-analogizing, consider the front-line turnover rate as a canary in the coal mine. When turnover rates remain consistently high, customer experiences and growth rates fall.
Beyond that, few leaders I've worked with would disagree with the idea that experienced employees tend to be more skilled and productive. They know that even when they hire the best people available, those folks require time to become comfortable and competent in their roles.
They also realize that there is real benefit in developing talent in-house for higher positions down the line. Yet, startlingly high turnover rates are often accepted as simply a fact of life. And the turmoil that pandemic policies have caused in the labor market in recent years has made that a more plausible excuse for many.
Attracting, developing and retaining quality front-line employees may be more difficult today than any time in recent memory. But that's exactly why it presents a real opportunity for organizations to differentiate themselves from their competitors.
While it may come as a surprise to some who haven't worked in front-line or entry-level positions recently, money is often not the dominant factor in attracting and retaining good front-line personnel. Over the years, I've advised leaders that money tends to be one of the least durable motivators.
Yes, competitive compensation is important, especially given the upward pressure on wages due to inflation. However, the feedback I consistently receive from front-line staff and branch managers who have left organizations suggests it is not primarily about money.
More often, it is the organizational culture and the level of attention and support employees receive that are the major drivers. Contrary to what cynics may believe, most entry-level employees are not looking to job hop. They don't arrive disillusioned; rather, they become disillusioned when they receive inadequate training, attention and support.
Good people also leave when bad behavior and/or toxic co-workers go unchecked. In fact, that is one of the most cited reasons I hear.
How each organization addresses front-line turnover will vary, and programs and policies that work well for one may not be a good fit for another.
However, if monitoring and addressing front-line turnover is not a continuous focus and high priority for management, even their most well-thought-out strategies may have the wheels fall off.
