When compared to all other industries, finance and banking suffer from high customer switching rates, low employee engagement levels, high turnover, and absenteeism. For banks, 20% of lost business in 2015 was due to poor service. The number of customers switching from one bank to a competing bank ranks higher than those who switched internet service providers (18%), and even wireless phone companies (17%).
Customer access to knowledge is greater than ever before. Prospective and current customers can get information about the financial service providers they are considering in just a few clicks of a button. This makes customer switching extremely problematic for businesses in the financial services industry. Where a customer trusts their finances is often a very personal decision. Not only do customers want to feel well informed about the company they choose to work with, they want to be involved investment decisions. They want their bank or financial institution to welcome their opinions and provide personalized service that addresses their specific needs. If your bank or investment company is not providing a top customer service experience due to low employee engagement, you could be at risk of losing customers.
When employees are disengaged, being at work is the last place they want to spend their time. By aligning your employees with your business objectives, you could help them find more meaning in their work. Boosting their engagement adds to their feelings of commitment to the business and their customers. Recognizing your employees for providing outstanding service to clients can help to combat customer switching and reinforce positive work behaviors you want repeated.
In a survey by WorkplaceTrends.com, employees in the financial industry were asked how they thought their company could better engage them in their work, 45% of respondents said they wanted to be shown that their work made a difference. Here are some ways employees in the financial industry want to be engaged by their employers:
- 54% said they would like to be rewarded for their work with both intrinsic and extrinsic rewards.
- 47% said the company should recognize people more often or give awards and formal recognition.
- 38% said they would enjoy ongoing coaching and development opportunities.
- 20% said volunteering as a company would help them feel like they were part of the company’s mission and values.
Organizations with high engagement rates are 78% more profitable than organizations with low levels of engagement. In financial services companies where the percent of engaged employees fell to 49% to 60%, total shareholder return dropped to 9.1%. This means that engagement really does have a strong impact on business results. Financial services companies are unique in that they create very close personal bonds with their clients. Engaged employees are the only way to maintain, enhance, and grow those critical relationships. Managing employee engagement is a key success metric in the financial services industry.
Levy Recognition specializes in developing customizable employee recognition programs. Not only are our programs easy to use, they are also proven to help build stronger, more engaged workplaces.
Contact us today to get started with a recognition program that can boost employee engagement for your financial industry business.