Dive Brief:
- Most financial services employers report that their performance management approach is working well, but only a small percentage of those indicate that it delivers exceptional value, according to a recent survey.
- Mercer’s latest Global Financial Services Executive Compensation Snapshot Survey found that close to half of financial employers indicate that their feedback process and performance management linkage to development needs work. Also, many are changing employee value proposition to go beyond pay to attract a new breed of graduates and retain millennials.
- Overall, the survey found that half of all banks are planning to make changes to their performance management processes in the next 12 months, compared to just 16% of insurers. However, 32% of insurers do want to change their processes, but are unsure when.
Dive Insight
Establishing an effective employee performance management system continues to be a highly challenging task for financial services organizations, according to Dirk Vink, principal in Mercer’s Talent business. He explains that when done right it can have a greater impact on behavior and performance than just changing compensation plans. It's also a key way to help move toward desired culture change.
Mercer’s report also found that many financial services employers have made or are making changes to their employee value proposition (EVP) beyond pay in order to better attract and retain talent that might otherwise choose to work for a competitor (or outside the industry). The most prevalent initiatives planned, or already in place, are learning and development programs (47%) and remote working programs (43%). Other popular changes include implementing career frameworks (37%), introducing flexible working (37%), and non-monetary recognition programs (34%).
When it comes to talent, financial services employers are no different - they are competing with technology, healthcare and other sectors in attracting and retaining the people they need for success.