In times of skills shortages, according to HR consultant Andreas Krischke, it is crucial that banks pay more attention to the needs of their employees. To prevent well-trained employees from leaving for competitors, he emphasises the need for more creativity, and responsiveness, the co-founder and managing director of Frankfurt-based firm Indigo Headhunters said in an interview with Börsen-Zeitung.

The effort required to hire new employees is typically immense. „The turnover costs a lot of money, and a lot of know-how is lost," he says. “It is painful to see hopeful employees leave a company because what they find does not align with their current life plans." To retain good employees, Krischke suggests offering different work models for different life stages. „This should be the starting point of the discussion. There is much agreement within the banking sector, but the challenge lies in implementation.“

He outlines the typical career paths in the finance industry – following life stages – as follows. Starting a career, for example, at a regional bank, then moving to an Anglo-Saxon firm for faster advancement; upon starting a family, moving to a German commercial bank for better work-life balance; and later, once the children have left home, possibly changing jobs again to fully immerse oneself in the career.

There are many people aged 50+ who have scaled back in their jobs for family reasons. After their children have left home, they want to re-enter the workforce with full commitment. However, those who have made family commitments are often written off by employers. A change in mindset is needed. „It must not be the case that employees leave a company because there is no possibility in their phase of life to continue working for the company in their desired way“, warns Krischke.

Although, in his view, many old habits and outdated structures in the finance world, such as continuous office presence, have been abandoned, more must still be done to make the sector more attractive.

Home office, part-time models, workations, or breaks – the industry is already considerably more flexible than it was just a few years ago. „The financial sector has made significant progress in many areas compared to before the Covid-19 pandemic“, Krischke notes. „But the question of how to retain employees, how to cater individually to life stages or different life models, has not progressed that far yet. There is much more that can be done. Especially in light of the skilled labour shortage.“ This contributes to employee satisfaction and retention.

Krischke advocates creating work models adapted to various life phases, offering options that the majority of the workforce can choose from. Those who want to spend more time with their children, care for elderly relatives, or pursue personal interests should be allowed to do so, suggests Krischke. For instance, with a four-day workweek or unpaid leave. And those committed to their careers should receive above-average compensation.

For this, in order to reward their commitment, it must be possible to offer higher bonuses to the young, unattached employee compared to the older colleague who wishes to temporarily step back in their career for family reasons. But the ability to accommodate different life stages requires more flexibility from employers, says Krischke.

This includes home office regulations, which are often too inflexible and do not meet employee needs. Commuting in traffic jams or dealing with train delays to sit alone in the office for virtual meetings only demotivates them. Banks need to find ways to create more group dynamics, for instance, by institutionalising team days in the office.

First and foremost, poor or absent communication often repels employees, Krischke observes. The art during the transformation currently occurring in the industry is to carry employees along, speaking openly about discomfort rather than keeping things secret. Transparency and honesty are appreciated, even when making difficult decisions.

It is important to offer people a perspective, lead the way, and explain why this path should be taken, Krischke emphasises. „What we often experience, however, is poor communication, with decisions made erratically. People don't know where they're going or what they're supposed to do.“ With potentially disastrous consequences: „You can destroy a corporate culture in hours that took years to build.“

However, not only in terms of communication, but also in project management, banks frequently fall short, Krischke notes. „There are few industries where IT projects have failed as miserably as in the financial sector," he says. "This is due to a lack of competence in project management, which in turn is due to inadequate training of staff.“

As a third critical point, Krischke highlights the example set by decision-makers. „Managers must be authentic," he says. “Employees can only be asked to deliver what is credibly conveyed and demonstrated by their leaders. There is still room for improvement here, though it is getting better."