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The L-Blast | December 2020

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The end of the year is upon us and although it has been a year like no other – full of trials, difficulties, pain, and loss for many – we remain hopeful for better things to come in 2021. We are grateful for surviving the challenges of 2020, for the lessons learned and adapting in ways we didn’t think were possible. We hope you are filled with the joyful spirit of the season and take comfort in family.

This month, the focus of our L-Blast is on employee retention. It’s especially important during these trying times to ensure we are retaining our top performers, as they are the ones that will help our organizations survive and ideally thrive in these times of distress.

Our first piece is an article we authored for our partners at BankDirector. Its focus is on compensation strategies for retaining key talent in financial institutions. We discuss nonqualified deferred compensation plans and zero in on supplemental executive retirement plans or SERPs, and how they can be a powerful tool in the hands of visionary banks.

The next article provides some good insights on retention statistics based on a survey conducted earlier this year, noting some developing trends as a result of COVID-19. And finally, the last article offers some great tips employers can use to retain workers. This issue continues to be a top priority for HR teams and despite the grim statistics, with strategic planning you can boost employee engagement and retain your star performers.

We wish all of you a very Merry Christmas! We thank you for your continued partnership and support throughout the year. Happy new year and best wishes for 2021, may it be a year of recovery, prosperity and growth for us all!

Sincerely,

Brent Longnecker and the L&A Team

Chairman and CEO, Longnecker & Associates


Banks are no strangers to using nonqualified deferred compensation plans to attract, retain and motivate their employees and strengthen their succession plans. According to the American Bankers Association’s 2019 Compensation & Benefits Survey, nearly 65% of banks report utilizing deferred compensation plans. These plans can include supplemental executive retirement plans, or SERPs, which are typically designed for the seasoned bank executive talent.

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Given the global coronavirus pandemic, one would assume this would be the cause for the high turnover across the United States. However, according to a new report, job dissatisfaction is one of the reasons employees left the workforce in 2020.

The “2020 Talent Retention Report,” released by iHire, features survey insights from 2,871 U.S. workers. In its second year, the report suggests that 51.1% of employees have left a role in the past year, as job dissatisfaction rose 7.4% from 2019.

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The cost of Employee Turnover goes farther than it appears. Apart from the cost of finding a replacement, hiring, and training, there are hidden costs involved such as the impact on productivity and team morale. Employee retention, therefore, is the top priority of HR managers everywhere.

Although the problem might seem too big and challenging at first, it still is solvable. The simplest way to manage turnover is to develop a plan to make employees stay.

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As we start preparing for proxy season, L&A is ready to assist you in the development and overall structure of your CD&A disclosure. Leveraging extensive experience and knowledge of real-time best practices in the evolving shareholder communication platform, our consultants will help you craft an effective message to your investor audience while fulfilling SEC requirements.

CONTACT US BELOW TO GET STARTED!

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