The cycles of the banking & lending market since launching BankerHire have been fascinating.
Sitting here in June of 2019 my expectations of incrementally building on a thoughtful foundation were quickly changed to reactionary "help where you can" and figure out growth later as the pandemic altered preconceived ideas of work. COVID brought in low rates - brought on dramatic hiring in residential (underwriters underwriters underwriters). COVID brought on fear from community banks and regional banks out of the gate. As a result our focus stayed on what was active, and embracing companies who were on board with 100% remote hiring while the world was scared. Fast forward through 2020 and you find the commercial & community banking world hit with an onslaught of 'burnout' related retirements (within a highly saturated demographic skewed towards retirement age). As a result we react fast to help solve those problems - fill leadership roles, find creative ways to bring on remote (or heavy hybrid talent) in ways that can solve problems, leave impact, and keep employees safe, fulfilled, and engaged. Massive overcorrection in residential lending rates sees that pipeline go from totally full to entirely off -- However as the banks creep out from the wait and see of COVID back to business as usual all of a sudden there is a massive swell in hiring within commercial credit, commercial lending, and risk. The 'burn out' early retirements end up mixing with planned retirements, while talent starts to be poached nationally as thought leaders adopt meaningful remote models... Early 2022's fear of high interest rates turns to "how can we help these large groups bring in credit and lending talent fast enough". (supply & demand in this piece of the market is still several years from catching up, if it ever will). Whiplash from the rate shift was felt all of 2022, but the reactionary nature of drinking from the firehose to help where we can continues. Early 2023 shows an incredible panic across the banking world. Failures, layoffs, consolidation... Wait & see takes a meaningful place in the market again. However as the big bank firehose turns off, thoughtful community bankers continue to plod along - Capitalize on landing some best in class talent on the backs of their conservative history, predictable/thoughtful leadership, and client excellence. As I sit here kicking off year 5 of BankerHire I find myself thinking about how 4 years ago I had a plan... Incremental growth... Slow and thoughtful client acquisition... The plan now makes me chuckle... By reacting to what was in front of us and caring about solving problems thoughtfully revenue expectations hit 30%, 50%, and 100% higher than originally expected in years 2, 3, and 4.. The best accidental take away of how these first few years have played out shows the value of diversified partnership with well run community banks, regional banks, national banks, and mortgage lenders... By having diversification in the client base it has allowed us to showcase opportunities at each stage of the market, and understand how to help anyone competing for talent find an edge in all seasons of the economy. Shane Smith Founder / Recruiter BankerHire Office: (781) 873 7300
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I tend to not think of myself as a staffing agency. The words actually bring a little bit of cringe whenever we are referred to as one because who we are at our cores are search partners - We represent your brand and we are out trying to solve problems for you.
The best recruiters in our industry work to create value and a story that may pay off for a specific search now, or may pay off for you years down the road when someone in our network remembers the great narrative they once heard surrounding xyz bank. I've been committed since day 1 to not be transactional but being labeled a staffing agency comes with an air of disposability... a means to an end.. and maybe that is where so much of the industry has a disconnect that creates some challenges across the ecosystem? This Podcast that Lou & Miriam were so gracious to collaborate with me on showcases what can be done right when we stop being viewed as a vendor or "staffing agency" line item and start mutually working to be partners. If you are curious about what it is like to work with me as a Partner (or vendor) please give this a listen - I think you'll walk away with a great impression of who we are, and what we can acheieve together! soundcloud.com/bankadelic/episode-107-how-a-brilliant-hire-built-a-banking-culture Well, that was one for the record books. In 2019, when launching my business, I could never have foreshadowed that in under a year we would be facing a global pandemic, market unrest, a fundamental shift in how companies hire, and ultimately one of the largest short term booms to the industries we serve that I may ever experience in my life.
2020 had every potential to be a recipe for disaster with all that covid brought to the world of recruitment, but fortunately the world of banking & mortgage kept the lights on in the national economy and as a result we became busier than ever before. 2020 ended up being a personal record in revenue, placement numbers, and frankly, learning. Hiring processes changed. Candidate behavior and priorities changed. Employer engagement changed. And if we're being honest, the future of work is actively unfolding in one of the most significant ways since the advent of the internet. A recent study that I noticed while browsing linkedin (sorry to the original source I seem to have misplaced you) stated that 73% of employees not only enjoy, but expect to have some degree of remote working access post pandemic. That figure is staggering for businesses that feel the need to bring everyone back into an 8-5 environment. Companies and employees are beginning to be at odds with this mentality in various industries and a storm is brewing. Personally, I have already placed multiple candidates who are willing to leave an employer after years of service for the promise of a hybrid remote schedule and we aren't even fully out of the pandemic 'best practices' quite yet. Now I do understand the perspective of some employers who want to bring people back into the office. There are several great reasons to have the band back together. However what I find interesting is that there are certain roles and certain companies where offering a remote schedule or hybrid work should not be a large lift. These companies are oftentimes the ones who turned to remote work as a last resort, or a panic reaction to the times. These companies feel there is reduced productivity, employee engagement, workforce development, etc.... These challenges actually make sense... Because the shift to remote for these institutions was reactionary, not intentional. Remote work is not a new and novel concept. If you trust your employees to do their job and create intentional best practices for performance we have seen that a suite of slack, teams, zoom, outlook and a cell phone that's always on should be enough to let professionals be professionals. So what does all of this mean for the industries we serve? Competition is no longer local - You are competing nationally to keep the people in your stable. You will be able to win new talent if you adopt and commit to a schedule that serves the business & the candidate... Previously salary, sign on, and elite benefits were the main tools in the toolbelt to pry someone away from a competitor. You do now have another option if you are willing to embrace it. From a business perspective you also have a unique opportunity to open up new markets, new territories, & expand your reach for true quality... If you are a community or regional bank that has struggled to land new hires because the skilled labor you need is 30-60 miles away - you could open up new pools to add critical, experienced talent to your team. We have so much more to unpack in the hiring landscape of banking/mortgage from 2020 (including the now rampant M&A environment that pent up demand created for 2021) but what is our final takeaway in regards to Work from Home? Whether you like it or not, whether your C-Suite peers think it or not, Work from Home & Flex Schedules will be a part of our landscape moving forward and if you don't embrace it you WILL lose talent because of this. Brick and mortar isn't dead - not saying that by any means - but if you hold your truly talented & trustworthy people to a rigid 8-5 M-F in office, your business may be in a few years. For more thoughts on recruitment during the pandemic and WFH adoption please check out my recent Podcast on Bankadelic: How Smart Banks Win The Battle for the Best Talent Reflecting on 2019 the word that comes to mind is Grateful.
'19 was an exciting year that took my search career to new levels - levels I hope to look back on in 2029 as just the beginning. After launching BankerHire in June, with the expectation of a slow grind to earn new clients, I was positively taken aback with the support and enthusiasm for my new venture by my former clients and new prospects. This year opened the doors to multiple successful senior level (CEO direct report) searches. We have now helped clients find a culturally focused commercial lending leader, capable of guiding thoughtful portfolio growth while building people --- a head of HR that has deep experience building new processes, meeting employees where they are and taking careers to the next level, while being focused on the banks bottom line -- and a Risk Leader whose background and energy will be a resource for the bank's next generation. On top of these senior level and/or retained roles we have also landed new relationships that include 2 of the largest banks in the Northeast - both of which have been on my 'dream client' list since I started prospecting in 2014. (It's a gratifying feeling to be able to drive down the street in different parts of New England and point at a sign 150 miles from home where I can say, 'that's my client'.) Last but not at all least we began working with the best FinTech company in the mortgage space that I truly believe will be the industry leader early in this decade. Their technology is amazing, but more importantly they are guided by great people and treat their teams with immense respect, humanity, and appropriate compensation. Their approach to business, both hiring and direct to consumer, exemplifies the perfect mix of human and data. As someone who has worked in an office of one for 3 years now there is a level of comrade that you miss out on from having day to day co-workers. Branching off to have a solo venture can compound that isolation. The fears that come from taking risks and jumping forward were very real, however working with amazing clients, and more importantly clients who have become friends makes thinking about the next part of this story that much more exciting. Looking forward to a similar recap in 2030! Purpose Driven, Vocal, and Accessible. Putting culture and meaning above only the bottom-line.
American Banker explores the next-gen CEO in the world of banking and it's a neat exploration of how new priorities need to be recognized to ultimately ensure the long term success of an institution. The most interesting comment in this article however calls out the fact that the current market is friendly so it may be opportunistic to put certain values ahead of the bottomline.. In an industry where there has been countless examples of only focusing on the shareholder value it will be highly interesting to see where priorities fall should an economic downturn hit. I'm optimistic that leaders will recognize a culture of purpose and accessibility will create the best and most sustainable long term organizations, as that should attract the best talent and create buy in from customers. Thoughts? Article Source: https://www.americanbanker.com/news/rise-of-the-next-gen-bank-ceo What makes you different from everyone else?
I will never forget this question. 4 years ago to this date. I was fresh off vacation, a 100K sales quarter, and answered the question how I was trained to: “We provide a great service, we’re reliable, we find you talented people, our speed is unmatched, blah blah blah blah blah.” The meeting lasted 10 minutes and I had never been so embarrassed to walk out of a building. At the time I didn’t realize that this prospect, who frankly wasn’t a nice guy, did me one of the biggest favors of my career. He forced me to look at my real value prop in an industry cluttered with noise. From that moment on I focused on three things: • Solving problems • Being a genuine student of my niche (data, market trends, industry news) • ALWAYS working to create Win Win Wins. The last bullet is where I found my true differentiator. See the recruiting industry has a lot of noise, but it also has a lot of talent. I have competitors that I deeply respect and I have competitors that I know will not deliver. As someone cutting their teeth in an industry 5 years ago, possibly 10-20 years behind the folks I respect I needed to find a way to be different. And that’s what I did. We have clients right now who can attest to the value that my 3 core service principals have provided their organization. They can speak to the problems that have been solved by focusing on win win win’s so the candidate experience can thrive. They can speak to my understanding of the generational talent gap and ability to ‘meet them where they live’. They can talk about how we let our clients feel free to explore what they need to explore without handcuffs, in a way that is fair to all. They can talk about this for C-Suite searches (Chief Risk Officer, Chief Lending Officer, CHRO/SVP HR) and high volume hiring projects (Commercial Credit, HR buildouts, Retail Management, Loan Servicing). Leaving that room in 2015 with my head hung low I learned that you only standout as an unknown entity in this industry by learning every day, about a specific niche, and constantly working to be different from my peers. And while at the time I didn’t have the right answer to ‘what makes you different’ – I do now and I have references that can back it up. As we head towards the end of Q3 and the final hiring pocket of the year let’s talk if your financial institution is in need of a strategic hire or a high volume project. A recent article from Banker & Tradesman (source: https://www.bankerandtradesman.com/the-relationship-between-banks-and-fintech-companies-may-start-shifting/) brings up a great point in the shifting dynamic of community banking and FinTech, which prompts the thought regarding the importance of leadership who can bring effective technology offerings to the banking community.
The article below and this important trend brought to mind two recent stories that we're shared when speaking with two different CEO's of New England based community banks. The first, was a general reaction of a recent CEO round-table held in 2018. This CEO noted that the topic of discussion was 'easy payment solutions' and naturally the main conversation was filtered around Venmo. Before launching into the conversation the host of the discussion asked the audience, 'who is familiar with the app venmo?' to a room of over 2 dozen leaders. This CEO noted that only half of the room raised their hand. In 2018. (Venmo has been around for years and is likely the top 5-10 most used app on the smart phone of anyone between 22-35). This lack of familiarity with such a critical tech offering opens the door to employees who can position themselves as not only experts in their field of banking, but also someone who can be an asset in taking an organization to the future... Which brings me to my next story. The other day I was sitting with a CEO discussing a critical hire that the bank will be looking to make. In this discussion I inquired about the possibility of succession planning being a part of this search. To not be too long winded on the details the CEO indicated that what once was an obvious succession thought (having someone in a commercial or business development heavy role running a bank) has now flipped to being focused on an individual who understands tech. Not your typical IT person running network cables and troubleshooting software, but someone who is a banker by trade (and at heart) that understands the ability for a community bank to thrive (and exist) 15-20 years from now will be based heavily on their ability to meet the next generation of banking consumers where they are. Confidently, in 2030 if a question is posed to a room of 25 CEO's regarding the most recent wave of tech offerings in their market you can bet that all of them will know exactly what that offering is and how to best implement or compete. As an executive recruiter posting a commentary my point is this -- if you are in the middle of your banking career, and you have aspirations to lead an organization, do everything you can to expose yourself to new projects, new conferences, new learning opportunities, and position yourself as not only a successful Commercial Banker, Retail Executive, CFO, or Risk expert - but also as someone who can guide and drive technology to keep your institution (or future institution) healthy and relevant. Interesting article posted via Barrons (article and source link below) discussing why the CEO of Bank America believes we will avoid a recession. Similar commentary has been coming out of other large bank CEO's and it's interesting to follow in regards to the banking hiring eco-system.
Since the recovery of the recession there has been a noticeable uptick in hiring every year across all sizes of banks, up until 2018. While '18 and the beginning of '19 has still had it's consistent hiring needs there was a considerably noticeable tone across executive and HR leadership in regional and local banks that we could anticipate a recession coming down the pipeline, most likely in 2020. Citing various yield curves and economic factors (that frankly are over my head) many banks scaled back on creating new positions in places like credit, lending, and retail with the view that the economy and demand for lending will slow. If counter predictions like those of BOA are spot on it may position hiring leaders at similar institutions to be ahead of the pack when it comes to the race for talent as we head into the next decade. Regardless of whether or not a recession is pending banks still face their own unique hiring challenges and need to plan for the future. The largest swath of bankers are in an era where retirement will occur during the '20s and now is the time for banks to attract, invest, and grow the next generation of talent. Additionally with the changing eco-system of electronic banking, financial crimes, and access to lending options hiring and retaining the right people has never been more important. Source: https://www-barrons-com.cdn.ampproject.org/c/s/www.barrons.com/amp/articles/bank-of-america-ceo-brian-moynihan-interview-51561145152 Bank of America CEO Brian Moynihan thinks the U.S. economy will avoid a recession. “The debate is whether GDP [gross domestic product] growth flattens out at 2% or goes lower,” Moynihan said in a recent interview with Barron’s. “Everything we see in our customer base is consistent with a slowdown to 2% and a flattening out from there,” U.S. GDP expanded at a 3.1% rate, adjusted for inflation, in the first quarter, and is expected to slow to less than 2% in the current quarter. Moynihan, who was added this year to Barron’s list of the World’s Best CEOs, outlined what the bank means by its mantra of “responsible growth.” In part, it involves making consumer loans directly to customers and not buying them in the wholesale market, as rivals such as JPMorgan Chase (ticker: JPM) do. “We look every mortgage customer in the eye,” Moynihan said. Bank of America (BAC) has been willing to tolerate market-share declines in the mortgage market since the financial crisis to operate in what Moynihan believes is a more responsible fashion. That approach might limit losses in the next economic downturn and avoid the costly legal and regulatory problems that the bank faced after the 2008 crisis. Bank of America is the country’s leading consumer bank. The bank sees an opportunity to expand its market share in consumer loans among banking and wealth-management customers who go elsewhere for them. To Moynihan, responsible growth also means offering consumers no-fee checking accounts if they have a monthly direct deposit of more than $250—with an option to avoid any overdraft fees. He said that the bank has a million SafeBalance accounts that don’t have overdraft fees, something of particular appeal among college students. Moynihan, 59, has won praise for his role in turning around Bank of America in his nine years as CEO. The bank has gone from being unprofitable in 2010 after a series of charges to earning $28 billion in 2018. The stock has nearly doubled to $28 under his tenure, although it remains at just over half its 2006 peak of $53. Berkshire Hathaway (BRK,A) CEO Warren Buffett has said Moynihan is the most “underestimated” of major bank CEOs while Wells Fargo analyst Mike Mayo has likened him to Baltimore Orioles Hall of Famer Cal Ripken Jr. because of his dedication and determination. Mayo contrasted Moynihan with the Babe Ruth of bank CEOs, JPMorgan Chase boss Jamie Dimon. “He’s the opposite of Babe Ruth who points to the outfield and hits a home run. He’s like Cal Ripken grinding it out every day. Bank of America is a machine and churns out consistently improving earnings and returns,” Mayo said. Moynihan’s tenure hasn’t been perfect. One decision he might want back was issuing $5 billion of preferred stock in 2011 to Berkshire that converted into Bank of America common stock at $7 a share. With the stock at $28, that has cost the bank about $15 billion. At that time, the bank felt it was worth giving Berkshire a sweet deal to get Buffett’s support. Moynihan often highlights the benefits enjoyed by Bank of America’s employees, or “teammates,” as he calls them. These include a minimum starting salary of $35,000 annually or $17 an hour, rising to $20 an hour in 2021. He also cites 16 weeks of family leave after the birth or adoption of a child, while noting that 40% of those taking that benefit are male. Asked about Democratic presidential candidate Bernie Sanders’ comment that workers deserve representation on Walmart ’s (WMT) board, Moynihan said that’s not needed at his bank. “Teammates can talk to me every day,” he said, noting that he looks at thousands of employee emails each year. “Any teammate can be heard.” Recruiting and Retaining Compliance Staff is Key Risk for Banks, Regulator Says
The link above shows the Wall Street Journal highlighting the challenge banks and financial groups of all shapes and sizes face in today's complex compliance eco-system. An area of focus for our group in the Financial Crimes space include BSA, AML, and EDD. The need for the correct Bank Secrecy Act and Anti-Money Laundering talent can vary greatly both in scope of experience and cost. In an ever changing landscape we certainly can be of assistance if you are looking for someone to steer the ship or simply monitor transactions while staying abreast of changes in the industry. Recent success stories include the placement of a BSA/Fraud Manager, BSA/OFAC Officer, and BSA/AML Analyst in both New England and New York. |
AuthorShane Smith is the Owner of BankerHire Archives
July 2023
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