Question: Many of our senior managers are considered part of the baby boomer generation and will be retiring over the next decade. How can our bank prepare for this knowledge drain?
Answer: You do have an understandable concern. According to the U.S. Bureau of Labor statistics millions of baby boomer will retire between 2008 and 2010, taking with them a vast wealth of on-the-job knowledge. Banks should prepare by ensuring they have a succession plan in place to help minimize the disruption to their organization. A good plan will help to maintain stability, keep critical operations going, and provide great customer service during the transition. The following are points to consider when developing your bank's succession plan:
anticipate future position needs and leadership gaps that could create a risk;
identify potential internal successors;
create personal development plans based on a needs assessment;
establish a mentoring and networking training period; and
update your plan periodically.
Of course, it's not just retirement that creates employment gaps. There are several reasons good employees leave positions. The top three are: poor supervision skills of managers, lack of growth potential, and unable to speak freely about concerns.1 Banks should not only plan for the coming years of baby boomer retirement, but also cultivate an atmosphere of respect and openness with their employees. All employees need to feel their efforts are recognized and genuinely appreciated, including those getting ready to retire. Make your employees feel valued and they will value their continued employment with the company.
1 RSM McGladrey, "Strategies for Managing and Valuing Top-Performing Personnel" September 2006
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John M. Floyd & Associates (JMFA) is a leading vendor of overdraft privilege programs serving more than 2,000 financial institutions in 49 states and Central America. JMFA is also nationally recognized for training, account acquisition and earnings enhancement programs, as well as product, service, pricing and technology improvement consulting. To learn more about John M. Floyd and Associates and to receive a FREE Overdraft Privilege Analysis, please visit www.JMFA.com or call 800-809-2307.
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