MAXIMIZING HUMAN RESOURCE LEADERSHIP AT YOUR BANK

MAXIMIZING HUMAN RESOURCE LEADERSHIP AT YOUR BANK

Terry Ann Saber Principal

Saber Advisory Group LLC Dassel, Minnesota

[email protected] 612-202-6313

August 5 & 6, 2019

Saber Advisory Group, LLC for the Graduate School of Banking 2019

Maximizing HR Leadership at Your

Bank

Human Resource Management ElectiveAugust 5-6, 2019


1. Assess HR Leadership role

2. Identify critical HR accountabilities

3. Assess “New World Order” HR tools/strategies

4. Manager Expectations of HR:

– Performance Management

– Recruiting and Hiring

– Learning and Development

– Total Rewards

5. Checks/balances & metrics

2

5 Course Objectives


Why are you in this Elective?

What’s important?

3

Establishing Priorities


• TBD . . . Class Priorities

• HR Structure: “Up to snuff?”

• 12 HR Functions

• HR Toolkit

• HR Inventory

4

Agenda


• “Up to snuff?”

• Do you have the role defined properly?

• Contributing to bottom-line performance? How?

• Who’s leading the charge?

5

HR Leadership


. . . of coaching and development?

. . . of excellent “sales” skills?

. . . of open, transparent communication?

. . . of desired constructive culture

. . . of core values?

6

HR Leadership: A Role Model?


• . . . of a staff support role w/ tools in place to support managers to effectively coach and manage?

• . . . of seasoned business leadership with specialized HR expertise?

What shape is the role in?

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HR Leadership: A Role Model?


• All may or may not apply

• Importance / weighting may differ by bank . . .

• . . . by culture

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11 Critical HR Functions


1. Recruiting/Talent Acquisition

2. Employee Engagement

3. Learning & Development

4. Organizational Development/Culture

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DEFINITION:

The practice of changing organizations for positive growth

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Organizational Development


5. Total Rewards– Compensation– Benefits– Perks

6. Performance Management

7. Talent Management and Succession

8. HR Operations

11



9. Human Resource Information Systems (HRIS)/Data Analytics)

10. AA/Diversity/Inclusion

11. Compliance/Risk Management

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1. HR Leadership with a “seat at the table”

2. Competitive compensation structure(s) and plans: Foundational!

3. Updated meaningful job descriptions with “new world content”!

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“New World Order” HR Toolkit


4. Recruitment strategies that mirror a social media-connected world

5. Bottom line measurement with quarterlyreporting, at a minimum

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6. Market competitive total compensation that alignswith the bank’s peer performance

7. Talent Management Leadership/tools– Accelerate the “A” team– Retain and motivate the “B” team– Coach up or coach out the “C”

team

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3. Talent Management/Succession

4. Total Rewards – Comp and Benefits

5. Compliance and Risk Management

16

Foundational “Big 5”!


Shared Responsibility• To find qualified candidates for the job that are “fits” for

the bank

17

Recruiting/Talent Acquisition


Shared Responsibility• To attract and select the most qualified

and best fit for the job

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Recruiting/Talent Acquisition


1. Updated Job Descriptions(s)

2. Performance Standards

– Transactions per hour

– Net new accounts opened per month

– Loan portfolio size / number of clients

– Deposit portfolio size / number of relationships

19

Recruiting/Talent Acquisition: 9 Basics


3. Talent Acquisition Pipeline

4. Job Posting Process/Policy

5. Standardized Recruiting/Sources

6. Employee Referral Process

7. Skilled Behavioral Interviewing

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8. Centralized Job Offer Process with Background Checks

9. Ongoing Onboarding

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• Time to hire

• Cost to hire

• Turnover within the first 180 days

• Turnover within the first 18 months

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HR: Key Performance Criteria


ONBOARDING:Have a plan!

23

Recruiting and Hiring






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• Performance Standards

• Current Job Descriptions

• Total Compensation

• Key Resources

25

Performance Management Toolkit

Saber Advisory Group, LLC for the Graduate School of Banking 2019 26

Performance Management Loop

3. SALARY GRADE / RANGES

4. EMPLOYEEGOALS

6. REWARDS

5. PERFORMANCECOACHING

1. JOBDESCRIPTION

2. JOBEVALUATION

KEYNon-Incumbent Specific

Incumbent Specific


1. Coaching is the key word!

2. Formal system / timetable

3. Self-appraisal

4. Objective & subjective criteria

5. Job description / goals

6. Closed-door session: Eyeball to eyeball!

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Performance Coaching: Ongoing!


• Recruiting/Talent Acquisition

• Performance Management

• Talent Management and Succession

• Total Rewards – Comp and Benefits

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• 80 / 20 Rule: Highest Potential• Development plans• Product Training• Sales Leadership / Sales Training• Customer Service Training• Technology Training• Compliance Training• Knowledge of the Organization, Values

and Culture

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L&D Priorities and Budget


• Tuition Reimbursement Policy

• Supervisory / Management Skills

• Leadership Skills

• Career Development

– Coaching

– Mentoring

– Talent Assessment

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L&D Priorities and Budget






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1. Base Salary

2. Incentive Compensation (variable)

3. Benefits (both hard / soft)

4. Perks

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Total Compensation: 7 Components


5. Executive (deferred comp)

6. Equity Stake (real or phantom)

7. Non-financial

– Flex scheduling

– Virtual office/Working remotely

– Tools

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Total Compensation: 7 Components


• Welfare Benefits vs. Retirement Benefits

• Annual Disclosure

• Salary / Benefits as % of Average Assets (UBPR)

• Average Personnel Expense per Employee

• Total Package: 35–40% of Base Salary

– 25%: Hard costs

– 10–15%: Soft costs

34

Benefits: Key Part of Comp Package


How well is this asset portfolio being managed?

35

The Balanced HR Scorecard


Strategic Plan Financial Measures of SuccessMeasure Actual

YE 2018Peer12/31/2018

Actual6/30/2019

Target 2019(Budget)

Target2019

Target2020

Comments

Personnel Expense(Sal/bnft Exp to AEA)

3.8% 3.1%

Assets per FTE 2,156 4,230

Core Revenue per FTE $109 $350

Compensation per FTE(sal/bnfts to FTE)

$46.0 $57.0

Delivery System CapacityCore Deposits per office

7.1MM 10.2MM

Turnover41% NA 44% Industry Standard

18%Efficiency Ratio 65% 59% 66% 63%

Balanced Scorecard Metrics-HR Related (Sample)


Balanced Scorecard Metrics-HR Related (Yours?)

Strategic Plan Financial Measures of SuccessMeasure Actual

YE 2018Peer12/31/2018

Actual3630/2019

Target 2019(Budget)

Target2019

Target2020

Comments

Personnel Expense(Sal/bnft Exp to AEA)

Assets per FTE

Core Revenue per FTE

Compensation per FTE(sal/bnfts to FTE)

Delivery System CapacityCore Deposits per office

Turnover Industry Standard 18%

Efficiency Ratio


• Theme:

• Theme:

• Theme:

• Theme:

Themes of HR Scorecard: STORY DEPICTED?


• Turnover Rates

• Exit Interviews / Stay Interviews

• Employee Opinion / Engagement Surveys

• Scorecard “Story”

39

Human Resource Checks & Balances


• Overall Compa-Ratio

• Out-of-Range Exceptions

• Succession Readiness

• Talent Assessment

40

Human Resource Checks & Balances


• Human Resource Management School

• Strategic HR Forum

• SHRM Certifications (PHR, SPHR)

• CEBS: Certified Employee Benefit Specialist

41

HR Resources & Certifications


Terry SaberSaber Advisory Group, LLC

[email protected]

42

Questions?

MAXIMIZING HUMAN RESOURCE LEADERSHIP AT YOUR BANK

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