A Compelling Employee Perk: Education Benefits

In an economy where the unemployment rate remains below 4%, community banks are continuing to work hard to find—and keep—good people. One solution to the talent shortage is investing in employee education and professional development. 

“We can’t rely on being able to hire experienced bankers anymore—we’ve got to grow our own,” says Andrew Silsby, president and CEO of $1.7 billion-asset Kennebec Savings Bank in Augusta, Maine.

Kennebec Savings launched KSB University back in 2020. It’s an initiative that encompasses a variety of career education and professional development opportunities for the bank’s roughly 207 employees. “It’s an à la carte-style approach, because everybody at the bank is at a different place in formal education or work experience and what they need or don’t need,” says Silsby. 

KSB University uses a variety of educational resources, including the ICBA Education platform, the Center for Financial Training & Education Alliance and various banking schools. The community bank also works with an outside facilitator that runs its KSB Leadership Academy, which offers seven different sessions on topics such as conflict resolution and how to hire intelligently.

Benefits to employee retention

Industry data shows that workers, especially younger millennial and Gen Z candidates, are hungry for learning and professional development. According to a LinkedIn Learning article, 94% of workers said development opportunities would keep them in a role. In addition, more than three‑quarters of Gen Z workers believe that learning is key to a successful career. 

“I believe the younger generation entering the workforce has high expectations for personal and professional development within an organization. They are eager to learn, grow and expand their skill sets,” says Valerie R. Utsey, executive vice president and chief people officer at ICBA. “The minute they feel stagnant in their roles and no longer perceive opportunities for growth is the moment they start considering other career opportunities.”

Mapping out career paths

In tandem with employee education and career development, more community banks are beginning to offer guidance on career planning. 

New Market Bank introduced a career planning initiative as part of its 2023 strategic plan that assists employees who want to set longer-term career goals. In addition to various tools and resources, the community bank has made career planning a part of the monthly one-on-one conversations between employees and supervisors.

“I think of it as long-term succession to try and build future leaders within the bank, so that we can help to replace people as they’re retiring,” says Anita Drentlaw, president and CEO of $185 million‑asset New Market Bank in Elko New Market, Minn. 

For example, if someone wants to be a CFO or CLO, the goal is to try and help team members by taking a detailed look at steps in terms of the career path, educational requirements, technical skills and leadership skills. That career planning also helps to give people a better idea of the jobs that are out there for the career path they’re on.

“Being that we are a small bank, sometimes it’s hard to retain people, because they worry that there might not be a place here for them if they want to continue to move up, especially if somebody at the top isn’t retiring for a while,” says Drentlaw. Even if that top position as a CFO or CLO won’t be available for some time, mapping out the career path can show other opportunities that allow employees to continue to grow in their career in the shorter term.

Leadership skills are in demand

In addition to the more technical skills needed for technology, fraud, cybersecurity and compliance positions, there is strong demand for “power skills” related to leadership and communication. Compared to technical skills, leadership, management and strategic thinking skills are often more challenging to acquire and refine. Developing them requires experience and continuous learning over time, says Utsey. 

“By investing in holistic leadership development, organizations can equip the next generation with the necessary tools to successfully navigate leadership challenges,” she adds.

“As a community bank is creating its learning and development or training plans, one of the considerations is to make sure that these align with the bank’s overall goals and its strategic priorities,” advises Lindsay LaNore, senior executive vice president and chief learning and experience officer at ICBA. She recommends engaging different departments within the bank to better understand training needs and goals to help develop that overall plan. She adds, if those are not linked, it can affect the bank’s ability to achieve or exceed its goals.