Banks in Crises As talents shun Industry - Alldamoney

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Banks in Crises As talents shun Industry

DA MONEY - A study conducted by consulting firm Quinlan & Associates, revealed that most banks are incurring up to $1 billion in annual costs just to replace employees who left voluntarily despite employers reforms these banks undertook such as faster promotions many banks are still in danger of losing top talents according to a new report.

The industry over the last several years has been hit with fines, scandals and litigation, while cost-cutting has eliminated hundreds of jobs.
Bring the world's 15 biggest banks Global headcount down to about 12 percent from 2011 to 2015.

The study also noted that banks are losing talents to technology firms and as their compensation system keeps declining, many of these banks faces a brain drain that can only be solved by radically shifting their cultures.
The report also warned about a leadership crisis in the banking sector's future.
"Only when there is a fundamental re-engineering of a bank's DNA to deliver a more holistic career proposition will they see a meaningful, lasting change in perceptions towards the industry as an employment choice,".
Part of the problem stems from the financial crisis, which hurt public trust in the banking sector and made it a less wanted workplace.
Analysts and associates who left their positions in 2015 had stayed in their roles for an average of 17 months, according to a LinkedIn study of 12 global investment banks, compared to a 26 month average in 2005.
Banks therefore have fallen out of favor as employers of choice for top business school programs, with their reputations burned and the ax-wielding showing no signs of ending,
Also, as the U.S and UK regulators step in to curb compensation and bonuses, banks will continue having a difficult time retaining current employees, as the bonus pools declines.

Banks like Credit Suisse AG, Barclays PLC and Goldman Sachs Group Inc, have taken steps to keep junior staff happy, such as promoting Analysts more quickly, providing more training and encouraging job rotation programs as this problem unfolds.
banking industry in crises
Banking Sector in Crises 

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