HR executives at banks and credit unions should be aware of a significant legal development regarding the U.S. Department of Labor’s (DOL) proposed salary threshold increases for exempt employees under the Fair Labor Standards Act (FLSA).
The labor market is starting to cool off after record-high pay raises in 2023 and 2024. Last year was the year of the outlier for the banking industry, with some jobs, like IT Business Analyst, seeming to have salary growth of up to 40% over the past two years in at least one national survey.
A comprehensive pay analysis conducted by BalancedComp, a consultancy specializing exclusively in financial institutions, reviewed data from over 300 client banks and credit unions with assets between $50M and $12B, representing over 67,000 employees.
Compensation consultants help make HR a better business partner to their company as they drive the total employee reward proposition, limiting unnecessary turnover, and demonstrating how pay compares to the market rate for better business decisions.
Small to medium-sized financial institutions are typically employee-centric and deeply committed to fostering a positive work culture that values collaboration, empathy, and kindness. Their core values align with the belief that a friendly and supportive environment enhances employee well-being and strengthens customer relationships. However, this can make addressing the delicate balance between niceness and performance challenging.
As AI reshapes the financial services industry, banks and credit unions must adapt to remain competitive. The transformation of compensable factors and job duties is inevitable.
The Great Resignation era was unofficially declared over in the Summer of 2023. This year shows dynamic shifts and settling to these recently turbulent labor market conditions.
One of the most challenging conversations you may encounter is explaining to employees that their current salary level exceeds the maximum of the pay range, making them ineligible for a salary increase.
