The compensation landscape in 2025 is poised to be more transparent, equitable, and flexible than ever before. Companies that embrace these trends will be better positioned to attract and retain top talent. As the workforce becomes more diverse and demands more personalized and fair compensation, businesses must adapt to these shifts or risk falling behind in an increasingly competitive global market.
When it comes to employee turnover, financial institutions often focus on reducing it, equating lower turnover with decreasing costs, stability, and success. Lower turnover means fewer replacement costs and less time spent recruiting and onboarding new employees, which, on the surface, is a win. However, what if too low of low turnover is quietly working against your organization’s long-term goals?
Pay transparency laws rapidly reshape the employment landscape, impacting hiring practices, salary negotiations, and organizational culture. That’s why our team partnered with Morgan Geffre, an employment and labor law Associate at Foulston-Siefkin LLP, to discover what to know and expect in order to stay ahead of these upcoming changes.
The end goal of performance reviews is to help employees understand their strengths and weaknesses and improve. Managers often treat these mechanically, while employees are primarily focused on the amount of annual increase they will receive, with little concern for the feedback from their manager. Could it be that by shifting their perspective and recognizing the mutual benefits of open communications and genuine feedback, the performance review can completely transform?
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.
Strategic foresight, meticulous planning, and a people-centric approach are indispensable in navigating the complex landscape of compensation issues during a merger or acquisition.
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.
