At the heart of community banking lies trust, personalization and stability — qualities that hinge on a bank’s staff being engaged and well-supported. In today’s rapidly shifting financial landscape, investing in staff development is not optional; it is foundational to long-term success.
- Manager Quality Drives Organizational Engagement
Gallup’s findings underscore one essential truth: Managers matter — profoundly. 70% of the variance in team engagement stems from managers themselves. Yet, globally, only 27% of managers report being engaged, a drop from 30% just a year ago. In community banking, where personalized service relies on empowering frontline staff, the ripple effect of disengaged managers can be particularly damaging. Without strong leadership, the customer-centric ethos falls flat. - Development Delivers Tangible Returns
The business case for employee development is more than theoretical; it is quantifiable. Gallup’s meta-analysis shows that business units in the top quartile for engagement achieve:- 17% higher productivity.
- 21% greater profitability.
- 41% lower absenteeism.
- 70% fewer safety incidents.
- 10% stronger customer ratings.
Imagine these outcomes in a branch: smoother operations, fewer disruptions, better customer interactions and a healthier bottom line. Gallup also reports that companies investing strategically in employee development enjoy 11% greater profitability and are twice as likely to retain employees. For community banks, where turnover erodes trust and continuity, this retention advantage is invaluable.
- Effective Coaching Cultivates Engagement
Coaching is a cornerstone of staff development. Gallup’s research reveals that employees who receive weekly, meaningful feedback are 3.5 times more likely to be engaged and 3.2 times more likely to feel motivated. Yet, only about 20% of employees say they received meaningful feedback in the previous week — a striking gap that underscores missed opportunities. In community banking settings where each interaction matters, embedding coaching into daily routines can significantly elevate performance and customer satisfaction. - Overcoming Development Barriers
Despite the clear benefits, development efforts still face obstacles. Only 45% of U.S. employees participated in training or education for their current roles in 2024. And merely 32% of employees aiming to move into new roles feel they are prepared and have the required skills. Barriers like lack of time, insufficient support from direct managers and misaligned training priorities all hinder progress. Notably, 89% of CHROs, 41% of employees and 37% of managers cite “time away from responsibilities” as the biggest obstacle to development. To counteract this, community banks should weave learning into regular work. Micro-sessions, peer mentoring and external courses can bridge gaps when internal offerings fall short. - Manager Training and Well-Being Lift Overall Performance
Investing in manager development yields dual benefits: better engagement and improved well-being. Data shows:- Basic management training can halve extreme disengagement.
- Participation in training can boost manager engagement by up to 22%, while teams see as much as 18% more engagement.
- Performance metrics improve by 20-28%, with effects lasting for over a year.
Conclusion
For community banks, the stakes are clear:
- Manager quality is the linchpin of employee engagement.
- Development yields measurable gains in productivity, profitability and retention.
- Regular coaching boosts motivation and day-to-day performance.
- Manager training and well-being are essential investments with extended impact.
In today’s landscape — marked by economic pressures and evolving customer expectations, community banks that prioritize staff development are not simply doing HR well; they are securing the trust, performance and stability that define their mission.
For help with staff development and engagement, contact Connie West at The James Paul Group by emailing cwest@jamespaulgroup.com or calling (877) 584-6468.
