BLOG

Adapting the Employee Experience in the Banking Industry: Strategies and Success Stories

Published by Fintech Americas on Aug 2, 2023

Discover what banking leaders in Latin America are doing to measure and improve the employee experience.

In the dynamic landscape of the financial industry in Latin America, a remarkable shift is taking place in the way employee experience is prioritized and managed. Organizations must now address new needs and expectations in order to attract and retain top talent, recognizing that a positive workplace experience translates into greater profitability and productivity.

According to Enrique González Bacci, Vice President of Talent and Culture at Bancolombia, “Talent-related topics have become more strategically important than ever before. As leaders responsible for human talent, we are facing an incredible opportunity that we must seize to become the place where top talent chooses to grow and excel.” He shared this perspective during the FATV Deep Dive episode “The (R)evolution of the Employee Experience,” held in February 2023.

His statement is supported by data. According to consulting firm Gallup, institutions with highly engaged employees are 21% more profitable and 17% more productive than those with disengaged workforces.

However, maintaining employee engagement has become an enormous challenge in recent years. Following the monumental cultural shifts brought by the Covid-19 pandemic, many organizations are still struggling to adapt to the evolving expectations of their employees. As a result, it is estimated that only 31% of employees in Latin America and the Caribbean are engaged with their work. Globally, nearly 6 out of 10 employees are considered “quiet quitters,” meaning they are psychologically disengaged from their jobs.

Within the financial services industry, Enrique González Bacci explains that banks now face a new reality when managing employee experience, shaped by several interconnected factors:

  • Global volatility and disruption
  • Well-being as an organization-wide priority
  • International competition for talent
  • Hybrid work becoming the norm
  • Employee turnover as a new business reality

In this environment, banks must implement new strategies and tools to attract and retain the best talent. Leading financial institutions across the region are already embracing innovative approaches and disruptive initiatives that place employees at the center of organizational priorities in order to respond to this challenge.

In this article, we explore what Banco Atlántida (El Salvador) and Banco BCI (Chile) are doing to successfully measure and improve employee experience. Continue reading to discover ideas and insights on how your institution can revolutionize the way it manages and retains talent in just a few steps.

Infinite Adaptation as a Tool to Improve Employee Experience in Banking

How can the financial industry design employee experiences that align with constantly evolving needs and motivations?

The answer lies in embracing Infinite Adaptation. This is a fundamental capability that organizations must cultivate in order to respond efficiently to change, remain competitive, identify opportunities, and successfully face challenges in a constantly evolving environment.

According to Enrique González Bacci, the pandemic highlighted a new reality in the labor market: constant change. As the context evolves, the employee experience offered by institutions must evolve alongside it.

As McKinsey points out, adaptability influences employee experience on four levels:

  • Individual: Adapting to the need for work-life balance and physical and emotional well-being can reduce burnout, especially through the continuous adoption of healthy habits under pressure.
  • Interpersonal: Adaptability improves the ability to be vulnerable and empathetic with others, strengthening compassionate leadership and turning difficult interpersonal situations into opportunities to build relationships.
  • Team: The renewing effect of adaptability on relationships helps create engaging team environments. Greater trust and care among teammates contributes to psychological safety, which in turn accelerates engagement because employees feel supported.
  • Organizational: Organizational adaptability provides employees with a strong sense of identity and a distinctive culture that helps them thrive amid ambiguity and uncertainty.

In other words, adaptability is an approach both individuals and organizations must adopt in order to succeed and thrive. Below, we explore real-world examples that demonstrate how essential this capability is for banks seeking to improve and personalize employee experiences.

Practical Examples and Success Stories on Improving Employee Experience in Banking

To bring these concepts to life, we will build on the ideas shared by Mónica Tamacas, VP of Human Resources at Banco Atlántida (El Salvador), and Sol Castro Lechtaler, Head of Talent & OD Management at BCI (Chile), during the FATV Deep Dive episode “The (R)evolution of the Employee Experience.”

Many financial institutions in Latin America are still rethinking how to approach employee experience (EX), and both Mónica and Sol explained how their organizations adapted and what strategies they followed to become regional success stories in this area.

New Listening Processes

Sol Castro explained that Banco BCI implemented a listening process designed to deeply understand employees, identify their specific needs, segment them accordingly, and build employee experiences with differentiated benefits. The ultimate goal: to provide truly personalized experiences for each employee.

This listening process is structured around five steps:

  1. Renew the business strategy and ensure the organizational purpose is compelling and inspiring.
  2. Implement three types of listening:
    • Annual engagement surveys
    • Industry benchmarking to identify best practices and employee-valued benefits
    • Individual interviews and focus groups to understand motivations, challenges, and interests
  3. Create employee archetypes.
  4. Redesign the people journey by observing the employee experience and updating it to meet new expectations.
  5. Develop communication strategies, invest in renewing benefits, and implement tools to systematically measure employee experience.

This process, which the bank renews every two and a half years, proved essential for successfully adapting to changing employee expectations and needs.

The Importance of Segmentation to Create Better Experiences

The purpose of steps one and two in the listening process was to create what Sol refers to as employee “archetypes,” allowing the institution to better understand its workforce and deliver tailored experiences.

This segmentation is critical because there cannot be a single employee journey for everyone. Today’s workforce is made up of different generations and groups with very different motivations, needs, and interests. For example, according to a Deloitte survey, Generation Z values salary less than any previous generation.

To address this, Banco BCI created the following archetypes:

  • Based on work model:
    • Remote
    • Hybrid
    • In-office
  • Based on other characteristics:
    • Senior Archetype: Employees in mature stages of their careers
    • Young Tech Archetype: Gen Z and millennial employees interested in digitalization
    • Family Archetype: Employees who value stability and support for personal and professional growth
    • Opportunity Seekers Archetype: Employees who work to live rather than live to work; they value travel, pets, and new experiences

This segmentation allowed the bank to redesign employee experiences in a personalized way by identifying where each employee is in their “journey” and offering the benefits and motivations most relevant to them.

It is also essential for understanding the needs of younger generations entering the workforce. Renewing the listening process periodically and redefining archetypes ensures institutions continue adapting to changing contexts and expectations.

Coaching Strategies to Drive Professional Development

Mónica Tamacas shared that Banco Atlántida found coaching to be an effective solution for adapting positively, offering more personalized employee experiences, and supporting professional growth.

The institution made coaching available to employees who wanted support in overcoming personal barriers and improving specific areas. Previously, they relied on more standardized programs and workshops, but coaching enabled something much deeper: emotional support for employees, reinforcing the importance of viewing employee well-being holistically.

This allowed the bank to support individuals in a far more personalized manner, helping them advance their careers while simultaneously increasing organizational agility.

This type of initiative is especially relevant in a world where, according to Microsoft’s global Work Trend Index, 76% of employees say they would stay longer at a company if they received stronger support for learning and development.

Building Community and Identity

One of the main reasons for high employee turnover today is that hybrid and remote employees often have fewer friendships at work, leading to weaker social and emotional connections with colleagues, according to Harvard Business Review.

Mónica explained how Banco Atlántida adapted to these changes by creating community-building initiatives to overcome this challenge.

After adopting hybrid and remote work models, the institution discovered that some employees felt isolated and lacked sufficient feedback. There was also concern that remote work could weaken the sense of belonging and make it harder for new employees to integrate.

To address this, Banco Atlántida implemented both in-person and virtual workshops focused on mental health and soft skills training. As a result, employee climate surveys now show a sense of belonging score above 95%.

The institution adopted hybrid and remote work indefinitely and continues to run these workshops to reduce isolation and strengthen employee relationships.

Change as the Only Constant in the Labor Market

Adaptability is essential for transforming the Employee Experience. Financial institutions that embrace this mindset and focus on understanding and meeting the evolving needs of their employees will be better prepared to thrive in a highly competitive and challenging labor market.

The ability to adapt not only helps attract and retain talent, but also drives sustainable growth and long-term organizational success.

To learn more, download the whitepaper: “The End of Digital Transformation and the Beginning of the Era of Infinite Adaptation,” written by Chris Colbert, Former Managing Director of Harvard Innovation Labs and Chairman of the Board at Fintech Americas.

DOWNLOAD THE WHITEPAPER