Latest Updates on Banking Industry Pay Practices Provided in HEC Survey

Hawaii Employers Council is pleased to release the 2017 Banking Industry Salary Survey.  Thirteen financial institutions comprised of banks and large credit unions throughout the islands participated in this year’s survey.  These financial institutions shared insights in reference to areas including incentives, pay adjustments and turnover.
 
Incentive, Bonus and Awards
 
The three top incentive programs offered by over fifty percent of financial institutions are:
 
  • Individual Incentives (formal plan)
  • Spot Awards
  • Small Group/Team Incentives (formal plan)
 
Banking Incentive Programs
 
Year End Bonus
 
Over two-thirds of the banking survey participants provide their employees with a year-end bonus.  A majority offer year-end bonuses as part of a discretionary program, with the bonus based on a percent of salary or based on profits.
 
Banking Year End Bonus
 
Commission
 
Commission, which was defined as a percentage of a sale or award given to an employee based on a specified level of performance, was provided by over three-fourths of the financial institutions.  The most utilized timeframe for payouts were monthly or quarterly.
 
Banking Commission
 
Profit Sharing
 
A little more than a third of the survey participants provide profit sharing awards based on overall profits/financial performance of the organization.
 
Banking Profit Sharing
 
Annual Merit/Pay Adjustment and Turnover
 
All participating financial organizations provide an annual merit/pay adjustment, with the majority providing their annual merit/pay adjustment on a focal date common to all employees.  The remainder of organizations reported providing the adjustment on the employee’s anniversary date.
 
Banking Merit/Pay Adjustment
 
The merit/pay adjustment median outcome for this survey aligns with both the All Industries (actual) local merit/pay adjustment reported in the HEC 2016 Salary Adjustment Survey and with the national all industries category reported by the Conference Board.
 
Banking Merit/Pay Adjustment Table
 
* Hawaii data is from the 2016 HEC Salary Adjustment Survey.
** US median percentage data is from “Salary Increase Budgets Survey”, The Conference Board
 
Turnover
 
Based on data collected from survey participants, the overall turnover rate calculated at 21.2% for calendar year 2016 (slightly higher than the previous year).  The turnover for the teller role continues to be almost double the rate of the rest of the banking jobs, calculating at 40.2% (slightly higher than the previous year).
 
For comparison purposes, the 2016 national turnover rates by industry, provided by CompData Surveys, reports a 18.1% total turnover rate for the Banking & Finance Industry and a 17.8% total turnover rate for all industries (based on data submitted by more than 30,000 organizations).  Additionally, the report indicates a 15.3% turnover rate for voluntary turnover.
 
Initiatives to reduce turnover continues with over 35% of participants offering Retention and/or Sign-on bonus programs.
 
Banking Turnover Table
* Data from the 2016 HEC Survey of Turnover and Sick Time Statistics
**Data from 2016 Turnover Rates by Industry, Compensation Force (CompData Surveys)
 
 
HEC conducts a variety of compensation and benefits surveys to provide data useful in developing and administering compensation and benefit plans, and personnel policies. Custom snapshots and comparison reports from our compensation surveys are available, along with customized, proprietary surveys conducted on your behalf.  Our Survey & Compensation experts can also work with members on employee opinion surveys to identify gaps between being an employer of choice and being merely an employer.  For more information, please contact Cathy Keaulani, Survey & Compensation Services Manager (ckeaulani@hecouncil.org), or Susan Amuro, Survey & Compensation Analyst (samuro@hecouncil.org).