2023 Community Bank Case Study Competition Journal

2023 COMMUNITY BANK CASE STUDY COMPETITION

Response to Labor Market The bank utilizes salary surveys from both Wipfli and the Iowa Bankers Association to determine the at-market salary ranges for each position within the bank. PSB also mentors employees in establishing a career path within the bank and supports continuing education. They subscribe to Path to Achievement, a recognition program that rewards employee achievements with set recognition and rewards. Halterman believes providing the opportunity to many employees to purchase bank stock creates buy-in for employees to work towards PSB’s continual success. In an attempt to enlarge the pool of applicants in a tight labor market, PSB worked to streamline the hiring process. They conduct most interviews over the phone or virtually instead of having candidates come to the bank in person. It makes the process more efficient for the organization and allows candidates a more transparent interview process.

PSB’s first location in Indianola is located just blocks away from Simpson College. Despite this proximity, the bank has struggled as of late to successfully recruit these college students. Weber stated that when searching for recruits, they look primarily for the candidates’ ability to learn and how their personalities would fit within the organization. The largest overhead expenditure (48%) for banks over the last five years has been related to personnel. 5 PSB has demonstrated proper attention to both salary and benefit expenditures in order to attract and retain its human resource. Generational Makeup & Turnover During the pandemic, PSB’s staff turnover peaked at 26% in 2021 after two years at 20%. By 2022, the turnover rate regressed back to 20%, which is lower than the previously referenced banking industry average of 23.4%. To address turnover, PSB conducts exit interviews first in written form, then with an in-person follow-up interview. Although the results of the interviews vary from person to person, Weber states they work to remedy the issues that cause employees to look for other employment opportunities. The bank has successfully addressed instances of supervisors not taking the information gathered from exit interviews seriously. Buy-in from supervisors is integral to furthering the bank’s great company culture and growing from what they learn in the exit interviews.

PSB has demonstrated proper attention to both salary and benefit expenditures in order to attract and retain its human resource.

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