Bank compensation trends: Insights from the 2024 TBA Salary Survey
By Sharon Justice-McCray, Senior Vice President of Human Resources and Facilities, Tennessee Bankers Association
The 2024 TBA Bank Compensation and Benefits Survey offers an in-depth look at the trends shaping compensation and benefits in Tennessee’s banking sector. Drawing on data from 62 participating banks, this comprehensive resource benchmarks 135 job positions and provides a crucial under- standing of industry standards. Here are some key takeaways that make this survey indispensable for financial institutions aiming to stay competitive and attract top talent.
Competitive Salary Data Across Roles and Regions
The survey reveals that compensation strategies vary significantly based on geography and asset size. Whether you’re in West, Middle, or East Tennessee, understanding these differentials is key to setting appropriate salaries. The survey details geographic wage adjustments, helping banks tailor compensation packages that align with local market conditions.
For example, the report outlines detailed compensation figures for positions ranging from entry-level tellers to senior executives. By leveraging this data, banks can ensure they remain competitive while managing payroll costs effectively. The survey also includes guidelines on establishing salary ranges, with recommendations on progression timelines based on performance.
Health and Retirement Benefits
Employee benefits are increasingly critical in today’s competitive labor market. The survey found that 87% of banks contribute to individual medical insurance premiums and 52% to family plans. While 97% of banks offer a 401(k) plan, 82% require employees to contribute to receive a match. Understanding these benchmarks can help your institution make informed decisions about benefit offerings and retain top employees.
Additionally, the report includes data on Roth IRA availability, with 65% of institutions providing this option, and insights into supplemental executive retirement plans (SERPs), which 43.55% of respondents offer.
Turnover and Staffing Trends
Turnover remains a concern for many institutions, with the average turnover rate in 2023 at 13%. While some banks plan to increase staff in 2024, others are focused on maintaining current levels or restructuring teams. Understanding these dynamics can guide your bank’s workforce planning and highlight the importance of competitive compensation and supportive work environments.
The survey also explores strategies like out-of-cycle raises, a practice used by 38.71% of banks to retain high-performing employees. With projected salary increases averaging 3.71% for 2024, the data can help your institution prepare for budgetary adjustments and understand how peers are responding to economic pressures.
Performance Management and Incentive Plans
Performance management is another area of focus, with nearly 42% of institutions linking higher salary increases to top performers. The survey reveals that 82.26% of banks have corporate incentive plans, with an average of 8.7% of payroll dedicated to variable pay. This data is essential for banks looking to align employee goals with organizational performance.
The report offers advice on creating performance plans that drive success, with practical recommendations on merit increase differences to reward top contributors. Knowing how other banks incentivize performance can guide your institution in designing programs that attract and retain talent.
Paid Time Off (PTO) and Remote Work
PTO policies remain highly valued by employees, and the survey provides an overview of average days offered based on years of service. Additionally, it outlines carry-over policies, an important factor when negotiating job offers or evaluating overall benefits. With remote work still shaping the industry post-pandemic, 80.3% of banks report that employees must remain within their operating markets, though some flexibility exists based on roles.
Why This Data Matters
Staying competitive in compensation and benefits is crucial as the banking landscape continues to evolve. The 2024 TBA Bank Compensation and Benefits Survey offers essential data to inform your HR strategies, from setting salaries and managing benefits to understanding workforce trends.
By investing in this survey, your bank will have access to actionable insights, helping you attract and retain the talent needed to thrive in an ever-changing environment. The data not only aids in compliance but also ensures your compensation practices align with industry standards, providing a strategic advantage.
Ready to dive deeper? Purchase the 2024 TBA Salary Survey today at TNBankers.org to ensure your institution is well-equipped to attract top talent and remain competitive in today’s market.