Banking - how to reinvigorate a highly skilled, disengaged workforce
One of the biggest challenges the banking sector faces is cultivating employee engagement. A study by Dale Carnegie in the U.S. reveals that 65% of the banking workforce is disengaged. In an industry with highly skilled workers and high remuneration, the costs associated with lost productivity and staff turnover are high. The cost of replacing employees who leave voluntarily can reach a shocking $1 billion annually for the largest banks. Even with smaller companies, turnover costs are high as it typically costs between 6-9 months of salary to replace an employee and the banking sector has notoriously generous salaries, and a high turnover rate (18.6% in the U.S.)
What can banks do to increase employee engagement, and therefore reduce turnover rate and save costs?
The best way to get workers engaged is to give them a sense of purpose and a feeling of being valued by the organisation. The ultimate way to do this would be by involving employees in the decision-making of the company, thus proving that the company sees their opinion as valuable. Typically, this is easy to do in smaller organisations. However, it has historically been an impossible or impracticable task for large organisations, who rely on the second-best method. They task managers with attempting to convince employees that they are valued and, while their voice may not contribute to the overall direction of the company, their work is recognised and they have a future in the organisation. The ultimate human resource plan would be a combination of the two methods - to actively give employees a voice while also recognising and rewarding their work. Now, thanks to Artificial Intelligence it is possible for large organisations to do the former task as well.
According to a survey by Accenture, the banking industry is ready to be innovated through adoption of Artificial Intelligence. Not only are companies optimistic about the benefits the technology will bring, they are also anticipating its imminent implementation. AI is expected to enhance processes and functions across bank departments from service provision to back-office to human resources.
How can Artificial Intelligence play a role in giving employees a voice?
Natural Language Processing (NLP), a subfield of Artificial Intelligence, holds the key to empowering employees with a voice in large organisations. Essentially, NLP is the processing of data that has been obtained in natural language format. Imagine employees being able to contribute their thoughts on a particular decision or topic in their own language. Thanks to NLP, organisations can understand the way that different groups in their organisation feel by analysing the words of their employees. Combine that with a nuanced preference expression mechanism like Quadratic Voting and organisations obtain the ability to understand their employees in a nuanced way at a granular level. Thus, they obtain actionable data from their employees, enabling them to effectively include them in decisions.
Article by Rayhan Beebeejaun
Co-founder of QVote
Rayhan is an entrepreneur striving to improve the state of decision-making in the world. His goal is to give people a voice and greater control over their lives while increasing the efficiency of all types of organisations.