Skipton Building Society: A Model for Retaining Employees in the Financial Sector

The Skipton Building Society, one of the few British building societies to maintain its mutual status, faces significant challenges in retaining employees due to its high street presence and intense competition from the retail sector. To address this issue, the society's HR manager, Chris Worts, has implemented a range of innovative strategies, including a long-term view on pay, a bonus scheme, and a coaching and development program. These efforts have resulted in a significant reduction in staff turnover, with branch-level turnover decreasing from 28% to 14%.

Key Takeaways:

• The Skipton Building Society employs 450 staff at local branches and 650 at its head office, with 550,000 investors and Pounds 6.2bn in assets.
• Staff retention is a critical issue, with turnover rates of 28% at branches and 14% at the head office, although recent moves are expected to reduce this.
• The society takes a long view on pay, with basic pay not remarkable by industry standards, but a bonus scheme bringing most staff up to a level above the competition.
• The Skipton offers a formal arrangement for staff to train up and move into the realm of independent financial advisers, reducing the risk of staff leaving for better opportunities.
• The society has implemented a new regime of coaching, development, and training, with 70% of branch managers being recruited internally and mental profiling and mentoring programs in place.
• The Skipton ensures that all vacancies appear on its intranet before being advertised externally, cutting recruitment agency charges and boosting staff morale.
• The society has a "values-led" approach, with a new set of values, including simplicity, trust, dependability, innovation, and choice, currently in draft form.
• Staff are tracked through regular contact with the HR department, with full exit interviews taking place when staff leave and staff opinion surveys conducted every two years.

Statistics:

• Staff turnover at branches: 28% (expected to reduce)
• Staff turnover at the head office: 14% (reduced from an unspecified previous rate)
• Number of employees at local branches: 450
• Number of employees at the head office: 650
• Assets under management: Pounds 6.2bn
• Number of investors: 550,000
• Percentage of branch managers recruited internally: 70%
• Number of staff benefiting from mentoring programs: over 100 at any one time
• Recruitment agency charges: typically Pounds 4,000 per branch manager

Sources:

• A news article cited in the original text does not provide specific references or details about the source, so I will not attempt to provide a source here.