Human Resources Archives - Young & Associates

Incorporating core competencies into performance reviews

Written by admin on February 19, 2025. Posted in Advice, Blog, Consultation, Human Resources, News.

A strategic approach for organizational success

By Clarissa Sinchak, PHR; director of HR, Young & Associates

It is widely known that performance reviews are key to how your organization can measure individual and, ultimately, company-wide growth and success. Performance reviews are not just about measuring what employees have accomplished throughout the year but are also created to identify opportunities to grow, develop and achieve their full potential through meaningful and intentional conversations with their managers. Additionally, they offer a chance to recognize achievements, identify areas for improvement, and set future goals and objectives. However, the real power of performance reviews is evident when core competencies are strategically aligned with your company’s goals. In doing so, it ensures that individual employee contributions are recognized and directly tied to the mission and vision of the organization, ultimately fostering a purpose-driven workforce.

What are core competencies?

In today’s competitive business world, organizations must possess specific strengths to separate themselves from the competition to guarantee long-term success. These strengths, also known as core competencies, establish the organization’s foundational knowledge, skills, defining products, services and capabilities that give a business an advantage over its competitors and ultimately drive its growth. These are behaviors and skills that employees in your company often either inherently possess or aim to develop over time to achieve their personal goals and perform well in their roles.

When leaders clearly define and communicate these strengths, they help ensure that all employees see a direct connection to the organization’s mission, which promotes more significant commitment and greater individual contributions. By aligning them with organizational goals, business leaders can ensure that employees prioritize the desired behaviors and work habits that contribute to them.

Some common examples of core competencies might include, but are not limited to:

Initiative
Decision-Making
Teamwork
Communication
Adaptability
Client Service
Technical Job Knowledge
Interpersonal Skills
Integrity

How to develop your organization’s core competencies

Developing core competencies within your organization requires deliberate thought, strategic alignment with the company’s long-term goals and a commitment to continuously improving. Business leaders should take a systematic approach when incorporating them into the performance review processes.

Defining the organization’s mission & goals

First, developing core competencies begins with understanding the organization’s purpose and aspirations, so business leaders should clearly define this in addition to their goals. Once they achieve this, leaders should openly communicate their strategy to employees to create buy-in and to build an overall understanding. A clearly articulated company vision is the basis for identifying the areas where the organization must excel. Leaders ensure transparency in communication by focusing the core competencies on capabilities that directly contribute to the company’s competitive positioning.

Identifying strengths & gaps in current capabilities

A second essential step in creating core competencies is identifying your company’s strengths and gaps. Leaders can evaluate and analyze current skills, resources, and processes by working with human resources to conduct an internal assessment. This analysis highlights areas of expertise within the organization and exposes any opportunities for improvement. Understanding your organization’s current state makes it easier to create development initiatives in the areas that guarantee the most significant value.

Fostering a culture of learning & development

A third key step in developing core competencies is promoting a workplace culture that prioritizes learning and development for employees at all levels of the organization. Investing in their growth is imperative because employees are fundamental to any company’s success. When leaders offer training programs, mentoring, and knowledge-sharing programs, employees build expertise in the company’s defined core competencies. Promoting open and ongoing communication, recognizing achievements, and encouraging accountability ensures employees work towards the same objectives.

Continuously evaluating & adapting competencies

Lastly, it is essential to note that core competencies require continuous modification and evaluation as your company’s goals progress over time. For example, the market might change, client expectations might evolve, and competitors undoubtedly will vary over time. Therefore, evaluating and monitoring your core competencies and considering these potential changes is critical. Continuously assessing the effectiveness of these core competencies within performance reviews while simultaneously benchmarking against your industry’s standards is essential to guarantee that they remain relevant and have a desired impact. This creates a consistent and ongoing framework for evaluating employee contributions, making reviews transparent and predictable while reinforcing the organization’s core values and priorities.

In summary, establishing core competencies within your organization is a significant undertaking that combines internal strategy and alignment while focusing on developing your employees to set them up for success. Companies that can build and maintain these core competencies position themselves to grow and thrive. By incorporating core competencies into performance reviews, companies will see an uptick in employee engagement and the desire to increase their productivity to enable the organization to propel forward.

How strategic planning drives effective change management

Written by admin on October 19, 2023. Posted in Advice, Change Management, Consultation, Human Resources, Management & Planning, Strategic Planning.

By: Michael Gerbick, COO

Change is an undeniable aspect of the modern financial world. To stay competitive, thrive in a dynamic marketplace, and satisfy the demands of both customers and regulators, banks and credit unions must embrace change management as an integral part of their strategic planning process. But how can financial institutions seamlessly integrate change management into their strategies while ensuring their governance processes remain robust enough to meet regulatory requirements? Understanding this symbiotic relationship and how to strategize for achievement is vital.

The unavoidable reality: Change in the financial sector

The significance of change management in the bank and credit union industry has gained even more prominence in recent times. In the Fiscal Year 2024 Bank Supervision Operating Plan released by the Office of the Comptroller of the Currency Committee on Bank Supervision, change management takes center stage. The plan underscores the importance of banks implementing significant changes in various aspects of their operations, from leadership to risk management frameworks, and even in their use of third-party service providers that support critical activities.

The operating plan emphasizes the role of examiners in identifying these financial institutions and evaluating the suitability of their governance processes. This includes assessing whether the acquisition or retention of qualified staff aligns with the changes undertaken by the board or management. These changes can arise from a variety of factors, including mergers and acquisitions, system conversions, regulatory requirements, and the implementation of new, modified, or expanded products and services, such as cutting-edge technological innovations.

This regulatory focus underscores the critical nature of integrating change management into the strategic planning process for banks and credit unions. It is not just about responding to the evolving landscape; it is about proactively steering the ship towards a brighter, more competitive future. Change is a constant in the financial sector. Market dynamics, technological advancements, shifting customer expectations, and regulatory updates all contribute to the perpetual evolution of this industry.

For banks and credit unions, change should not be a reactive response; it should be a proactive strategy. Strategic planning, often seen as the roadmap for an organization, is the mainstay that can help financial institutions navigate these uncharted waters. However, the true synergy lies in integrating change management into this planning process.

The power of change management

Change management, at its core, is about guiding an organization through the transition from its current state to a desired future state while minimizing disruptions and ensuring that the change is well-received by employees and stakeholders. In the context of banks and credit unions, effective change management can manifest in various forms, such as:

Digital transformation: Embracing new technologies to enhance customer experiences and operational efficiency.
Compliance updates: Adapting to evolving regulatory frameworks to avoid penalties and maintain trust.
Cultural shifts: Fostering a culture of innovation and adaptability among employees.
Product and service enhancements: Continuously improving offerings to meet customer demands.
Proactive risk assessment and management: Identifying, mitigating, and seamlessly integrating risk management to safeguard against potential risks and challenges.

The crucial role of change management in this industry cannot be overstated. It enables financial institutions to execute their strategic visions successfully, transforming conceptual ideas into concrete actions.

Incorporating change management into your financial institution’s strategic planning

To weave change management seamlessly into your strategic plan, consider the following steps:

Establish a clear vision: Clearly define your strategic objectives and the desired outcomes of the change initiatives. Ensure that your team understands and is aligned with this vision.
Identify key stakeholders: Recognize the individuals and groups affected by the proposed changes. Engage with them early to gather insights, address concerns, and gain their support.
Create a robust governance framework: Robust governance processes are essential for change management in banking. This includes defining roles and responsibilities, establishing decision-making processes, and setting up regular progress tracking mechanisms.
Develop a communication strategy: Effective communication is the backbone of change management. Craft a comprehensive plan to keep stakeholders informed, engaged, and motivated throughout the change journey.
Build change champions: Identify and empower individuals within your institution who can serve as change champions. They can help drive the transformation and inspire their colleagues.
Monitor and adapt: Regularly assess the progress of your change initiatives and be ready to adjust your strategies as needed. Change is iterative, and adaptability is key to success.

Incorporating change management into strategic planning is critical. By establishing a clear vision, engaging key stakeholders, creating a robust governance framework, crafting effective communication strategies, building change champions, and embracing adaptability, your financial institution can navigate change seamlessly and achieve its strategic objectives.

Governance processes: Meeting regulatory requirements

Incorporating change management into your strategic plan does not mean sacrificing regulatory compliance. In fact, it can enhance your ability to meet these requirements effectively. Here is how you can navigate this regulatory landscape while optimizing your change management efforts:

Risk assessment: Conduct comprehensive risk assessments to identify potential compliance gaps and challenges associated with your proposed changes. Address these issues proactively and effectively to minimize regulatory risks.
Regulatory engagement and collaboration: Establish open and constructive lines of communication with regulators and examiners. Keep them informed of your change initiatives, seek their insights and guidance on change management strategies, and demonstrate your commitment to compliance.
Documentation and reporting: In line with regulatory requirements, maintain meticulous records of your change management efforts, including compliance measures. Thorough and accurate documentation can simplify examinations and audits, making the process smoother and more efficient.
Training and education: Invest in training and educating your staff on regulatory changes and their implications. Knowledgeable employees are your first line of defense against compliance issues.
Continuous improvement: Remember that change is perpetual. Continuously assess and adapt your change management strategies to stay ahead in a rapidly evolving industry.

By following the strategies outlined above, you can navigate the complex regulatory landscape while optimizing your change management efforts and harmonizing change with compliance. Embrace these practices, and your organization will not only thrive in the face of change but also meet regulatory demands with confidence and efficiency.

Embracing proactive change management

Change management is a function of an effective strategic plan. The symbiotic relationship between them is the cornerstone of success in modern financial institutions. Embracing change as an opportunity, rather than a challenge, is crucial. Integrating change management into your strategic planning process, establishing robust governance procedures, and ensuring regulatory compliance are the keys to thriving in an ever-evolving industry.

Remember, change is not a one-time event but a continuous journey toward a brighter future for your institution and stakeholders. Align your strategic planning with regulatory directives and embrace change management as a proactive strategy to not only meet regulatory demands but also position your institution as an industry leader in the dynamic financial landscape. Embrace change, and let it steer your institution toward success.

Young & Associates: Your partner in change

Y&A is here to support financial institutions as they navigate the ever-evolving landscape of the financial industry. With our team’s extensive experience in regulatory compliance, risk management, and strategic planning, we stand ready to assist you in successfully embracing, harnessing, and facilitating change. With over 45 years of proven experience as a trusted ally to financial institutions, you can rely on Y&A to guide through the financial sector’s changing terrain. Get in touch with us to learn how we can help.

Focus on Affirmative Action, Equity, Diversity, and Inclusion (ED&I)

Written by admin on March 23, 2022. Posted in Human Resources.

By: Gina Sherock, Senior Consultant, and Rachel Disko, SHRM-CP, Senior HR Business Partner

Over the past several years, there has been an increased and sustained focus on workplace diversity. If this hasn’t been focal to business strategy in the past, leaders are wondering where they should start and why. The answer to this depends on several factors. But the evidence is becoming impossible to ignore − an intentional workplace diversity effort is critical.

Banks and financial institutions covered by FDIC insurance are considered government contractors. Therefore, they must develop a formal Affirmative Action Plan (AAP) to ensure equal employment opportunity for race, gender, disability, and protected veteran status if they have at least 50 employees. These requirements are enforced by the Office of Federal Contract Compliance Programs (OFCCP) to comply with Executive Order 11246 (covers race and gender); Section 503 of the Rehabilitation Act of 1973 (covers individuals with disabilities); and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, aka VEVRAA (covers protected veterans).

For those organizations that must do so to remain in compliance, the case for developing a formal AAP is clear. However, there is a strong business case for ensuring equal opportunity and embracing diversity and inclusion.

Relevant laws and risk management

Having a workforce that lacks diversity could increase risk from a legal standpoint. Discriminating against a job applicant or an employee because of the person’s race, color, religion, sex (including pregnancy, transgender status, and sexual orientation), national origin, age (40 or older), disability, or genetic information is illegal. Even if discrimination was not intended toward an applicant or employee, poor optics can lead to a complaint being filed with the Equal Employment Opportunity Commission (EEOC) and a potential lawsuit. If that happens, an organization risks a loss of productivity, incurring legal fees (including compensatory damages), and its reputation as an employer. Without strong documentation as evidence that discrimination did not actually occur, intentions are left open to interpretation and the organization could be at a disadvantage.

Lack of workforce exposure to a diverse population can also lead to implicit bias among employees, leaders, and decision makers. Implicit bias occurs when a person holds an unconscious prejudice, attitude, or opinion about others. This type of thinking increases the risk of a discrimination lawsuit, even if harm was not intended.

Benefits of ED&I

Many of us know there should be diversity and inclusion in the workplace. However, we may not necessarily know the benefits associated with a focus on diversity. Here are some reasons why equity, diversity, and inclusion are beneficial to not only businesses but also their employees.

Businesses with more diversity generally thrive when compared to companies that are less diverse. Employees from different demographic groups have different talents, experiences, and skill sets. Therefore, its more beneficial for companies to increase creativity and innovation. Increasing the diversity of leadership teams can help improve financial performance. According to a Boston Consulting group study, “companies with above-average diversity on their leadership teams receive a greater payoff from innovation and higher EBIT (Earnings Before Interest and Taxes) margins.”

Additionally, diversity also helps to attract and retain talent for the organization by promoting that you are an organization that prioritizes ED&I in the workplace. A study from Washington State University states, “by 2025, 75% of the workforce will be millennials, 32% of millennials and Gen Z believe businesses should try to improve their diversity.” Finally, workplace diversity boosts a company’s reputation, brand, and overall morale. This helps the organization to increase employee engagement and ensures a well-rounded culture.

The benefits of diversity do not stop at the employer level. Employees are proven to benefit from a diverse workforce as well. Workplace diversity can lead to better decision-making. According to Washington State University, “a study that analyzed 600 business decisions made by 200 teams found that the decision making of diverse teams outperforms individual decision-making up to 87% of the time.” Along with better decision making, diversity is proven to lead to faster problem-solving. A study published by the Harvard Business Review found that higher comprehensible diversity correlates with better performance. Additionally, diversity in the workplace may increase employee engagement and help employees to feel more included.

Your Affirmative Action Plan or other ED&I initiatives

Whether through a formal Affirmative Action Plan or other ED&I initiatives, employers are seeing the benefits both in meeting compliance obligations and increasing the overall bottom line with a more diverse workforce. We are seeing more businesses become aware of ED&I in the workplace. Candidates often wonder how they will fit in, if they will receive equal opportunity, and if they will feel welcomed.

Developing an Affirmative Action Plan or ED&I initiative may be difficult to navigate. Young and Associates is here to help. We offer a wide range of HR services for banks and financial institutions to take the guess work away. For more information on how we can assist with your HR efforts, contact Dave Reno at 330.422.3455 or dreno@younginc.com.