Developing leaders internally can increase loyalty, ensure cultural fit, and lower costs, while external hires offer fresh perspectives and specialized skills (though often at higher costs and greater cultural risk). A balanced strategy that combines internal promotions with strong external hiring practices is likely the most effective way for banks to build resilient, adaptable leadership teams, this article says. Indeed, Bank Director's most recent compensation and talent survey shows that most institutions favor this approach.
Review the American Bankers Association's five key elements of a successful leadership program and learn why the Federal Reserve Bank of New York has embraced mission-driven learning. Also, check out what Russell Reynolds Associates has identified as the essential characteristics and competencies for future bank CEOs.
Has your institution had more success with outside hires or internal promotions? What other talent-related challenges are you facing?
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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