Banks nationwide spend an average of $650 per employee on training while successful companies in other industries spend an average of $1,100 per employee, according to a new study by the American Bankers Association.

The talent management study conducted jointly by the ABA and the Corporate Executive Board (CEB) found banks are under-developing high performers, risking losing them and sacrificing long-term productivity.

While banks currently hire 60 percent of their employees from within, the study reveals 40 percent of bank CEOs responding believe they are not doing enough to help their employees grow, adversely impacting banks’ development of clear succession plans. 

"The study raises the question: What is being done to prepare the next generation of bank leaders?" said Doug Adamson, executive vice president of ABA’s Professional Development Group, which sponsored the study.  "High-performing employees have told us that in order for them to stay and be more productive, they need to be recognized as top performers and have well-defined development plans in place."

The survey demonstrates that banks’ dependence on internal talent makes ongoing development critical to prepare employees to take on higher roles, he said.

Russell Davis, managing director of the Corporate Executive Board’s Financial Services Practice, said, "Engaging employees will drive retention and bottom-line results."

"One quarter of high potential employees are considering leaving their organizations, and those folks put forth 21 percent more effort than their disengaged peers.  Today, every bank risks losing its future talent base," he said.