In recent years, one topic has resurfaced again and again in conversations with community banks: culture.

It shows up in many ways, often with questions like: How do we attract and keep talent? How do we replace a retiree with 30+ years of experience? How do we improve our bank? How do we become more profitable?

The simple answer to all of these questions is the same: build a strong culture.

Community bankers understand relationships better than anyone. Taking care of people is central to how you do business and how you build long-term loyalty. But it’s easy to overlook the importance of applying that same relationship-driven mindset internally — to coworkers and teammates who support the bank’s success every day.

What is culture?

Culture is rooted in people. It’s the environment your team creates by bringing their unique selves to work every day. Each person is unique, and the first step to building a strong culture is understanding that people have different needs.

The needs of a C-suite employee nearing retirement differ significantly from those of a 20-year-old teller just starting their career. A successful culture is one where both of those people (and every person in between) feels safe, valued, and free to be themselves at work.

Why is culture important?

Happy people make better employees. That’s not a matter of opinion — it’s backed by data. Engaged and satisfied employees tend to perform better, make fewer mistakes, and work more efficiently. All of that translates into a more successful business.

A positive culture is also tangible. Customers can sense it when they walk into a branch or interact with staff. As culture improves, business performance and profitability often follow. Those gains create opportunities to reinvest in employees and customers alike through enhanced products, higher salaries, and improved employee benefits. From leadership to frontline staff, everyone benefits when culture is prioritized.

One key takeaway is clear: the time and attention devoted to culture should match the focus placed on the bottom line, because the two are directly correlated.

Culture also plays a critical role in talent attraction and retention. According to Indeed, 46% of job seekers say company culture is very important when deciding where to apply, and 47% of employees cite negative culture as the reason they start job hunting. You can’t tackle turnover or succession planning until you address culture within your organization.

How can a community bank of any size improve culture?

A strong culture requires employee engagement, because every person in your organization influences how culture is experienced and perceived. Like any relationship, a positive culture requires ongoing, consistent, intentional effort to maintain.

Leadership has a unique opportunity to share the culture outcomes of the organization. If you want a culture where employees feel like family, create opportunities for people to connect. If you want a culture that values learning and growth, offer real chances for your people to learn and grow.

Here are a few places to start:

1. Educate employees

Employees need to understand what culture is and why it matters. Gaining buy-in requires making culture personal, showing how a positive workplace directly benefits employees, not just the organization.

2. Invest in culture

Like any other business initiative, culture requires an investment of time, resources, or both. You can’t fix culture with a single annual conversation about what you want your culture to be. Meaningful change requires ongoing, hands-on effort.

Some banks have found success by forming Culture Committees with rotating members, allowing employees at all levels to participate. These committees gather ideas, prioritize initiatives, and help implement improvements across the organization. Employees can share ideas with committee members, who filter and execute them. The benefits have been significant:

  • It relieves C-suite leaders from carrying the entire culture effort.
  • It gives all employees a voice, including entry-level staff.
  • It creates a “middle ground” between management and entry level staff.
  • It helps younger employees become more engaged, build skills, and form cross-department relationships.

Banks that support these efforts — by allowing time for committee work and supporting employee-driven ideas — often see meaningful results. Initiatives may include quarterly happy hours, donuts in the breakroom, casual dress days, or short wellness breaks. While low in cost, these small gestures have a significant impact on morale and engagement.

3. Be engaged

It is obvious when the people in your organization aren’t fully engaged. The truth is — culture only thrives when people do. If you want a positive workplace, you can start it by being a positive influence. If you want connection between employees, start the trend by reaching out to others. If you want people to feel valued and safe, be someone who helps them feel that way.

Every single person shapes culture, so the first step to a great culture in your organization is to start with yourself.

Additional Resources

If this topic resonates, the following resources offer further insights:

Ready to turn culture into a competitive advantage? Connect with a Pinion advisor to explore what’s possible.