With banks feeling the pinch externally due to pressures from a crumbling economy, employees at some of the top U.S. financial institutions are reacting to the dramatic cost-cutting measures. In analysis of our ratings of the top five U.S. banks*, three watched their company ratings** drop two to ten percentage points in the past three months, based on employee reviews available at Glassdoor.com. Not that surprising considering what’s happened in the industry, but we found it interesting that Citigroup’s cumulative employer rating on Glassdoor is now 6 points higher than compared to this past August despite the fact that the company announced last month that 53,000 jobs would be cut . And although Citigroup’s CEO Vikram Pandit has the lowest approval rating of top banking executives, he did see his approval rating climb a notable 12% (up from a 25% approval rating in August). However, a Citigroup Director in New York commented “Time for a change at the top to somebody who can generate confidence in our product – not a technocrat.”
Wells Fargo has been the most consistent over time, boasting the highest overall company rating now and three months ago. On the other hand, JP Morgan Chase, the largest bank in the U.S., has seen its company rating drop the most significantly losing ten percentage points, which may not come as a shock when one current employee states “Don’t worry, you won’t stay long.”
Also what’s interesting to note is that three out of four banking executives*** saw their approval rating climb four to twelve percentage points in the past 3-4 months.
|Top Five US Banks Comparison|
|Company Rating||% Change||CEO Rating||% Change|
|JP Morgan Chase|
|May – Aug. 2008||3.4||73%|
|Sept. – Today||2.9||-10%||66%||-6%|
|May – Aug. 2008||2.8||25%|
|Sept. – Today||3.1||6%||37%||12%|
|Bank of America|
|May – Aug. 2008||3.3||56%|
|Sept. – Today||3.2||-2%||62%||6%|
|May – Aug. 2008||3.1||n/a|
|Sept. – Today||3.1||0%||n/a||n/a|
|May – Aug. 2008||3.5||61%|
|Sept. – Today||3.3||-4%||65%||4%|
Given the continuing consolidation in the industry and expectations of even more tough times ahead for the financial sector, we don’t anticipate company ratings to increase much in the foreseeable future and may fall even further.
In the meantime, banking execs might be well-served looking internally and taking some of the advice from employees:
A JP Morgan Chase Credit Analyst advises “Place more emphasis on hiring capable individuals at a fair salary rather than inept ones at a crap salary; Solicit more opinions from employees regarding their immediate manager; Grant meaningful salary increases to those who are promoted from within and have been loyal to the company for a number of years; Stop sending customer contact jobs overseas to people who are barely fluent in English; UPDATE THE TECHNOLOGY AND QUIT BEING SO CHEAP. Dimon makes $40 million dollars, what is the excuse here???????”
A Citigroup Vice President recommends “fewer chiefs and more peop’e executing and getting things done. Focus on our advantages and use them to grow our busienss. Citi has international clients in US and is not taping into this vast resource. Could grow the company exponencialy”
*Bank list is determined primarily by asset size. For more information about top banks in the U.S., visit: http://www.ffiec.gov/nicpubweb/nicweb/Top50form.aspx
** Company ratings are an indicator of satisfaction in key areas of interest to employees: career opportunities, communication, compensation & benefits, employee morale, recognition & feedback, senior leadership, work/life balance as well as fairness & respect.
*** CEO Data for Wachovia is limited due to recent change in leadership http://www.msnbc.msn.com/id/24929304/