The 30 Fastest Growing Salaries for Banks in 2023

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There has never been a year for compensation at financial institutions like the one coming in 2023.

BalancedComp is projecting a 5% labor budget increase — a historical high that may be eye-watering for many institutions. We project that the average midpoint movement will move up by 3.5%, which leaves 1.5% left to accomplish two important salary administration goals for institutions:
1. Differentiate for higher performance.
2. Move the pay levels of employees whose salaries are below the market rate.

Below, we’ve compiled the top 30 positions that have seen pay increases that are 150% to 500% faster than the average annual market rate, based on our primary research. Again, this is a historic year for compensation analysis. Based on 2023 projections, these salary figures attempt to correct a scorching labor market and record inflation.

Many executives think of the Great Resignation as mainly impacting non-exempt staff. While this continues to be an issue for recruiting starting, or entry level, positions, the surprising truth is that one out of three of the fastest-growing salaries are from jobs in the top 25% of your salary grade structure. For example, our research indicates that chief risk officer was the fastest-growing salary in 2021; while still on this list, this year it ranked 26th place.

Loan Departments Are Thriving
By comparison, nearly 25% of the fastest-growing salaries at financial institutions were related to the mortgage department. But demand for these roles may cool in the short term, as home buyers wait for interest rates and pricing to return to levels closer to the historical averages in the past five years.

Commercial loan officers and processors join the list, with a salary movement that is 200% faster than the average for the industry. For the second year, the consumer loan processor position has made the list. This position is typically a Grade 6 and requires only a high school degree and approximately one year of experience. Notably, the hottest jobs in the loan department include both production and support positions.

IT Positions Remain Key
Internal IT positions remain in high demand across multiple industries, making it more competitive to recruit new personnel and retain existing employees than ever before. Within this key area of support, there are several positions that appear on the list of fastest-growing salaries:
• Systems administrator
• Network administrator
• Chief information officer
• IT business analyst

Additionally, there are unique and highly technical IT positions that are starting to show up at banks that we have not seen in the past 20 years. These include full stack software developer, scrum master, senior business systems analyst, Salesforce administrator and more.

Clear Labor Market Demands
Workers remain scarce; it will be more critical than ever for banks to address the needs of of their employees. According to a report this year from SHRM, “this is the tightest labor market in the country’s history. Large manufacturers are offering health care and 401(k) on day one, large signing bonuses, and above-market rates, and they’re still coming up short.”

Most employees do not seek out high stress work environments that use subjective performance criteria to measure their contributions. They are no longer accepting lagging wages that fail to ever reach the salary midpoint. They want benefits that match their current lifestyle and work-life balance needs. What will it take to be a successful employer? Is it culture? Wages? Benefits? Remote work? Diversity? Yes to all of the above.

It can be overwhelming for even the most diligent human resource manager to deal with the confluence of strong market forces, regardless of their institution’s strength. Equipping HR managers and executives with the resources they need to succeed will spearhead their workforce to excellence no matter the economic or operating environment. A 2023 labor budget under 5% means HR will spend needless hours recruiting, onboarding and retraining.

According to 2022-2023 BalancedComp Salary & Incentive Survey research, these are the 30 fastest-growing salaries by job title in the financial sector for the upcoming year:

Fastest Moving Jobs Average Percentage Increase
Head of HR 17.8%
IT Business Analysts 17.0%
Mortgage Originators 14.25%
Digital Marketing Specialist 13.40%
Trust Officer 13.02%
Senior Project Manager 11.22%
Head of Mortgages 10.44%
Head of Marketing 9.97%
Chief Info Officer 9.88%
Mortgage Closers 9.05%
Network Administrator 8.72%
Marketing Specialist 8.64%
Help Desk Specialist 8.54%
Credit Analyst II 7.91%
Mortgage Processors 7.90%
Mortgage Loan Officer (base) 7.81%
Commercial Loan Manager 7.77%
Commercial Loan Processor 7.63%
CFO 7.54%
Collector II 7.53%
Mortgage Loan Officer (Commission) 7.23%
Graphic Designer 7.07%
Systems Administrator 7.06%
BSA Analyst 6.88%
Trainer 6.84%
Consumer Loan Processor 6.79%
Market President 6.37%
Mortgage Loan Officer 6.30%
Head of Risk (No. 1 highest in 2021) 6.19%
Collector I 5.93%
Chief Loan Officer 5.59%

How HR Can Combat the Great Resignation

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Human resource executives continue to confront and address the ever-shifting priorities that are critical to helping companies maneuver current trends in the workplace.

The coronavirus pandemic, coupled with rising inflation, has disrupted the American workforce. In response, human resource professionals are responding intentionally and thoughtfully to tackle the rising challenges head on. But according to a Human Resource Executive’s survey published in January 2022, 86% report feeling more stressed as they continue to focus on remaining effective business partners. The following are some of the most pertinent talent and employment issues facing banks today and how they impact human resource divisions.

Pay Transparency Laws
An increasing number of states and municipalities require employers to disclose salary ranges to current or prospective employees, a trend that could spread nationwide as prospective employees seek pay transparency and equity at the interview and hiring stage. This requires HR executives to ensure that pay transparency laws are enforced, while demonstrating that salary expectations are commensurate with what the market will bear. Additionally, remote work further complicates the issue, as companies regularly recruit across state lines.

Aside from legal issues, employees today want to know how their current pay range is formulated and which promotional opportunities are available for their career path. Human resource professionals should be prepared for these conversations during onboarding. Without a proactive and well-thought-out message coming from management, employees may assume the worst and — at the very least — begin to explore what the market might pay them for their skills.

Explainable Salary Ranges
Wages are increasing faster than they have in the past 20 years. It is critical that HR professionals educate all internal stakeholders on the methodology they use to develop salary ranges. Typically, HR managers at community banks purchase a mere two or three third-party salary surveys that are used to formulate expected pay ranges for all positions in the company.

In contrast, a documented and communicated compensation methodology can decrease concerns about pay disparity and discrimination. Due to inflation, companies may want to analyze base pay levels semi-annually this year, as opposed to the end-of-year norm, to retain talent.

Reexamining Variable Pay
Strategic HR teams are often involved in crafting departmental scorecards that align performance with board priorities. Something I often say is, “The right bonus program, with the right incentives for the right people, can drive performance.”

Creating a stretch goal structure or modifying who is eligible to participate in an annual bonus program based on corporate results can alter the dynamics of a bank’s compensation strategy and overall financial performance, which is why this topic should be a conversation between the chief human resource officer and CFO. Banks can bolster their talent acquisition strategies by regularly reexamining their incentive payouts and targets to ensure they are delivering a positive return on investment and are competitive.

Embracing a Changing Work Culture
Many financial institutions are enhancing their benefits to demonstrate they truly value their employees. That ranges from shorter vesting periods for paid time off to pet insurance. However, one of the most desirable benefits is a hybrid/remote work arrangement. Banks that refuse to embrace this new model — where it makes sense — need to be prepared to pay more in order to get the attention of top candidates.

However, those benefits cannot be considered in a vacuum. Executives and their HR teams should consider work expectations and their impact on corporate culture as well. In the past, some firms expected employees to work long hours and on weekends in the office in order to advance. But studies are showing a different outcome: burnout. The expectation that employees will forgo a work/life balance for their career is no longer the norm. A culture of self-care for all employees will go much further in promoting a productive and purposeful workforce.

2022 is already proving to be one of the most taxing for HR teams in terms of talent acquisition, management and retention. Banks will continue to face challenges as inflation, salary expectations and work culture changes. But there are proven ways to produce an effective corporate strategy that builds and supports a healthy organization, and generates a good return for investors. Remaining agile, promoting a culture of self-care and paying competitive to market rates will remain fundamental to the success of high-performing banks.

Bank Salaries Creeping Upward

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Accounting and consulting firm Crowe Horwath LLP has conducted an annual review of bank compensation every year for 30 years. This year’s results from 280 banks show a modest increase in bank employee salaries, while CEO pay has rebounded after declining the year before. Crowe Senior Consultant Timothy Reimink, who is in charge of the survey, talks about the results.

What surprised you about the findings this year?

We were somewhat surprised to see how quickly financial institutions have shifted priorities from containing costs to developing employees.  It seems to be a good sign of the health of the financial industry.  Respondents to our survey cite “containing costs” at a lower level of priority in 2011 than in 2009 or 2010.

What general trends are you seeing in terms of compensation?

Pay increases continue to be modest.  Since the onset of the recession, banks have slowed salary increases for employees.  The average salary increase for officers in 2011 was 2.4 percent, the same as in 2010.  For non-officers, salary increases in 2011 were also comparable to 2010.  Increases planned for 2012 are only 2.5 percent.

This change in salary practices appears to be part of a fundamental shift in strategy, to have compensation more in line with competitors.  Only 12 percent of banks have a strategy of paying above market compensation, compared to 17 percent in years prior to the recession.

What about CEO and executive level pay?

We saw CEO compensation rebound in 2011, with total compensation increasing 6.5 percent from 2010, after declining in 2010 from 2009.  The increase was in base salary.   Bonuses as a percentage of base salary were 9.8 percent in 2011, similar to 2010 levels.  Growth in total compensation for CEOs had been slowing during the prior three years, reflecting the decline in financial institution performance during the last three years.  As the economy and financial condition of banks have both stabilized, CEO compensation appears to be on the upswing.

Do you have an opinion on how banks might change their compensation practices to better attract and retain good employees?

Financial institutions should reward above-average performers by increasing their salaries at a significantly faster pace than for average performers.  While 87.7 percent of financial institutions say they have a pay-for-performance program, their actual practices in granting merit pay increases don’t appear to support their expressed objective.  There appears to be little difference between salary increases for average performers and above-average performers.  Banks rated 26.9 percent of their employees as “exceeded expectations” in 2011, and on average gave a 3.2 percent salary increase.  This level of salary increase is not much more than the average 2.6 percent increase given to those employees meeting expectations.

Pay-for-performance may be primarily a downside phenomenon, with average increases of only 0.5 percent given to the 5.9 percent of employees rated as “below expectations.”

How have regulatory changes influenced pay trends?

Executive compensation has certainly been a focus of attention for the regulators and the media in recent years.  The most controversial pay practices have been at large banks and investment firms.  In contrast, for the majority of financial institutions, 55 percent, these regulatory changes have required no change in compensation practices.  Of our survey participants, 42 percent have reviewed their compensation practices, but only 21 percent have made changes because of regulatory concerns.  Our review of the trends indicates that there has been a shift away from cash bonuses and toward restricted stock as a form of incentives for executives.