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Archive for August, 2015

A few months ago we added a section to our blog page called “Ask Us Anything,” in which people could ask us questions anonymously. We are going to answer the top two questions we were asked in the last few months. We will continue to answer your questions a few times a year. (Read to the end of this blog to hear about our Super Bowl contest, which did have a WINNER last year.)

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1. Do you think community banking is dying?

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There is over-regulation of banking. Things tend to get pushed to the extreme. For example, our own John Morris bought his first home in 2006 and the bank said they would lend him double the amount he was looking for and the process was very simple and fast. Fast forward to today, he is trying to put an addition on his house, the process started in April, and four months later, he still hasn’t closed.

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Banks seems to be buying, selling, or merging, blaming a lot of it on the extreme regulatory costs which might be true. It’s been awhile since we’ve seen a new bank emerge but many have disappeared. These changes can result in less customer service to the smaller business or individual. For instance, big banks are pushing businesses under a certain size as well as individuals with under a certain amount of investable assets to call centers. It is our belief that there will be a reemergence of community banks over the next several years because “the little guy” will demand a higher level of customer service. And let’s face it; there is a lot of money to made here.

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2.  How much of a raise can I expect to make a move?

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The truth is, whether you like it or not, your new compensation will be based off of what you are currently making. Just like when you buy a car what you are willing to pay is based off of Kelly Bluebook, and when you are putting an offer in on a house, you look at the current owner’s purchase price.

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Another way to look at it is, if you are lucky enough to receive an annual raise, your current employer doesn’t base your bump off of a made up number. They look at where you are now compensation wise and apply a percentage. Other folks in our industry do not always want to say this and people do not always want to hear it, but it’s not worth sugarcoating.

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So your possible bump or raise if you make a move, will not typically be based off a pay grade or market value of others, it will be based off of your current compensation and market value for you. It’s not a set number, it’s a percentage. We here have those percentages down to an annual science per market that we cover. If you would like to discuss that in more detail…give us a call.”

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***Stay tuned for next month’s blog, our Super Bowl contest! Send your picks to rroppa@ajconsultantsllc.com.  You must provide the two teams you believe will make it into the Super Bowl AND which one will win. If anyone guesses correctly, we will award the winner with two tickets to see a regular season game of their choosing next season! In the event of a tie, the winner will be determined by whoever guesses closest to the final score of the game.

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