Community Bank Hiring Success: 5 Strategic Steps That Maximize Your Exit Value
"You only sell your bank once."
I hear CEOs say this when they put off preparing for a sale.
But the truth is simple: While you sell just once, you need to build value every day.
Early in my career, investment bankers taught me something important:
The best bank sales happen because of smart decisions made over years, not months.
And the smartest decision?
Hiring the right people.
The House-Selling Mistake
Many bank CEOs think selling a bank is like selling a house:
- Fresh paint
- Nice landscaping
- Updated systems
- Good staging
But selling a bank isn't about looking nice.
It's about steady, reliable earnings.
And that starts with people.
Three Keys to Steady Earnings
- People
- Procedures and Policy
- Leadership
Today, let's focus on people.
Without the right team, nothing else works.
The Succession Challenge
Let's talk about management succession. The numbers have been clear for years:
- 70 million Baby Boomers
- 60 million Gen-Xers
- 80 million Millennials
Many banks blame others for talent shortages.
Smart bankers find a better way.
A New Hiring Mindset
In 2011, we changed how we hire:
Old Way (Surplus Mindset):
- Post job ads
- Hope good people apply
- Pick the best available
- Wonder why they leave
- Blame the job market
New Way (Scarcity Mindset):
- Seek out people not looking for jobs
- Create interesting opportunities
- Build growth paths
- Keep top talent
- Take responsibility for results
Understanding What Candidates Want
Regular Candidates Say: "Here are my skills and experience – what will you give me?"
Top Candidates Ask: "What can I do here and what can I become?"
Creating Clear Role Profiles
We made detailed profiles for each job:
- Exact duties
- Training phases (Dependent – needs guidance, Interdependent – works alongside others, Independent – works on their own)
- Timeline to work independently
- How we measure success
Two Key Interview Questions
Question 1: "What's your biggest accomplishment?"
Ask about:
- Their exact role
- How they planned it
- Challenges they faced
- What they learned
Question 2: "How would you succeed in this role?"
Find out:
- What they'd do first
- How they'd solve problems
- How they'd handle challenges
- Similar work they've done before
Making This Work in Your Bank
- Check Your Hiring System
- Is it working?
- What's your mindset?
- Are people staying?
- Look at Your Current Team
- Are roles clear?
- Do people have growth paths?
- Who will lead next?
- Where are the gaps?
- Create Job Profiles
- List specific duties
- Show growth paths
- Set clear timelines
- Define success
The Big Picture
Strategic hiring isn't just about filling jobs today. It's about:
- Building steady earnings
- Creating future leaders
- Reducing risks
- Increasing bank value
- Preparing for a future sale
Your Next Steps
- Check Your Mindset
- Are you thinking surplus or scarcity?
- How does this affect your results?
- Review Recent Hires
- What's working?
- What needs to change?
- What patterns do you see?
- Start One Role Profile
- Pick an important position
- Write down specifics
- Create a growth path
- Set clear success measures
Building a valuable bank isn't about last-minute fixes.
It's about creating lasting quality through smart hiring.
What will be your first step to improve your hiring approach?
There are no shortcuts or hacks in building the confidence needed for major strategic decisions.
Just proven approaches centered around preparation:
This approach will:
- Inform your strategic planning
- Guide your resource allocation
- Clarify your priorities
- Define your value proposition
This is how savvy bank leaders operate. They build valuable institutions through preparation, allowing them to choose the optimal path forward on their own timeline – whether that's continued independence or a strategic transaction.
What's your next step toward building that stable confidence?
I’ll see you next week.
