Written by Douglas Gillison
(Reuters) – Employee confidence in Federal Deposit Insurance Corp. leadership is well below the government average and more employees are considering leaving the company, the latest FDIC employee survey data seen by Reuters shows. .
The data shows that in 2023, 38% of FDIC employees are considering retiring in the next 12 months, more than double the rate in 2020, compared to just 33% in government overall.
Only 39% of employees say FDIC leadership inspires strong “motivation and commitment,” down from 61% in 2020 and 11 percentage points below the government average, according to data obtained through the Freedom of Information Act.
The survey was conducted for the FDIC from August 7 to September 29, 2023, by the Office of Personnel Management, the U.S. agency that oversees public servants and conducts annual worker surveys.
A damning independent review of FDIC misconduct released Tuesday cited elements of 2023 employee survey data. The agency has not released its full findings.
The data comes at a time when many financial institutions are struggling due to high interest rates, and the potential for high staff turnover could threaten the agency's ability to supervise them. It provides more insight into the extent of decline and staff dissatisfaction.
An FDIC spokesperson said the survey is an “important tool” for measuring staff attitudes and informs the agency's recruitment and retention efforts, which have improved over the past year.
The FDIC's internal watchdog warned in two recent reports that employment remains below pre-pandemic levels and high turnover rates could undermine “mission-critical” functions. Staff turnover contributed to the FDIC's failure to supervise failed financial institution Signature Bank, the agency's follow-up investigation found.
“The increase in job turnover in 2021 and 2022 is directly related to pandemic-related issues and a strong labor market, which has since declined to historic levels,” the FDIC statement said. The number of entry-level examiners hired last year was twice that of 2021.
Tuesday's report follows a Wall Street Journal revelation in November that revealed a long-standing culture of tolerance for sexual harassment, discrimination and other misconduct.
Vivian Fa, president of the Treasury Employees Union chapter that represents workers at the FDIC's Washington headquarters, said the agency's response to its return-to-office policy has been a major source of dissatisfaction in recent years. He said the FDIC began in 2022 to dismantle agreements that allow workers to come into the office as needed.
Doreen Greenwald, national president of the Treasury Employees Union, said employees are often called into offices arbitrarily and without a clear work purpose.
More than 80% of employees who say they are considering leaving their job cite remote working arrangements as a factor.
The return-to-office policy was a “particular point of dissatisfaction” among staff, according to a sexual harassment investigation report released on Tuesday.
“It's just the way they did it and the fact that the employees didn't feel like they were being consulted or had input into the process,” Fa said.
The data shows that the proportion of staff who felt their leadership was involved in decisions that affect their work life fell to just 39% in 2023, a 17 percentage point decrease from 2020.
The Journal's revelations also confirm the view among many staffers that top officials at the FDIC have not adequately addressed misconduct, which is likely contributing to the steady decline in ratings. Fah added.
“People have been aware of these issues for a long time. …As time went on, we started to see actions and behaviors on behalf of FDIC management that made employees feel disempowered. ,” Fa said.
The percentage of FDIC employees who say they feel management maintains “high standards of honesty and integrity” fell from 74% in 2020 to 56%. Only 52% of employees expressed a “high level of respect” for FDIC leadership, down from 73%. 3 years ago.
By comparison, the government's average for both indicators has remained stable at around 60% over the same period.
(Reporting by Douglas Gillison; Editing by Michelle Price and Richard Chan)