Lebanon-based Mascoma Bank recently won awards from the American Psychological Association and the state of Vermont for the well-being of its employees.
Community banks in rural areas sometimes find their job openings a tough sell to new, skilled talent as more and more young people move to cities like Manchester, Boston and Portland, Maine.
But at Lebanon-based Mascoma Bank, turnover rates are on the decline and employee engagement continues to rise. A whopping 86 percent of employees say they feel their job is important and that senior management cares about them, according to the bank’s 2018 annual report.
Behind this success are several programs supported by psychological science that not only advance employee health and well-being, but also increase performance and productivity, bank managers say.
As a result, the American Psychological Association named the bank a Psychologically Healthy Workplace in 2019. The bank also received the 2020 Vermont Governor’s Excellence in Worksite Wellness – GOLD Level Award, and was ranked as one of the best places to work in the Green Mountain State.
“Psychological safety is a very real and important aspect of every work environment,” Melissa Carlson, chief human resource officer at Mascoma Bank, told the Registry Review. “People need to be able to come to work and be their true, authentic self at work and not have to fit into a certain mold. We really value diversity and inclusion in the workplace and psychological safety is a big part of that as well.”
Wellness Promoted
The bank did not achieve a high level of employee engagement overnight.
Mascoma began the process of becoming a certified B corporation in 2016, making it a business that by legal definition must consider the impact of its decisions on its workers, customers, suppliers, community and the environment.
Mascoma Bank staff members prepare to serve lunch at the annual company softball game in 2019. Photo courtesy of Mascoma Bank
The bank achieved B-corp status in 2018 but it did not stop there, participating in an initiative started by New Hampshire Gov. Chris Sununu to become a recovery-friendly workplace last year.
This program promotes the intentional hiring of people in recovery from addiction, and trains companies and their employees on how to create the best environment for their new colleagues.
Mascoma Bank also maintains a “wellness committee” that has long promoted programs and initiatives that boost employee health.
“There has been a lot of support from upper management,” said Casey Dillingham, a 10-year employee at Mascoma Bank and past chairwoman of the committee. “[CEO and President] Clay [Adams] came to us and said, ‘You are doing a great job – what more can we do?’ It means a lot to hear that coming from the president of the bank.”
The bank recently launched a new wellness portal that encourages healthy eating and living habits and incorporates a gamification component.
Mascoma also built a Mamava enclosed nursing station at its Pine Street branch in Burlington that is open to the community. The bank is adding another station for its employees at its White River Junction operations center in Vermont.
Long–Term Planning
While benefits and wellness programs are large contributors to employee engagement and health, experts say it is also important to apply these concepts to actual job performance metrics and growth.
That means finding the right balance between constructive and positive feedback, said Carll Wilkinson, managing partner at executive search and leadership consulting firm Smith & Wilkinson, which maintains a large community bank and credit union practice.
“Organizations that get good at providing feedback on an ongoing basis don’t just provide course corrective feedback, but also point out things that employees do well,” he said, adding that this makes constructive criticism easier for employees to accept. “If all you ever get is course–corrective feedback as an employee, that stresses you out and pushes you into a fixed mindset, which results in lower motivation scores and lower engagement scores.”
Mascoma Bank implements a similar philosophy using a performance management program. It ensures team members are on track to succeed through constructive feedback and recognition for contributions, Carlson said. The bank also has mentorship programs that pair new employees with senior leadership for a day.
Wilkinson said that fostering employee growth and job advancement is critical, especially for rural banks that operate in areas without big inflows of new residents. Companies can do this by engaging potential employees as early as high school, providing college internships and making internal promotions, he said.
Mascoma, according to Carlson, always has three to five summer college interns, and one or two typically end up joining the bank full–time. More than 50 percent of positions above entry level are filled internally, according to the bank’s annual report.
“It’s really about taking a lifecycle approach to employee development,” said Wilkinson. “Companies really need to be intentional about succession in management, career pathing, and take a long view, so they can develop strong internal workforces.”
