The past 18 months has been an intense period of disruption, scrutiny and change for corporations and business leaders – and some have emerged with their reputations enhanced, while others have been lambasted and hauled over the coals. As we hopefully emerge from the throes of the pandemic and see economies around the globe return to growth, it is vital financial services examine their strategic priorities, re-assess their key reputational drivers and understand what their audiences truly care about. Both now and in the future.

What are the drivers of reputation in financial services?

FleishmanHillard’s Authenticity Gap research has found that in the financial services sector overall, only half (52%) of consumer perceptions and beliefs about a company are shaped by attributes related to a company’s customer benefits, while the other half is shaped by a company’s impact on society (23%) and how a company’s management behaves (25%).

In recent years, we’ve observed a swing in relative importance to ‘society outcomes’ – how a firm takes care of its staff, its contribution to its communities and taking better care of the environment.

Looking at the Nine Drivers of Authenticity, the biggest reputational drivers for financial services firms are focused around delivering better value, doing right, showing consistent performance and having good customer and employee care. Interestingly, the relative importance of innovation differs by market, with it being a slightly more important reputational driver in China than it is in either the UK or U.S.

There are also some significant nuances between subcategories of financial services – for example, people expect banks to take better care of their customers, while in the investing space, companies are expected to deliver better value – which along with customer care, make up half of consumer expectations in the category.

How is the financial services industry faring against the nine drivers of reputation?

The financial crisis caused an enormous trust barrier, especially with younger demographics, and ever since, the entire industry has consistently fallen short of expectations. On the whole, this remains true in 2021.

Our Authenticity Gap trend tool presents a mixed picture when it comes to how financial services brands are performing against consumer expectations. In the UK, banks are struggling to meet expectations on value and the customer experience. Similarly, in the U.S., the majority of banks and investing firms studied also fall short of expectations on value.

Conversely, the pandemic may have aided and improved some banks and investment companies’ reputations on innovation, after adapting to a new, digital norm. In the UK, six of eight tracked brands are now outpacing expectations and overall in the U.S., brands are exceeding expectations on innovation.

Innovation and digital technology are most powerful when used to enhance, improve or repair the customer experience through intuitive new solutions, whilst also being used to shrink cost bases and increase profitability. If financial services firms can effectively marry the two, then they may come out favorably in the digital arms race that lies ahead. But it is also vital firms don’t simply rely or place too much emphasis on innovation to remain competitive. Without a positive customer experience and a stellar reputation, the glossy sheen of technology could wear off and firms could see themselves once again caught in the crosshairs. 

Financial services brands stepping up on the environment and the ESG agenda

With all eyes on the 26th UN Climate Change Conference (COP26) in Glasgow, there is intense focus on the environment, the ESG agenda and the role of the financial services industry in driving change. Interestingly, in every market studied, banks are exceeding expectations on caring for the environment – which has no doubt been influenced by the influx of ESG-focused products and various green commitments.   

However, there are inconsistent perceptions on the extent to which financial services firms are inherently ‘doing the right thing’, with four of eight brands exceeding informed consumers’ expectations and four falling behind.

With the ESG agenda firmly here to stay, it’s vital financial brands recognize their role in society and the extent to which consumers scrutinize their credentials – especially when nearly two-thirds (64%) of them believe a company must talk about its behavior and impact on society to be more credible than its competitors. But talk must indeed be backed by action, and people expect firms to commit to regular and transparent ESG reporting and demonstrate tangible progress against goals or targets.

What’s next for financial services?

For financial services communications leaders looking to make hard choices about where to focus their attention or shape brand campaigns, understanding authenticity has become a vital tool – and just as it always has been, solid communications are one crucial part of the complex reputational jigsaw.

It’s important to remember that consumers don’t necessarily expect financial services companies to fix everything. But they will continue to intensely scrutinize them to make a positive difference and take responsibility for issues under their control. More than ever, it’s not enough to talk a good game. Corporates must be able to back it up with behavior, show tangible impact and effectively communicate progress. To that end, the role of intelligence and research in communication strategies has never been more critical.

The U.S. Department of Labor issued new rules for vaccination and regular testing developed by the Occupational Safety and Health Administration (OSHA). The OSHA guidance covers organizations with 100 or more employees. When coupled with previously introduced rules for Federal Contractors and healthcare workers, the guidance covers nearly 100 million Americans. There are significant penalties for each infraction. More details on the guidelines are available on the Federal Register.

Can employers require COVID-19 vaccinations?

Vaccine requirements aren’t new. For example, public schools have a broad slate of vaccines that are required for admission. Healthcare systems have long required vaccines for workers in patient-facing environments, if not their entire workforce. Depending on risk and occupation, the U.S. Military requires more than a dozen vaccines for service members.

Amid the current political environment, COVID vaccine requirements are a heated issue with a vocal minority dissenting (reflected by polling that indicates fewer than 15% of Americans would not get the vaccine). While many companies are concerned about losing employees who refuse the vaccine, the order will similarly apply to a broad range of companies. To date, organizations applying their own or previously issued guidelines have recognized very high levels of compliance.

We’ll leave the details of implementation to the legal and HR experts but given the heated political environment we can provide insight into how to communicate as effectively as possible to encourage high participation with minimal disruption. Regardless of the political lean of your own company’s workforce, pointing to the order to ensure adherence to the guidelines can be the most effective and rational message. In short: you are simply enforcing an order to ensure that your company does not face significant penalties.

How to communicate with employees about the COVID-19 guidelines

Here are a few things to consider as you develop your own communications program related to the COVID-19 guidelines:

1. The separate Federal Contractor and OSHA guidelines provide “air cover” for employers. Use it. There are penalties that could lead to significant consequences directly for companies and indirectly for their stakeholders. Most employees, customers and other business partners will understand this.
2. Communications should not be apologetic or wade into politics, instead focusing on fact-based details and the importance the organization places on safety for employees and other stakeholders. 
3. At the same time, understand that those most resistant to the vaccine may consider the vaccine itself unsafe. Regardless of reasoning, they will need to have sources of information available for them to help reduce this fear or concern. Third-party resources – whether it be from government agencies or other evidence-based, well-respected medical authorities – may help.
4. Some employees – and potentially external stakeholders – who oppose the vaccine or the new guidelines may protest or voice their concern. Think through the scenarios you are likely to encounter, including those involving dissenting employees, and develop a response so you’re prepared if the situation does arise. Include your HR, Legal and Labor Relations teams, as applicable. 
5. If your corporate culture encourages engagement and discussion, keep in mind that conflict drives attention and any interaction/disagreement could bring conflict. When having discussions with unvaccinated employees about their vaccination status or plans as the deadline for compliance approaches, hold those in a 1:1 setting.
6. Larger companies (or companies with a large presence in a certain market) may get inquiries from the media. As noted above, conflict drives attention and it’s best to be as matter-of-fact as possible and avoid anything political in response (should you elect to respond). Keep in mind that most other companies in the area (or your industry) will similarly be subject to the guidelines. It won’t be a situation unique to your company.

Throughout the process, it’s important that your actions are consistent with your corporate culture, priorities and principles while being empathetic and respectful. Although these new protective measures against COVID-19 are required, it’s important to keep in mind the human component, namely that not every employee will willingly be vaccinated, and adapt your approach accordingly. How you handle these situations can help strengthen or weaken your organizational culture, which may already be feeling the pressures of some or more employee groups working remotely for an extended amount of time.

Taking a compassionate, people-first approach can serve your organization and employees well as they look to round the corner of the pandemic and embark on new ways of working together in the post-COVID-19 era.