5 Workplace Trends That Will Change How You Recruit Financial Talent
August 9th, 2017 Written by: Molly Masterson
According to the Bureau of Labor Statistics, there was a record high 334,000 financial services job openings in April of 2017 alone. But of those 334,000 jobs, only a third were filled. There’s no question that financial services firms are struggling to nab top candidates to join their teams. So, how can financial services firms improve their recruiting odds? Based on our 50 years of experience in sourcing financial services talent, we believe that addressing key workplace trends can make all the difference.
Below, we have the tips and the insights to help you adapt your financial services recruiting strategy to these five workplace trends.
1. The talent gap is widening.
Ask any talent manager or recruiter out there, it’s tough to find quality talent these days—and the financial services industry is no different. Finding quality job candidates is a challenge and for a myriad of reasons:
- The demographics are changing. Only 25% of baby boomers remain employed full-time in 2017. Millennials are the new generation to cater to, as they now make up the majority of the workforce.
- Trust levels are low for financial services. Due to the financial collapse of 2008, many people distrust the finance sector. According to PricewaterhouseCoopers’ (PwC) Millennials at Work Report, this reputation has caused 21% of millennials to avoid the industry altogether.
- Candidates lack basic skills. Seventy-three percent of financial services leaders reported major skills shortages in 2016.
- There is a shortage of mid-career candidates. The financial crisis of 2008 and the low economic years that followed, caused a lot of people to leave the financial services industry. This means that there are fewer mid- and upper-level professionals in today’s financial services job market.
Tip: Turn to experienced financial services recruiters to find quality talent. Experts in sourcing skilled candidates, finance staffing agencies allow companies to quickly and confidently fill positions from mortgage loan officers to financial planners.
2. It’s increasingly difficult to retain millennial talent.
Employee retention is imperative in an industry where only 10% of millennials plan on working in financial services for the long-haul, as reported in PwC’s report. If your firm fails to retain an employee, it will cost your organization an average of $4,129 to hire a replacement. And that’s not including the cost of severance and training a new employee. Considering the fact that 90% of your millennial employees might not be sticking around, that is a huge chunk of change.
Tip: Provide professional development opportunities to retain millennial talent as an astounding 87% of millennials cite career growth as a priority. Offer employees learning opportunities on SQL database management, Excel training, or financial planning. Creating more knowledgeable employees improves job performance, but also increases an employee’s investment in their career.
3. Talent has more choices — and power.
As we’ve previously established, qualified financial services professionals are hard to find. Hunted by many financial services firms, they have the pick of the litter when it comes to job offers. This places a lot of power in a candidate’s hands. To avoid lengthy salary and benefits negotiations, you need to separate yourself from the competition and make choosing your company a no-brainer.
Tip: Entice candidates with an offer they cannot refuse packed with a competitive starting salary and bonus opportunities. Due to the nature of the financial industry, millennials in financial services value starting salaries and bonuses more than in any other industry, as found in the aforementioned PwC report.
Beyond monetary benefits, add value to your job offer by highlighting your company’s unique culture. What do you do as a company that no one else does? For example, showcase your team building events, professional development workshops, or an employee wellness program. It’s all about what makes your company unique and different from the rest.
4. Financial technology is changing the industry.
According to PwC’s Global FinTech Report, more than 80% of financial services executives believe that the growth of FinTech (financial technology) has placed their business at risk. To prevent FinTech from eating up more market share in financial services, firms need to adapt to new technology or they will get left behind.
Tip: Make sure your firm is stepping up to the plate by partnering with the big FinTech players. Outside of FinTech, your company should adopt technologies like big data, cloud computing, and cyber security to improve your financial reporting and protect sensitive client information from new threats. Besides improving business operations, investing in new technologies also helps acquire and retain new talent. Employees and prospects feel greater job security when their firm is successful in adapting to change.
5. Company culture is of rising importance.
Millennials are willing to take an average pay cut of $7,600 for an improved quality of workplace culture. With a reputation of a business-first, suit-and-tie company culture, this poses a big problem for financial services firms. It’s time for financial services firms to make some changes to their company culture if they want to attract millennial talent.
Tip: Leave behind the stuffy aspects you might be harboring in your company culture. Introduce more flexible work schedules, relaxed dress codes, or professional development days to attract millennial talent. Not to mention the fact that creating a fostering and welcoming workplace environment will improve employee retention and loyalty.
Check out our four tips for boosting your company’s employment brand for more ideas on how to improve your company culture.
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Looking for other ways to stand out from the competition? Learn how to write a financial services job description that attracts skilled professionals. Or, discover our helpful tips and strategies for filling your talent pool.