Fighting the Talent Crisis in the Financial Sector

Driven in large part by the global COVID-19 crisis, industries all over the world have been experiencing extreme difficulties recruiting and retaining the staff they need to operate at full capacity.

However, the pandemic cannot shoulder all the blame. The financial industry was already experiencing a talent crisis, long before most people had ever heard the word coronavirus. As older employees hit retirement age and younger people gravitate towards other industries – less than 1% of financial advisors are under the age of 35 – the financial business needs to come up with fresh ideas to attract people to finance and keep them once they are there.

With a recent survey by the CBI and PWC finding that 22% of financial services brands citing labor shortages as a concern for future investment the problem isn’t going to resolve itself either.

Strategies

We are seeing many financial brands already putting strategies in place to try and combat the talent crisis with a focus on both acquisition and retention.

37% of financial advisors surveyed have said they are offering flexible working condition to help meet the expectations of the post-pandemic worker. Since working from home became so popular during the COVID crisis, many people have expressed an interest in continuing the practice even now the danger has largely passed. In fact, many people have even gone on the record and said they would look for a new job if their current employer refused to allow working from home.

With prices going through the roof, people are looking to save money wherever they can and working from home allows working parents to avoid the need for paid childcare – not to mention having the pleasure of spending more time with their families even while engaged in their work.

In terms of retention, 32% of financial advisors said they are making sure there are clear and well communicated routes for progression in their companies to help keep their best employees and incentivize them to move up. 25% are also investing in training and development to ensure core knowledge and skills are maintained and improved. 7% said they were looking to increasing the benefits available to staff in a bid to retain them amid rising inflation and cost of living crisis.

What we can see here is a pattern of financial brands making serious investment to ensure that their firms are, not only more attractive to potential employees coming in, but also giving existing staff more reasons to stay instead of searching for greener pastures.

"Only by securing our own financial futures through a clear focus on attracting fresh talent, building resilient business models, and focusing on the client relationship, will the profession be well placed to help a growing number of individuals be empowered to manage their money and achieve their goals,” said Personal Finance Society President, Sarah Lord.

Culture

The reputation of the finance industry as one with long hours and an aggressive dog eat dog culture has been long held in the minds of the public. Hollywood movies such as The Wolf of Wall Street have only compounded this issue of perception among US citizens.

Financial brands should focus their attention on creating a work culture which is far more welcoming and communicate that those bad old days of finance are long behind us.

While long working hours will almost certainly be necessary on occasion, you should take care to ensure employees know this is not always the case and they should feel the need to stay late and keep themselves busy when the work of the day does not require it. Burnout is a huge problem among financial workers and is a top reason many quit the profession a long time before they should. Combat this by making sure your people aren’t working harder than they need to.

Setting up clear channels for communication and feedback is also critical. If your staff don’t feel like they can voice their concerns free from judgement or repercussions, they may just pack their bags and walk instead of addressing an issue that could be easily resolved with a frank and open conversation.

Final Thoughts

We sometimes underestimate the damage the Jordan Belfort’s of the world have done to this industry and we all need to work to undo that toxic image if we want to make the world of finance attractive to the best young talent once again.

Creating a fair work/life balance, facilitating promotion and progression, and working on a healthy company culture are just three ways to start down this road.

The talent crisis is sure to be part of the conversation at Future Digital Finance 2023, being held in March at the Hyatt Regency Austin, TX.

Download the agenda today for more information and insights.