80% of banking and financial services leaders say providing flexible working schedules and arrangements is an effective way to address talent shortages, however just 38% report using this strategy.
Randstad Sourceright’s 2022 Talent Trends banking and financial services sector report found that nearly half (49%) of C-suite and human capital leaders in the banking and financial services industry (BFSI) report talent scarcity for IT skills, a concern for a sector increasingly reliant on technology and data sciences. Not only are financial institutions increasing their investments in areas like cybersecurity, digital banking, and artificial intelligence to better serve customers, but they are also adopting new technologies to drive their talent experience and improve operational efficiencies. In fact, 79% of BFSI leaders say they are investing more in analytics to enhance the attraction of and engagement with talent — the highest percentage of all reported sectors.
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The banking, financial services, and insurance sector has historically relied on robust compensation packages to attract and retain top talent. In the wake of the pandemic, however, BFSI professionals are demanding more, seeking employers who offer flexible work arrangements, greater work-life balance, and a more attractive employee value proposition overall.
“The banking and financial services sector has long succeeded in attracting the best and brightest talent through compensation packages and opportunities for growth. Now they’ll need to be willing to respond to shifts in business and workplace culture,” said Sam Schlimper, principal consultant, Randstad Workforce Advisory. “If they want to remain competitive, employers will have to close the gap between the new social contract workers seek and the traditional culture and value proposition offered by many BFSI companies. This will be especially important as they look to fill tech-driven roles where they are competing for skilled candidates across a variety of industries.”
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Although financial compensation for last year was the highest it’s been in recent times, BFSI employers still struggled with hiring challenges throughout 2021 and the first half of 2022, as they experienced high turnover and wage inflation. To beat talent shortages, many talent leaders (76%) say external market data is critical to inform hiring, and nearly half (43%) report using innovation to improve their recruitment efforts. But while 80% of banking and financial services leaders say providing flexible working schedules and arrangements is an effective way to address talent scarcity, just 38% report using this people-centric strategy.
BFSI organizations have also increased their focus and investment on diversity, equity, and inclusion (DEI) to both address growing talent shortages and attract the growing cohort of workers who want to work for employers that value diversity. Eighty-three percent (83%) say their DEI strategies will influence their business in 2022. But while 74% believe DEI are fundamental to attracting, engaging, and retaining great talent, just 41% say their hiring practices supported their diversity goals last year — the lowest percentage of reported sectors, highlighting the ongoing need for improvement in this area.
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