Industry Insights: Banking and Finance

4 mins | Andrea Kelly | Article | Market trends Workforce Management Workforce planning Banking, finance and insurance sectors Banking & Financial Services Industry news Blogs

Industry Insights: Banking and Finance

Banking and Finance Industry Insights (October 2023)

In this month's industry insights article, we explore the current workforce trends of the Banking and Finance industry. Whether you're a workforce leader or a hiring manager, we hope to bring you some news and fresh perspectives from around the industry to help you navigate the challenges you are currently facing.

Economic Outlook

As the economy cools off and fears of a recession are being held at bay, the waves of mass layoffs have slowed and hiring has made positive progress.

According to Forbes, after a busy summer where banking and finance companies announced thousands of layoffs, only a handful of large financial institutions have experienced downsizing since.

Last year, in fact, the number of securities jobs increased by 100,000 and is projected to continue growth in the coming year. This signals a bit of optimism within the industry which could potentially lead to a slow increase in hiring. 

Attracting Gen Z

As the younger generations have aged into the job market, one of the challenges that companies have been facing is attracting that talent to their organization.

Luckily, finance is top of mind for students and recent grads. In a report from CFA Institute that surveyed thousands of Gen Z students and recent grads across the globe, Finance has replaced Healthcare and Medicine as the top ranked profession in terms of career prospects, up from 5th place in 2021. Additionally, about 25% of graduates consider Finance to be the top career sector, while many consider it to be the most stable career post-pandemic.

But one important note, Gen Z doesn't just like Finance for the name; they enjoy the benefits that come with it. The number 1 most common fear among graduates is low pay in their preferred sector, and the salaries that many financial institutions are able to offer keep them competitive with other enticing industries such as STEM and Education.

62% responded that a "Good Salary" is what's most important in an employer, an increase of 17% from 2021. This can likely be attributed to inflation and the increased cost of living. The good news is that we finally have an idea what younger generations are looking for in their careers. The bad news is that you might have to pay for it.

One interesting note from the same report says that Social Media is the top source for career information and prospecting. How will this affect your attraction process and do you have the resources and expertise to adapt?

A Case for Success

Recently, we partnered with a large Financial Services organization in the US with low Response and Submit-to-hire ratios (45% and 9% respectively). When we took over their program, they were struggling to coordinate with 34 suppliers, some of which had not been approved to their standards.

Areas that needed attention included supplier quantity, expectations, and up-to-date data metrics. Many of their suppliers did not bring expertise to the field they operated in which reflected in their metrics. As a result, we reduced the number of suppliers from 18 to 13, removing companies with low response and submit-to-hire ratios.

By reducing total suppliers and optimizing supplier focus, the requisition response ratio increased to 79%, as suppliers were more motivated to compete and more experienced on the roles they filled. Additionally, our client has full control of the process and can add or eliminate suppliers based on agreed upon minimum metrics, KPIs, and SLAs.

To learn more, read the full case study.

Around the Industry

A large US financial institution is using AI to screen candidates without recording demographic data, making their recruitment process less biased. This new move shows that some organizations are committed to finding the absolute best talent and are willing to alter their hiring practices to do it. How are you incorporating AI into your hiring process, and how will you ensure that it's being used properly and effectively?

Plan for the Rebound

With a bright future ahead, now is the time to start planning for the future of your company's growth cycle with a ready-to-go pool of engaged, qualified talent. Contact us now to explore your options with an expert. 

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