Bridging Skill Gaps in Financial Services

Businesses that do not adapt by offering flexible working conditions may be disadvantaged compared to competitors who provide better work-life balance incentives.

FREMONT, CA: Outsourcing, a practice that involves partnering with external service providers, has emerged as an efficient solution for businesses looking to bridge skill gaps within their organizations. The outsourcing model allows companies to delegate the responsibility of designing and executing the entire recruitment process to external experts, thereby opening the door to recruiting multiple roles, spanning different skill levels and across various locations.

When a company grapples with difficulties in hiring for positions demanding additional or high-level skills, an alternative to recruitment is upskilling its existing workforce to fulfill these roles. Upskilling, which involves enhancing the skills and knowledge of current employees, not only alleviates recruitment challenges but also ensures that the newly trained staff members have a profound understanding of the company's operations. Investing in the training and development of staff members can positively impact company morale and foster a culture of supporting employees in advancing their careers. In financial services, enhancing employee benefits packages can be a strategy to boost employee retention. For instance, financial institutions can cultivate a positive company culture by offering extra vacation benefits or services that enhance employee morale, such as gym memberships or allowances for home office equipment.

Businesses may consider offering remote work options to potential hires to attract top talent and remain competitive in the job market. Even a partially remote work schedule, like a couple of days a week, can reduce employee commuting costs and make job offerings more enticing. A robust training program can significantly reduce employee turnover, with businesses offering better training experiencing more than 50 percent lower attrition rates. Despite the potential benefits of upskilling, a substantial proportion of financial services executives, four in ten, express concerns about their workforce's readiness for retraining.

The same study reveals business leaders hesitate to create new roles to address recruitment difficulties. These findings underscore the severe skills shortages many organizations face, impairing their capacity to innovate, market effectively, and meet their key financial performance indicators.

Candidates with experience in financial services and technology are in high demand in the financial industry. However, many institutions need help finding candidates with the expertise in both domains to advance their brands effectively. The stress associated with financial difficulties is closely linked to mental health issues. Therefore, financial institutions need to consider the well-being of individuals when providing financial assistance. Establishing a human connection during times of vulnerability can mitigate feelings of isolation and provide a path forward.

Recruitment challenges are not unique to the financial services industry and affect other sectors, including Sales and Marketing, IT, and Legal professions. However, the financial services sector, in particular, faces complex recruitment challenges as part of the great resignation. The industry is rapidly digitizing its operations, which has led to evolving candidate requirements favoring those with digital expertise.

The increased prevalence of remote work due to pandemic-related shutdowns and restrictions has prompted more financial professionals to seek positions that offer work-from-home options and a healthier work/life balance. To address these recruitment challenges effectively, business leaders must devise strategies that allow them to attract and retain talent, address skills gaps, and remain competitive in an evolving market.