Even though open jobs are expected to increase 10% by 2026, 76% of accountancy and finance employers say their biggest challenge is not having enough qualified applicants. The need for employees with the right technical skills and managers who know how to deal effectively with change has never been higher.
Part of the problem is that financial organizations are going digital. They have plenty of work to do updating legacy systems, helping company operations be more effective and improving customer experiences. Digital transformations require innovation and training in many areas.
Financial organizations aren’t the only ones looking for technical talent. Most industries are looking for employees with a combination of digital and financial skills, which can be hard to find.
The first step in finding a solution is to quantify the problem and address the main reasons for the current recruitment challenges.
There are two problems in finding employees with the right skills. First, economic downturns often cause students to pursue something other than a finance career. Second, digital technology has created new finance roles. Instead of only looking for people who are well-versed in finance, organizations are now looking for people who have a background in data science, artificial intelligence or software.
Another reason for the employee shortage is the Great Recession and the years after it ended. Those were low economic years. Many people left the financial services industry and went to work somewhere else. Those people have probably advanced by now to management positions in other industries, but they’ve left a gap behind. The industry has fewer professionals in management than would have been the case without the severe downturn.
To attract and retain talent, the most effective strategy is to keep as many good employees as possible, so start by developing a retention program for your best employees.
Finally, attitude differences between generations have an effect. Only 10% of millennials hired to work in the financial services industry intend to make a career of it. Most of them plan to gain a little experience and move on.
To attract and retain talent, the most effective strategy is to keep as many good employees as possible, so start by developing a retention program for your best employees. They might rethink leaving if you give them professional development opportunities. Since replacement alone costs an average of $4,129, the cost of losing people adds up.
The next step is to enlarge the hiring pool: advertise on digital platforms, have a referral program, diversify your hiring practices and stay in touch with former employees who might return someday or send a likely candidate your way.
Finally, look at recruitment from a marketing perspective and consider what your company offers potential employees. Build a strong brand that will help you market your company to them.
Employees want to work for organizations that share their values, in part because they spend so much time working. Also, there isn’t always a clear distinction between work and leisure. How serious are employees about working for a company whose company culture is attractive? It is a big enough issue that 70% of all professionals will work for less money if a company has values that match their own. That percentage is skewed by age. Only 9% of boomers would take a pay cut, but 86% of millennials would.
People want to be paid well, but they also want wellness programs and opportunities for professional development. Also, do more than talk about diversity. Give everyone equal opportunities to advance.
People want to be paid well, but they also want wellness programs and opportunities for professional development. Also, do more than talk about diversity. Give everyone equal opportunities to advance. Finally, choose benefits thoughtfully: if employees can have either a game room at work or time off during holidays, most employees want time off.
Potential employees have the advantage when the market is tight. As long as that’s the case, you will probably have long negotiations about salary and benefits, but remember that intangible benefits outweigh money once the money reaches a certain level. That fact can be your secret weapon.
