| A war for talent in financial services |
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| Written by Neil Wilson, Managing Director, Badenoch & Clark | |
| Wednesday, 02 April 2008 | |
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The finance and banking sectors in particular face many challenges in finding, developing and retaining talent.
This has become a major concern for industry leaders and managers. Last year, The Economist proclaimed that “the world’s most valuable commodity is getting harder to find”. Surprisingly the article was not about gold, crude oil or diamonds, but about the supply of talent. Despite the general economic slowdown the best talent is still in high demand as many companies fight to maintain their competitive advantage. Currently the demand for talent outruns the supply in financial services. To stay ahead of the game and to attract the right people it is essential to understand the latest recruitment trends and key issues affecting the market. At the end of last year, Badenoch & Clark surveyed nearly 250 UK financial services employees and leading financial services employers to identify key salary, employment and recruitment trends. The research revealed a huge disparity between employee priorities and the packages on offer from financial services employers. A jobseeker’s market Last year was a jobseeker’s market and this trend is continuing in 2008. More than two thirds of the companies we surveyed reported increased recruitment activity over the previous 12 months. Increases were apparent across the majority of sectors, with a notable 57 per cent rise across investment management and investment banking. Almost half of the employers questioned predicted that they would be recruiting additional headcount in the next year. Once more the industry sectors predicting the strongest growth were investment management and hedge funds. Only 7 per cent of employers planned to rationalise their workforce, most of them boutique and insurance houses as private equity firms and corporate banks. This all sounds like music to the ears of jobseekers but for employers and HR professionals headcount growth brings its own problems. In particular, the issue of attracting the right people for the job. Over 40 per cent of employers stated that they found it difficult to attract employees with the right levels of skills and industry know-how. If financial services employers are to achieve their goals to grow and then retain their headcount they need to have a good strategy to win the war for talent. Whilst relevant experience should be key drivers for employers, given the current demand for financial services staff, employers might need to be more flexible in considering transferable skills and personal competencies over specific industry experience. Rethinking the benefits package The results of the survey show that all too often there is a disparity between the benefits packages offered by employers and those that are valued by employees or new talent. For example 62 per cent of employers think that it’s important to offer gym memberships but only 8 per cent of employees in the survey share that view. The same applies to season ticket loans and study packages. The message is clear: employers who offer a standard benefits package may not be delivering what prospective recruits truly value. The good news is that bonuses still work. They are the most important benefit to candidates, both male and female. Flexible working is another key factor, cited as important by 57 per cent of females and half of males. If employers want to attract skilled candidates, they need to consider their response to the “work-life balance” debate. Assessing the expectations amongst current employees is a good starting point. The power of brands Some employers have become accustomed to relying on the power of their brand when recruiting for new talent. Fifty-six per cent consider their brand to be important in the recruitment process. This may be a risky misconception because only 21 per cent of candidates share that view. Corporate social responsibility (CSR) is increasingly an important factor in attracting the right people to a firm. The results in this area are startling: recent Business in the Community research showed that 92 per cent of employees said they would prefer to work for a company with an employee volunteering project, while almost 80 per cent of staff believed that community involvement increases their pride in the company for which they work. For employers this means that a strong brand will act as an attraction to prospective recruits but broader issues around salary, career progression, culture, training and development are also important considerations. The reasons for leaving Employers who want to grow their business need to retain employees just as much as find new talent. Understanding why people actually leave their jobs is vital. While jobseekers agree with employers that a lack of career opportunity is one of the main reasons to leave their companies, only 9 per cent rate salary as a key reason with poor leadership/management selected by 12 per cent of those surveyed. The war for talent is still raging and while demand is higher than supply many companies will have to take some time to rethink their recruitment strategies to make themselves more appealing to prospective employees and to realise their growth ambitions in the near future. Changes to the benefits packages and the company’s policy on flexible working as well as more focus on CSR should be first steps in attracting and retaining the best talent. Neil Wilson is managing director at recruitment consultants Badenoch & Clark. Related articles
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