Written by Kelly Fordham, Director of Financial Services at Investigo
People are a business’s most important asset, yet since Covid-19, the financial services sector has faced unprecedented challenges with a particular struggle in hiring graduates and junior staff.
This issue in hiring staff has formed an alarming gap between junior and management positions, with backroom roles being left unfilled as candidates move towards more ‘glamorous’ positions in private equity and investment.
For financial advisers, it’s more important than ever to connect with the next generation of talent. This means leveraging the unique skills and fresh perspectives that junior professionals bring to the table and embracing the opportunities offered by a global workforce.
Attracting and nurturing young talent is essential to build a strong, dynamic team that’s ready to take on the future of financial services.
Alarming gaps in talent
Since Covid, firms are struggling to recruit the skilled staff they need and are facing strong competition for technological skills across the whole economy. While the pandemic forced a rapid move towards remote working, which created more flexibility for employees, it also disrupted the development of essential financial skills.
Before the pandemic, 1 in 4 workers decided to leave their job because of the lack of flexibility, seeking opportunities that better fit work-life balance.
In some ways the pandemic created more flexibility for employees as the sector quickly adapted to remote working. 78 per cent of workers were able to work from home with relatively little disruption, which changed the way workers wanted to work.
But this shift in work arrangements came at the cost of halting the progression of many junior employees as opportunities for on-the-job learning and mentorship were significantly reduced.
With financial services already lagging in investment in employee skills and development compared to other sectors, as showcased by research from the Department for Education, the sector continues to face a growing skills gap.
The pandemic has created a pressing need for financial service firms to rethink their approach to skills development. Remote working is here to stay and companies must find innovative ways to provide training and investment in employee development to bridge the gap between junior and management roles.
‘Backroom’ roles are sexy
In the drive to attract global talent, shifting the narrative around backroom roles from ‘boring’ to sexy is essential. These positions are often viewed as less glamorous than front facing roles but are in fact critical to the industry’s success and offer compelling career opportunities.
Backroom roles include essential tasks of supervising risk management, compliance, IT support and operations, and by highlighting the strategic importance of these roles, it can help to change perceptions and attract candidates who are passionate about making a core impact behind the scenes.
Promoting the sophisticated, high-stakes nature of backroom roles can appeal to professionals looking for intellectually challenging and rewarding careers.
For instance, the world is increasingly being driven by technology, meaning roles in cybersecurity, data analytics and financial tech innovation are not only critical but also exciting and dynamic.
These positions offer the chance for employees to work on cutting-edge projects, solve complex problems and drive the digital transformation of the industry.
Ultimately reframing backroom roles as ‘sexy’ and of critical importance is crucial for attracting and retaining young talent to help sustain and grow the financial service sector.
Tapping into new talent
The silver lining in the skills gap crisis is the abundance of new talent waiting to be tapped. Encouraging professionals, especially from overseas, to apply for roles within the industry can significantly mitigate the current shortage.
But the new government has a pivotal role to play in this. Creating incentives for skilled professionals from oversees can help bridge the gap. Initiatives such as offering relocation assistance can make the UK an attractive destination for top-tier talent.
The government should use this opportunity to work closely with industry leaders to identify specific skills shortages and tailor recruitment campaigns accordingly. Promoting the UK as a hub for financial innovation and professional growth can attract a diverse candidate pool who bring fresh perspectives and expertise.
Through fostering partnerships with educational institutions, the UK can help build a pipeline of future talent. Investing in global education and training programmes, the government can ensure a steady influx of skilled professionals ready to contribute to the financial service industry and make it sexy again.
