Recruiting challenges can be found in any industry, particularly in today’s candidate-driven job market. Rather than employees competing for available jobs, strong job growth and low unemployment have combined to create a situation where companies are competing with one another for available candidates.
This is particularly true in the finance industry, which is subject to the same recruiting challenges as other industries, with the added pressures of continuing recovery from the 2008 financial crisis. Recruiting in the finance industry is exceptionally challenging, and many financial recruiters have found themselves struggling with the same issues.
Top 5 Finance Industry Recruiting Challenges
1. Labor Deficit
There are simply not enough skilled employees to fill open positions in the financial services industry. The Bureau of Labor Statistics (BLS) projects that 773,800 jobs will be added by 2026, a 10% year-over-year growth that is faster than the average for all jobs.
A recent survey found that 72% of financial services company CEOs believe that the limited availability of skilled employees will limit future growth. This could result in millions of dollars of unrealized income, as growth plans are curtailed for lack of employees to implement them.
2. Inclusive Recruitment
Today, 85% of financial services companies surveyed are implementing diverse workforce and inclusive recruitment initiatives to respond to recruiting challenges. However, in the majority of cases inclusive recruiting initiatives fall short. While financial services companies are more likely than companies in other sectors to actively recruit more diverse talent, their diversity recruiting initiatives are less successful than those in other sectors.
3. Hiring Young Professionals
In one survey, 62% of senior finance professionals stated that recruiting Millennials is a challenge, which will have a growing impact on overall recruiting strategies. As older generations retire, Millennial and Generation Z employees are making up an increasing proportion of the workforce as a whole – and the things that appeal to other workers may not appeal to millennials, requiring a change in recruiting and retention strategies.
For example, the millennial workforce is quite concerned with an employer’s corporate social responsibility (CSR). In fact, 76 percent consider a company’s commitment to CSR when deciding where to work, 75 percent would work for a socially responsible organization at a lower salary, and 64 percent would refuse to work for a company that doesn’t have strong CSR commitments.
4. Technology Skills Gap
There is a shortage of technology candidates in all industries, but this has a greater impact on financial services due to the combined regulatory and cyber security pressures. One estimate shows 3.5 million unfilled cyber security positions globally by 2021, which could leave finance companies struggling to secure sensitive data.
Regulatory compliance requires sophisticated technological responses, as well as educated, experienced compliance staff. And a number of highly-publicized security failures, including the recent Equifax breach, have eroded consumer confidence and made cyber security a top concern for customers of finance companies. In a recent survey, 78% of consumers said that they would stop engaging with a brand online if the brand experienced a breach, and 36% would change brands altogether.
5. Mid-Career Candidate Shortage
The finance industry has to contend with all of the recruiting challenges of other industries, but finding mid-career candidates is more difficult for financial services companies due to the lasting effects of the 2008 financial crisis.
In 2008, many employees left the finance industry, using the crisis as an opportunity to change careers. Now, 10 years later, this has made it difficult to find experienced candidates for mid-level positions.
Exploring Recruiting Solutions
There are many ways that finance companies are addressing these top recruiting challenges. Some have implemented new recruiting strategies, using social media, employee referrals, and diversity initiatives to access candidates for open positions. Others have partnered with finance staffing agencies, like Sparks Group, taking advantage of vast staffing agency talent pools and specialized recruiting expertise to make the best choices for each available position.
Tackle Your Recruiting Challenges with Sparks Group
Sparks Group is a nationwide staffing and recruiting firm leveraging decades of finance industry and market expertise. Our accounting and finance recruiters specialize in placing top talent for financial institutions across the various disciplines; including accounting, finance, banking, credit unions, mortgage, consumer finance, and insurance.
Overcome your finance recruitment challenges with an experienced staffing partner. Connect with a staffing expert today.