The short-term future is looking bright as financial services industry recruiting trends ride the wave of improving economic performance. Their emphasis on growth, now combined with cautious optimism about 2020, has meant recruiters in the financial services industry have had more to accomplish than ever before. One insurance industry survey found that 95% of responding companies had open positions to fill.
Like most employers, banking and insurance organizations are struggling with intense talent competition and the lack of qualified candidates. However, financial services industry recruiting trends come with its own unique set of compliance requirements, too. Look for these five financial services industry trends to influence success with talent acquisition this year:
Changing Customer Demographics
As Millennials move into their late 20s and early 30s, they continue to disrupt traditional patterns of banking and insurance services use. Though they’re accumulating wealth, they’re less likely to drive or to own a home – both significant shifts from older generations. In addition, Millennials and Gen Z (everyone born after 1981) are much more diverse. For TA teams, changing customer demographics mean greater emphasis on diversity recruiting, bilingual candidates, and a race to keep up with hiring demands for positions like virtual bank teller, digital product manager and customer experience designer.
Automation and AI technology, mobile technology and big data analytics are being deployed as financial services industry recruiting trends quickly move to digital to engage customers and drive greater efficiency and profitability. (Insurance is headed that way too, but not as fast.) Last year, 75% of Americans banked using mobile apps. For digital transformation of systems, software and tools to be successful, the organization’s workforce has to be onboard, too. As more administrative tasks become automated, financial services recruiters will be working to fill higher value, more strategic roles. In addition, while they’re scouring talent pools for highly technical positions like big data engineer and data scientist, they’re also searching for candidates with a blend of business savvy and analytical skills. These are the potential new hires who can leverage the many new AI-driven platforms that allow business users to manipulate, use and report on data without having highly technical expertise.
Fintech and Insurtech Competition for Entry-Level Candidates
Financial services and insurance companies are some of the largest employers of entry-level candidates. With their focus on growth, financial services industry recruiting trends look to hire more of the Class of 2019, but they’re now facing competition from fintech and insurtech companies who’re also in the market for young talent with tech skills. There is a recruiting challenge they have in common: Gen Z soft skills. About half (52%) of Gen Zers surveyed say they are less confident with their soft skills than their tech skills for in the workplace. Recruiters with company mentorship programs will have an edge in attracting and hiring young talent.
Complicated and Changing Regulation
As financial institutions deal with the GDPR and other global regulatory standards for privacy and data ownership in addition to hundreds of pages of domestic regulations to prevent risky behavior, they’re continuing to refine existing policies, and seek new ways to streamline compliance. Financial services recruiters need highly talented candidates to fill financial and regulatory analyst, compliance officer, and forensic researcher positions.
Cybersecurity Talent Gap
Can financial services and insurance companies ever have too much security? They’re entrusted with customers’ vital personal data, and when a security breach happens, there’s more at risk than that data. According to a recent consumer survey, 78% of respondents would stop engaging with a brand online and 36% would stop engaging altogether if the brand had experienced a breach.
To combat cyberattacks, financial services firms aim to ramp up data security, but their recruiters contend with an enormous talent gap. One estimate puts the gap at 3.5 million unfilled cybersecurity positions globally by 2021. There’s also a gender gap. Just 11% of the information security professionals globally are female. For recruiters to have success filing these roles, more organizations will have to commit to both equal pay and zero tolerance for discrimination.
As these financial services industry recruiting trends take shape in different ways for financial institutions, recruiters also are reshaping their hiring experience to suit modern candidates. Many are accelerating smarter, better hiring for these hard-to-fill jobs with AI-enabled interviewing technology.
Modern Hire integrates text recruiting, automated scheduling, on-demand and live interviews, industry assessments, and unbiased candidate review to help you create a high-tech, high-touch candidate experience that’s saturated with your employer brand. Learn more about video, voice and text interviews in the finance industry and see how your business could combat recruiting and hiring challenges with a single, innovative solution.
Content updated in 2018 & 2019.