# How Financial Services Organisations can win the Battle for Talent
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-10-20
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Attracting Top Talent in a Tight Labour Market
Meta Description: Discover the strategies to tackle the skills shortage crisis and win the battle for talent in a competitive job market. Stay ahead of competitors and attract
URL: https://financedigest.com/how-financial-services-organisations-can-win-the-battle-for-talenthtml

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_As the fight for talent reaches boiling point,_ **_Michael Barrington-Hibbert_** _, founder and CEO of_ [_Barrington Hibbert Associates_](https://barringtonhibbert.com/) _, explores the challenges facing recruiters in an inflationary environment, along with possible solutions._

A nationwide skills shortage is threatening the financial services industry. According to the Office for National Statistics (ONS), [69 per cent of employers](https://www.candm.co.uk/cm/news/69-of-uk-companies-are-experiencing-skills-shortages-83623) are now experiencing skills shortages of some sort. The most recent ONS employment figures suggests that this issue is only getting worse, as unemployment decreased 0.2 per cent on the quarter to 3.6 per cent, the lowest rate in over 55 years.

In one of the tightest labour markets in modern history, over [90 per cent of UK employers](https://www.thehrdirector.com/business-news/skills/almost-uk-employers-struggled-fill-vacancies/) have struggled to fill job roles in the past year. Workers now hold the keys of choice, as [organisations struggle to hire and retain staff in a competitive jobs market set](https://www.financedigest.com/embracing-cloud-computing-how-and-why-organisations-are-set-to-invest-more-in-cloud-computing-in-2023.html "Embracing Cloud Computing: How and why organisations are set to invest more in cloud computing in 2023") to boil over into 2023.

[Firms across the country will be in a cost-saving war over the next financial](https://www.financedigest.com/turning-a-blind-eye-wont-work-for-financial-firms-as-the-fca-tightens-its-grip.html "TURNING A BLIND EYE WON’T WORK FOR FINANCIAL FIRMS AS THE FCA TIGHTENS ITS GRIP") year, and with increasing overheads putting the squeeze on businesses’ bottom lines, they will naturally be wondering if growth is sustainable, or even possible.

To win the battle for talent, it will be vital for [businesses to remain](https://www.financedigest.com/iran-open-for-business-but-caution-remains-the-watchword.html "Iran: ‘open for business’ – but caution remains the watchword") a step ahead of their competitors by recruiting and retaining the most skilled workers.

[**Money Talks**](https://www.financedigest.com/more-than-one-in-ten-brits-are-embarrassed-to-talk-to-anyone-about-their-money-issues.html "More than one in ten Brits are embarrassed to talk to anyone about their money issues")

Recently, the Recruitment and Employment Confederation (REC) showed UK hiring and pay growth at its [weakest for over a year](https://www.reuters.com/world/uk/uk-recruiters-say-hiring-slow-pay-growth-weakest-over-year-2022-09-08/). Inflation-adjusted wages fell by 2.6 per cent, putting additional pressure on workers already feeling the ramifications of a cost-of-living crisis set to hike energy prices by [up to 80 per cent.](https://www.aljazeera.com/news/2022/8/26/uk-sees-80-percent-energy-price-hike-amid-cost-of-living-crisis)

Businesses from sectors such as technology have [implemented salary rises to mitigate the cost](https://www.financedigest.com/home-start-lincolnshire-implements-flexible-unified-communications-service-to-reduce-costs.html "HOME-START LINCOLNSHIRE IMPLEMENTS FLEXIBLE UNIFIED COMMUNICATIONS SERVICE TO REDUCE COSTS") of inflation. According to hackajob, 46 per cent of candidates turned down offers because they had accepted other roles, and tech workers in Scotland have seen their average salary [jump to £80,000.](https://www.scotsman.com/business/tech-workers-in-edinburgh-and-glasgow-see-average-salary-jump-to-ps80000-3841420)

The demand for recruitment has even triggered profit warnings from large UK listed companies, which have surged by [58 per cent](https://www.cambridgenetwork.co.uk/news/profit-warnings-issued-uk-listed-companies-increased-66-year-year-h1-2022-over-half-citing) as hits from rising costs, supply chain issues and staff shortages continue to dent quarterly earnings. Coupled with a sharp drop in M&A activity, it’s becoming doubtful whether [businesses will hit](https://www.financedigest.com/julius-baer-2022-profits-fall-as-it-hits-business-cycle-targets.html "Julius Baer 2022 profits fall as it hits business cycle targets") their revenue and earnings estimates, as they look to plug the gaps in their workforce. In the lead up to 2023, it is more important than ever to attract talent by treating employees’ shifting needs as a business [investment amid](https://www.financedigest.com/analysis-rocket-startups-face-adapt-or-die-moment-amid-investment-drought.html "Analysis-Rocket startups face adapt-or-die moment amid investment drought") market turmoil.

**The Changing Workforce Market**

During COVID, people changed careers, and altered working habits resulted in employees rejecting major city commutes. Greater prioritising of personal wellbeing above all else has ultimately resulted in a geographically broadened workforce. Inflation rates have also seen travel and overhead costs rise out of line with [wage increases](https://www.financedigest.com/greece-to-increase-minimum-wage-again-before-election.html "Greece to increase minimum wage again, before election"). The [cost-of-living crisis](https://www.financedigest.com/british-shoppers-defy-cost-of-living-crisis-at-christmas.html "British shoppers defy cost-of-living crisis at Christmas") is now forcing workers to reevaluate their role in the workplace.

Over 90 per cent of adults reported their cost-of-living increasing year-on-year, with [food and energy prices](https://www.financedigest.com/world-food-prices-hit-record-high-in-2022.html "World food prices hit record high in 2022") rising over 10 per cent in comparison to 12 months ago. Forward thinking organisations will have to make accommodating the [needs of employees through tough economic conditions top](https://www.financedigest.com/top-5-seo-services-you-need-to-succeed-in-2022.html "Top 5 SEO Services You Need To Succeed In 2022") of their agenda.

Employees are wanting more from their employer than just the social contract of work. [Organisations should be implementing strategic workforce planning and changing corporate benefit packages to reflect the world of work](https://www.financedigest.com/how-collaboration-technologies-are-helping-organisations-to-embrace-a-hybrid-working-model.html "How collaboration technologies are helping organisations to embrace a hybrid working model") today. Instead of on-site specific perks such as gym memberships, pet-friendly office days and drinks, employees value childcare benefits such as additional annual leave, increased paternity leave, flexible work-from-anywhere policies, and performance-based bonuses, remediating personal cost increases.

However, a harsh economy means not all businesses have the funds to [offer inflated](https://www.financedigest.com/big-fall-in-euro-zone-inflation-offers-little-help-for-ecb.html "Big fall in euro zone inflation offers little help for ECB") pay packages, meaning that instead they will be looking to reevaluate their hiring criteria to fulfil their recruitment targets.

**The Deep End of the Talent Pool**

The battle for [talent will be a war](https://www.financedigest.com/why-data-is-the-best-weapon-in-the-war-for-digital-talent.html "Why data is the best weapon in the war for digital talent") of attrition, but winning it will release companies from the handcuffs of stagnation. For organisations looking to attract the highest performing individuals, the remit of qualification has changed.

In the [financial services](https://www.financedigest.com/trends-in-the-financial-service-landscape-and-the-impact-on-fraud.html "Trends in the financial service landscape and the impact on fraud") industry, historically, individuals in banking would hesitate before making the leap to a tech company, with organisations similarly reluctant to bring them on board. However, with an increase of transferable skills within both disciplines, [recruiters are casting a wider net](https://www.financedigest.com/recruiter-hays-boosted-by-record-net-fees-but-cautious-on-outlook.html "Recruiter Hays boosted by record net fees, but cautious on outlook").

Hiring [strategies for scaling companies hoping to grow](https://www.financedigest.com/4-strategies-for-quickly-growing-your-startup.html "4 Strategies for Quickly Growing Your Startup") in the next year should focus on the diversification of their talent pipeline in tandem with meaningful job benefits that will demystify and advance a candidate’s overall career progression.

However, if companies are [attracting talent](https://www.financedigest.com/cobots-in-the-financial-workplace-reducing-costs-attracting-talent-and-enhancing-sustainability.html "Cobots in the financial workplace: Reducing costs, attracting talent and enhancing sustainability") but not retaining it, high staff turnover can dent their stability in the long run. Employee retention can manifest itself in many ways. Rewarding and incentivising high performing team members with perks can help, but management infrastructure can play an even bigger [role in job](https://www.financedigest.com/amazon-ceo-says-job-cuts-to-exceed-18000-roles.html "Amazon CEO says job cuts to exceed 18,000 roles") satisfaction. In fact, the lack of appropriate management skills makes employees [four times more likely to quit](https://www.tinypulse.com/blog/17-surprising-statistics-about-employee-retention). In addition, human resource leaders placed employee retention as their number one priority in the coming years, emphasizing the onus on companies to develop long term retention strategies to maximize their business’ revenue. By ensuring high level management provides the mentorship and [support needed for employees](https://www.financedigest.com/73-of-employees-in-the-banking-and-financial-services-industries-are-looking-for-better-physical-and-mental-wellbeing-support-in-the-workplace.html "73% of employees in the banking and financial services industries are looking for better physical and mental wellbeing support in the workplace") to feel valued, organisations can excel in the coming year.

Globally, the number of loss-making corporates could double by 2023, with many organisations cutting budgets to remain competitive in historically tough economic conditions. The winners and losers of the talent battle will be decided by which organisations can remediate the effects of a cost-of-living crisis that has a stranglehold on [millions of employees across](https://www.financedigest.com/700000-employees-across-the-uk-have-access-to-fair-finance-will-reach-one-million-employees-in-2017.html "700,000 Employees Across The UK Have Access to Fair Finance, Will Reach One Million Employees in 2017") the UK. How effectively strategic [workforce planning is implemented will be a key](https://www.financedigest.com/6-keys-to-managing-a-remote-first-workforce.html "6 Keys to Managing a Remote-First Workforce") indicator in a business’ ability to attract and retain talent, as the year reaches its crescendo.


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