The financial services sector is facing new challenges in today’s technology enabled world. Not only are they responsible for managing money and providing a wide range of financial services to individuals and corporations, but now more than ever their challenges relate to security and staying ahead of the curve in terms of technology. Some examples include retail and commercial banks, insurance companies, credit card companies, and online payment platforms. Aside from these, there are also many Green Dot alternatives and services that fall under the financial services industry.
The financial services industry, just like any other industry, also faces unique internal challenges about how their workforce is managed, which different departments or agencies must address. These challenges have also transformed as times have changed, and it is important to adapt accordingly.
In the financial services industry, there have been many technological advancements in recent years that have solved many problems but with this emerged a set of new challenges.
This article will discuss common HR challenges in the financial industry and how you can solve these challenges with an HR company’s help, also known as a Global Employer of Record (EOR). Lastly, it will discuss some factors to consider when choosing an HR company.
5 Common HR Challenges in the Financial Services Industry
The financial services industry experiences several common HR challenges that have evolved as the years have passed. According to a global survey by the PwC, 70% of financial services CEOs see limited availability of skills as a threat to growth. However, only 28% are changing their focus on the skills and adaptability of their people. To understand this better, here are the five most common HR challenges in the financial industry:
The Skills Gap
The digitization of the financial industry has created new IT roles in recent years, such as data scientists and software engineers, to name a few. The new demands have come with the emergence of growing skill gaps as well.
A significant number of financial institutions are quite worried about technological change speed and the difficulty of filling in these new IT roles. The lack of data scientists or developers who are well-versed in finance has become a growing concern.
The challenge now is to find the availability of key skills and people who can fit these roles. The financial industry’s improved reputation would play a valuable part in attracting qualified individuals for these jobs.
Retaining Young Talent
Hiring and retaining younger employees has become a challenge for financial institutions. Studies have shown that it is more costly and time-consuming to hire and train new employees.
Retaining young talent is important in the growth and success of financial institutions. Therefore, management must explore various strategies to retain their young employees.
Studies show that millennials prioritize career growth opportunities when looking for a job. It is why institutions should invest in offering various opportunities for their talent to learn and grow. Some examples of these initiatives are mentorship programs, training, professional development programs, conference stipends, and the likes. Another way to assess their experiences would be by conducting stay interviews, checking up on the employees, asking for their feedback, what has been working well for them, and their opinion on what needs room for improvement. Through these interviews, management can learn more about what is going on from young employees’ perspectives. Such strategies can contribute to building meaningful employee experiences, which can help retain millennial talent.
Another challenge would be to have a company culture that attracts and retains talent and gives them quality experiences. Most employees look for institutions with a strong mission, vision, and values similar to their own. Aside from this, having a healthy work environment and a work-life balance is important. This factors in the transparency, management style, office vibe, and team dynamic as well. Some struggles employees may face regarding this include unrealistic sales targets, pressure from upper management, unethical practices, and lack of support.
To address this challenge, HR must explore the different approaches and workplace trends to determine which is best to help employees want to stay. Maintaining workplace values, professionalism, and promoting diversity are ways to better support employees and ensure quality employee experiences.
The current common challenge for employees in most, if not all industries, is pandemic stress. The changes brought about by the pandemic have taken a toll on everyone. The pandemic effects on financial services employees include:
- Changes in the work environment
- Remotely working from their homes
- Adopting enhanced technology
- Finding work-life balance
Creating opportunities for employees to make meaningful connections virtually through various online gatherings like weekly check-ins may help boost their motivation and form meaningful relationships.
Countless Job Offers
Finding tech talent qualified in financial services is already a challenge in itself. Another challenge related to this is the many jobs available for these qualified individuals. It means that competitive starting salaries, bonus opportunities, benefits, values, and company culture should be attractive for them to consider applying for a job at your company. It is also important to highlight other meaningful employee experiences such as providing wellness programs, professional development opportunities, team building events, and other factors that make your company stand out.
How to Solve These Challenges with the Help of a Global EOR
Addressing these challenges may initially seem overwhelming, but it does not have to be with the help of a Global EOR. HR outsourcing agencies offer services that include managing the workforce, invoicing and payroll, compliance management, care and benefit programs, enabling your corporate program, helping you attract new talent, and worker engagements, to name a few. These services are geared towards overcoming these challenges and creating quality experiences that help the company and its hybrid workforce grow.
3 Factors to Consider When Choosing a Global EOR
In choosing a quality Global EOR (Employer of Record) company, it is important to partner with those who can provide you with the best services and are flexible to your needs. Here are some factors to consider when choosing a Global EOR partner:
- Services Offered – Look for a EOR with a full range of services even if you do not need all these services yet. Partnering with an EOR that has a full range of services may be helpful for you in the future as your needs may also change as time goes by.
- Staff Credentials – Checking the credentials of the staff members is an essential step. Make sure that the HR professionals are reliable, experienced, and certified by reputed organizations. Your chosen EOR will provide background checks and screening. CXC Global’s proprietary compliance cloud platform CXC Comply, automates the process.
- Testimonials – Reviews help let you know more about the reputation of the provider. Reading up on reviews and feedback can help you better understand other clients’ experiences with their services. CXC Global has worked with Fortune 500 companies around the world since its inception in 1992 as evident with the published reviews and case studies.
The key to solving these challenges is by partnering with a global workforce solution and compliance provider, that acts as the Global EOR. CXC Global is a Global Employer of Record (EOR) company that offers a wide range of solutions to manage your global workers with ease. Whether domestically or globally, CXC Global has got you covered, from managing a global contingent workforce, remote workforce, employed and self-employed workers to enabling your corporate program and global workforce compliance.