Are you one of the 9 in 10 financial markets employers facing skills shortages?

The demand for talent is stronger than ever, yet challenges with skills shortages have increased year on year. Our Financial Markets Salary Guide, which surveyed almost 500 professionals in the sector, found that a staggering 88% of employers have experienced shortages in the past year, rising from 83% the previous year.

Skills shortages are causing a noticeably detrimental impact, most prevalently on productivity (44%), the ability to deliver projects (44%), and innovation and creativity (42%). Given economic uncertainties and an ongoing cost-of-living crisis, as an employer, it’s vital to stand out from the competition to mitigate these negative implications.
 

Competition for top talent

Employers have been experiencing an increased struggle with hiring; permanent hires prove to be the most difficult, with 78% facing challenges compared to 66% in 2022. Plans to recruit over the next 12 months have increased to 87%, rising from 80% in 2022 and 70% in 2021. With the UK unemployment rate at 3.8%, there are fewer immediately available candidates applying for vacancies. This, paired with the ever-increasing plans to recruit, means competition for top talent and facing challenges when hiring does not appear to be easing off anytime soon.

Stand out from the competition in the current climate

Salaries have increased by an average of 4.9% over the past year across the banking, financial services and fintech industries. With 80% of employers increasing employees’ salaries in the past year, it’s important to stay ahead of the curve and ensure salaries are competitive against the market rate. Our Salary Guide can provide you with valuable insight into the average salaries in your industry.

However, it’s clear salary uplifts alone aren’t enough to attract and retain top talent. Along with salary, a lack of career progression is the joint-top reason (54%) for job dissatisfaction, closely followed by a lack of career development opportunities (50%). To stand apart from other hiring bodies, while also keeping employee satisfaction high, it’s imperative that you give your employees a clear view of progression and development opportunities.
 

Could a reduction in hybrid working affect staff attraction and retention?

Work-life balance has improved for the second year in a row, with 64% of employees rating this as positive, compared to 56% in 2022 and 51% the year prior. This upward trend in work-life balance correlates with a greater number of employers offering hybrid working since the COVID-19 pandemic. As per ONS statistics, only around one-eighth of all working professionals reported working from home prior to the pandemic, and this figure has risen exponentially since then.

Currently, 65% of employers in financial markets are operating to a hybrid working model. However, despite the fact the majority of employers (60%) have found hybrid working to have a positive impact on staff retention, almost a third (31%) are anticipating an increased requirement for staff to be in the office more frequently in the next 12 months.

With almost two-thirds of employees (62%) saying that hybrid working is an important factor when considering a new role, employers who request increased time in the office may lose talent to more flexible organisations.
 

Green credentials are important when considering a new role

With the Financial Conduct Authority taking a keen interest in climate change and sustainability, the quality of organisations’ sustainability reporting is a critical reputation issue.

Most employees (79%) think an organisation’s commitment to sustainability is important when considering a new role. 86% of employers recognise this commitment as key for staff attraction, and 74% believe their organisation has set sustainability targets.

Further growth in sustainability investment is on the horizon, as more than half (52%) of employers are anticipating their organisation's need for sustainability specialists and green skills to increase in the year ahead. Attracting sustainability specialists can present challenges, given the skills shortages and the level of competition for this niche top talent. Get in touch with our specialist recruiters who will be able to advise how best to attract these sought-after employees.

Download our Financial Markets Salary Guide for valuable insights to boost your talent attraction and retention strategies.