Talent Shortage and High-Rate Turnover Force Fintech Market Squeeze
Just as soon as Fintechs got better at leapfrogging the client acquisition challenge, a new obstacle came into play: talent acquisition and retention. The sales-related stress is amplified with the threat of losing a qualified workforce and growing a customer service worse. With that in mind, retaining qualified people is becoming just as important as bringing in new customers.
Where does the problem stem from?
Among the problems that prevent employees from being efficient in and loyal to their jobs is a maze of offers from other companies. With the rise of open banking and the emergence of new Fintech players, employees today have ample choice in what they do and where they want to do it, says Greg Watts, founder of the Demand Creation Partners consultancy group.
A 2019 US Bureau of Labor Statistics report revealed that American technology workers are quitting their jobs at the highest rate since 2001. In addition, a 2018 Ladders survey of 50,000 US workers earning more than $100,000 found that 67 percent envision quitting their jobs in the next six months. That’s two-thirds of the professional workforce. It’s therefore critical for businesses to ensure they have the right cultures and processes to support and nurture talent, particularly as they are going through hyper-growth, says Watts.
Now is the time for executive leaders to embrace and adapt to the evolving expectations of employees with just as much commitment as they give to their customers, says Megan Geyer, director of the customer experience for financial services at NTT DATA. Gallup, in a 2018 study, reported that more than half of the American workforce remains disengaged with their jobs, whereas engaged employees reduce the associated high cost of turnover. That said, employee retention is directly linked to customer experience and revenue.
Simultaneously, according to another report, the increasing shortage of Fintech software engineers in 2020 has made recruiting harder and time to fill has grown exponentially. The cost of hiring a software engineer is rising, and the HR brand, together with employee retention processes, grows in importance day-to-day.
How to ensure your employees are engaged and less likely to change their positions? What makes a company’s HR brand strong enough to overcome the market squeeze?
Institutions that value and promote employee experience initiatives see higher rates of customer experience success. The positive outcomes earned through strategic employee engagement efforts generate environments that foster trust among colleagues as well as among the external customers they interact with through their day-to-day tasks.
To keep your HR management on top, your strategy should include several important components. In this guide, we describe the best HR practices, as illustrated by real cases from Fintech companies. But to keep a long story short, here are the top three hot points you can’t afford to ignore.
Speak to your workers
Your employees are humans, first of all. They need communication with other people and feel insecure when isolated. No wonder the openness of management and a transparent, friendly environment are valued so highly among talents. When you speak with your employees on casual topics or drop into occasional conversations, show them your good mood; it encourages their sincerity and involvement, which are so necessary to keep them on board.
Similarly, Rich Romano, CTO at FIDx, likes to understand what people are talking about at the coffee machine or over a pizza lunch versus having a conversation via Slack or holding an overly formal one-on-one meeting. It allows people to be conceptually, logically, and physically relaxed in his presence, which fosters connectivity and productivity.
It’s also efficient to monitor their interests and life situations through small talks or watercooler conversations. It allows you to prevent various risks and offer employees your help if they need it to keep efficient at their workplaces. For example, if you notice during the talk that an employee is tired of their latest project or feels unhappy and demotivated, you can initiate a search for another project for them. Even if you don’t respond to all of their wishes or complaints, your interest in their wellness will encourage trust.
Promote education and growth
A sense of fulfillment at work depends on how fully the personal traits of an employee are recognized at work. If a company encourages growth and creates professional road maps for each employee, it solves several problems on the spot:
- Shows that they’re valued and important
- Helps to keep them interested, concentrated, and challenged
- Provides you with a top talent
Enhancing business knowledge should be an important part of the professional training and growth support of employees. Along with loyalty, it brings an increased understanding of business processes to the table, which helps you avoid mistakes and shortens development time by up to 50 percent. In Fintech, there are usually personal finance perks for employees. They know a lot about investing, banking systems, and financial markets and can benefit from it by making wiser financial decisions.