In the rapidly evolving landscape of financial services, mastering the art of finding and retaining top talent has become increasingly crucial.
In 2024, this challenge intensifies amidst the scarcity and elevated costs of skilled financial services professionals.
A key factor in this scenario is talent retention, which curtails substantial recruitment fees and enhances internal referrals, enriching the business’s talent pool.
Why Talent Retention is Paramount
In the financial services sector, retaining talent is a strategic necessity.
Research indicates a remarkable 70% increase in talent retention when organisations have clear insight into their performance and future career plans.
An employee performance platform makes that a reality instantly.
Implementing a performance platform provides employees with clear visibility of their objectives, career progression, and opportunities, creating a sense of belonging and appreciation.
In an industry where talent is both scarce and costly, minimising turnover is economically savvy and ensures workforce stability, guaranteeing continuous business growth and client satisfaction.
Key considerations:
- Reduction in Recruitment Costs: Retention significantly reduces recruitment expenses and stabilises the workforce.
- Increased Talent Retention: A goal-aligned environment reduces attrition and increases referrals.
- Economic Necessity: As inflation rises, new hires seek increased salaries.
The Escalating Competition for Financial Services Talent
The advent of embedded finance and traditional brands venturing into financial services has sparked fiercer competition for talent acquisition.
These emerging entities in the market offer roles that feel innovative and exciting. Employees seeking a new position rarely consider the reality of their high-risk nature.
Implementing strategies and systems to ensure your staff feel valued and recognised is more crucial than ever.
Key considerations:
- New Market Players Are Emerging: Embedded finance by the world’s biggest brands is emerging, increasing the fierce talent competition.
- Attractive Alternative Roles: High-risk but exciting roles in the market can lure valuable team members away.
- Protecting Your Best Talent: Ensuring staff feel valued is vital to retention in the face of rising competition.
Employee Performance Platform Have Skyrocketed In Popularity
Employee performance platforms have skyrocketed in popularity as they emerge as Financial Services Businesses’ #1 retention tactic.
Such platforms clarify individual performance metrics, align employee objectives with the company’s aims, and outline career progression paths.
These systems provide the constant transparency and structured information essential in making employees feel that their contributions are acknowledged and have a definitive future within the organisation.
Key considerations:
- Improved Overall Business Performance: These platforms have led to an immediate increase in overall business performance. Individuals clearly understand their goals and how they align with company objectives.
- Provide Transparency On Career Progression: Overcome the pain of plans being hidden on spreadsheets and immediately give team members insights to their career paths and progression opportunities, enhancing employee engagement.
- Actively Reduce Turnover: Employee performance platforms are instrumental in reducing turnover rates due to their ability to increase their employee engagement dramatically.
Cultivating a Strategy-Centric Work Environment
For financial services businesses, cultivating a strategy-centric work environment is essential for retaining top talent. This approach involves:
- Aligning Employee Goals with Business Aims: Employees should clearly understand how their work contributes to the company’s success. This alignment motivates them to excel and fosters a sense of achievement.
- Continual Performance Management: Regular feedback and performance assessments help employees understand their strengths and areas for improvement. This ongoing process ensures they remain in sync with the company’s evolving goals.
- Career Advancement Opportunities: Providing transparent pathways for career growth within the organisation encourages employees to commit to long-term roles, reducing the lure of external opportunities.
- Recognising and Rewarding Talent: Cultivating a culture that recognises and rewards high performance is essential. Financial incentives, promotions, and public acknowledgement are potent tools for maintaining high employee morale.
- Fostering a Supportive Work Culture: A supportive work environment where employees feel valued and heard is crucial. This includes offering flexibility, work-life balance, and a positive workplace culture.
How StaffCircle Sees It
At StaffCircle, we know the most essential thing for harnessing and nurturing talent in the financial services sector.
Engagement and clarity of career path.
It’s about empowering each individual within the organisation. We see this as a pivotal strategy for businesses aiming to thrive in the competitive landscape of 2024.
By offering clear insights into performance metrics, aligning individual aspirations with organisational goals, and fostering a culture of continuous improvement and recognition, StaffCircle believes companies can significantly enhance their retention rates.
The three key takeaways:
- Employee Empowerment: Integration of performance platforms empowers individuals and aligns them with organisational goals.
- Enhancing Retention Rates: Effective use of these platforms significantly improves retention rates in financial services.
- Creating an Engaging Environment: Fostering a continuous improvement and recognition culture is key to attracting and retaining top talent.
