Financial Services Hiring Trends 2022

In this COVID-present and technology-driven world, the hiring trends in financial services have changed a lot within just a few years. To stay both relevant and competitive, financial firms need to adapt.

Supply chains are a mess, inflation is at highest level in decades, and it seems there's a shortage of just about everything.

That includes the world of financial services.

4 out of 5 financial institutions are worried about staffing, and the labor shortage in banking will persist long after the pandemic, according to this publication from American Banker.

On top of that, the average age of a financial advisor is 55, and one-fifth of all advisors are over 65. In less than 10 years, over 111,500 of those advisors will retire, accounting for over one-third of the industry workforce.

Suffice to say, the industry at large has its concerns.

To stay ahead, hiring and retention strategies will need to change. Check outs some of the trends.

5 Hiring Trends in Financial Services for 2022

1. No Jab, No Job: Financial Firms Mandate Vaccines

"To go to the office, you have to be vaxxed, and if you aren't going to get vaxxed, you won't be able to work in that office. And we're not going to pay you not to work in the office."

Jamie Dimon, CEO of JPMorgan

In this COVID world, firms want employees to return to the office safely. Getting vaccinated is a key part of that effort.

Those who refuse a COVID-19 vaccination may soon find themselves out of a job or without pay. Citigroup will fire their unvaccinated staff, and JPMorgan will not pay theirs.

From an employer standpoint, vaccine refusal is a huge (and unnecessary) liability, adding to health costs and hurting productivity. Not to mention, they add a burden to already strained healthcare systems.

As the unvaccinated get shown the door, new hires will certainly need vaccination against COVID-19 if they want a job.

2. Remote Hiring

There is nothing wrong with hiring in person and recruiting the local vicinity, but don't rely exclusively on that approach.

Maybe your area has a small talent pool, or perhaps the cost of living is really high, and some of the talent left the area.

Don't leave any talent on the table. Today's technology makes it possible to hire from anywhere, just as people with  jobs that allow it can work from anywhere.

According to FlexJobs, the number of remote job openings increased 12% in 2021, compared to 2020 numbers. Accounting and finance saw notable growth in remote jobs.

Of course, getting the right hire is important, check out this article:
8 Tips for Hiring the Right Person Remotely

3. Expanding the Financial Services Talent Pool

As far as the financial services industry is concerned, it's all hands on deck.

So, don't limit your hires to a narrow and rigidly defined set of requirements.

Sure, some roles require a special license or certificate, and that makes sense.

But for other jobs, do they really require an advanced degree? Do they really require that much experience?

Can other skills, qualities, or career accomplishments be considered?

Advanced degrees and experience are great, but in a tight labor market, you have to find talent in other ways.

For whatever it's worth, companies like Bank of America have recognized that.

Hire Potential

Not everyone will have your desired experience level or skill sets...

But if the role can allow for it, hire someone with potential.

For your part, place emphasis on good character, work ethic, being a team player, and a willingness to learn and be trained. They'll be an investment, but if you work with them, they'll make it work for you.

After all, things could be worse...

The firm hires someone who looks great on paper, but they're toxic in the workplace. They don't get along with others, they destroy morale, and people want to quit... and they do. Enter the Great Resignation.

... and the hiring process starts all over again.

Promote The Financial Industry; Promote Internships

Banks and investment firms, for their part, can promote the industry and cultivate the next generation of talent.

Many financial firms on Wall Street, including Goldman Sachs, are promoting internships and encouraging participation among those less represented in the industry historically, notably women and minorities. The more talent, the better.

To maintain a dynamic workforce and serve clients effectively, the industry must tap all sources of potential.

4. Financial Firms Should Look Beyond Money When Hiring

In the past, it was easier to hire someone by offering more money.

For the right price, they'd do work they don't want to do, and they'd put up with long hours in a stressful environment.

... and they'd keep their mouths shut, too!

Not anymore. Relying on money is one of the hiring trends of the past. Ping pong tables and free kombucha at work are not the solutions either.

Nowadays, banks and investment firms must look beyond money. Employees want more work-life balance than ever before, and they want meaning in their work.

According to a Harvard Business Review study, 9 out of 10 people are willing to earn less money to do more meaningful work.

When companies make positive changes to their work culture, it becomes a selling point in the hiring process.

If you don't change, rest assured your competitors will.

5. Investment and Financial Firms Can Automate and Outsource

Expanding the talent pool and making your firm more attractive to job applicants is a good thing, but it's not always enough.

This is where automation and outsourcing can help.

Some work is very routine and mundane, like entering data and downloading files. Having high-skilled people do that work is an efficient use of their time and company resources.

In that case, you can automate these routine and mundane workflows. Or if you're not sure how to do it, you can partner with a team like Empaxis, which helps banks and financial institutions automate and streamline workflows.

Download Our Automation Guide
Download Our Automation Guide, Making Outsourcing Work.

Sometimes banks and other big firms need to hire a large team to get started on a project right away. But going through a hiring process is incredibly time-consuming and stressful.

Outsourcing is the next best option.

When banks and investment firms partner with an outsourcing firm like Empaxis, they don't have to worry about staffing issues anymore.

A company like Empaxis, which provides middle- and back-office support for banks and large investment organizations worldwide, has resources ready and trained to help. As you ramp up or down,  Empaxis can easily adjust its staffing to meet your labor requirements.

Follow and Change with the Hiring Trends

As the hiring trends show, financial services firms need to stay competitive and adapt, especially in a labor shortage.

Here are four major takeaways:

  • Change your approach to hiring
  • Find ways to expand your talent pool.
  • Improve the company work culture.
  • Leverage automation and outsourcing providers who help banks and investment firms.

By following the trends and making changes, you will be more successful.

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