Finance Sector Faces Talent Crisis Amid Job Dissatisfaction
The finance sector is grappling with a looming talent crisis as job satisfaction plummets and professionals seek opportunities elsewhere, two recently published reports say.
Surveys by EY and Sellick Partnership, a specialist recruiter, paint a concerning picture for business leaders in terms of talent recruitment and retention.
EY’s 2024 Work Reimagined survey shows that almost four in 10 workers (38%) intend to quit their jobs in the next 12 months, an increase of three percentage points from last year's figure.
This suggests that, despite employer efforts to improve retention and broader economic uncertainty, employees are continuing to weigh up their options in the labour market.
The sentiment is particularly strong among millennials, with 40% planning to quit compared to 23% of baby boomers.
Roselyn Feinsod, people consultant at EY, says: "Individuals now aspire to move more fluidly between employers to gain new experiences, different skills and flexible working practices, meaning legacy talent strategies no longer cut it."
Feinsod adds: "Talent leads should focus less on how long an employee stays with them and more on their values, the quality of their experience and contribution to the organisation."
Sellick Partnership Survey Reveals Salary Dissatisfaction
The Sellick Partnership survey corroborates these findings, showing that nearly half (46%) of finance and accountancy professionals feel they are slightly or significantly underpaid, a 10% increase from the previous year.
The survey further found that 20% of respondents are unhappy or very unhappy in their jobs, with 43% planning to look for a new role in the next 12 months.
There has also been a rise in demand for more structure around career progression, greater flexibility, and sick pay above the statutory amount.
Pay dissatisfaction is a significant factor driving professionals away from the sector, with 37% of respondents saying their salary is not reflective of the role they do.
Implications for Businesses and the Finance Sector
The potential exodus of finance professionals poses significant risks for businesses, making them more vulnerable to fraud and compliance issues.
The loss of skilled workers could also lead to decreased productivity, increased recruitment and training costs, and potential disruptions in financial operations and strategy implementation.
Moreover, the institutional knowledge and expertise that long-term employees possess may be difficult to replace quickly, potentially impacting the quality of financial services and decision-making within organisations.
Addressing the Talent Crisis
To address the looming talent crisis, finance sector employers need to reassess their strategies for attracting and retaining top talent, the report says.
This may include offering more competitive salaries, improving work-life balance, and providing clear career progression paths.
The Sellick Partnership survey indicates a rise in demand for more structured career advancement opportunities.
Finance sector employers should develop clear career paths for their employees, outlining the steps and skills required for progression. This transparency can help motivate employees and reduce turnover.
Flexibility in working arrangements has also become increasingly important. The EY report highlights that employees are seeking more fluid work practices.
Employers should consider offering various flexible working options to cater to different employee preferences and needs.
The Sellick Partnership report suggests that “employers must navigate these adjustments accordingly” in order to continue attracting and retaining top talent.
It adds: “This includes addressing concerns about salary, flexible working arrangements, and career development opportunities."
Additionally, it says, companies may need to invest in upskilling their workforce to adapt to the changing technological landscape, particularly with generative AI becoming increasingly relevant in finance roles.