Top HR Challenges in Financial Services Industry

In a world full of evolving innovations, ever-changing consumer expectations were already expecting the financial services industry to speed-up the process of digitalization – and then COVID-19 happened. The financial services industry, barely known for adaptability, had to make sweeping changes. A major shift was seen in employee productivity and efficiency – everyone was forced to work from home. For years, we had been living in a perception that an office is a focal place to maintain productivity and culture. Now, with remote and hybrid work becoming a norm, it is imperative for HR teams to bolster a digitized experience for employee engagement and productivity.

As the pandemic has revived these major work trends, it has fallen upon HR professionals to navigate through these large-scale shifts and reconsider their approach. The increased need for employee diversity and to reskill the workforce has added to an already full plate for HR professionals in the financial services industry. Initially, it was limited to maintaining workforce engagement and efficiency. Now that the need to make thriving changes has surpassed, HR teams must acknowledge a few challenges and stay abreast. Let’s take a closer look at some of the HR challenges in the financial services industry.

HR challenges in the financial services industry

The role of HR professionals is changing at an ever-increasing pace. HR teams have come a long way, from handling employee documentation to having a strategic position in organizations. As the financial services industry prides itself on cutting-edge security, it is of paramount importance for HR professionals to prudently bolster the changes. Social unrest, mental health crises, layoffs, and an economic downturn – COVID-19 incorporated a highly disruptive period for the workforce, creating a set of new challenges for HR professionals. Let’s take a glance at a few of these HR challenges in the financial services industry:

  • Growing Skills Gap

    The skills gap has been a significant issue in the finance industry. According to a PwC Survey, 70% of CEOs in the finance industry perceive the skills gap as a threat to growth - while 74% are concerned about the lack of skills in the finance industry. You might incorporate leading platforms and technologies to provide an unparalleled consumer experience, but your workforce should be well-versed in using them. Though this may sound daunting, HR professionals should emphasize on employee upskilling and hiring competent talent. Exela HR solutions provide a great experience with the recruitment process and helps you find the right talent for your organization, at the right time.

  • Retaining millennial talent

    According to the U.S Bureau of Labor Statistics, job openings soared from 276,000 to 538,000 in January 2022.

    These numbers demonstrate the need for HR professionals to rethink their hiring and retention strategies. Retaining employees has become pivotal.

    87% of financial organizations reported that they faced hurdles in retaining talent past year.

    A report says that the cost of replacing an employee is one-half to two times the employee’s annual salary. This cost incorporates the costs associated with recruitment, training, operational inefficiencies, impact on employee morale, and more. As a results, financial services organizations must employ a variety of employee retention strategies to hand on to their best talent. In addition, today’s market is employee-driven, which needs the finance sector to level up its hiring process to attract and retain diverse employees.

  • Providing Long-term Remote Work Opportunities

    According to a PwC Survey, only 29% of the financial services companies allowed 60% of their employees to work from home at least once a week. Post-pandemic, the number of financial services companies went up to 69%, with 60% of their employees working from home.

    96% of financial services professionals would accept a pay cut to get permanent work from home.

    With employees now having the leverage to work from their comfort zone, HR leaders need to rethink their strategies. HR professionals need to consider the challenges remote or hybrid work will incorporate, such as the need for effective collaboration, supporting tools or platforms, time-tracking applications, learning platforms, childcare essentials, etc. Analyzing these challenges would help HR teams find the perfect solutions to help employees work remotely with productivity and efficiency.

  • Creating a workplace culture

    86% of millennial employees would prefer a healthy workplace culture that inclines with their values over income.

    In today’s fast-paced business landscape, maintaining a decent organizational culture is crucial – workplace culture matters to both the employer and employees. Sometimes furnishing smart tools, employee benefits, and competitive compensation are also not enough to retain good talent. HR professionals should ensure they communicate company values transparently with the employees and align their work path with company culture. Highlight the workplace culture through organizational processes that encourage a healthy work-life balance, which has become necessary.

  • Maintaining employee engagement

    Employee engagement is the foremost factor that comes into the picture when considering remote or hybrid work culture. In today’s business scenario, remote or hybrid work has become a necessity, and maintaining employee productivity and engagement is a critical challenge for HR professionals. Here are some practices that would help your employees keep engaged:

    • Provide a smooth, online onboarding experience with the help of intelligent tools and technologies.
    • Conduct employee engagement activities virtually to keep them motivated.
    • Acknowledge issues the employees might be facing and put together a realistic, future-proof plan that will favor both the company and the employees.
    • Keep them up-to-date with all the advancements and provide a learning platform.
    • Communicate company values and culture transparently to gain employee loyalty.

Also Read: Understanding and Supporting Flexible Work So Your Workforce Can Thrive

How can Exela HR Solutions simplify HR’s journey in the finance industry?

Bolstering an agile approach while addressing employee needs and always staying ahead of the curve in terms of flexibility will foster a more efficient, engaged, and dynamic workforce. A few might still have doubts about time management, as developing an entirely new approach does take time. Exela’s HR Solution have answers to all your queries about simplifying HR’s journey. We bestow you plenty of time to focus on the actual business while our team will streamline the challenges your recruitment teams are facing. Here’s how Exela can help you thrive in the modern business world:

  • We introduce you to the right talent at the right time to serve your particular business needs.
  • We provide a more streamlined onboarding process to help new joiners understand the tools, information, and values associated with your company’s reputation.
  • Assistance with payroll processing with a more holistic approach, including basic pay calculations, tax filing, transparent employee communications, statutory compliance, and more.
  • We help your employees get rewarded fairly with a personalized analysis, robust benefits plan, and smooth employee experience.

Exela HR solutions have it all to streamline your HR processes so that you can spend time on the actual business. Right from searching for the right talent, recruiting, and onboarding to employee benefits and payroll processing, Exela provides a holistic experience. Talk to our experts now for your HR needs.

DISCLAIMER: The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly, and Exela cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a licensed attorney in your area.