As a visionary business leader, you understand the importance of discovering your unique value proposition and striving to be the unrivaled best in your industry. To achieve this, embracing the most potent business tool at your disposal is essential - outsourcing. This powerful strategy empowers leaders to channel their time, resources, and workforce towards the most valuable tasks that form the bedrock of the business and propel it towards ever-greater profits.

By entrusting specialized experts to handle specific functions, you can concentrate on maintaining top-notch services and solidifying your position as an industry leader.

Picture this: top-notch accounting firms streamlining your financial operations, skilled attorneys navigating complex legal matters, and savvy marketing companies elevating your brand presence. Outsourcing is the next game-changer in today's business landscape.

The market size for global business process outsourcing was estimated at USD 261.9 billion.

Projections indicate that this market is expected to experience a steady compound annual growth rate (CAGR) of 9.4% from the year 2023 to 2030.

Within the outsourcing market, payroll outsourcing has emerged as a strategic practice that businesses are increasingly adopting. Companies can streamline operations, ensure compliance, and focus on core business objectives by entrusting specialized providers to handle their payroll functions. As businesses seek efficiency and cost-effectiveness, the demand for payroll outsourcing is projected to continue growing, contributing to the overall expansion of the global outsourcing market.

By tapping into the vast potential of payroll outsourcing, you free up valuable time and resources, allowing your team to focus on your core competencies and driving your business to new heights of success. So, why settle for the status quo when outsourcing empowers you to thrive in a highly competitive landscape? Seize the opportunity to optimize efficiency and unlock boundless growth potential with the power of outsourcing. Dive into this blog to learn more about the role of outsourced payroll in cost savings for Businesses.

Outsourcing Your Payroll Management - Total Savings 

While outsourcing payroll may not suit every business, it presents compelling advantages and benefits worth exploring. Opting for this solution can minimize in-house expenses, enhance accuracy and security, and redirect limited HR resources toward improving operational functions, recruitment, and training. Alongside improved compliance and security, significant cost savings are a key advantage of outsourcing payroll. These three savings advantages, among other benefits, make it a worthwhile consideration:

• Cost Savings

  By conducting a comprehensive cost analysis, it becomes evident that businesses can achieve substantial monetary savings by opting for outsourcing. Besides reducing overhead costs, outsourcing eliminates software, training, support, and compliance expenses. The savings in real dollars that can be realized through this strategic decision are noteworthy.

• Management Savings

  By alleviating your management team from the burdensome tasks of ongoing payroll functions, you have the potential to enhance their overall productivity. Outsourcing your payroll frees up a significant amount of time for your HR staff, enabling them to focus on strategic initiatives that yield long-term benefits for the company. Relieving overworked employees from the demands of payroll processing and reporting can also play a pivotal role in reducing stress and preventing employee burnout. By embracing the outsourcing option, you create a healthier work environment and empower your team to channel their energy toward more impactful and fulfilling endeavors.

• Time Savings

  As mentioned previously, time holds significant value, often equated to monetary savings. Another aspect of cost savings is the efficient utilization of time.

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  According to a survey, on average, approximately 18% of each month is dedicated to processing payroll for around 50 individuals.

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  This statistic illustrates the equivalent of requiring a full-time staff member solely dedicated to processing payroll for every 250 employees. Additionally, this does not encompass the management of payroll adjustments, benefits administration, compliance, and other payroll accounting responsibilities.

Also Read: From Complexity to Simplicity: Navigating the Payroll Function with an End-to-End Approach

Benefits of payroll outsourcing beyond cost-savings

• Grow more rapidly.

  During periods of expansion, companies often face the challenge of needing additional staff but lack the financial resources to hire and support full-time employees. This hinders growth potential and slows down momentum. Some businesses take the risk of hiring new employees, only to discover that this gamble doesn't always pay off, resulting in a reversal of growth.

  Outsourcing is more cost-effective than building an in-house team, as it allows flexibility and the ability to cancel contracts without causing unemployment. By outsourcing, companies can ensure steady growth while keeping their core team focused on internal tasks, thus maintaining productivity and efficiency.

• Maintain company focus.

  Payroll outsourcing offers the advantage of maintaining focus on vital internal tasks within your business. Take customer service, for instance – a crucial element for any company. However, it can divert key team members' time and attention. Outsourcing payroll service frees up unprecedented time for your team to spend on client queries and other customer support tasks. This improves overall business efficiency and boosts your ROI.

  Outsourcing firms are an invaluable tool to leverage. Additionally, outsourcing enhances your company's image. Gone are the days when outsourcing firms were seen as unreliable with poor quality control. Modern payroll outsourcing firms uphold the highest standards, effectively representing your business values. Outsourcing can give your company a more professional image, particularly for small businesses struggling with providing extensive customer service.

• Increase brand loyalty.

  A well-trained payroll processing team supported by experienced management ensures excellent service that fosters employee satisfaction and loyalty. Building an industry-leading payroll team internally is incredibly challenging and costly for most businesses. However, outsourcing to a professional service provider offers the expertise and resources needed to provide top-notch payroll processes, leaving your employees feeling valued and satisfied.

• Fulfill compliance requirements.

  Large companies are not immune to the financial effects of new regulations, especially in industries with stringent privacy and security demands. Maintaining an in-house payroll team to meet these requirements can be costly and risky. Inadequately trained employees who fail to adhere to regulations can lead to significant losses for your company. Unfortunately, assembling a highly skilled team without the resources of a large corporation is challenging. To mitigate the risk of lawsuits and other difficulties associated with noncompliance, consider outsourcing to an industry-leading firm that adheres to all employment laws and regulations. This strategic move protects your team and company from potential legal consequences and ensures adherence to industry standards.

• Benefit from top talent.

  Large corporations often have the advantage of providing superior pay and benefits, attracting the best talent away from smaller companies. This can hinder your company's performance and increase the risk of losing your top employees to larger competitors. However, outsourcing your payroll helps boost employee satisfaction and retention. Employees are likely to stay when you provide competitive pay according to market standards, timely wages, additional benefits, and hassle-free data handling.

Top Tips for Selecting a Reliable Payroll Outsourcing Company 

Having understood the impact an outsourced payroll provider can have on your business, it is essential to be aware of the critical considerations when selecting a reliable service provider. Take note of the following suggestions when embarking on your search for a company to handle your outsourced payroll services:

• Prioritise company reputation

  When considering payroll outsourcing, it is crucial to prioritize data privacy and timely payments, as these are key employee concerns. Therefore, partnering with a reputable and trustworthy company becomes imperative. Additionally, it is advisable to select a payroll provider with a proven history of serving businesses similar to yours in terms of size and industry, such as an ITES for IT hiring. By making these careful considerations, you can ensure a secure and seamless payroll process that meets your organization's specific needs.

• Look out for additional HR services.

  When selecting a payroll provider, ensure they offer supplementary services that enhance payroll processing. This may encompass visa consulting, PEO services, administrative and HR support, and even tax preparation if affiliated with an accounting firm. It's crucial to assess the extent of services provided when comparing quotes from different providers.

• Check information security

  Payroll processing is mainly digital, requiring robust measures to safeguard employee personal information. While Europe adheres to GDPR guidelines, most countries have strict regulations for protecting employee data. Therefore, businesses must diligently assess their data protection protocols.

• Ask about regulatory compliance capabilities.

  Ensure to inquire with your prospective provider about their methods for staying updated on legal changes and guaranteeing ongoing compliance for your business.

Before meeting a prospective provider, compile a set of inquiries concerning the services you are evaluating. A reputable payroll provider will invest the time to elucidate their offerings and the benefits they can offer your business.

Conclusion 

Leveraging the power of outsourced payroll services can be a game-changer for businesses seeking cost savings and operational efficiency. By entrusting payroll responsibilities to experts in the field, organizations can unlock a multitude of benefits. Not only does outsourcing payroll eliminate the need for investing in expensive software and hardware, but it also minimizes the risk of errors and compliance issues. With streamlined processes, timely tax filings, and accurate calculations, businesses can allocate their valuable time and resources toward strategic initiatives and core competencies.

Exela HR Solutions is a market leader in providing payroll outsourcing services to organizations seeking to streamline their payroll processing, enhance efficiency, and increase ROI. Embrace the power of outsourced payroll, and pave the way for sustainable growth and success in today's competitive business landscape. Talk to our experts at Exela HR Solutions today to discuss your unique business requirements!

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.

Earlier, financial executives were tasked with a straightforward mandate: maintaining accurate financial records, ensuring the figures align, and monitoring the flow of funds. However, this dynamic has transformated, and finance presently serves as the foundation for all facets of an organization through practical analytics. A company's leadership team might deeply understand industry trends, consumer behaviors, and the latest technology tools. However, without the guidance of seasoned financial professionals, the organization may encounter significant challenges. The expertise of financial leaders is invaluable as they play a vital role in navigating decisions and enhancing the overall strategic direction of the business. Consequently, financial leaders have progressed into the role of "strategic CFOs," utilizing innovative data tools to drive and navigate growth.

Nevertheless, the process of hiring executives differs significantly from hiring entry-level employees. Executives at the highest level play a vital role in determining the success of their organizations. They establish benchmarks for effective communication, foster a positive work culture, and drive performance, ultimately shaping the company's overall trajectory. Thus, it becomes crucial for HR professionals to seek additional factors to validate their hiring decisions.

We have gathered six traits to look for while hiring a financial leader. Dive into the below session to learn more about them.

Understanding the Role of a Financial Leader 

In the early stages of a business, the responsibility of bookkeeping and financial planning often falls on the business owner or a designated accountant. This approach serves as a viable solution initially, but as the company grows, its accounting and financial management requirements increase exponentially, making this approach impractical.

Eventually, a pivotal moment arrives when it becomes necessary to recruit financial experts and leaders who can navigate uncharted territory and steer the business toward a strategic direction.

Financial managers play a crucial role within organizations as they collaborate closely with senior management to analyze corporate data and facilitate strategic decision-making regarding profitability. Given their leadership position, it is typical for financial managers to supervise a dedicated team responsible for conducting financial reporting and budgeting activities. One of the key responsibilities of a financial manager is to ensure the accuracy and compliance of a company's financial information with legal obligations. Since they deal with legal teams, financial managers need to have a solid understanding of tax law and financial regulation on a state and federal level.

Here are a few other responsibilities you are likely to expect from a financial manager:

• Exploring strategies to decrease expenses throughout the organization
• Recognizing potential avenues for growth
• Compiling monthly and quarterly financial statements and business reports
• Conducting projections for various company brands

Also Read: How Payroll Can Improve Employee Financial Security

6 Traits to Look for When Hiring a Financial Leader

When it comes to hiring a financial leader, looking for certain traits can make all the difference! So, here are six essential qualities to consider during the hiring process. By carefully evaluating candidates based on these characteristics, you can confidently select a financial leader who will drive growth, make informed decisions, and contribute to the overall success of your business.

• An innate problem-Solver

  A crucial characteristic to consider when evaluating a financial leader is their solution-oriented mindset, which surpasses a narrow focus on problems. Exceptional financial leaders proactively seek resolutions, irrespective of fault or circumstances. They exhibit adaptability and willingly embrace diverse perspectives, actively soliciting input from their colleagues. Rather than perceiving obstacles, they identify avenues for advancement and the betterment of the organization. Such leaders demonstrate reliability and dependability, especially during challenging periods.

• Analytical skills and insight

  Analytical abilities, coupled with logical reasoning, are commonly attributed to finance professionals as an integral skill set. When searching for a financial leader, finding someone capable of effectively interpreting diverse financial data, recognizing patterns and trends, and skillfully communicating their findings is crucial. The leader needs to present their insights in an understandable manner, emphasizing the impact on the company's costs and benefits. Exceptional financial leaders leverage their analytical skills to identify opportunities and drive organizational change management.

• An exceptional leader

  Exceptional financial leaders possess a deep passion for their work, serving as inspiring role models who ignite motivation within themselves and their teams. They actively problem-solve alongside their colleagues, offering valuable assistance and driving effective solutions. These leaders exhibit a holistic mindset, grasping the organization's objectives, and nurturing the growth of their team members, fostering personal and professional development. Their genuine contentment lies in witnessing the success of others, and they consistently make themselves accessible as a valuable resource for their direct reports and peers.

• Communication and interpersonal skills

  Exceptional financial leaders possess exceptional communication and interpersonal abilities. They effectively engage with various departments and individuals across all levels within the organization. Their remarkable talent lies in empathizing with others and adopting diverse perspectives, enabling them to foster collaboration and discover mutually beneficial solutions.

• Emphasis continuous improvement

  Exceptional financial leaders adopt a comprehensive approach, continually assessing operational processes to identify opportunities for optimization and training. Their primary emphasis lies in enhancing efficiency and maximizing the organization's effectiveness without compromising customer service or safety.

• A business partner

  In industries where a business has both a corporate staff and hands-on operators, this particular trait may stand out as paramount. The significance of a financial leader's collaboration with operational leadership cannot be overstated if they wish to make a meaningful impact on the company's bottom line. Over the years, a recurring request has surfaced: the need for financial leaders willing to venture to job sites and engage with those on the frontline. By immersing themselves in this manner, financial leaders gain a comprehensive understanding of the intricacies involved in the job while simultaneously demonstrating their commitment to creating a mutually beneficial environment.

As you assess financial leaders for your business, always consider these traits and their potential impact on your company's success.

Why choose Exela HR Solution’s HR Outsourcing? 

We at Exela HR Solutions are keen on leveraging our deep understanding of the industry, extensive connections, and valuable perspectives to ensure the acquisition and retention of suitable talent at optimal moments across every level of your organization. We can enhance your business's productivity and efficiency by optimizing your current recruitment system and leveraging our unique access to a talented pool of individuals. Here is how businesses can benefit from using Exela HR Solutions for all their recruiting needs:

• Notable decrease in expenses related to recruiting
• Reliable, efficient, and expedited hiring procedures
• The enhanced caliber of potential candidates
• Enhanced reputation as an employer with adaptable and scalable recruitment framework strategies supported by extensive analysis of Big Data

Conclusion

Experienced financial advisors possess the ability to effectively handle their clients' finances while prioritizing their clients' sense of security and well-being. While the initial requirements may be demanding, financial advisors have the opportunity to earn a satisfactory income and benefit from relatively consistent job prospects. If you are also looking to hire a financial advisor, the above traits would definitely help you find one.

Nevertheless, you can also opt for outsourcing services. Exela HR Solutions is a market leader in HR outsourcing services that provides expert guidance and assistance in hiring executives and driving growth for your organization.

Get Exela HR Solutions today now for all your hiring 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.

As remote work becomes more prevalent, the line between professional and personal life has become increasingly blurred. This has prompted HR leaders to prioritize employees' well-being and mental health, recognizing the importance of cultivating a healthy work-life balance. Fostering employee well-being is, therefore, essential for promoting workplace resilience.

68% of HR leaders say employee well-being and mental health are their top priorities.

This priority is understandable, given that the corporate well-being industry in the United States is currently valued at $20.4 billion and is expected to reach $87.4 billion by 2026. In addition, a survey found that 80% of employers believe that financial stress negatively impacts their employees' performance, costing around $500 billion annually.

The modern workforce faces numerous stressors, and many employees feel ill-equipped to effectively manage these challenges. When stress and anxiety arise, employees may struggle to showcase their skills and talents. In such a climate, it falls to managers to prioritize the well-being of their team members. This begins with ensuring that compensation packages are competitive, offering clear opportunities for career advancement, and keeping pace with inflation. However, HR leaders should also consider providing free financial coaching as an employee benefit, regardless of pay level. Financial wellness has emerged as the most frequently requested benefit among

employees, and offering such services can deliver tangible value. Employers should understand the crucial role of financial well-being and payroll and explore ways that payroll can promote financial wellness throughout the organization.

What is financial well-being? 

Financial well-being pertains to achieving a state of financial security and control, not only in the present but also in the future. It brings a sense of reassurance that one can manage their living expenses and cope with unforeseen emergencies, as well as the liberty to make choices without constantly worrying about finances.

Financial well-being is not solely determined by an individual's financial status but also by an employer's commitment to their workforce and the prioritization of their needs. Employers serve as the primary source of income for their employees, making them a critical factor in promoting financial well-being. As such, it is essential for employers to take an active role in supporting their employees' financial health by providing benefits and resources that go beyond salary or wages. By recognizing the importance of financial wellness and taking action to promote it, employers can improve the overall well-being and satisfaction of their workforce. Nevertheless, the reality is:

Only 11% of employers with health and well-being strategies actually focus on financial well-being.

Numerous companies have adopted a carrot-and-stick model that provides short-term solutions to their employees' financial difficulties rather than supporting the establishment and growth of long-term assets. However, such an approach is insufficient and fails to address the root causes of financial stress. It also neglects the importance of cultivating employee loyalty and retention by satisfying their needs beyond mere compensation.

72% of employees say they would be attracted to another company that cares about financial well-being.

The economic impact of the pandemic has highlighted the importance of financial stability for today's workforce. With rising levels of household debt, employees are increasingly turning to their employers for support through expanded financial wellness initiatives and comprehensive benefits packages. Workers may be more likely to seek employment elsewhere when such aid is unavailable, potentially even turning to the gig economy.

Also Read: Employee Engagement Starts with Accurate Payroll Outsourcing

Why is financial well-being important? 

Financial wellness is a critical factor in promoting employee retention and engagement, and it can also attract top talent that can help ensure the company's long-term viability and growth. In addition, by offering comprehensive financial wellness programs and benefits, organizations can create a more stable and satisfied workforce better equipped to weather unexpected challenges.

84% of employers say financial well-being can aid in reducing employee attrition. While 81% say, financial wellness tools help attract higher-quality employees.

Employers must work together with their workforce to understand their needs, identify the areas of support, and develop appropriate solutions while aligning with the organizational revenue goals. Ensuring financial stability and showing appreciation are crucial for employee satisfaction, and organizations that prioritize financial wellness can reap greater benefits from their human capital investments.

It has been proven that organizations providing financial coaching, loan repayment programs, immediate credit, cashback, allowances, incentives, employee discounts, and other perks are more likely to attract enthusiastic and skilled workers who are committed to the growth and advancement of the company. In addition, employees appreciate employers who promote their financial welfare by offering tailored coaching and plans aimed at assisting them with purchasing a home, finishing their education, starting a family, or managing child care and education. In return, employees demonstrate their appreciation through increased productivity and profitability.

The general consensus is that employees tend to prefer working in an environment where their contributions are valued. In addition, companies that provide adequate financial wellness benefits, including wealth creation schemes, healthcare coverage, retirement benefits, and travel expense coverage, create a sense of appreciation and loyalty among their workforce, encouraging them to remain committed to the organization's goals.

Given the profound effect of financial problems on mental health, companies offering individualized financial coaching services alongside mental health resources can boost motivation, productivity, attendance, and overall engagement, thereby positively impacting the bottom line.

The Role of Payroll 

While it's positive to see companies expanding their financial wellness benefits to include alternative options such as automatic student loan payments and direct personal investment tools, such programs must prioritize enhancing employees' financial literacy to be truly effective. Without adequate financial education and guidance, employees may struggle to make informed decisions that align with their financial goals. Therefore, companies should focus on offering comprehensive financial education and resources that enable their workforce to make informed financial decisions and take control of their financial future.

Improving financial literacy is critical for employees seeking greater control over their finances. The payslip serves as a starting point for every worker, and payroll processing can play a crucial role in positively impacting their financial well-being. Even without introducing new benefits, employers can take simple steps through their payroll processing to assist workers in gaining a better understanding of their financial situation and available choices. For example, providing clear and concise pay stubs that break down deductions and taxes can help employees understand their take-home pay and make more informed financial decisions. In addition, by prioritizing financial literacy and education, employers can help their workforce build long-term financial stability and security.

Ways payroll processing can help promote financial well-being 

• Help employees understand their payslip

  Payslips are critical to employees, but unfortunately, only a small percentage take the time to review them or understand their contents. In addition to providing information on total income and taxes, payslips offer insight into how earnings are distributed, even before they are received. Employees must understand the various deductions, rates, and calculations, as this knowledge can help them control their finances better. By monitoring regular contributions to a pension scheme, employees can alleviate concerns about retirement plans or make informed decisions about other investments. Furthermore, scrutinizing the deductions listed on their payslips can help employees identify services they were previously unaware of, such as monthly physiotherapy coverage through health insurance. Payroll processing professionals are a valuable resource for employees seeking to enhance their financial literacy, as they have the expertise to interpret payslip information and answer questions about deductions.

• Encourage engagement with existing supports

  Many employees may be eligible for financial benefits from their employer, such as consultations with financial advisors, investment app trials, or government schemes for meal vouchers or childcare. However, some employees may not be aware of these opportunities. Payroll processing can help by reminding employees of these benefits through their monthly or semi-monthly payslips or through other means such as email or a public messaging board on payday. Employers can also use the blank spaces on payslips to draw attention to available benefits and share resources for saving, investing, budgeting, and debt management. Additionally, organizing educational sessions for staff to understand mandatory deductions and social contributions and utilizing those funds can also effectively promote financial literacy and engagement with existing benefits.

• Obtain employee feedback

  To determine the most effective strategies for promoting financial wellness among employees, companies should directly ask their workforce for input. By obtaining employee feedback, employers can learn about the financial tools and benefits that are most relevant and appreciated. This approach shows employees that their contributions are valued and the company is committed to supporting them. One effective way to gather feedback is to provide suggestion boxes in common areas or a dedicated section on payslips where employees can give feedback on existing financial benefits or recommend new resources. Employers could also distribute feedback forms, surveys, and payslips to gather opinions and suggestions. Even if initial participation rates are low, these initiatives gently remind employees to consider their financial health and explore available options.

Conclusion 

While employers cannot entirely address their employees' financial challenges, they can take proactive measures to encourage them to manage their financial well-being. Global payroll processing teams, with their comprehensive understanding of employee salaries, benefits, and deductions, play a vital role in assisting their colleagues. Employers who invest in understanding and supporting their employees' financial wellness, whether through company initiatives or public resources, are likely to benefit from their investment in the long run. By doing so, they can foster a loyal and satisfied workforce, ultimately enhancing the organization's reputation and financial stability.

If you're unsure of how to create a strategy to promote the financial well-being of your employees, outsourcing your payroll could be a viable option. By partnering with Exela HR Solutions, a market leader in HR and payroll outsourcing, you can benefit from our best-in-class solutions to meet your HR needs. In addition, our team of experts can assist you in creating a comprehensive plan to support your employees' financial well-being. Contact Exela HR Solutions today to start the conversation and take the first step towards a more financially healthy workforce.

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.

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.

The banking industry is one of the few industries not known for “openness to fast change,” technological or otherwise. This is because banks deal with a lot of sensitive information, so it makes more sense to go with what works best – examples: people strategies that have worked flawlessly in the past, technology that has worked flawlessly in the past, etc. Change is the last thing they usually look out for.

But this changed with the pandemic. The pandemic forced banks to go through some crucial changes that were not all usual for them. HR leaders in these banks were forced to lead remote teams, IT heads were tasked with providing top-notch security and equipment for these employees who worked from home, and the employees themselves were pushed to adapt to the new normal.

These circumstances gave birth to newer challenges that the banking industry faces today. Let’s find out.

Problems with implementing HR solutions in the banking industry

Feeling Continuous Strain:

Pandemic stress, as an emotion, has turned out to be a common problem for employees in many industries. Especially when entire families spend time working and learning in close quarters and under uncertain economic conditions, it is bound to leave members of that family feeling anxious. In addition to this problem, banking workers have also been unsettled by volatile markets and a futuristic trend that is pushing the industry towards automation.

According to an independent study performed by meQuilibrium in eight different industries, employees working in banking or other financial services companies reported the second-highest level of sleep disorders and job stress (only behind tech industry workers). This is a concerning statistic. Furthermore, according to this study, employee motivation also dropped 30% in employees who worked in financial services.

The pandemic has acted as a catalyst, speeding up changes in the banking services workforce that were going to be inevitable. Remote working, adopting better tech like AI, and focusing on accurately matching the skills of their employees to their actual jobs were just some of the changes that would be implemented sooner or later, irrespective of a pandemic happening.

Virtual Connections:

According to PwC’s Remote Work Survey, just 30% of financial services companies had at least 60% of their employees working from home once a week or more before the COVID-19 pandemic began. Today, this rate of remote work has not only gone up, but the trend of working remotely is likely to continue with industry forecasts predicting at least 70% percent of companies to have more than 60% of their staff continue working from home at least once a week after the pandemic settles down.

Upper management was also on-board with this arrangement because remote work increased productivity, according to the same survey. Moreover, 88% of banking employees identified WFH arrangements as the most helpful form of support they received from their employers, according to meQuilibrium, a digital coaching platform.

People appreciate getting connected. Setting up employee resource groups around common interests like pets, knitting, exercising, Lego building, films & television series, parenting, minorities, veterans, LGBTQ employees, women in leadership, etc., provides a chance for employees to connect, share advice, get to know each other better, and form strong bonds with each other, especially in a high-stress banking work environment.

Everyone is great at doing something. Such resource groups and platforms allow people to mentor each other on subjects that could be useful for a lot of people, like meal-prepping or maximizing banking credit card points, etc.

Such connections are difficult to form in an office-based setting which can be a problem when it comes to forming deeper connections with other employees.

Also read: RPO Is It Right for Your Business?

Valuable Employee Support:

Studies have shown there is a strong correlation between the mental health of employees and how much support they felt they got from their employers or direct managers. Like many industries, in banking, employees are stressed out, which causes them to struggle and burn out eventually. Therefore, the value of employer support is much needed, which can be highly impactful.

Something as simple as giving the rest of the day off or offering full reimbursements for mental health therapy sessions, elder care, or childcare has the ability to have a tremendous impact on some people who need it the most. Most employers will have the bandwidth to offer such concessions, but the biggest problem is that they do not take the initiative.

If a desperate employee comes to ask for help or concession, they will happily move forward with their request, but they will never announce to everyone the availability of such help. This is a classic case of caveat emptor – let the buyer beware. This benefits employers and hurts employees because most employees assume that they will never get the help they need from their employer or are too fearful or shy to ask for help. This pushes them further down the road they try so hard to come out of.

Upskilling Existing Talent:

As technology and financial markets evolve rapidly, many banking companies have experienced a struggle to keep employees updated. Such employers need to invest heavily in cybersecurity training and data visualization courses because of how more and more banking business is conducted digitally today. At the same time, HR managers need to create more upward mobility within companies, which helps in minimizing onboarding and recruiting costs.

Upskilling often means reducing the existence of manual tasks and using technology to automate more processes within a function. HR, especially in this context, needs to upskill itself on digital tools to serve employees and candidates better. HR also has an important role to play in ensuring that new talent does not get impatient and bored in the very formal culture of the banking world.

The millennial and Gen-Z generation of employees is thinking more than ever about their own careers, the skills they need, and the popular training. Providing such opportunities to your employees is a highly effective way to retain top talent in an industry where people are the only variable that makes your business a success or a failure. Invest in strategic HR by placing a high value on attracting and retaining top talent. If employees are well taken care of, clients will always be well taken care of too.

Conclusion

The financial services sector consists of a wide range of businesses that include banking, insurance companies, credit unions, mortgage corporations, investment funds, and stock brokerages. The years following the 2008 financial crisis have seen this industry forced to deal with increased regulation, higher capital requirements for banks and insurers, and the need to implement robust processes across the board. Furthermore, customer expectations regarding service quality have skyrocketed. Against this backdrop of rising compliance costs, capital requirements, and customer expectations, we will be looking at human resource outsourcing as a strong contender to combat the problematic HR issues that plague the financial services industry today.

The case for outsourcing your human resources has three main arguments:

• The swelling pressure on operational margins meant that it made financial sense for firms to outsource non-strategic functions to specialist firms. These specialists leveraged economies of scale, deep functional expertise, and lower labor costs to deliver savings.
• Best-in-class service providers can add value by actually implementing and managing industry-standard processes for support functions such as HR – a boon for large financial institutions with operations in far-flung corners of the globe, as well as for small and medium-sized enterprises which lack the resources and/or expertise to manage these areas effectively.
• Outsourcing enables businesses to focus on their core competencies. The argument is that shareholders will be better served if the business maintains a laser focus on what they do best while outsourcing the rest to “specialists,” who will likely do a better job than the firm.

High-level thoughts to guide the outsourcing decision

The primary aim of the decision to outsource is often margin improvement by cutting costs. Outsourcing partners are further expected to bring in process efficiencies or improvements by virtue of their domain experience while keeping customer experience intact. Bearing in mind these three criteria – cut costs, improve processes, improve, or at least maintain customer experience – will help firms identify activities that are most apt for outsourcing and effectively administer outsourcing programs.

Need help? Exela HR Solutions offers world-class HR outsourcing services to businesses across multiple geographies and industries. Speak with our experts to learn more about our offerings.

Sources: google.com | en.wikipedia.org | reddit.com | shrm.org | gep.com | scirp.org

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.