How To Attract And Retain Talent When Big Techs And Fintechs Layoff Staff

Observation from Fintech Snark Tank

The current economic climate, combined with a wave of layoffs among fintechs and big techs, may be softening so-called “big resignations” in 2022, but don’t tell your banks about it. not.

Nearly 9 in 10 banks are having trouble recruiting new staff or retaining existing staff (if not both), according to a survey of 2023 banking industry trends conducted by Cornerstone Advisors. increase.

Layoffs at fintech firms and big tech companies like Amazon should provide banks with enough candidates to fill vacancies, right? According to Forrester Research:

“More job cuts among fintech firms will erode the talent banks acquire. Moreover, worried fintech engineers, data scientists, etc. appear to be more stable than their own firms. I will look to employment offers from banks.”

don’t bet on it.

If these people tend to work in banks now, why didn’t they work in banks? Before Working in Fintech?

Probably for one or both of two reasons:

Reality (for better or worse): Banks cannot offer any of these advantages.

What’s Working for Bank Adoption and Retention

Cornerstone research has identified the methods financial institutions are using to successfully recruit and retain talent.

  • pay for talent. Kristy Smith, Senior Operations Officer at First Oklahoma Bank, said: Very little downtime. Carl Casper, Chief Operating Officer of Connex Credit Union, added:
  • Adjustments to work from home policies. Bay Federal Credit Union CEO Carrie Birkhofer said: Pam Villanova, vice president of operations at the American Eagle Financial Credit Union, said the credit union has a “hybrid back-office and back-office work environment that has prompted other financial institutions in particular to insist on a full return to the office. There is a lot of interest in these roles because of the

American Eagle’s work-from-home (WFH) policy is becoming an industry standard, with nearly two-thirds of financial institutions now adopting hybrid policies that allow staff to work from home and the office.

The Bigger Challenge in Fighting the Great Resignation

Salary hikes and changes to work-from-home policies are great tactics to help banks attract and market talent, but they easily match other companies. The challenge for the banking industry is to reshape the industry to: of A place where socially conscious and active people work.

Whether banks like it or not, fintech companies have spent the past decade on the mindset of consumers and, more importantly for the purposes of this article, job seekers: “We are here to improve society.” I’ve done a better job of establishing a position that

In so many ways, this is fundamentally wrong. The number of stories that banks and credit unions can tell about their contribution to the communities they serve is (at least) 100 to 1 more than Fintech stories.

The challenge for the thousands of community-based banks and credit unions in the U.S., individually, is that they cannot meaningfully improve the perception of the industry as a whole (and conversely, a few of the largest U.S. banks can) tarnish the industry’s reputation. For).

Beyond salaries and work-from-home tactics, there are two other strategic adjustments community-based financial institutions need to make to combat the mass resignation.

  • Market yourself as a great place to work. Most agency marketing is set up to promote the company’s consumer and commercial products and services. This should be changed to include marketing your organization to job seekers.
  • Make talent management a core competency. According to Terence Roche, Partner at Cornerstone Advisors, “It’s not enough to hire people in a few key areas like analytics, digital marketing, payments, and fraud. Talent development is a key business tenet. I have to.”

The underlying challenge and purpose here is that banks need to make themselves “cool” (ironically, this is probably not the right word, but I’m too “cool” to do that). cannot know).

The brilliance of fintechs has been driven by significant devaluations, layoffs, and negative news reports (eg, JPMorgan Chase suing fintechs for falsifying customer numbers). The banking industry has a huge opportunity to reinvent itself for the new wave of job seekers.

For a free copy of Cornerstone Advisors, visit 2023 What’s Happening in the Banking Industry study, click here.

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