While fintech startups are collecting billions of dollars in capital to expand their businesses, finding the necessary talent to scale up and become market leaders is a different story. Numerous surveys reveal that finding the appropriate personnel remains one of the most difficult tasks these firms face.
The most in-demand skills are software engineering, system architecture, and development. They’re also the hardest to find.
There are a few reasons why recruiting is difficult with a general skill set deficit. Addressing these will enable startups to be in a position to attract the best available pool of qualified applicants and ensure that, once hired, they stick around for good.
Gender Diversity Balance is Inaccurate
Fintechs may be forward-thinking, but they lack diversity. Eighty percent of executives are men, and only 3% of investment in UK fintech went to companies led by women in 2018. While boards are allegedly eager to boost ethnic diversity, FinTech Times says little progress has been made. According to FinTech Futures, CVs will become obsolete, and gamification will gain traction as a bias-free recruitment tool.
Technology Stack is Failing
Technology tools are evolving at a fast pace. In a modern financial environment, you must provide your employees with a current stack that ideally includes a combination of programming languages, frameworks, and tools that assist them in all aspects of their profession. You can boost productivity and accelerate development if you get your stack right. If you get it wrong, your employees will leave.
Employer Brand is Shot
Your employer brand is about advertising your organisation as the preferred employer for top talent. It’s something you should prioritise because studies show that organisations with a positive employer brand receive twice as many applications as competitors at a far lower cost per employee. So, concentrate on your brand and ensure that it accurately reflects your qualities as an employer.
The Company Culture Effects
According to Steve O’Hanlon, who was recently named Fintech Person of the Year, “attitude and cultural fit are everything.” However, if you desire a cultural fit, you must first define your culture. It does not happen by chance; you must decide on the culture for your organisation and then instill it in all you do. A healthy work-life balance is essential. Staff surveys and exit interviews should be used regularly to gauge your team’s opinions.
Millennials are the largest group of people with the necessary fintech abilities. Career development and progress are vital to 87 percent of them. Because fintech is a young business, it is critical to shift effortlessly between roles while gaining new information and abilities. Learning and professional development should be prioritised. Your goal is to have staff that your competitors want to hire but can’t because of the atmosphere you’ve created.
Deficient Recruitment Processes
Outdated recruitment practices are not appropriate for the fintech industry. It’s a new and rapidly growing industry with highly competitive salaries and perks. Traditional recruitment partners may not be up to the task if you place an ad in the trade press. It would help if you also thought about your interview procedures — extensive, drawn-out procedures will mean your prospect has moved on while you decide.
We’ve all heard the expression “you get what you pay for.” This is certainly true in the world of fintech. Furthermore, it is still a candidate’s market. So, if you want to recruit the greatest talent, you must give a package above the market – and, more significantly, the freedom to go above that if appropriate.
Lack of Passive Candidate Strategy
Sometimes you have to generate possibilities by reaching out to a larger audience. If you can construct an enticing offer, approaching potential individuals who are not actively looking to change jobs can be a fantastic strategy for sourcing candidates. If you succeed, passive applicants are demonstrated to be very committed to making an impact in their new roles. How do you track them down? Asking for referrals and networking are two strategies, as is using LinkedIn.
London boasts the world’s biggest concentration of financial and professional services organisations. It implies that the rivalry for elite talent is strong. Limiting your search to those who live within commuting distance of your office puts you at a disadvantage from the outset. Many fintech jobs can be done remotely, which means the entire country — or maybe the entire planet – is your oyster. If you require someone on-site, recruiting from outside the country does not have to be difficult.
In a Nutshell
Companies can attract top tech talent by being upfront about pay and compensation. Many companies fail to keep compensation confidential, discouraging employees from applying for new positions. You’ll have to pay for great talent if you want it. If the company cannot provide the highest compensation in your area, consider providing benefits that will allow you to compete with similar companies.