Financial Services Recruiting Best Practices
Some current best practices around recruiting candidates in the financial services industry are: 1) the utilization of AI in the recruitment process, 2) exploration for broader skill sets, 3) changing to an agile working environment, 4) proving the company's worth to candidates, and 5) utilizing attractive compensation packages to draw and maintain expertise. Below we have presented an outline of our research strategy, along with the relevant findings from our research.
To identify some best practices around recruiting candidates in the financial services industry, we examined financial magazines and publications, including the Wall Street Journal and American Banker, as well as market research platforms such as Gartner. Additionally, we searched through recruiting expert platforms like the Spencer James Group. Using this research strategy, we were able to discover several lists of best practices. We then concentrated on those that were mentioned in at least two separate sources. Afterward, we compiled a final list of best practices, along with businesses that have employed such methods effectively.
CURRENT BEST PRACTICES FOR RECRUITING CANDIDATES IN THE FINANCIAL SERVICES INDUSTRY
USE OF AI IN RECRUITING
In financial institutions, hiring officers are using AI-based solutions in learning and development, recruiting, and skills management. As reported by Gartner, AI is competent in advancing "candidate fit." Nevertheless, it also influences indirect hiring expenses, "such as training costs and the loss of institutional knowledge." Recently, Citizens Bank NA, which acts as a subsidiary of the Citizens Financial Group, initiated a career mentor powered by AI, Myca, for around 1,500 of its employees during a pilot program. The program recommends new jobs, videos, periodicals, and training based on the individual's career interests. It is currently being experimented partially as a means of closing training gaps and pairing employees with open jobs that intrigue them.
SEARCH FOR BROADER NON-TRADITIONAL FINANCE AND ACCOUNTING SKILLS
Companies in the financial services space seek to hire people with various abilities, including intelligent tech security specialists to improve customer and internal confidence, compliance engineers, and data wranglers. Businesses are taking this route because of the steadily expanding complexity of the industry. Stripe, a FinTech company, provides online payment processing for internet corporations. Although it is a financial institution, the company puts significant emphasis on having some developers with broad, non-traditional skill sets on its team.
AGILE WORKING ENVIRONMENT
Numerous institutions (e.g., banks) are building a working environment that are agile by utilizing the scrum methodology, and recruitment managers are seeking suitable candidates that possess the correct mindset. Many are using agile development, which is a means of creating software in tiny masses and short spurts as opposed to a single big, tedious waterfall project. JP Morgan Chase practiced agile development to produce its brand-new website. The company attributed its swift fulfillment to its appropriation of an agile environment.
PROVING ONE'S WORTH TO CANDIDATES
Since candidates are typically interested in businesses that are regarded as excellent employers, brand reputation to these individuals as consumers is essential. Companies operating in FinTech have developed channels and spaces for engagement, such as Fraedom's training and crowdsourcing, to enable gifted people to exchange both industry data and skills. This particular action allows candidates to view the company as a place that promotes the development of skills and the distribution of information.
ATTRACTIVE COMPENSATION AND TRAINING PACKAGE
According to Gartner and American Banker, FinTech businesses have selected to administer enticing compensation packages to allure exceptional expertise and retain talent. MPower Financing provides each employee with a dedicated supply of funds that can be utilized to finance development courses and professional training.