In this most turbulent of years, we surveyed business leaders in Fintech, asking “what next?” for employment in the industry. Over 80 C-Level, leadership and HR-focused respondents provided their reflections on a year like no other, and shared their insights on the path ahead for 2021 and beyond.
We hope you find these insights useful, and invite you to connect with us for further information or to discuss your business’ plans.
Neill Butcher
Neill Butcher, Chief Commercial Officer, Fintech
The Conexus Group helps businesses accelerate through the provision of advisory, staffing and training services. Established 2001, with over 100+ people in 6 locations, we offer an integrated suite of services for fintech businesses worldwide.
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Pre-Covid, this number was much higher (82%), but "significant" growth remains the plan for 20%
As the whole world turned to Zoom, fintech was no exception - but the long-term remains unclear
Despite everything this has thrown, the industry is expected to have increased its headcount marginally
The majority of fintech businesses made no reductions, whilst a small minority in hard hit sub-sectors made significant cutbacks
Travel restrictions and social distancing slowed (but didn't stop) hiring and staff onboarding
Only "uncertain market demand" ranked higher as a strategic concern for businesses
TREND 1
"46% Of Businesses Expect To Increase Headcount In 2021"
Confidence is returning. Going into 2020, the industry was heading for a bumper year, with workforce growth projections to match. A full 82% of businesses were forecasting workforce growth.
Covid-19 put many hiring plans on a short-term freeze as companies instigated tight financial measures. For some – particularly in hard-hit sub-sectors like travel – the impact was felt severely; around 1 in 5 have undergone significant headcount reductions.
Essential hiring continued throughout, though, and the majority have already returned to approaching pre-Covid activity levels.
The really heartening news comes from 2021 workforce growth projections; 46% of the businesses we surveyed are still expecting to expand headcount in the coming year. Whilst of course this represents a decline from pre-Covid expectations, the industry clearly feels a strong sense of assurance that hiring is the right approach.
As 2020 draws to a close there is keen appetite to escape the uncertain climate of this year, so businesses will be looking to ways to get talent acquisition plans back on track.
TREND 2
"Only 12% of respondents felt Covid-19 Caused 'Significant Impact' To Business"
Even the widespread and significant economic shock of Covid-19 wasn’t enough to knock fintech off it’s rapid-growth course. Business continued, and in some cases even accelerated as a result of rapid digitalisation.
In fact, maintaining fully-functional operations throughout the pandemic has proven that the industry has its fair share of ‘key workers’ with a critical role to play in society.
Such a major change to our economies and markets clearly impacts businesses in different ways. 34% of our respondents experienced ‘reduced demand’ this year, but another 29% saw demand ‘increase’. Covid-19 has necessitated a highly agile approach from the industry and its leaders.
International travel restrictions were the #01 barrier to effective operations caused by Covid-19 (notably, ranking higher than ‘working from home’.) Closed borders and isolation measures limited high-level business deals and partnerships, as well as slowing down international talent movement.
Now that the industry has shown its firm resilience, it seems that 2021 could see a significantly more certain path – even as Covid-19’s impact continues to evolve.
TREND 3
"Productivity Was Rated 20% Higher During Work-From-Home Periods"
Even pre-2020, a full third of fintech employees worked remotely at least 1 day a week. This year, though, that number shot up to 83%; everyone from the grads to the C-suite set up home offices.
What happened to productivity levels? This was, in many ways, the world’s largest ever ‘natural experiment’ into working habits. Our results show that productivity was actually 20% higher as working from home policies were instigated.
Almost every employee was able to keep plates spinning from home (although of course there were notable exceptions, including those keeping critical tech infrastructure operational.) HR operations continued too: 60% conducted remote interviews; 55% trained existing staff; and 45% inducted new staff entirely online.
So, will the remote revolution stick after social distancing relaxes? Early signs are that, whilst the experiment proved hugely successful and largely popular with employees, employers aren’t ready to cut all ties just yet.
TREND 4
"Applications Are Already 20% Higher, But The Supply Of Qualified Candidates Is No Larger"
For years, Fintech has suffered a severe talent shortage that has limited growth. Industry experience commands a premium, but even high salary levels cannot always secure talent, particularly in high-demand specialisms (the most sought-after being tech (51%); marketing (60%); and product (34%).)
Will a changing job market improve the outlook for employers, then? Our respondents seemed not to think so, with 43% ranking “hiring high quality talent” as the second biggest challenge for the coming year (below only “uncertain market demand” at 44%.)
Whilst applications for advertised jobs are already 20% higher than pre-Covid levels, in reality the ‘qualified’ talent pool is little larger than it’s ever been.
To address the talent shortage, employers will need to take a strategic approach to workforce growth. There are significant opportunities created by a growing supply of candidates who are ‘talented, but with no direct industry experience’. Long-term hires, and strong training programmes, will be required.
Fintech leaders will be entering 2021 with a wholly different ‘world view’ to twelve months previous. Whilst uncertainty prevails, surer footing is being found. Those committed to growth in the coming year should start with a clear talent acquisition strategy.
Hiring talented professionals and building high-performing teams is a challenge that can take decades to achieve. Even significant disruption to business (such as that seen this year) should not, if possible, affect leaders’ focus on this critical goal. Strong businesses should do everything they can to prioritise employee retention – and yes, even talent acquisition – even in the face of temporary uncertainty.
It’s never been more important to maintain strong company cohesion. As Covid-19 suppression measures continue to affect normal team interactions, business leaders should work harder than ever to ensure positive communications and open lines of dialogue. This is critical, not just for productivity but also the wellbeing of staff.
Companies have been able to keep hiring activity ongoing throughout the pandemic thanks to remote platforms that facilitate interview processes. However, remote processes typically take weeks longer than usual, and both parties can struggle to feel 100% confidence in their decision. Employers would do well to consider how they can resolve these issues.
Ultimately, it’s going to remain challenging to find and recruit talented Fintech professionals for some time to come. Employers will need to maintain, or even increase, their commitment to proactive talent acquisition and progression strategies if they are to succeed with growth plans.
There are undoubtedly going to be increased opportunities for out-of-industry hiring over the comings months and, perhaps, years. Direct industry experience is often seen as a deal-breaker requirement for employers, but an openness to hiring for ‘potential’ could serve many well in the coming market.
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October 2020