Fintech’s Biggest Hurdle: How UK Recruiters Solve Talent Crises
“Is the UK’s fintech sector at a crossroads due to the talent crisis?”
The UK’s fintech sector, renowned for its innovation and contribution to the economy, is currently facing a significant hurdle: a talent shortage that threatens to curb its growth. With the sector contributing over $13.4 billion and supporting more than 76,000 jobs, the stakes are high (FT Adviser). This article examines how UK recruiters can navigate and solve the talent crisis in fintech.
The talent shortage, particularly acute in tech and engineering roles, is not a problem that can be solved overnight. The financial crisis of the late 2000s, although a catalyst for the growth of the fintech industry, has led to a present-day skills and talent gap that now threatens the sector’s global competitiveness (The Fintech Times). The UK government has taken steps to mitigate this by introducing the global talent visa to attract global fintech leaders and talent to the UK. However, recruiters must adopt a multi-faceted approach to tackle this issue effectively.
Firstly, understanding the gravity of the situation is crucial. The top quintile of occupations in the UK had a vacancy rate of 3.6 percent in 2016, higher than the 2.4 percent across all occupations, indicating a significant mismatch in the labor market (McKinsey & Company). With the Bank of England forecasting an inflation rate of 10.7% for Q4 2022, the cost of living has risen sharply, making competitive compensation a critical factor in attracting and retaining talent (Bank of England, Office for National Statistics).
To address the talent shortage, UK recruiters should consider the following strategies:
1. **Global Sourcing and Mobility**: Utilizing the global talent visa, recruiters should actively source talent from a global pool. This not only brings in fresh expertise but also fosters a diverse and innovative work environment.
2. **Competitive Compensation**: With inflation impacting the cost of living, offering salaries that are adjusted to the economic conditions will make companies more attractive to top-tier talent. Employers are advised to review and adjust compensation in line with the forecasted 5 to 7 percent increase in the cost of living for the full year of 2023 (McKinsey & Company).
3. **Investment in Training and Development**: Companies should invest in training programs to upskill existing staff, particularly in areas where the talent shortage is most pronounced. This not only addresses the immediate skills gap but also promotes employee retention by offering career development opportunities.
4. **Strengthening Employer Branding**: A strong employer brand that resonates with values such as innovation, diversity, and growth can attract high-caliber candidates. Companies need to communicate their culture and vision effectively to stand out in the competitive job market.
5. **Adapting Recruitment Practices**: In the face of fierce competition for talent, traditional recruitment methods may fall short. Recruiters should leverage technology, such as AI-driven platforms, to streamline the hiring process and identify the best candidates efficiently.
6. **Partnerships with Educational Institutions**: Building relationships with universities and educational institutions can create a pipeline of talent. Internships, scholarships, and collaborative projects can introduce students to the fintech sector early in their careers.
In conclusion, the UK fintech sector’s ability to overcome its talent crisis hinges on a strategic and proactive approach to recruitment. By embracing global talent, offering competitive compensation, investing in employee development, enhancing employer branding, modernizing recruitment practices, and fostering educational partnerships, UK recruiters can bridge the talent gap and sustain the sector’s growth trajectory.
How will your organization adapt to these strategies to ensure you are not left behind in the race for fintech talent?
About
Warners Scott is a premier global executive recruitment specialist based in London and Dubai, focusing on Banking & Investments, Accounting & Finance, and Digital & Fintech. With over 18 years of experience, they have built strong relationships with top-tier banks, financial institutions, and accountancies. Their unique value lies in these long-standing relationships with hiring managers and internal recruiters, a vast network of candidates, and continuous engagement. This combination places them uniquely in the market, trusted by both talent and hiring managers. Their evolved perspective allows them to precisely understand recruitment needs and pinpoint senior C-suite, EVP, SVP, and MD-level hidden, ready-to-move talent that other recruiters cannot access.
Warners Scott delivers tailor-made recruitment solutions for international and regional clients, functioning as true business partners. Their comprehensive services cover retained, exclusive, and contingency searches, as well as permanent, contract, and interim staffing.
In Banking and Investments, they partner with international and regional banks and investment houses in London and the Middle East, including conventional and Islamic banks. They cover areas such as Private Equity, Asset Management, Investment Banking, Treasury & Global Markets, Wholesale Banking, Digital & Technology, Risk Management & Compliance, and C-Suite Appointments.
In Accounting and Finance, Warners Scott works alongside The Big 4 and Top 50 accounting firms, along with globally recognized consultancies. They specialize in Audit, Risk & Compliance, Tax (Private Client, Expatriate, and Corporate Tax), Corporate Finance, Transaction Advisory, Restructuring, Turnaround, Insolvency, Forensic Accounting, Disputes & Investigations, Forensic Technology, eDiscovery, Cyber Security, and Management Consultancy.
In Digital & Fintech, they assist large banks, digital startups, and innovative Fintechs in areas such as FinTech (AI, Blockchain, Cloud Computing, Big Data), InfoSec/Cybersecurity (Application, Infrastructure, Network, Cloud, IoT securities), Digital Leadership, Digital Transformation, Software Development, IT Project/Program management, Data Science & Analytics, Data Privacy, and Data Architecture.