Financial Services: Five trends you should be looking out for in 2016 - January 2016
1. Increasing turnover of millennials
If you haven’t already heard, ‘millennial’ was the buzzword of 2015. It relates to the portion of the population that reached young adulthood around the year 2000, and this generation are causing quite a stir in the financial services industry. Notably, millennials are typically prone to have low levels of company loyalty, be money driven and be more digitally connected than other generations.
According to a report by PwC, only 10% of millennials in the financial services industry plan to stay in their current role for the long term, with many viewing the industry as a stepping stone to careers elsewhere; a factor worth considering throughout the year ahead.
2. Gender equality in the workplace
The increased focus on workplace diversity is another key trend set to make waves in 2016. PwC report that a staggering 73% of female millennials within the financial services industry believe that while their respective organisations are vocal about diversity, opportunities within the companies are not equal at all.
This year, companies who employ over 250 people will need to openly publish their single figure pay gap, with the current national gender pay gap standing at 19.1%, propelling this issue to the forefront of financial services organisations’ agendas, who are reported to typically have a higher than average pay gap at present.
3. Workplace flexibility
As financial organisations all around the world become increasingly digital, there is a real spotlight on flexibility in the workplace and this is set to continue throughout 2016.
With the financial services industry reporting longer working hours than any other, the ability to work from home or at least be reachable outside of standard working hours is on the rise. Forbes note that 64% of managers expect to be able to reach their staff when they are not physically present in the office, and providing employees who need to be continually available with the means to be contacted should be on every firm’s plan of action for 2016.
4. Skill shortage
Onrec report that the financial and accountancy sector is the industry leader in terms of the volume of vacancies on the market, with this figure showing growth of 16% year on year for permanent vacancies, over and above the collective average of 6%.
That said, the potential issue to watch out for in 2016 is the depleting number of skilled accountancy and finance professionals available on the market to fill the growing number of vacancies. APSCo convey that the UK faces a deficit of 10,200 qualified accountants by 2050 due to talent shortages, an ageing workforce and restrictive migration policy. Although they also report an increase in placements, the fear is that the increased confidence in the market will lead to a larger number of vacancies for which there is a shortfall of skilled candidates who are able to fill them.
Your best bet is to start planning for your hiring needs for the year ahead now and work closely with a recruitment solutions provider to ensure you have access to the strongest candidates on the market at the time that you require them.
In December 2015, The Bank of England expressed their acute concerns over the rise of cyber attacks within the financial services sector, and urged organisations to increase their cybersecurity awareness and defences to avoid attacks moving forward. This issue was raised in response to a survey they conducted that showed the rapid spread of cyber crime across UK businesses. To avoid the risk of this growing issue at your firm, make sure you have the necessary controls in place, as well as a strategy to recover in the unfortunate event you become a victim of cybercrime in the year ahead.
Sheridan Maine’s unmatched knowledge of Finance and Accountancy Recruitment is why they are the go-to specialists for permanent, contact and interim positions for a broad range of clients across Basingstoke, South Hampshire, Reading, Bournemouth, Bristol, London and Birmingham.