Economic Uncertainty: How This Will Impact Hiring in Banking / Finance Sector

The economic outlook of the international banking industry seems uncertain, as seen in the unforeseen collapse of major financial institutions like Silicon Valley Bank (SVB) and Credit Suisse. Continuous volatility in the sector could present a pressing need for banking leaders to reevaluate risk governance practices and current hiring methods to engage upcoming talent. 

MRINetwork highlights recommended hiring strategies for banking and finance as the industry faces tightening lending rates and other reforms in light of the recent banking debacles.  

Focusing On Gen Z

Social research indicates that Gen Z (people born between 1996 and 2010) will make up 27% of the workforce by 2025. As such, it should be strategic for bank leaders and HR managers to target Gen Z in their recruitment campaigns. The engagement methods involved should gradually lean toward Gen Z preferences and behaviors as more members of the demographic enter the banking and finance sector. Some notable Gen Z employment preferences include:

• Transformational learning experiences. 
• Authentic purposes and social impact. (Studies show that 60% of Gen Z intend to make an impact on the world within their lifetime.)
• Diversity, equity, and inclusion practices (DEI). 
• Flexible and transparent workplaces with a focus on wellness.

Diving Into Soft Skills

A world increasingly filled with volatility, uncertainty, complexity, and ambiguity (VUCA) requires banking and financial hires to hone their soft skills to adapt and keep up with the shifting landscape. The top three soft skills prioritized among banking professionals include resilience, proactivity, and interpersonal skills. It is advantageous for employers to consider these three attributes when hiring a team that can successfully navigate the challenges of economic uncertainty.   

Resilience

Resilient members in the financial and banking industry possess the skills and attitude to endure impact tolerance within companies. A resilient workplace mindset enables individuals to learn quickly from pitfalls and rally back efficiently by leveraging their strengths. 

Proactivity

Proactive individuals think ahead to help mitigate the effects of a crisis. Hires with this trait tend to implement preventative measures in their duties and take a conscientious approach to task management. 

Interpersonal Skills 

Modern hires should possess effective interpersonal skills and proficiencies to maintain optimal communication with team members, leaders, customers, and other stakeholders throughout the most disruptive periods. Financial institutions should also instill transparency as a policy. Opaque communications and practices led to the corporate espionage scandal and the misleading of investors in mortgage-backed securities which led to Credit Suisse’s collapse.    

Expected Salary Increments

The demands, challenges, and uncertainties of the industry have led to employees seeking higher wages. A workforce survey reveals that 41% of employees expect a salary increase in addition to expected indexation. It has become increasingly important for banking and financial leaders to prioritize employee remuneration needs and expectations in response to persistent inflationary pressures. 

With 2022 revealing the highest salary budget increase worldwide in nearly 20 years, these trends might continue into the upcoming years in safeguarding employee job security. 

Facing The Economy With Preparedness

As banks and other financial institutions continue to tread in the landscape of economic uncertainty, it boils down to optimizing the hiring process to keep operations running cost-effectively. Tailoring hiring initiatives to fit emerging employee demands and retaining qualified talent could ultimately lead to long-term success in a volatile sphere.