Financial Services Talent Models Are Unsustainable

News Release

Financial Services Talent Models Are Unsustainable In New Business Climate

Research from PwC has found global financial services CEOs view talent shortages and limited availability of skills as the biggest threat to growth.

PwC Global’s latest report Seizing back the people agenda also suggests current models for people management are unsustainable in the face of new market realities and that rebuilding trust and re-engagement with employees, customers and society as a whole is needed.

Findings include:
·        A combination of technology, new capital demands and the economic situation are transforming customer expectations and making once-profitable areas of business unviable.

· More than 80% of financial services leaders see over-regulation as a threat to growth while more than half are concerned about the shift in customer spending and behaviour.

· Half of financial services CEOs believe a lack of trust in the industry is holding back growth.

· Rebuilding trust with disenchanted customers is going to be vital in order to strengthen customer loyalty, retention and growth – the number one strategic priority for industry leaders.

· Re-engaging with customers is going to be extremely difficult without re-engaging with employees and the challenge is heightened by the extent to which trust between employers and employees in the industry
has been shaken by retrenchment and organisational upheaval.

· Significant changes required in organisation culture, including demonstrating and reinforcing the right behaviours across all front and back office functions and geographies.

Consulting Partner Debbie Francis says, “Rather than actively shaping the people strategies that financial institutions need to move the business forward, many are reacting to immediate pressures. Yet, the upheaval in the marketplace and challenge of re-engaging with customers and staff are making the need to regain control of the people agenda ever more pressing. To get their people strategy onto the front foot, executives need to know what the new objectives for the business are and what people strategy components are needed to support and deliver them.

“Addressing these questions will make sure businesses are more likely to have the right people, with the right skills and motivation to contend with the new market realities and take the business forward. Underpinning this will be a clear statement of why people would want to work for the business, which is capable of attracting and retaining talent without simply relying on pay.”

Focusing on rebuilding reputation and a new employee value proposition can support talent attraction, motivation and retention.

“A culture of integrity, customer focus and risk-awareness is critical in re-engaging with customers and rebuilding confidence in the industry. There are clear competitive advantages for getting this right including better targeting of products, stronger reputation and more effective retention of key people,” concludes Mrs Francis.

ENDS

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