2023 is set to be a big year, but while there are many exciting things on the horizon for the next 12 months, it’s important to be aware of potential challenges facing the industry, and what this means when recruiting new talent.
We believe that by being aware and prepared, you can better manage risks and capitalise on opportunities. And building a strong workforce, with a variety of skills will be ever the more important.
Technology & Cybersecurity
Technology continues to transform the financial services and wealth management industry. New artificial intelligence such as ChatGPT, is now being introduced into most sectors including broking, banking and beyond. This brings with it incredible positive potential, but also many risks that must be considered. Financial institutions and firms would be wise to take the time to assess and understand both the opportunities and challenges that AI bring.
Technology changes also bring with them new cybersecurity risks. After the infamous Optus data breach last year and scams plaguing consumers across the country, firms will need to invest in stronger cybersecurity measures. This may entail a review of the software being deployed within the organisation and ensuring regular updates and maintenance are carried out. Hiring fintech staff and in-house cyber security experts to manage possible hacks may be vital to the success of your business in 2023. This will be a big consideration for many employers this year and the near future.
Inflation
As workers seek larger wage increases to compensate for the effects of inflation, the demand for wage growth increases firms’ costs. To appeal to a larger pool of candidates, its now more important than ever to ask what you can offer, whether that be higher wages, flexible working arrangements or performance bonus’.
Rising costs of living also mean increasing service costs, which may mean costs are passed onto clients and the risk of staff cuts is heightened. During this period, considering off-shore, temporary or contractor staff may be worthwhile.
Historically, there is a distinct correlation between high inflation rates and poor performance in the financial sector. Take the recession of the early 90’s for example, which saw interest rates spike to 17.5% and the subsequent economic challenges that followed. That being said, the mortgage broking sector has seen it’s biggest growth on record, so it’s not all doom and gloom.
Retention
With burnout at an all-time high in 2022, particularly for senior, executive and C-suite positions, adequate support for leaders will be key to attracting and retaining talent this year.
There is also an increased need for better support and ongoing training for employees, particularly in the advisory sector where strict new requirements saw unprecedented departures from the industry last year. As numbers dwindle, it is the ideal time to seek the expertise of a specialist recruiter that can source candidates to help you build a strong team and continue growth, despite with smaller talent pools in the current climate.
Employees are your most important asset, and as such, firms that invest in adequate support, training, technology and prioritise better work-life balance will be more likely to generate a sense of purpose for employees and enable them to better achieve the your business vision.
At the Godfrey Group, we are experts in helping you build your team and navigating employment challenges in all economic circumstances. Now is the ideal time to recruit and grow your team in order to tackle any obstacles 2023 might present. Make 2023 your year by speaking to our financial services recruiters today on 02 8004 9350.
