Finance Job Review of 2022

This post reviews the current financial job and talent market as we approach the end of 2022 and enter 2023. The data and findings shared here are based on discoveries from recognised journals and market leaders.  

2022 has been a complicated year for employers. Unemployment rates have reached all-time lows, despite the “Great Resignation“, prompting countless professionals to leave their roles in search of new opportunities.   

While the UK’s hiring market is booming, as companies strive to fill gaps in their talent pipeline and adapt to changing skill demands in the financial space, employers are under significant pressure. Looming recession and rising cost-of-living prices are prompting staff members to request higher pay packages and more significant benefits from their employers. 

At the same time, companies are being forced to re-think how they tackle concepts like employee experience and satisfaction when workplace burnout is greater than ever. One report from Deloitte found 53% of professional women say their stress levels are now higher than they were a year ago – during the height of the pandemic.  

As hiring top talent remains a priority for skills-short companies, it’s essential for business leaders to have a recruitment strategy that not only preserves their pipeline, but also helps them effectively highlight and promote an appealing employer brand. 

The Current State of the General Recruitment Landscape 

 

 

On a broad scale, employers are hiring more talent than ever to overcome the Great Resignation’s side effects and adapt to the age of digital transformation.  

According to the CIPD’s latest “Labour Market Outlook Report“, the market for talent remains incredibly tight, making essential candidates more difficult to come by. As a result, many employers are pulling out all the stops to attract and retain crucial talent.  

Thanks to the recession and economic downturn, the quest for talent for many companies starts with offering higher salaries. The rising competition for scarce candidates has driven massive increases in starting pay for temporary, interim and permanent workers. 

Pay award expectations hit a record high in the private sector, increasing by 4% – the highest of any industry in the Labour Market Outlook report series, which started in 2012. However, the CIPD has also warned that significant pay increases are unlikely to be sustainable for long periods. As a result, employers will also need to look for other ways to attract and support their workers.  

This could involve implementing more diverse “benefits” into the employment package for new staff members. Giving teams the option to work remotely or implementing a four-day work week could allow companies to save some money on office overheads while attracting a broader range of talented professionals.

Additionally, companies will need to work harder to support employee well-being when anxiety and mental health issues are rising.  

Plus, there will be a growing demand for employers from all sectors to invest more heavily in upskilling and reskilling their staff members, not only to boost retention but also to fill some of the talent gaps emerging in different fields with the rise of new technology. Today’s employers say their key focus areas going into 2023 will include: 

• Upskilling more existing staff members (41%) 
• Advertising more “flexible” jobs (35%) 
• Raising wages (29%) 

Specialist recruitment professionals are likely to become necessary for companies who want to ensure ongoing growth by placing their employer brand in front of the right talent at the most effective times.  

How is the Finance Recruitment Market Faring? 

 

 

While skill shortages are being felt significantly throughout virtually every industry, the finance sector is struggling more than most. Around 3 in 10 hiring managers face increased competition for high-calibre finance professionals. 

In the UK, the issue is particularly potent. Between April and June 2022, the finance industry reported more than five vacancies available for every 100 jobs. This is the highest number since records began in 2001, placing finance companies behind only tech and hospitality firms. 

The skills gap in the finance industry is widened by several factors, including more firms going “digital” and requiring their employees to have new skills. At the same time, people are rapidly re-adjusting their work priorities and looking for different types of employment following the COVID-19 pandemic.  

This means hiring staff in the finance sector is taking more time and effort than usual. For many companies, the hiring issues have prompted an increased demand for upskilling existing financial professionals. Many firms have begun training their teams in new areas, like machine learning and automation, to avoid having to search for new staff.  

Equally, companies are forced to adjust their recruitment strategies and focus on more diverse methods for collecting new talent. Around 61% of employers are now recruiting temporary workers to fill skill gaps, while 52% seek professional recruitment company support.  

UK economist from Glassdoor, Lauren Thomas, notes many finance companies may need to start looking for different types of employees to fill roles. Employers struggling to hire may need to focus on over-65s. Students offer another possibility for finance firms willing to provide training and support.  

What Does This Mean for Finance Job Seekers?

 

Overall, demand for new talent is high in virtually every sector. Around 72% of employers expect to recruit new talent within the next three months. This number increases to 84% for the public sector. Additionally, redundancy intentions are lower than usual, with only 13% of employers expecting to make team members redundant within the next three months.  

Forecasts of a recession may eventually reduce the number of job opportunities available to professionals. However, since a recession brings new demand for finance management, it’s unlikely professionals in this sector will lose their influence on the market.  

A PWC study found 83% of executives are currently focusing their business strategy on growth, with only 30% saying the possibility of a recession is a risk to their hiring plans.  

This is good news for accounting and finance professionals, as plenty of high-paying and versatile job opportunities will likely be available. Most finance professionals will continue to have an excellent range of job options, which could mean they end up with multiple offers to contend with in the year ahead.  

The key for financial professionals moving forward into 2023 will be to find job opportunities with the best potential for long-term growth. Rather than focusing on short-term pay hikes, these individuals need to consider which role opportunities are best-suited to their career goals.  

Partnering with recruiting firms to find employment opportunities which match specific values and priorities will be particularly important for finance job seekers in the years ahead.  

What’s Next? 

Overall, the hiring market for finance companies remains complex and dynamic. Even with economic recessions to consider, and skill shortages to address, most financial professionals will need to continue working on their hiring and retention plans in the year ahead.  

For employers, the focus will likely be on creating comprehensive hiring strategies and onboarding and upskilling efforts designed to retain and optimise current staff. For candidates in the finance sector, the goal will be to choose the right opportunities in an environment brimming with endless options.  

On both sides of the fence, a specialist recruitment partner will be a powerful ally over the next year.

 

Thanks, 

Rachel 

About Rebus Financial Recruitment     

Rebus Financial Recruitment provides a specialist and focused recruitment service to its customers, ranging from various organisations, including SMEs, to large PLCs.     

We strive to offer both the client and candidate a seamless recruitment experience. Using our expertise, we get to the heart of employer and employee needs, and, in doing so, we match the two perfectly. To find out more, get in contact with one of our team today, or you can call us on 01282 930930.