Today I want to share a finance market hiring trends update. Last year, 2023, was another unpredictable and turbulent time for the finance sector. Economic uncertainty shaped much of the hiring landscape even as inflation rates slowly reduced throughout the UK and other regions of the world.
Diminishing budgets have led to job cuts throughout certain sectors, such as the banking landscape, and some studies suggest 27.3% fewer jobs will be available to financial professionals in the year ahead. Additionally, the average number of applications received by financial companies increased by around 84% in the last year.
Though these statistics indicate the market is shifting in favour of employers, companies still face major hiring challenges.
Sorting through applications to find the right employees is becoming increasingly difficult, even with the advent of new technologies like AI in the recruitment sector. Additionally, skill shortages remain high, particularly as digital transformation continues at an accelerated rate.
Both candidates and employers will need additional support to ensure they can access the right results in the year ahead.
The Current General Recruitment Landscape
Last year, more candidates were looking to change roles to improve their pay and flexible working conditions due to rising living costs. Vacancies have also been falling consistently over the last two years. Despite this, unemployment rose slightly at the end of this year, reaching 4.3% in the UK.
Although the economy is still struggling, and some companies are cautiously hiring, 80% of businesses recruited through the third quarter of 2023; indicating companies are still searching for exceptional talent.
However, while the number of job applications is increasing, the average time to hire is rising, too, as companies struggle to find the right skills in a complex landscape. The average time to hire increased from 5.8 weeks to 6.1 weeks between the second and third quarters of last year.
Additionally, employers still demand more from employers, making certain vacancies much harder to fill.
What’s more, employees now require more than good remuneration packages. 44% of candidates say they still prioritise flexible working hours and work-life balance when searching for a new role.
To attract and retain talent, employers will need to invest in raising pay and develop stronger employee value propositions that focus on diversity, equity, and inclusion, as well as the wellbeing of their team members.
The Financial Recruitment Market
A complex economic environment has significantly impacted hiring trends in every industry. However, 60% of companies plan to expand their financial teams in the year ahead. Around 26% of CFOs plan on adding new positions this year.
New roles are emerging to coincide with digital transformation and changing regulations in the financial industry. Many businesses are now recruiting financial talent who excel in compliance, risk management, and business development.
Additionally, while the number of applicants grows in the financial sector, employers still face significant labour shortages. 89% of business leaders view talent attraction as an important challenge in the future.
One major concern for hiring managers today is the falling number of accounting and financial graduates. Fewer students are pursuing accounting degrees, which impacts the number of accountancy roles remaining unfulfilled.
The skill shortages in the current landscape and the rising cost of living concerns have also prompted financial professionals to demand higher salaries and more benefits. Last year, 89% of employers increased their accounting and finance salaries to attract new talent, and 86% believe they will raise remuneration even further this year.
As companies attempt to embrace “return to office” mandates, many financial professionals have suggested they will leave their organisations if they cannot continue accessing flexible work environments.
The Trends in the Financial Hiring Market
For some time now, the hiring market for accounting and financial professionals has swung in the favour of candidates. Ongoing skill shortages mean candidates have had more control over how, where, and when they work.
In the second half of last year, continued cost-of-living concerns led to a rise in job applications within the financial sector. However, this doesn’t necessarily mean employers are facing fewer challenges. There are still various complexities to overcome, from the rise of new generations in the job market to evolving technology and changing employee expectations.
Some of the key trends we are now seeing in the market include:
- Growing emphasis on diversity: As Gen Z enters the financial workforce, they bring a strong commitment to inclusivity. Gen Z refuse to work for employers that don’t prioritise DEI initiatives. They’re also demanding greater empathy and social awareness from the companies they work with.
- Changing skill requirements: The growing significance of soft skills in the financial landscape is reshaping recruitment trends. Studies show that 85% of job success may depend on well-developed soft skills like communication, problem-solving and adaptability. The uncertain economic landscape will require a focus on resilience in candidates.
- Upskilling and reskilling: Focus on upskilling and reskilling employees, which will remain crucial this year, 2024. The rise of new technologies in the financial landscape and fewer graduates in the field will require employers to invest in training initiatives that empower digital literacy and deliver analytical skills to team members.
- Employer branding: As employees continue to focus on wellbeing, diversity, and empathy when searching for employers, a strong approach to branding and a robust employee value proposition will be crucial. Studies suggest businesses with strong employer branding attract 50% more candidates than their peers.
- Work-life balance: Today’s financial employees still value work-life balance. According to the SHRM, accountants and auditors between the ages of 25 and 54 are more likely to leave their roles to avoid burnout and high workloads.
Looking Ahead: The Future of Financial Recruitment
The financial hiring market has been extremely complex throughout the last year. Although applications for job roles are increasing, skill shortages remain. Additionally, employees are becoming more discerning about where they choose to work.
Businesses must work harder than ever to cultivate talent, build robust talent pipelines, and retain crucial employees. Working with the right financial recruitment agency will be essential to fill the gaps in growing teams.
Recruitment firms specialising in accounting and finance can help to highlight each company’s unique employer brand and market positions in a way that attracts both passive and active candidates in a skills-short landscape.
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 learn more, contact one of our team members today or call us at 01282 930930.
