The impact of banks adopting tech working practices on hiring into the industry
There is an increasing trend of banks adopting similar working practices to tech companies.
In search of innovation and agility, some parts of the industry are adjusting their approaches to work and how they get projects done. But with new ways of working, there are a few management challenges that arise in terms of required skill sets.
Tech companies often operate in fast-paced and rapidly changing environments. In adopting similar practices, banks need employees who can embrace an agile mindset, are able to quickly adapt and respond to evolving customer demands.
In order to get to this level of performance, managers should foster a culture of continuous learning and provide the suitable resources that enable upskilling within their teams so they are constantly at the forefront of this dynamic landscape.
Fostering a culture of innovation in banking
Tech firms are known for their innovation and disruptive approaches to problem solving. In emulating their processes, banks need employees who can generate creative solutions and drive innovation within the financial sector.
Managers should encourage a culture of experimentation by providing resources for innovation initiatives, as well as rewarding and recognising employees for their innovative contributions.
Adopting tech company practices often involves significant organisational change - and such transformations require effective management to ensure their success.
Managers will need to effectively communicate the rationale behind the changes, address concerns and provide support during the transition. They should also be championing change management initiatives and empowering employees to embrace and drive the transformation.
How to attract tech talent to retail and commercial banks
Despite widespread tech layoffs hitting headlines in the last year, the shortage of technology skills and talent is at an all time high, and attracting those in-demand professionals to the banking sector can be challenging due to competition from more traditionally innovative industries.
However, there are a few strategies the banks can adopt to appeal to technology professionals and sell the industry as just as enticing as others.
1. Showcasing technological advancements and plans
First and foremost, tech professionals tend to be highly interested in technological advancements and plans. Clearly highlighting these and any digital transformation initiatives currently happening within your particular organisation is a great way to capture their attention and tempt them to take your role.
Additionally, showcasing the use of emerging technologies (artificial intelligence, machine learning, blockchain) and demonstrating how technology is shaping the future of banking, and the opportunities it presents to have a real impact on the industry, will resonate with top tech talent.
2. Offering flexibility alongside competitive compensation and benefits
Embracing remote work options, flexible hours and work-life balance initiatives shows that the banking industry recognises the importance of a healthy work environment and supports employees' personal and professional wellbeing.
Strong compensation packages and attractive benefits, as ever, help banks to stay competitive in attracting talent. Additionally, non-monetary incentives such as stock options and recognition programs, as well as performance-based bonuses, can be key swaying factors in professionals’ decisions of whether to move into the banking industry or not.
Not sure what you should be paying your people? Use our salary guide tool to benchmark against your industry average.
To summarise, by combining these strategies, banks can position themselves as attractive options for tech talent:
- Highlighting the exciting technology-driven initiatives
- Opportunities for impact
- Challenging projects
- Flexible work arrangements
- Professional development programs
- Competitive compensation packages
Adjusting the balance of banking knowledge vs tech skills
When hiring tech talent, the primary focus is on technical skills and this will continue to be the case, with some roles benefiting from at least a basic understanding of banking concepts and processes.
For example, a Software Engineer working on banking applications may find it helpful to have knowledge of financial transactions, security protocols, compliance requirements, or regulatory frameworks.
However, most of this domain knowledge can be acquired on the job and is not a prerequisite. Banks that reduce the amount of qualifications and industry specific requirements when hiring tech roles will benefit from a broadened, more diverse talent pool.
Exploring tech talent without specific banking knowledge can lead to greater levels of innovation, because employees will apply strategies from their previous companies that are likely to be further along in embracing digital innovation. Look for those key transferable skills that you know will help them thrive in the banking sector, and they will quickly pick up the domain knowledge.
Technical employees from diverse backgrounds bring fresh perspectives and innovative ideas to the banking industry. They may introduce unconventional solutions of technology driven innovations that can enhance operational efficiency, customer experience and product development.
They also will bring technology expertise that is lacking within the banking sector. This expertise can be leveraged to adopt and implement cutting-edge technologies and stay ahead in a rapidly evolving digital landscape.