AMID high-profile layoffs that have hit some global banks, financial-services firms are still grappling with a shortage of good talent. And increasingly, they are looking at hiring from within, reskilling their employees and using more flexible leadership structures, market players say.
Banks are increasingly opting for alternative strategies to retain experienced talents, says Charnele Tan, assistant director at recruitment-services provider The GMP Group.
One strategy entails offering lower pay for a reduced workload, possibly involving a flexible work arrangement with remote work or reduced hours or days. Another involves lateral moves within the organization to retain experienced professionals. Yet another takes the form of engaging experienced professionals as advisors or consultants – a plus for the flexibility it offers both the individual and the company, with the latter still being able to leverage their expertise.
Tan added: "As the financial sector continues to evolve, I would see that a combination of strategies will be necessary to attract and retain top talent."
Despite the layoff news, the financial services sector is still growing. The number of professionals employed in this sector rose marginally by 0.1 per cent on average over the course of 2024, going by LinkedIn’s data as at December. But the large local banks outpaced this, recording employment growth exceeding 2 per cent.
Chua Pei Ying, Asia-Pacific lead economist at LinkedIn, said: "As key players in the local market, these banks are positioning themselves to lead the sector’s growth and enhance Singapore’s status as a global financial hub."
Market observers pointed out that a growing organization would still face vacancies in certain areas that can be filled only externally. However, Nesan Govender, talent and organization lead for South-east Asia at Accenture, noted that financial institutions are increasingly looking inward, and making their pick from their existing talent pools.
He attributed this shift to an uncertain macroeconomic environment, which has contributed to a talent shortage across industries, including the financial sector.
There is also the consideration of costs. Tan Yong Fei, head of work and rewards for Singapore at global advisory WTW, noted: "The average cost saving to build talent from within the company is about 15 and 20 per cent, compared to hiring someone new externally."
Reshaping Job Roles
Tan highlighted that the finance industry has been reshaping various job roles and the skills required for professionals in the sector "to uplift careers and transform their workforce".
Govender further pointed out that players in the financial sector are adapting to the needs of their employees, including mid-career professionals, by rethinking their "employee value proposition" – what the company can offer its employees by way of benefits and values.
Salary remains an important aspect, he said, but noted that progressive financial institutions understand that rewards should also address employees’ broader needs, such as benefits, well-being, and career progression.
The GMP Group’s Tan sees banks re-evaluating their operating models and cost structures, in response to increasing pressures from, for example, rising interest rates, economic uncertainty, and technological advancements.
"While some may cut senior positions to reduce costs, others may shift towards a more flexible approach and redefine seniority based on performance, skills, and contributions to the business, rather than solely on tenure or hierarchical position," she said.
But these changes may vary across financial institutions and business lines, with some banks being more aggressive in their restructuring efforts.
Areas of Growth: Data Analytics, Cybersecurity, and the Green Economy
Certain roles continue to experience strong demand. Rahul Chawla, partner and head of talent solutions for South-east Asia at Aon, cited positions in data analytics, cybersecurity, and risk management as highly sought-after across sectors.
Wealth management also remains a key focus area for financial-services firms in Singapore, driving demand for relationship managers and investment experts.
LinkedIn’s Chua noted that green finance holds "immense growth potential" in the Republic, with over 12 per cent of talent hired into the financial-services sector in green finance. In 2021, the figure was 10 per cent.
Conclusion
In conclusion, the financial services sector is still growing, with large local banks outpacing the average employment growth rate. While there may be a talent shortage, financial institutions are looking inward, reskilling their employees, and using more flexible leadership structures. They are also re-evaluating their operating models and cost structures in response to increasing pressures from rising interest rates, economic uncertainty, and technological advancements.
FAQs
Q: What strategies are financial institutions using to retain experienced talents?
A: One strategy entails offering lower pay for a reduced workload, possibly involving a flexible work arrangement with remote work or reduced hours or days. Another involves lateral moves within the organization to retain experienced professionals. Yet another takes the form of engaging experienced professionals as advisors or consultants – a plus for the flexibility it offers both the individual and the company, with the latter still being able to leverage their expertise.
Q: What are the in-demand roles in the financial services sector?
A: Data analytics, cybersecurity, and risk management are highly sought-after across sectors. Wealth management also remains a key focus area for financial-services firms in Singapore, driving demand for relationship managers and investment experts.
Q: What is the growth potential of green finance in Singapore?
A: LinkedIn’s Chua noted that green finance holds "immense growth potential" in the Republic, with over 12 per cent of talent hired into the financial-services sector in green finance in 2021, increasing to 10 per cent.
