How Fintechs and banks can identify hidden talent opportunities
Sometimes the best way to find hidden talent in a competitive hiring market is to look for professionals who love to learn and experiment, not just follow instructions.
It is a common misconception that it is best to hire someone who can already do the job, which is currently being advertised, blindly. As a recruiter and hiring professional, clients tell me all the time that they “need someone who can hit the ground running.” This often cements a short term for that employment. “Hitting the ground” may sound good at first, but if the hire is already perfectly qualified, that role doesn’t offer clear opportunities for career progression.
Even with the changing market, consulting firms such as the Korn Ferry Institute predict that the lack of talent will only make recruiting more difficult in the years to come. It is critical to hire people who can develop new skills as fintech technologies change. As such, many fintech startups, and even legacy institutions like banks, are getting more creative with how they attract talent. This may include changing job descriptions or going directly to universities to recruit fresh talent.
The fintech companies that have been able to fill their skills gaps have typically identified hidden talent opportunities that go beyond traditional recruitment standards.
Caregivers returning to the workforce
For example, ‘returners’ and ‘rejoiners’ are terms used to attract people who have been out of the workforce for months or years. This often includes parents and carers. According to a report by Deloitte, companies that support caregivers returning to work see significant benefits, including increased loyalty and productivity. By investing in training and updating skills, fintech companies can quickly integrate these employees into their teams and reap the rewards of a more diverse workforce.
Career changers and remote workers
An ever-growing group of potential hires in the fintech industry are changing careers. These individuals may transition from military to civilian life or from teaching to the startup world. Many firms recognize the potential of these new hires, who are eager to learn and have transferable skills.
Remote workers, who can work from anywhere, offer a wider range of talent options and reduce conflicts created by personal commitments. A survey by McKinsey & Company found that when employees are given the option to work more flexibly, an astonishing 87% take it.
Fintech firms can discover a range of talent opportunities in the pipeline by taking a macro picture of their current applicants. It is important to assess applicants based on their interests and potential rather than solely on their previous experience. When recruiting, fintech companies should prioritize the values and motivation of candidates. This approach guarantees that the right people are trained and retained.
Several fintech firms I’ve worked with found successful hires by reworking the growth plan for that role and reallocating the budget for training to secure talent quickly and reduce churn. Each option makes the working environment fairer for employees with different backgrounds and circumstances.
Deep interest, attracted by corporate culture
Fintech firms can also build their brand and attract talent through indirect recruitment efforts such as podcasts, blogs, community initiatives and events. By showcasing their company culture and values, they can attract passionate employees who are excited about the company’s mission and vision. In addition, Bain & Company produced a report that found that mission and vision inspire workers to work more productively.
Finally, an excellent potential for discovering hidden talent lies within the existing workforce of the fintech company. It is more economical to invest in the professional development of current employees than to train a completely new employee. When a vacancy occurs, inform staff that they can apply for promotion to fill the position.
Almost all employees’ loyalty to and impact on the business will increase after a promotion, compared to a new hire who is already overqualified for the role. Just because a candidate has done a particular job at a competitor before does not automatically make the new trial candidate a good fit.
Hidden talent is simply the talent you didn’t think you could reach or people you didn’t previously consider qualified. Fintech companies that challenge their recruitment norms will reach their growth targets in 2023, regardless of a greater labor shortage.
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