Talent shortages are holding back or even derailing growth plans for many financial services firms. Developing a strategic proactive approach to workforce planning can now provide a significant competitive edge.
According to a recent PwC report, “fs view – point of view”, 48% of financial services CEOs are looking to increase their headcount over the next 12 months. Only 19% are planning to reduce staff overall, though these headline findings mask more varied changes in skills needs, shortages and surplus numbers in particular locations.
These talent constraints and their consequences are set to increase. More than three-quarters of financial services CEOs want to change their strategies for managing talent. More than 40% are planning to move experienced employees from their home market to newer markets to circumvent skills shortages. Far fewer are planning longer term solutions, such as technology investments or strategic partnerships.
The PwC report further states, “We have observed most financial institutions relying heavily on an annual review process.” They also expressed the opinion that this is like trying to “drive forward by looking in the rear-view mirror.” This supports my position, which I expressed in a recent blog, “Hire Top Talent through the Windshield, not the Rear View Mirror: the Past is Not the Best Indicator of Future Performance”. We also recommend the use of talent assessments as a forward-looking process to evaluate a department, function, or the entire financial institution as a whole. You may also obtain an Executive Summary of the Total Talent Management System™ and access recent blog posts at www.talentmanagementinstitute.com
Bob Moore, CMC