RegTech face a new challenge with talent acquisition and retention as soon as they become more adept at overcoming the client acquisition problem
Over the past few years, the RegTech industry has grown steadily, attracting more attention than ever. As a result of this market’s popularity and the physical challenges the pandemic presents, a growing number of businesses have entered it. Despite this, there are still some difficulties, most notably the lack of talent in the industry. The need for more efficient and effective compliance solutions and rising regulatory requirements have fueled the rapid growth of the RegTech sector over the past few years. The lack of talent, however, is one of the most significant issues. RegTech companies are currently dealing with.
What is the cause of the talent shortage? A few include the rising demand for RegTech solutions, the industry’s specialization, and the dearth of experienced professionals. RegTech face a new challenge with talent acquisition and retention as soon as they become more adept at overcoming the client acquisition problem.
The stress associated with sales is increased by the possibility of losing a skilled and expanding workforce and customer service. In light of this, keeping talented employees on board is just as crucial as attracting new clients.
Here are some of the critical strategies businesses can use to combat the talent shortage:
Put retention strategies first
By putting employee retention first, businesses can reduce the number of positions they need to fill. Employees can feel valued by the company by proactively incorporating diversity and inclusion measures and providing more substantial benefits. The excellent diversity and inclusion framework will draw a larger talent pool and viewpoints to help advance businesses. Organizations must cultivate the proper organizational culture and leadership to retain top talent. Businesses should select the best leaders and constantly be transparent about their financial goals.
Also Read: The Importance of RegTech in Ensuring Fintech Security and Compliance
Building employer brand and reputation
Companies can concentrate on enhancing their reputation as great employers. Ensuring that marketing and HR initiatives work in tandem and developing targeted strategies can be one way to achieve this. They could highlight the company’s culture, values, mission, and dedication to employee benefits, career advancement, and talent development, too, helping the business stand out from the competition and attract top talent. Organizations should invest in training and development programs for their current employees to develop internal talent and build a talent pipeline for future hiring needs. Employee engagement and retention can both benefit from employee growth and development.
By hiring from unconventional sources, RegTech companies can also try to diversify their talent pool, which could also entail hiring people outside the financial services sector or collaborating with academic institutions to create training programs for undergraduates and recent graduates. By doing so, the industry may benefit from fresh viewpoints and ideas and a more inclusive and diverse workforce.
Utilize technology to simplify and automate tasks
Utilizing technology to automate and streamline some tasks will allow businesses to better address the talent shortage facing RegTechs and give staff members more time to work on higher-value tasks. The need for specialized talent in some fields will decrease, and workers can concentrate on more strategic tasks. Businesses must invest in competitive employee benefits like a four-day workweek, remote working arrangements, health insurance, and more paid vacation days per year to attract and keep more talent.
Put diversity first and promote it
Ensuring diversity and inclusion are adequately prioritized and promoted in their hiring practices and workplace cultures is a significant challenge for the RegTech sector. This entails actively promoting women and other underrepresented groups, establishing diversity targets and metrics, and implementing unconscious bias training for hiring managers.
RegTech is, unfortunately, one of many industries where discrimination and gender bias are still pervasive problems. Despite recent improvements, the UK fintech sector still struggles with gender diversity. According to the gender diversity research by Innovate Finance, women make up only 29% of employees and 17% of senior leadership positions. This misrepresentation of women in the RegTech sector remains a serious problem for the industry and directly affects the talent shortage issue.
More training is required
There are still significant areas where the RegTech sector has not significantly impacted, despite its growing stature and presence in the financial market. RegTech is a young industry, so it lacks a well-established system for retaining skilled workers and providing them with training. There are few pertinent training programs and no genuinely “RegTech-unique” professions or titles. Therefore, RegTech companies must look for employees in the closest aligned relevant industries: technology and finance, which could be a challenge or an opportunity.
Businesses in the RegTech and fintech sectors must continue to support partnerships with educational institutions to encourage learning and raise awareness among the upcoming FinTech talent pool. STEM (Science, Technology, Engineering, and Mathematics) programs for students and customized FinTech education for adult learning are promoted by many universities worldwide. FinTechs will create a platform to draw future employees enthusiastic about the sector by collaborating with educational institutions and initiatives to channel enthusiasm and learning for financial technology.
Also Read: How Digital Platforms Drive Compliance in Fintech
Establishing an innovative culture
Business culture is a final point worth mentioning. Companies with an internal culture encouraging innovation can attract inquisitive, highly talented, motivated, and innovative individuals. In addition, upgrading the current employees through the proper training programs will provide them with new skills that will help boost productivity and drive efficiency throughout the company, as also future-proof FinTechs by attracting the right individuals committed to their long-term success. Companies can improve employee morale and foster a more creative and productive workforce by taking these steps to make their workplaces more inclusive and welcoming for all employees.
Companies can appeal to and retain top talent and promote ongoing growth and innovation in the sector by developing their employer brand, investing in training and development programs, diversifying their talent pool, and improving employee benefits.
A combination of tactics can help RegTech overcome its talent shortage, such as:
- Developing a strong employer brand
- Making investments in employee training and development
- Diversifying the talent pool
- Providing competitive benefits
- Placing a priority on diversity
- Inclusion in hiring procedures and workplace culture
It is crucial to realize that these steps should not be considered a quick solution but rather a cultural shift toward ongoing support for the abovementioned initiatives. Companies can only guarantee a thriving workplace now and in the future through this strategy.