The financial services industry is undergoing significant transformation, and employee experience is at the heart of this change. In WSA’s latest learning session, “Employee Experience Trends in Financial Services,” we explored the evolving landscape of engagement, retention, and the unique challenges facing the sector, guided by insights from Dr. Karen Moriarty.
Disruption: The Emergence of FinTech
Drawing from our proprietary norms database, we examined key trends in employee engagement and retention. Over the years, engagement has remained steady, though the COVID-19 pandemic temporarily boosted it. However, once the pandemic subsided, engagement scores slowly returned to their original levels as employees sought new job opportunities.
We also noted that the rise of FinTech has disrupted the industry, fundamentally altering the workforce composition. Where finance, sales, and operations roles once dominated, marketing and engineering positions have surged. This shift reflects the growing role of technology in financial services, moving many processes online and reducing the reliance on traditional, in-person operations.
Key Drivers of Engagement in Financial Services
Our findings show that understanding the drivers of engagement is essential for enhancing employee experience. The top drivers we identified in financial services include:
- Belief in the company’s future: Employees are more engaged when they feel confident about the organization’s long-term success. Clear communication about organizational goals and helping employees see how their work contributes to these objectives is key.
- Trust in leadership: Trust is a cornerstone of engagement. Employees need to see leadership act with transparency and integrity, aligning their actions with the company’s values and following through on promises.
- Recognition and feeling valued: Recognition is most effective when it is specific and aligned with company values. Employees need to know that their contributions are recognized not only for productivity but also the unique skills and qualities they bring to the workplace.
Adapting to Technological Changes
We also explored how technological change is reshaping financial services. FinTech is revolutionizing operations, from digital banking to automated insurance processes. This shift requires organizations to rethink their workforce strategies, as automation reduces the need for some roles while increasing demand for tech-driven positions.
In response to these shifts, upskilling has emerged as a critical retention strategy. Employees seek opportunities to grow and adapt to new technologies, and organizations investing in upskilling will see higher engagement and lower turnover. Retaining skilled employees by aligning their abilities with emerging technologies is essential for staying competitive in this rapidly evolving industry.
Retention Through Meaningful Change
We discussed how retention is closely tied to how well organizations manage change. Employees are more likely to stay when they feel their skills are being utilized effectively and see opportunities for career growth. In the financial services sector, where the median turnover rate is five years, organizations risk losing valuable knowledge and experience when tenured employees leave.
To mitigate this risk, we emphasized the importance of creating clear paths for advancement and providing opportunities for employees to develop their skills. Understanding what each employee values in their career—whether it’s a promotion, a lateral move, or a redefined role with new responsibilities—is key to fostering a sense of loyalty and purpose.
Practical Steps for Financial Services Organizations
We highlighted the importance of setting SMART goals (Specific, Measurable, Achievable, Relevant, and Time-bound) to respond to these trends. These goals provide a clear framework for organizations to implement meaningful change and improve employee experience.
We recommend focusing on:
- Leveraging high engagement scores to strengthen initiatives and drive positive change
- Addressing areas with lower scores, such as opportunities for advancement and belief in the company’s future, to improve retention
- Upskilling employees to meet the demands of a technology-driven industry
The financial services industry is experiencing significant disruption driven by technological innovation and changing workforce dynamics. By focusing on key engagement drivers, upskilling employees, and setting clear goals for change, organizations can not only retain top talent but also position themselves for long-term success.
Explore the entire WSA 2024 Monthly Learning Session schedule here
