It’s everywhere. Turn on the news, and you’ll hear news pundits discussing it at length. So, what’s the excitement about? The historically low unemployment rate. The National Conference of State Legislatures (NCLS) reports that about 223,000 jobs were created in May 2018. The unemployment rate is now pegged at 3.8%. But, don’t celebrate yet. For employers, the low numbers are a double-edged sword.
Low unemployment numbers often lead to recruiting challenges; nowhere is this more evident than in the finance industry. The Bureau of Labor Statistics (BLS) reports that the unemployment rate is currently 1.7% for the industry. So, recruiting top talent will depend on more than a robust paycheck and the usual benefits package.
Here are 4 hiring trends to look out for in 2018:
Calling The Millennial Generation: The Hot New Employee Demographic
Did you know that at least 10,000 Baby Boomers retire each day? Alarmingly, this trend is slated to continue well into 2030. This equates to a massive brain drain on the finance industry.
Enter the millennials, now the largest group in the labor market. What’s to like about millennials? Notably, they are the most entrepreneurial generation ever: 30% have started a business, while almost 40% have been part of a startup. That’s compared to about 19% of Boomers. So, what are businesses doing to attract this vibrant demographic?
For starters, organizations like SunTrust Banks Inc. have instituted financial fitness programs geared towards millennials. Meanwhile, others are offering unique benefits such as pet insurance. In fact, this unique perk is now the fastest-growing employee benefit in the United States. The intriguing reason? More than 40% of millennials see pets as starter children.
Increased Choice With Focus On Diversity
With the new labor shift, organizations are relying on diversity to close the employment gap. A new LinkedIn survey reports that diversity hiring is the hot new trend. Essentially, more than 60% of employers are prioritizing diversity to boost productivity and profitability. Meanwhile, almost 80% believe that diversity will benefit their company culture.
A PricewaterhouseCoopers survey reports that the banking/finance industry is leading the way in diversity hires: women now comprise 21% of S&P 500 company boards. As a prime example, Bloomberg is partnering with historically-black colleges to increase its slate of female and minority hires.
The Shift Towards Hiring Professionals With Emerging Tech Skills
This is a trend that shows no signs of abating. PricewaterhouseCoopers reports that an astounding 95% of banks fear the results of FinTech disruption. Translation: the onset of mobile and online banking is severely testing the resilience of traditional banking.
Now, consumers don’t need to brave long queues in a brick-and-mortar building. They can open bank accounts, apply for loans, or make trades from the comfort of their living rooms. Unlike banks, FinTech companies boast 24/7 online loan centers, complete with “always-on” chatbot customer service. Additionally, secure cloud technology has made the process of uploading personal supporting documents a seamless one. Applying for loans is no longer an ordeal but a cinch. Meanwhile, machine learning algorithms can now detect fraudulent transactions with up to 90% accuracy.
A new report from the Options Group 2018 supports the reality of FinTech disruption. It is forecasting a surge in hiring for finance professionals with emerging tech or quantitative analysis skills.
New Interview Procedures To Attract Top Talent
Instead of the usual conventions, employers are increasingly relying on “project” interviews to scout out their next talent.
Now, potential hires can be expected to code a new app, write grant proposals, or even produce webinars. This new hiring trend even has Forbes addressing the issue of those pesky “take-home assignments.” Meanwhile, unconventional new interviews are cropping up everywhere. Brian Scudamore, the CEO of 1-800-GOT-JUNK, uses the “beer and barbecue” test to hire new talent.
The Vitalis Difference
Curious about these new trends? Have questions you need answered? For more information, contact us. With Vitalis, you’ll be partnering with a staffing agency that delivers results. So, take charge of your world today and feel the Vitalis difference: it’s easy to recruit when you have the right team on your side.