How To Turn Skills Shortages In Financial Recruitment Into Success
The finance and accounting industry is witness to regular ebbs and flows within the talent pool. Part of the regular business cycle, the market forces of supply and demand eventually correct the gaps. A key enabler of these employment market forces is the recruitment consulting industry and, of late, this sector has been facing its own skill shortages.
Tip of the spear
Financial recruiters act as intermediaries, bringing together talented professionals, both employees, and potential employers. For an employee, the long-term success depends not only on finding a suitable job position but on securing the right fit where one’s full potential can be realised. A skilled recruiter can, therefore, provide added value by ensuring the best match between the vacant role and potential candidate.
Recruitment professionals are generally viewed as “tip of the spear” in the broader HR function. They are at the front line and their efforts have a direct impact on the suitability and fit of the recruited employee to a function or role. Trickling down and across the layers of the organisation, this can have a huge impact on performance, employee satisfaction and staff turnover levels.
Effect on the finance and accounting industry
The EU estimates that 40% of companies are currently facing skills shortages, whilst at the same time 39% of employees are over-skilled for the roles they are currently performing. This situation clearly signals the free labour market is not working as intended. This massive gap is due in part to the rapid changes in skills requirements, especially the rate of obsolesce, the degree to which workers lack up-to-date technological knowledge or skills necessary to maintain effective performance.
As referenced in the EU report, more than half of finance and accounting professionals have reported a change in their skillset requirements over the last five years. This means that finance recruiters must equally adapt to such changes and modify their criteria to source the right candidates.
Paul Jarrett, Managing Director at Renaix, comments:
“There is currently a skills shortage in many sectors and roles in North America and Europe which makes recruitment planning complex. Organisations strive to overcome these challenges by improving sourcing strategies and finding new ways to engage with talent. Many markets are now candidate-driven which means the top talent is now harder to secure and the competition to hire the best is increasing. Companies will have to broaden their recruitment search methodologies to engage with talent in a timely and cost-effective manner. Niche, boutique recruitment firms are ideally placed to assist in being industry specialists, nimble and up for the challenge.”
Addressing the gap
Ultimately, the recruitment industry will need to find solutions to skills shortages within its own array of resources. Casting a broader net and looking at non-traditional sources of talent might be a way to address the issue. A costlier but undoubtedly more effective method would be to enhance orientation and training processes to equip new employees with the right skills for the job.
At Renaix, we are always interested to hear from talented and hardworking recruiters to join our expanding team in central London recruiting finance professionals for blue-chip multinationals. The role will require you to be self-motivated and driven, whilst having the ability to build and maintain relationships. You will be rewarded with excellent incentives and the opportunity to work on assignments globally. View further details here and to apply, please submit your details and CV here.
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Our Renaix Guide to Finance Careers, Salaries and Benefits provides information on trends in the industry.
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