At the start of 2022, we gave our predictions on what to expect for the Financial Services sector, and now we’re half way through the year, it’s time to reflect and look at what the latter half of 2022 has in store.
The employee is king
Tension between employees and employers will continue to rise, as the debate surrounding what is considered the ‘new normal’ continues.
The majority of Financial Services professionals want to continue working from home and maintain a work-life balance.
But this poses a challenge when it comes to developing the next generation of Advisors, because it’s difficult for juniors to learn from more experienced colleagues when they work from home, despite the advances in video conferencing technology.
In the latter half of 2022, we expect to see more and more Financial Services companies embracing this need and driving improved conditions, hybrid working, better benefits and fair pay, in order to attract and retain the best individuals.
We also expect people will seek employment at businesses with hybrid working and improved benefits, leaving firms that have not embraced this, struggling to hire quality individuals.
The industry will experience a shortage of IFAs
There are only 25,000 Independent Financial Advisors (IFAs) practising in the UK, and 60% of them are reaching retirement age.
As the cost of living increases, more people need financial advice than ever before.
This makes the perfect recipe for a chronological time bomb. The demand for Financial Services will increase as the number of seasoned IFAs decreases. But very little is being done to resolve this.
In order to combat this shortage, we’re working with financial firms and universities to educate undergraduates on how to become IFAs, helping close this gap.
The definition of professionalism is changing
As conversations surrounding Diversity, Equality and Inclusion (DEI), and Environmental, Social and Governance (ESG) proliferate, we’re seeing a shift in what is deemed as ‘professional’ within Financial Services, which is impacting company culture.
Employers are focusing on output oriented characteristics, experience and skill set, with appearance becoming a secondary focus. Professionalism is now embodying how individuals work, instead of what they look like.
Regulation and legislation surrounding ESG and DEI further reinforces this, and now Financial Services are looking to hire individuals with experience in these areas. For example, PwC is recruiting 5,000 professionals with ESG experience.
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For more insights on what’s in store for the Financial Services industry this year, take a look at our 2022 Salary Guides.
