By: Jean Michel, Chief Technology Officer, Total Processing.
It seems like everyone is talking about the financial technology industry these days, but with so many players in the market, Fintechs are having a hard time hiring top talent.
The truth is that there are millions of people out there looking for work today and the competition for top tier candidates is fierce. This article discusses some of the main reasons why people seem to struggle to find a job in Fintechs.
These are a few reasons why finding top candidates can be difficult: lack of experience, lack of education/graduate training, skills not aligning with available roles, and not understanding what it means to work in a Fintech startup.
These are the top reasons Fintechs struggle to hire top talent:
Roles vs. Experience
It seems like a lot of people with the “right experience” have been working at traditional financial institutions for years. And many have been on projects that work on legacy technology or traditional financial products. While those things may seem attractive from an experience standpoint, they don’t always prepare someone for a role in a Fintech startup.
Skills Not Aligning with Available Roles
On the other hand, there are candidates who are looking for roles that don’t align with their skills. That is to say that candidates who are highly skilled in one area often apply to jobs that require skills they don’t have.
According to a survey, 60% of the most recent graduates answered that they aren’t sure whether a particular industry will still exist in 5 years. And while millennials may be technology-savvy and have great educational backgrounds, many lack the practical work experience necessary to land a job. In fact, nearly 50% of millennials say they aren’t sure how they will find a new job within the next year.
Not doing enough to attract talent
Millennial employees are often drawn to more established companies where they can get more training and growth in their field. However, these top talents don’t come cheap so it’s important that fintechs have an effective strategy in place for attracting them to work with them.
The CEO of one of the most successful fintech companies in the world says “talent is everything.” But it’s more than just talent — it’s about what you can do with it. And more than ever before, young people are questioning whether or not they can find a career that is both meaningful and fulfilling, allowing them to reach their full potential. Millennials want careers that allow them to be more than just an employee; instead, they want to build something real that will be used by others for years to come.
Not Understanding What it Means to Work in an Fintech Startup
In addition, there are other candidates who will leave their legacy companies thinking that working at Fintech startups means that they will have the same type of experience that they had prior. This is generally not the case. Most Fintech startups are very small organizations where everyone does everything. There aren’t just jobs; they’re teams and projects.
Of course, there are many other reasons that Fintech companies struggle to hire top talent, but these are some of the most important discussions that need to be had in order to find the right type of person for your team.
So how do you attract top talent?
Fintech companies need to be able to compete for top talent by showing that they can offer benefits that come along with the industry. This could be anything from the potential to grow the company, to large equity awards, or even a social environment with perks like free food and drinks.
Additionally, fintech companies should also focus on their ability to communicate effectively with their employees. Talking about career advancement and career development is important. It’s important to show fintech employees that their hard work and dedication will be rewarded.
In terms of finding top talent for all positions, not just developers or engineers, compensation is key. This means that fintech companies need to focus on competitive salary levels and benefit packages.
To be clear, it is important to find and hire top talent and if you know what you are really looking for (in this case, I’m talking about people who can come in and add value to your team) then you should be able to find them. But, doing so is not always easy; in many cases, candidates with the right skills won’t apply, you have to go out and find them.