The Great Resignation—a phenomenon in which an unprecedented number of employees worldwide quit their jobs over the past few years—has ushered in novel ways of thinking about workplace culture. Employees are prioritizing a better work-life balance, remote and hybrid options, and higher pay.
Many companies have sought to adapt to these shifting expectations, but a talent gap—or labor shortage—persists. As firms in the financial services and cybersecurity industries look to navigate the new world of work, retaining and attracting talent will be of utmost importance.
The COVID-19 pandemic, rapid digitalization, and changing demographics have fueled the Great Resignation and led to this dramatic workplace shake-up. Baby boomers are retiring earlier than expected, and midcareer and younger employees are switching jobs at an astoundingly high rate.
According to the U.S. Bureau of Labor Statistics, 6.3 million employees in the U.S. quit their jobs in November 2021, the highest number recorded since the survey began in December 2000. The entire year of 2021 saw a record-breaking 47 million employees in the U.S. leave their jobs. The trend is only set to continue. According to a survey by PwC, which gathered responses from 52,000 people across 44 countries, a fifth of the global workforce reported that they are very or extremely likely to switch jobs in 2022.
Amid this workplace reshuffle, companies are often left understaffed, fruitlessly searching for hires with the appropriate skill sets. Firms in the financial services and cybersecurity are grappling with how best to retain and attract talent while also growing profitability, responding to the ever-evolving pandemic, preparing for the impending economic recession, and wading through complicated regulatory landscapes.
The firms that are quickly adapting will reap the rewards, while those that do not risk losing talent to competitors. Listening to employees, recognizing and rewarding good performance, and providing employees with opportunities for growth and leadership will be key in retaining and cultivating talent. Potential hires will also gravitate toward flexible work arrangements, such as remote or hybrid.
Gen Z, which will soon make up a huge portion of the workforce, is an especially crucial component in the quest to attract new (and tech-savvy) talent. To engage the next generation, firms should look at establishing summer internship programs, seek partnerships with local colleges and vocational programs, emphasize a healthy work-life balance, and offer help (such as training and certifications) in career progression. Gen Zers who may be wary of traditional banking will be more inclined to join firms that demonstrate flexibility and genuine interest in their employees’ growth.
For a deeper exploration of the drivers of the Great Resignation, the impacts of the talent gap, and what firms can do to respond to this changing landscape, read Aite-Novarica Group’s Impact Report, The Great Resignation and Resulting Talent Gap.