Larger banks, on the other hand, have yet to adapt to this new method of attracting talent, thereby yet again often losing talent to tech companies, rather than rival banks.
Beyond this, as recruiters, we can struggle with the pace of hiring in larger banks. These clients have yet to truly adapt to the reality of talent shortages in the market and instead have continued to conduct many rounds of interviews over the course of three to six months. This lag can result in candidates becoming disengaged - particularly when significantly faster-moving opportunities present themselves in the meantime.
There has been hesitation to truly overhaul processes to adapt to the market, particularly as many hirers are still waiting to see if the market will swing back towards a more client-led landscape.
Remote working hasn't gone away
Following the COVID-19 pandemic, remote working has become much the norm. We are increasingly seeing, particularly in technology jobs in finance in the US, a desire for fully remote roles over hybrid ones. For many investment banks and financial service institutions, this is becoming another candidate-led issue that needs to be adopted to successfully attract and retain talent. Candidates may even ask for extra money if they're expected to go into the office on a hybrid or full-time basis.
There is a concern, however, that this trend might ultimately be detrimental. Already, much has been reported on how remote working can negatively affect the ability of firms to build a strong culture, or in onboarding and training of new staff. Whilst remote working goes a long way in attracting the right talent, it might ultimately create a more disjointed, potentially even less effective company, particularly where junior and mid-level candidates are concerned. Hybrid working, on the other hand, seems to alleviate many of the concerns around this - and thus, many feel that it has a lot more potential for longevity.
Will things really change?
In a world that continuously becomes more rooted in technology, some specific skills shortages are simply not likely to disappear any time soon. However - in the short term, at least, the tides may generally be turning away from the candidate-led market we've seen these past few years.
As 2022 draws to a close, Big Tech firms have been making large swathes of redundancies, with VC firms either backing away from, or tightening up their investments. The looming recession, the lower-than-expected Q3 performances and general market volatility have all contributed to an uncertain start to 2023.
But will this ultimately reduce the pain Financial Services firms have been feeling? Potentially - although maybe not to the extent that they might be hoping for. As ever, the companies able to more flexibly adapt to the market are the ones that are more capably attracting talent - and whilst what attracts talent will likely evolve and change over time, ultimately the need to do so likely isn't going away.
The Difference Engine is a recruitment and executive search firm specialising in technology. We work with firms across the United States of America and the UK.