Alistair Collier, Regional Director at Sanderson
In many sectors, a combination of technology and changing social expectations has now enabled agile working practices to become standard. It seems that the financial services sector has been somewhat slow on the uptake, however, with just a third (36%) of businesses in the industry offering flexible working. At the same time, competition for skills is heating-up, from both other sectors and from fintech start-ups that have been founded with flexibility in their DNA.
In recent years there has been a cultural shift away from pay being the main driver of job choice to a more holistic view; the full package, including working environment and work life balance now drives applicants’ career decisions. So much so that that one in four UK professionals have quit roles to find greater flexibility. We have increasingly found that candidates are not interested in even tentatively applying for roles with companies that are not offering an agile approach – it is now a ‘must have’, rather than a ‘nice to have’.
For those financial services businesses that have successfully developed a flexible working culture, the issue they often face is actively communicating their values and working practices in such a way that engages prospective candidates. In a candidate-short market, businesses that can showcase modern ways of working through their recruitment process are most likely to attract and retain the best talent.
Finding the right balance might not be as distant a reality as perceived though. This is where recruiters can add real value – acting as an advocate for companies by articulating their values and demonstrating flexible working propositions through the recruitment process itself. There are several ways to do this effectively, from using websites and social media as a shop window into life at the firm, to more elaborate events targeting prospective candidates.
For example, if a financial services company is struggling to attract millennial professionals due to an inaccurate or outdated perception of ‘corporate’ culture, hosting events which give people a chance to see their office space and culture could be the perfect remedy. This is a tactic that has worked well for technology firms and fintechs – there’s no reason such networking events wouldn’t have a similar impact in other areas of the financial services sector without appearing to be pushing for a hard sell.
Thinking outside the box
Communication alone isn’t enough to solve the issue – greater agility within the recruitment process itself is vital. This has benefits for panels as well as candidates. It’s common for key stakeholders in financial services companies to be dispersed across the UK or even internationally, so time spent physically working in the same place can be at a premium. Recruiters that understand such complexities will adapt the process, making best use of technology so time isn’t wasted.
A streamlined interview process can be introduced which suits the needs of the company while highlighting flexible working processes to candidates. It may seem daunting at first, but one of the first habits to break might be the idea that all interviews need to take place face-to-face. Recruiters can develop a shortlist of candidates, then record interviews using previously agreed questions before sharing with key stakeholders to review remotely. This replaces the traditional first-round of interviews. This would be followed by a benchmarked competency test – only a candidate which passes both of these elements would be put forward for a face-to-face interview, significantly streamlining the process and making it much more agile and cost-efficient for time-poor financial services executives.
In order for this to be effective, a trust-based partnership needs to be developed which allows recruiters to gain an in-depth understanding a business’ values and proposition. This will ensure that recruiters with outsourced responsibility can act as an extension of the business, knowing intrinsically what to look for in a candidate.
Focus on candidate experience
Getting it right can not only save the company time and money but also to enhance their reputation. If the candidate experience is fluid, positive and informed but isn’t successful, they are likely to form a positive perception of the business regardless. The result could be them applying again in future but also sharing their experience with their peers, which in turn increases awareness of the brand and its values, all while helping to steal a march on the competition.
Conversely, getting the process wrong can be extremely damaging to both a business’ reputation and finances – the Recruitment & Employment Confederation estimates the cost of a bad hire at middle-management level is more than £132,000.
The UK’s financial services market is a key element of the country’s economic growth and the reputation of the businesses within the sector is central to its success. It’s therefore vital that companies ensure their recruitment processes and external communication highlight the agility and flexible working practices at the heart of their businesses. With this in place, the sector will continue going from strength to strength.
HOW TO MANAGE YOUR CASH FLOW IN UNCERTAIN TIMES
While the world is constantly changing, probably at a faster pace now than ever before, businesses need to manage cash flow and costs to drive success in uncertain times, says Matthew Thorpe, partner at Haines Watts Essex.
Managing people and expenses
There are certain costs that you just can’t avoid as a business – to keep your operation running seamlessly, but scrutinise the detail and cut down on any non-essential expenses. Check things like your SaaS subscriptions and look out for costs that auto-renew and if you do cancel, remember to also cancel your direct debits too.
You might want to put a freeze on hiring new people, but ensure that other roles and responsibilities are clearly and efficiently assigned across your team. The Coronavirus Job Retention Scheme (CJRS) has been introduced by the Government to help UK employers access support to continue paying part of their employees’ salary to avoid redundancies. Affected employees are classed as “furloughed workers”.
Once furloughed, the employee cannot work or they will not qualify for the scheme. For businesses that perhaps need to go further, there may be some roles they don’t need any more, but businesses should work sensitively with people to manage this.
Cash is king
In uncertain times, owner managers will need to keep operations going to ensure financial stability. You should look to manage debt more efficiently by negotiating extended payment terms with creditors. You could also renegotiate loans for longer repayment terms to give yourself a lower monthly payment, helping the business to set some cash aside each month.
As a business owner, you need to create a cash flow projection and update this regularly if you are to improve things. You can do this using financial information to create a picture of how the business will look in the next 12 months. The forecast needs to show revenue sources and expenses, which will show the ups and downs of business income and can be used to make sure that enough finance is in place.
While banks and other finance providers recognise that the cashflow of a business may be disrupted by the impact of Covid-19, they are still going to want to see that you are viable and continue to trade in these uncertain times. Make sure your business is organised and don’t let disorganisation cause unnecessary issues. You can evidence this by having detailed forecasts; current order books and projections (as best as possible).
Having instantly accessible, accurate financial information allows you to plan effectively, spot issues before they become problems and manage your money in the most efficient and rewarding way.
Software is now incredibly user-friendly and accessible from anywhere. For a business owner embracing the technology, this means:
- Invoicing can be done instantly when a job is complete, emailed to the customer with an easy to use link to a payment platform.
- Comparison websites can automatically monitor and help maintain lowest cost for things such as light & heat, insurance etc.
- Technology can be used in place of face-to-face meetings. It can also enable them to adapt production lines to different demands.
All of these things and more, used properly, can make managing your business finances quicker, easier and often cheaper. You will also be able to bring clarity to where your business stands and prepare for the next steps.
HOW FINANCIAL SERVICES CAN GET TO GRIPS WITH RISING SUPPLY CHAIN RISK
By Alex Saric, smart procurement expert, Ivalua
UK businesses have never been more dependent on their suppliers to help them deliver goods and services to their customers. Be it retail, manufacturing or financial services, suppliers have a vital role to play when it comes to innovation and meeting customer expectations. However, as supply chains become increasingly global, businesses are potentially exposing themselves to more risk than ever before.
This is especially true in financial services. Whether it’s the impact of geopolitical events like Brexit or global tariff wars, supply shortages, security or the businesses impact on the environment, an organisation’s failure to identify and mitigate risk could see millions wiped off its share price, and its corporate reputation left in tatters. Risk can present itself anywhere and at any time, so financial services firms must be ready to address it. However, many simply don’t have the ability to evaluate suppliers for risk factors, leaving them wide open to business operations being hindered, or being slapped with financial penalties.
More suppliers, increasing risk
One reason why financial services firms aren’t able to evaluate suppliers is the breadth and scale of today’s supply chains. For example, French oil company Total said in in a recent human rights briefing paper that they work with over 150,000 direct suppliers worldwide. This is just one example of how large and varied the roster of partners has become. Research from Ivalua has found that financial services businesses on average are working with around 3,600 suppliers annually, which is evenly split between UK-based and international partners. That number is expected to rise, with 60% expecting the number of suppliers they work with to rise.
The expanding nature of suppliers is only going to expose financial services firms to more potential risk than ever before, yet 78% say they face challenges gaining complete visibility into suppliers and their activities.
A lack of supplier visibility leaves businesses unable to identify and mitigate against supply chain risk. In fact, almost three-quarters (73%) of financial services firms have experienced some type of risk during the last 12 months. These include; supplier failure (43%), environmental impact, such as pollution or waste (35%) and supply shortages (45%). Supply shortages can be among the most damaging to a business, as seen by both the KFC chicken shortage which closed stores, and the summer 2018 CO2 shortage which caused companies such as Heineken and Coca-Cola to pause production, impacting supply across Europe during the World Cup.
Businesses unprepared for the worst
One way financial services firms can better prepare for risk is to ensure they know what to plan for to reduce the impact. However, whilst some say they have a contingency plan in place to deal with risk, many of them are unprepared. Financial services firms admitted to not having comprehensive and deployed contingency plans in place to prepare the supply chain for risk such as; natural disasters (68%), supply shortages (67%), geopolitical changes (65%), environmental impact (63%), supplier failure (62%) and modern slavery (50%).
In order to effectively prepare for these types of risks, it’s vital that financial services businesses fully understand their suppliers, their business environment, global variations in regulations, geopolitics, and a host of other factors. But for many, there are multiple challenges when it comes to gaining this understanding. A prevailing factor is an inability to gain visibility into all suppliers and activity because supplier management data is stored in multiple locations and formats, making insights difficult to access. This leaves teams unable to review supplier activity and assess compliance.
Making supplier management smarter
It’s imperative that financial services businesses are able to respond or prepare for supply chain risk. Clearly, much more needs to be done to ensure they have complete visibility of suppliers, especially in an era where regulators can levy heavy fines for GDPR breaches and scandals spread in minutes over social media. These types of risks can be reduced in the future if procurement teams have a 360-degree view of suppliers which will help with contingency planning and risk management.
For example, in the instance of supply shortages, plans could be put in place that identify alternative suppliers to ensure any shortages do not impact end users. This type of supplier collaboration is paramount when it comes to managing and mitigating against supplier shortages. When it comes to regulations, financial services firms can’t allow a lack of visibility to limit their ability to ensure all suppliers are compliant.
To do this, teams must take a smarter approach to procurement that gives complete visibility into suppliers throughout the supply chain. This will allow financial services firms to identify and plan for risk, reducing the potential damage, and ensuring they are working with and awarding business to low-risk suppliers. Supply chain risk is rapidly becoming an overarching concern for financial services firms, but by providing the ability to assess suppliers, they will have all the insights they need to mitigate the impact on business operations.
MAKING THE (ENTERPRISE) GRADE IN LOW-CODE SOFTWARE
By Willem van Enter, Vice President EMEA, OutSystems We all use software applications every day, all the time. That...
IS PRIVATE PLACEMENT LIFE INSURANCE THE PERFECT PRODUCT FOR GLOBAL HNW FAMILIES
By Louis Zuckerbraun, Managing Director, GMG Insurance Everyone wants to know that their family will be okay after they...
FINTECH IN AFRICA: WHY THIS MUSTN’T BE A DECADE OF WASTED POTENTIAL
Albert Maasland, Chief Executive Officer at Crown Agents Bank The current COVID-19 pandemic is an unprecedented crisis of our times....
NEW TECHNOLOGY PLATFORM REDUCES CLAIMS PROCESS FROM WEEKS TO MINUTES
New platform has potential to cut fraudulent claims by almost half Decrease claims costs by as much as two thirds...
CORONAVIRUS: FURLOUGHED WORKERS AND WHAT IT MEANS FOR BUSINESS
by Tina Chander, Wright Hassall The Coronavirus Job Retention Scheme is designed to help businesses that would otherwise be forced to...
FIVE THINGS YOU’RE DOING THAT ARE INVALIDATING YOUR CAR INSURANCE
Car insurance is a legal requirement for motorists, but many drivers may be unknowingly voiding their policy. Failing to update...
CORONAVIRUS PANDEMIC, STORE CLOSURES, SHIFT CONSUMER BUYING BEHAVIOUR LEADING TO ACCELERATED DIGITAL TRANSFORMATION FOR MERCHANTS
Forter Issues First In A Monthly Series of Coronavirus Special Reports Forter, the leader in e-commerce fraud prevention, today announced...
BTON FINANCIAL PARTNERS WITH GENESIS TO AUTOMATE TRADING FOR ASSET MANAGERS
BTON Financial, the independent outsourced dealing desk for asset managers and genesis, the Low Code Application Platform for Capital Markets,...
HOW TO KEEP DIGITAL TRANSFORMATION ON TRACK AFTER THE PANDEMIC
Ashley Coker, CEO and founder, Slate Introduction The global coronavirus health emergency has made it abundantly clear how dependent...
THE FUTURE OF CUSTOMER EXPERIENCE IN DIGITAL BANKING
By Richard Billington, Chief Technology Officer, Netcall Over the past five years, the digital banking revolution has had a seismic...
TRANSFORMING BANKING: WHY COVID-19 IS UNFREEZING CONSUMER HABITS
Raj Chakraborty, Senior Managing Director, Publicis Sapient There is much debate about the impact of COVID-19 on the economy....
IS YOUR OFFICE LEASE CRUSHING YOUR BOTTOM LINE? YOU HAVE OPTIONS
By Jonathan Wasserstrum, Founder / CEO, SquareFoot These are unprecedented times for us all. Nobody has a playbook to get...
THE TRIALS AND TRIBULATIONS OF TRADERS TRADING FROM HOME
Steve Haworth, CEO of TeleWare Group Banks had hoped to keep their London trading floors open amid the worsening coronavirus...
HOW WILL REVOLUT’S MOVE INTO OPEN BANKING AFFECT US?
By Richard Mathias, Senior Technology Architect at LiveArea Despite current uncertainty, the financial services sector is experiencing transformative change year...
IN CONSUMER BIOMETRICS WE TRUST: AUTHENTICATION FOR THE DATA PRIVACY AGE
Jonas Andersson, Head of Standardization at Fingerprints Data privacy is high on the global agenda. In the wake of data...
CAPITAL MARKETS – LIQUIDITY MANAGEMENT DURING COVID-19
Tony Farnfield, Partner at management and technology consultancy, BearingPoint When “Dr. Doom” predicted the 2008 financial crisis back in...
SONY BANK SECURES AND ENHANCES MOBILE BANKING WITH ONESPAN’S MOBILE SECURITY SUITE
App shielding, biometric authentication and additional technologies secure and improve the customer experience for Sony Bank’s mobile banking app ...
KOREA’S KB BANK USES TRUSTONIC IN-APP PROTECTION TO ENHANCE MOBILE BANKING EXPERIENCE
Using Trustonic Application Protection enables KB Bank to dramatically improve the authentication experience for users of its mobile banking app...
CUSTOMER CARE TODAY WILL BUILD RESILIENCE FOR FUTURE CRISES
Cathal McGloin, CEO of ServisBOT writes, “The COVID-19 pandemic has created major spikes in calls to financial sector helplines dealing with customers...
THE CO-BRAND CREDIT CARD MARKET – SINK OR SWIM
By Chris Vinnicombe, VP Financial Services at Acxiom The co-brand credit card market is the result of the partnerships between...