Inside the Strategies of Digital Finance Companies Winning the Talent War
Competition for top talent in the digital financial sector is fierce. In today's digitalised world, the success of companies, not only in the financial sector, depends on how well they manage to attract and develop top digital talent. From flexible career paths to ESG initiatives, the industry is undergoing a significant transformation to attract the most sought-after professionals. To stay ahead of the game, companies are rethinking their strategies to attract and retain the best talent. As part of this, we have analysed the views of four leading consultancies – McKinsey, EY, BCG and Deloitte – to create a holistic plan on how leaders in finance can adapt their talent strategies.
McKinsey & Company: Flexible Career Paths and Capital One's Innovative Approach
McKinsey & Company has found that digital talent's ideas about their careers are transforming. They want flexibility (beyond remote work) and unique roles – think "Distinguished Engineer" instead of a simple technical position. Companies that understand this and are creative here are also the ones that attract the best talent.
Let's talk about the example of Capital One. This company has fundamentally revised its career approach in the digital field. The "Distinguished Engineer" title is part of Capital One's broader effort to invest in the development and promotion of digital talent. To this end, they have launched the Capital One Developer Academy (CODA) and a digital learning platform. And here it goes beyond basic programming skills – they promote everything from full-stack development to highly specialised technical skills.
Thanks to this flexibility, employees can easily switch roles and constantly learn something new. Capital One not only retains talent, but helps them develop in ways they might not have thought of before. The company also rewards digital talent with promotions and specialised roles that don't force them into management if they don't want to.
What sets Capital One apart from other companies is the development of unique software and the promotion of a corporate culture based on mentoring. This makes them a leader in attracting and developing digital talent. This strategy reflects what McKinsey sees as essential: Companies need to rethink traditional career paths to keep pace with the aspirations of today's digital workers.
EY (Ernst & Young): Leveraging ESG Initiatives to Attract and Retain Talent
Ernst & Young highlights the growing importance of environmental, social and governance (ESG) initiatives in the financial sector's talent management strategies. As ESG commitments become increasingly important to employees, clients, investors and regulators alike, financial institutions are recognising the need to integrate these values into their corporate culture. ESG initiatives are not just about environmental protection or social responsibility – they are about building a purpose-driven organisation that aligns with the values and expectations of a modern workforce. Which particularly appeals to the sensibilities of millennials and Generation Z.
What EY's comments make clear is that financial institutions that prioritise ESG considerations are more likely to be able to attract and retain top talent. This shift reflects a broader reassessment of work and life priorities among employees – which has been particularly accelerated by the pandemic and the so-called 'Great Resignation'. As employees look for employers whose values align with their own, ESG is becoming a powerful tool for financial institutions. It is about their commitment to people and the planet beyond pure profit.
By incorporating ESG, organisations can create more flexible, safe, diverse and sustainable working environments. This in turn increases their attractiveness to top talent, who increasingly expect more than just a pay cheque from their employment. They are looking for meaningful work that contributes to the betterment of society and the environment, as well as opportunities for personal and professional growth. EY's findings underscore the strategic importance of ESG in developing a compelling organisation that seeks to meet the demands of today's and tomorrow's talent. Last but not least, the organisation also reaps from the many benefits of a diverse workforce.
Boston Consulting Group (BCG): Embracing Complexity in Digital Talent Recruitment
The Boston Consulting Group (BCG) looks at the difficult process of attracting digital talent and understands it – finding the best digital talent is not a one-size-fits-all process. BCG's approach focuses on understanding the unique mindset of the digital workforce. These employees think differently. They are entrepreneurial, innovative and obsessed with creating fantastic user experiences. These people are looking for an environment that fosters collaboration, flexibility and continuous learning. And you need to find them where they are.
Traditional job adverts have had their day. BCG suggests thinking outside the box: Partner with educational institutions, acquire promising startups (if you can) and get involved in startup hubs. This way, you can capitalise on the places where people with a real digital mindset come together.
BCG also emphasises the importance of hiring managers speaking the language of technology. They need to be present on social media and connected to online communities to reach and engage with potential candidates.
The bottom line is that recruiting these "digital leaders" is about much more than compensation. It's about flexibility, the opportunity to make a difference, the chance for personal growth and a sense of shared purpose. Companies that create an environment where these things thrive are the ones that attract the innovative minds needed to drive technological progress and change.
Deloitte: Digital Transformation and Future Talent Trends
Deloitte also has its finger on the pulse of where the financial sector is heading. Their report shows that digital transformation will completely reshape the way finance functions work by 2025. This means that organisations need to start now to ensure they are recruiting and developing the right talent (as in the Capital One example we've already looked at).
At the heart of Deloitte's predictions is the realisation that the finance function will increasingly rely on digital technologies - to increase efficiency, drive innovation and improve decision making. This opens the door for super specialised roles that we rarely see today - select data scientists, cybersecurity experts and digital project managers are just a few examples. Deloitte emphasises the importance of creating roles that are aligned with future needs. Organisations need to attract people who can navigate and lead in a digitally transformed financial environment.
So what should a company do? Deloitte also advises investing heavily in training and development programmes that upskill current employees in all areas of digitalisation. This demonstrates a commitment to continuous learning and gives individuals the opportunity to shape their own careers in this rapidly changing industry.
By staying ahead of the curve in skills development and creating exciting new roles aligned to future technology needs, organisations can make themselves irresistible to the emerging digital talent that will drive the digital revolution in finance.
Competitive Edge with a Forward-Thinking Talent Strategy
The strategies presented by these leading consultancies provide an insight into the evolving expectations of digital talent. As the digital landscape continues to transform, so will the expectations of top talent. Organisations in the financial industry need to benchmark their current practices against these new benchmarks. Are you providing the career flexibility, goal orientation and learning opportunities that these professionals are looking for? It's time to reshape your talent strategy through innovative recruitment approaches and proactive skills development to secure a place at the forefront of digital finance.
