And yet workforce issues were central to many of the negative headlines recently. For an industry that sells trust, this isn’t something that can be swept under the rug. Financial institutions will likely face more challenges as they wrestle with diversity, trust and how to integrate artificial intelligence and digital labor alongside their existing workers.
Diversity on the agenda. Given the politicized environment, look for more conversations about diversity. Demographic trends continue to point toward a more diverse workforce, but diversity alone does not mean equality. We expect a few industry executives to truly embrace efforts to drive diversity, doubling down to close gaps in senior leadership positions, recruiting, pay and other areas.
Why should we believe you? There’s broad skepticism in today’s society about large institutions. For the financial services industry, already struggling with a wary public, this is a big challenge. Meanwhile, millennials want more than a paycheck; they want to work for and buy from companies they trust. With the rise of new competitors, firms will likely start to revisit what they offer clients and employees.
Culture clash. Financial institutions have invested a lot in human resource management systems (HRMS), but adoption has been woefully low. Deploying technology isn’t enough to change behavior. Firms will need to change culture if they want their HRMS investments to pay off. We expect to see changes in incentives to drive real adoption and use of these tools.
Glass houses. You want to be, and be known as, a firm that truly values diversity. Think about more than gender, age, race and other protected classes—add variations in perspectives, experience and more. Measure your efforts along the way and be transparent with what you’ve found and where you’re going. Reflect your values in everything you do from recruiting to board composition.
Good corporate citizen. Many firms locate back office operations in relatively small communities which have few other employers. Keep in mind that your institution has a profound effect on these communities when hiring, training, transitioning workers to new tasks or roles, or laying off workers. You will face hard decisions when local areas depend heavily on your business presence. Choose wisely.
What workers want. Younger generations are less interested in a job just to pay the bills. They generally want opportunities such as global mobility, flexible small teams and the ability to be creative. They also value candid coaching discussions about career paths. Train people who supervise these employees so you create the right work atmosphere for everyone to thrive.
“As financial institutions’ business models evolve, they’re really going to have to think differently, and that means hiring and developing people with vastly different skills and views.”
Our teams in asset and wealth management, banking and capital markets and insurance are helping our clients tackle the biggest issues facing the financial services industry. With professionals across tax, assurance and advisory practices, we can help you find ways to thrive even in a period of uncertainty. Whether you're preparing for regulatory changes, putting FinTech/InsurTech to work, or rethinking your human capital strategy, we work together with you to resolve complex issues, identify opportunities and deliver value to your business.
Global Growth Strategy, US Financial Services Practice, PwC US
Leader, Financial Services Institute, PwC US