Keeping fintech talent CRACKING THE CODE TO FINTECH EMPLOYEE LOYALTY An overcrowded labour market, ongoing economic fluctuations, and the ‘Great Resignation’ phenomenon all have one thing in common: they massively impact the way people get paid. Between 2022 and 2023, Payscale, the compensation data and software solutions provider, observed that more and more organisations are having to adjust pay for their employees twice a year to properly compensate them.
A DESIRE FOR TOP-END TALENT The desire for top-end fintech talent has never been greater. In fact, according to data consultancy Dufrain, more than 50 per cent of data and analytics leaders cited their most significant business challenge as recruiting individuals with the necessary skills and talents. Gone are the days when ‘pizza Friday’ was all it took to convince people to stay at your firm. Now employees want to
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be challenged – they need to be working on interesting and scalable solutions. For completing these more challenging tasks, they want to be properly compensated. Therefore, understanding the key elements which shape pay adjustments is crucial to navigating the ever-evolving landscape of talent and market demands. Lexi Clarke, chief people officer at Payscale, explains: “Implementing pay transparency at any organisation is a powerful tool. In fact, research supports that
determined and that it’s fair, it builds trust, therefore employees are more likely to feel valued and engaged. Employees want to stick with employers who they feel truly have their back, and pay transparency is a great way to build that trust.”
ADJUSTING TO AN UNCERTAIN ECONOMIC ENVIRONMENT At the start of 2023, the fintech industry was optimistic that investment would bounce back
Employees want to stick with employers who they feel truly have their back, and pay transparency is a great way to build that trust increasing pay transparency reduces job-seeking behaviour by incumbent employees. Posting salary bands publicly and having open conversations about pay with your teams is a sign of goodwill to current and future employees. “When employees understand how their pay is
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following a decline in 2022 to $164.1billion across 6,006 deals, compared to 2021 which reached $238.9billion across 7,321 deals. However, rising inflation and interest rates have made investing in the industry harder than ever. Consequently, 41 per cent of UK and US lenders are having to increase
their default rates. Businesses feel the knock-on effect of this inflation growth and in turn, so are their employees. Payscale ensures that leaders can keep on top of these evolving trends and treat their employees in kind by using the Payscale Index has tracked quarterly compensation trends since 2006, showcasing the high upward wage pressure of recent years. “When it comes to compensation management, 85 per cent of organisations have pay structures but only 49 per cent are training managers on pay communications. The needle for what constitutes ‘good’ is shifting and employers are responding,” says Clarke. The Index shows that the real value of wages, when adjusted for inflation, has witnessed an 11 per cent decline since 2006. Therefore, to keep top-level talent, employees must be compensated adequately. Clarke concludes: “More organisations are seeing the importance of strategic compensation management.”
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