what drives talent in the finance and insurance sector.

The finance and insurance sector's economic impact on the talent landscape is substantial, promising lucrative career opportunities and financial stability. Hiring managers, department heads, and talent acquisition leads can utilize two key factors to attract top talent: strong financial health and the potential for high earnings. These appeal to professionals seeking both growth and stability in a competitive market.

uncovering the top talent drivers.

• Overall trends: 15 percent changed jobs in late 2023 while 21 percent plan to change by mid-2024. Top reasons include: Improving work/life balance and receiving an irresistible offer.
• Gen Z: 41 percent plan to switch jobs, citing receiving an offer that couldn’t be refused (39.4%) as the top reason.
• Millennials: 18 percent plan to change jobs citing better work/life balance, receiving an offer that couldn’t be refused, and low compensation as major talent drivers.
• Gen X: The same stands true for Gen X with 19 percent eyeing a job change for a better work/life balance and better compensation.
• Baby Boomers: Show a significant increase from 0 percent in 2023 to 12 percent in 2024 in their intent to change jobs, driven by irresistible offers (58.2%) and manager issues (41.4%).

what does this intel tell us?

Younger generations, especially Gen Z and Millennials, are highly motivated by work/life balance and competitive offers. Baby Boomers prioritize compelling offers and solid manager relationships. This indicates different generational talent drivers and priorities in job retention. From where finance and insurance professionals sit, they value career development and the opportunity to reskill. The research revealed that about 34 percent of respondents in 2024 feel their current roles provide them with enough opportunity to develop. The importance of having the opportunity to reskill is evident as the percentage of respondents in 2024 was about 35 percent, up 4 percent from 2023. The idea of staying in a role where they can grow and flourish is preferred.

what do the retention trends look like in the finance and insurance sector?

At a whopping 41 percent, Gen Z is most likely to change jobs. However, Millennials, Gen X, and Baby Boomers aren’t too far off. The research data indicates that fair pay and a healthy work environment are top priorities for all generations.

With all this data in mind, here’s what you should include in your 2024 talent attraction strategy.

1. providing flexibility

Supporting workers’ need for a healthy work-life balance can significantly improve employee satisfaction and retention. This is also reflected in our Workmonitor data, which shows that 58% Canadian workers wouldn’t accept a job if they thought it would negatively impact their work-life balance. The research shows that if this driver is not satisfactorily met, work-life balance is the top reason given by respondents for switching roles.

2. leveraging AI adoption

Despite the current buzz surrounding AI, many employees are not benefiting from AI and automation advancements. Only about 30 percent of employees receive regular training, and surprisingly, about 45 percent have had no discussions about reskilling. Employees prefer employers who prioritize upskilling and reskilling through regular training and discussions. This underscores the urgent need for employers to invest in training programs to prepare their workforce for ongoing technological advancements. The integration of AI into daily work is still emerging, with a modest 6.2% using it every day and 12% using it regularly. Surprisingly, a significant 39.5% have never used AI in their work. Looking ahead, 31% expect AI to significantly impact their jobs positively, while 8% fear potential job loss due to AI. On a positive note, 36% believe AI will enhance job satisfaction. This mix of anticipation and concern among employees provides valuable insights into the evolving landscape of AI in the workplace and its potential effects on job roles and satisfaction. Employers should invest in creating supportive environments that encourage continuous learning and adaptation to incorporate AI technologies effectively while ensuring that employees are equipped with the skills needed to thrive in a digitally transformed workplace.

3. prioritizing equity

More and more, companies are investing significant efforts in providing equitable working conditions and opportunities. But is it truly enough?

According to the research, the finance and insurance sectors show mixed results in equity perception among employees. A significant portion (53.6%) does not identify as a minority. However, the numbers reveal a rich diversity with 27.1 percent of employees identifying as ethnic minorities, 5.8 percent based on sexual orientation, 5.6 percent on gender identity, and 6.7 percent on religion. Companies should embrace diversity and inclusivity to build a truly inclusive workplace, boosting satisfaction and retention. In the finance and insurance sector, equity also resonates with respondents. If you break down the sector into women and then everyone else, here’s where it stands: 63.2 percent of employees believe their unique attributes are valued, compared to 68.7 percent of women. This suggests women feel more appreciated for their skills and backgrounds. 44.1 percent of the general workforce faces career progression obstacles, while 37.3 percent of women experience these challenges, showing that women are getting the required support. Equal pay is perceived to be similar across genders. Women feel equally confident in access to development opportunities. What does this data tell us? Significant progress has been made when it comes to equity; however, we have work to continue to do.

4. understanding the impact of economic conditions to inform compensation strategies

The market's unpredictability, coupled with inflation, labor costs, and the rising cost of living, has people carefully examining how their employers are prepared to weather the storm. In the finance and insurance sector, researchers asked how employees perceive their employers' adaptation to challenging economic conditions. 46% believe their employer adapts well and can shift gears 32% feel their employer is facing challenges but remains confident 11% are worried about losing their job due to cutbacks 11% don’t know how their employer is handling the situation

When asked in what way is your company financially supporting you to help cope with these rising costs? 34.9 percent of Canadian workers did not receive any financial support from their employer, highlighting a significant lack of assistance while 35 percent received a partial salary raise to compensate for inflation costs. 6.9 percent received a one-time sum; 4.2 percent received vouchers for specific products and 4.6 percent were unsure about the support they received.

key takeaways: which talent drivers attract job seekers the most.

Year after year, an attractive compensation package remains one of the most compelling talent drivers. Low compensation, exacerbated by the rising cost of living, has become the leading cause of employee turnover. In today's uncertain economic climate, employees expect adequate compensation to meet their basic needs without financial strain. Companies that prioritize competitive pay packages are successful in both retaining their current talent and attracting new top performers.

As the world's leading talent company, we want to be your partner on this journey to attract and retain top talent who will contribute to the growth of your organization. Randstad is here to help you navigate the ever-changing world of work. Get in touch so we can find you the best talent to meet your needs today and tomorrow.