How Financial Brands Can Stave Off the Great Resignation

One of the more unexpected challenges to emerge as a result of the COVID-19 pandemic has been the so-called "Great Resignation".

In September of 2021, a staggering 4.4 million US workers quit their jobs according to the US Bureau of Labor Statistics and 73% of CEOs have stated that labor shortages are the number one external concern set to cause significant disruption to their respective companies in 2022.

So, what happened?

The reasons for the Great Resignation are myriad, but a core factor is the fact that, during lockdown restrictions, people got a taste for a more relaxed life – able to spend more time with their cohabiting children and partners and even had the opportunity to try other jobs which may have offered a more laid-back pace as well as benefits such as the ability to work from home.

The Great Resignation

It would be remarkably simple and convenient to chalk the Great Resignation up to simple laziness, but financial brands would be mistaken to pin the phenomenon on such a dismissive and simple cause.

The fact of the matter is those who have resigned from their jobs as part of the Great Resignation have a point. Recent practices have created almost Victorian era working conditions where employees have an ever-decreasing number of rights and are often forced to accept low paid internships, zero hours contracts, and other "gig economy" style jobs. In a world where inexorable growth is the goal, employees are constantly expected to do more with less and it’s no wonder the COVID-19 crisis has shone a light on how much simpler and less stressful things could be.

And not even the biggest brands in the financial space are immune to the problem.

"It’s been particularly noticeable because even major franchises at top-three banks have been having problems holding on to staff," writes one commenter. "JP Morgan’s equity derivatives team in New York has been seeing the sort of turnover you usually associate with a European bank going through a restructuring. It seems like there’s a perfect storm of different factors, all hitting the hiring market at the same time. At the time of writing, two of the top three posts on Wall Street Confessions are about people resigning."

What’s to be Done?

Because of the vast number of open vacancies compared to the number of people looking for jobs in the industry, it really is a candidates’ market right now, and financial institutions looking to fill those critical roles and survive this period need to focus on making their offering as attractive as possible to these jobseekers.

Due to the causes of the Great Resignation, these solutions must go beyond simple compensation as well. Remember these people are weighing up their salary against potential savings which can be gleaned from, for example, reduced maintenance and fuel costs, public transport expenditure, and childcare as a result of working from home compared to spending at least eight hours a day in an office.

Financial brands seeking to buck this trend need to focus on the options they offer their staff in regard to remote working and in the overall workplace culture they curate.

Of course, not every role will be 100% suitable for remote working – especially given the extremely sensitive nature of much of the financial industries dealings. However, companies operating in this space could explore options for hybrid working where a portion of the week can be spent in the office and the rest working from home.

Workplace culture is a more challenging factor to overcome. Increasing transparency and dialogue between managers and staff is a good start and making sure offices are bright, comfortable, and enjoyable places to spend one’s day will help to increase employee satisfaction and reduce the chances of existing staff looking elsewhere. Workplace events and team outings will also help foster a sense of loyalty and trust between members and their superiors and further guard against any wandering eyes.

Final Thoughts

The Great Resignation is real and brands looking to make it through unscathed need to address the attractiveness of their business to potential candidates. Gone are the days where applicants had to convince you that they were the right person for the job.

Now the onus is on you to convince them your workplace is the right place for them.

Of course, this will require significant investment of time and resources. Remote working technology and office overhauls don’t come cheap but, if your financial institution wants to attract and retain the best talent during these turbulent times, the outlay will be worth it.

The Great Resignation is certain to be part of the conversation at CXFS 2022, being held in July at the Renaissance Boston Waterfront Hotel.

Download the agenda today for more information and insights.