According to a survey by Davies, the UK financial services sector is facing a pressing challenge, as 63% of employers report difficulties in attracting young talent. Despite 70% of respondents claiming their workplaces foster a positive and supportive culture.
The survey highlights several barriers to recruitment. One is the difficulty of meeting salary expectations, emphasised by 43% of senior leaders. Other concerns include the demand for a flexible balance between remote and on-site work (38%), the need for robust benefits packages (36%), clear career development opportunities (35%), and adequate mental health support (33%).
In addition, a perceived digital skills gap within the workforce is another challenge in attracting younger talent. While 65% of employees in middle and junior roles believe they have the digital competencies needed for success, 63% of senior managers feel otherwise. Almost a third of senior leaders identified this skills gap as a “severe issue,” raising concerns about the sector’s ability to adapt to the evolving demands of the digital economy.
Experts argue that financial services firms need to rethink their approach to stay competitive. David Leen from Davies’ regulated markets division emphasizes that competitive salaries, while crucial, are not enough. Companies must offer a well-rounded value proposition, including career development pathways, flexible working arrangements, and a supportive work environment.
Craig Potter, senior partner in professional education at Davies, adds that the industry must actively nurture and develop young talent to ensure a pipeline of future leaders. “The ability to attract and retain young professionals is essential for the sector’s long-term success,” he said.