Career development not higher salaries key to staff retention, say Financial Services companies

Senior financial services leaders say the key to staff retention in a tight jobs market will be a rewarding career path rather than increased salaries or bonuses, according to new research from recruitment specialist Robert Half Finance Services.

The vast majority (89%) of financial services executives are concerned about losing their top performers to other employers in the next 12 months. More than two thirds (67%) say they will adopt a policy of providing better career development opportunities to encourage valued employees to stay, while just over half (54%) said they would offer current employees a raise in remuneration or bonuses.

Additional retention efforts will see almost three-in-10 (28%) offering their employees flexible working, while only 27% said they would make counter-offers to valuable staff looking to move to another employer.

Luke Davis, vice president at Robert Half Financial Services, said: “Over the last couple of years the finance services sector has seen substantial change, including more regulation and reporting requirements and the need to restructure to demonstrate transparency and accountability. On top of that, we are witnessing the introduction of a significant number of challenger brands and FinTech start-ups that are providing alternative employment opportunities for talented professionals. There are plenty of factors in place that may lead to individuals considering a move.

“As we head into the New Year, professionals are considering their options and are prioritising career advancement as part of their 2016 goals. While salary and benefits may be declining factors when employees are considering a move, finding the positions that offers the right combination of career development, competitive pay and benefits will be a priority.

“While companies may be tempted to provide counter-offers in a bid to retain staff, this is generally a short-term solution and the employee ends up leaving in the long run. Regularly benchmarking remuneration coupled with establishing career paths and advancement opportunities will help companies keep their most valued assets on board.”