In 2024, Fintech, Tech, and Auto industries are on a rollercoaster of change. They’re all about new tech and market shifts, keeping things super dynamic. We’re talking about constant innovation and game-changing breakthroughs.
Now, why does this matter? Well, you need to be smart about planning for the future with your talented people. Being able to adjust to new things is really important for staying in the game.
Unpacking Challenges and Skill Gaps in Fintech, Tech, and Auto
Let’s kick off by examining the growth projections for the Fintech, Tech, and Auto industries.
- The Fintech business is going to be worth an even bigger $492 billion by 2028, with a compelling CAGR of 16.8%. That’s because of technological innovations and a growing reliance on digital financial services.
- The global IT market anticipates a robust CAGR of 8.2% from 2022 to 2032, fueled by AI, cloud computing, and cybersecurity advancements.
- The Auto industry, currently at $2810.63 billion, is expected to reach $3969.84 billion by 2030, with a 4.42% CAGR. What’s causing this? Electric cars and being more eco-friendly.
That’s quite a bit, right?
But, there’s a catch with this growth. 39.3% of recruiters struggle to match the right talent with the right job. In fact, 27% of respondents surveyed say there’s a skills gap, especially for IT skills.
As the demand for tech workers continues, companies are changing their job descriptions to focus more on skills and less on degrees. Someone looking to enter the tech field must be ready to become a lifelong learner because the programs and processes they learn today may soon be out of date. – Richard Wahlquist, Chief Executive, American Staffing Association
So, even though there’s a high demand for tech jobs, companies need specific skills, particularly in areas like artificial intelligence and cloud computing. Likewise, in the auto world, we’re expecting more people with “green skills.” But nearly 75% of employers find it increasingly difficult compared to the previous year.
Industry growth and skill gaps translate to an increased need for skilled professionals. This makes HR managers think outside the box in how they hire and retain people.
Changing Talent Landscape
HR managers need solid talent strategies, right? But they also need to think about the big changes happening, such as the rise of the gig economy, remote work, and increased use of AI and automation.
The gig economy is changing how we hire people. 86.5 million freelancers will comprise 50.9% of the U.S. workforce by 2027. In fact, in the automotive sector, 34% of employers use the gig model, employing skilled freelancers for staff shortages, vacations, sickness, and training.
More people are working from home. Also, over 23% of respondents below the age of 20 years stated that they prefer remote jobs. Upwork found out that a whopping 98% of workers want to work from home.
Recruitment is also getting a makeover, with AI-driven hiring growing at a rate of 6.17% by 2030. It’s all about saving time (44%) and finding the right people (58%).
So, how can you tackle this better? How can you drive talent that suits you? Let’s find out, shall we?
6 Best Strategies for Attracting and Retaining Top Talent
To bridge the widening skill gap, HR managers must revamp talent management, invest in extensive upskilling, and establish skill-based talent practices aligning with modern workforce preferences.
1. Continuous Learning and Skill Development
Set up comprehensive training programs and upskilling initiatives. Here’s how:
- Encourage employees to embrace lifelong learning, providing access to online courses, workshops, and certifications.
- Implement mentorship programs to facilitate knowledge transfer within the organization.
- Create a culture that values and rewards continuous skill enhancement.
For example, IBM’s SkillsBuild Reignite program offers free training in areas like data science, artificial intelligence, and cloud computing. On the same lines, Coursera partners with universities and organizations worldwide to offer courses, such as Google’s IT Support Professional Certificate.
2. Embrace the Gig Economy
Make the most of the gig economy’s flexibility. Bring in freelancers and contract workers to your team. This way, you can get specific skills when you need them, easily grow your team, and have different perspectives. Here’s how you can do this:
- Utilize specialized freelancing platforms, such as Upwork, Fiverr, or LinkedIn.
- Establish clear project scopes, and maintain open lines of communication.
- Integrate gig workers into team meetings and events, ensuring they feel connected to the organizational culture.
3. Remote Work Flexibility
Big companies like Amazon, Shopify, SAP, Google, and Microsoft understand that people want to work from home. They know it and are given the option to work remotely. Here’s how you can do this too:
- Provide flexible work arrangements, allowing employees to balance professional and personal commitments.
- Develop a remote work policy and conduct regular check-ins.
- Invest in robust remote collaboration tools like Slack, Zoom, Asana, and Trello to ensure effective communication.
- Establish guidelines for remote work to maintain accountability and productivity.
- Encourage team-building activities and virtual social interactions to foster a sense of community.
4. AI-Driven Recruitment
Embrace artificial intelligence in the recruitment process to streamline and enhance talent acquisition like IBM Watson Talent, Unilever, and Amazon. You can try tools that help with checking resumes, matching candidates, and predicting who’d be a good fit. It makes hiring faster and fairer.
Moreover, training your HR team on these AI tools is a good idea. That way, they can use technology smartly to make better hiring choices.
5. Employee Well-being Programs
A healthy and supported workforce is more likely to stay engaged and committed. So, implement wellness programs that focus on physical and mental health, such as yoga classes, healthy lunch and snacks, wellness challenges, smoking cessation programs, and on-site fitness centers.
Provide resources for stress management, work-life balance, and mental health support. Moreover, collaborate with healthcare providers and conduct regular well-being surveys to gauge employee satisfaction. Integrate well-being initiatives into performance evaluations.
6. Inclusive Leadership and Diversity Initiatives
Make sure our hiring is fair and includes everyone. You can create groups for employees who might not have as much representation, called Employee Resource Groups. These groups can offer support and opportunities to connect. You can also invest in diversity hackathons, diversity research, and innovation grants, employee value propositions, and accessibility initiatives.
You should also give your leaders training on diversity. And let’s set goals for hiring a diverse team. It’s important to listen to your employees’ ideas to make policies that include everyone.
And That’s How We Build an Industry and an A-Team
With the booming Fintech, Tech, and Auto industries and existing skill gaps, HR managers need to be smart about finding and retaining good people. They need to look for people with the right skills and who are willing to keep learning. Especially in tech jobs, like AI and cloud computing – there’s a real demand there.
The way people work is changing too – gig jobs, working from home, and using AI to find the right people. To keep the best folks, you must focus on helping them learn, offer flexible work options, use AI in hiring, and make sure everyone’s doing okay.
