For growing FinTech sector, expanded access to top talent remains crucial in 2023
Do you remember the first time you paid a bill online? Probably not. That’s because we’ve been doing it for decades at this point.
How about the last check you deposited with your phone? Or PayPal to complete a purchase? Venmo to share a meal with friends?
Financial technology (“FinTech”) is an important part of our daily lives. According to a Harris Poll/Plaid survey, the percentage of US consumers using technology to manage their finances increased from 58% to 88% by 2021.
It comes as no surprise that according to a recent Vantage report, the global FinTech market was valued at $112.5 billion in 2021 and is projected to reach $332.5 billion by 2028. A recent report from the EY-FinTech Convergence Council states that FinTech expected to reach $1 T in throughput by 2030.
For FinTech organizations, this exploding growth – combined with economic and labor market uncertainty – means expanding access to top talent is mission critical in 2023 and beyond.
Expand access to talent
FinTech organizations continue to seek human capital strategies that are flexible with their business models to improve access to talent. Recent data from Ardent Partners indicates that nearly 70% of FinTech leaders have “reimagined” core workforce management processes (recruitment, onboarding, training, etc.) in the past 12 months.
For these organizations, the use of contingent labor is a fundamental strategic tenet, providing flexibility in creating an expanded workforce that can flex up and down to meet the evolving needs of their business. (Related reading: “What is a contingent worker and why should it matter to business leaders?”)
As such, these organizations are seeking innovative ways to engage emergency workers beyond the traditional use of staffing agencies. The same Ardent data says that 72% of FinTech executives plan to increase their use of digital staffing platforms and talent marketplaces in the next 12 to 18 months.
New pipelines for talent
As an industry heavily rooted in artificial intelligence, blockchain and cloud computing, FinTech can expand its contingent talent pools by looking at talent affected by recent layoffs in the tech industry, especially the Web3 sector. But how can managers attract this talent? Let’s discuss direct sourcing.
Direct sourcing is when an organization leverages its brand to develop talent pools, including candidates that are attracted, curated and engaged to fill expanding workforce positions directly. In 2023, 56% of companies in this sector plan to increase their use of direct sourcing (Ardent).
Direct sourcing has become an effective solution to maximize an organization’s ability to build talent communities to match the right candidates with the right opportunities. By providing broader access to engage in-demand, specialized talent and the ability to hire that talent more quickly, direct purchasing ultimately delivers cost savings.
To ensure that direct sourcing strategies are effective and fully optimized, companies must find the right approach to suit their needs and take the right steps to implement proven best practices during the process. (Read more: “Understanding Today’s Holistic Approach to Direct Procurement.”)
What does a direct sourcing solution look like?
As part of our Integrated Workforce Management Platform, Magnit Direct Sourcing is the industry’s first integrated solution that combines software and data (technology solution, market intelligence and analytics) and services (curation, record keeping, program design and management) to maximize an organization’s capabilities. to connect the right candidates with the right opportunities.
Technology plays a critical role in matching candidates to positions quickly and accurately, with the best software leveraging artificial intelligence and machine learning to increase hiring success, ensure managers pay the right amount for resources, and achieve organizational diversity goals.
Technology is also key to the candidate experience, ideally providing a simple, streamlined and modern interface for joining an organization’s talent network and responding to job opportunities.
Curation is the “people and services” part of the equation. Curator specialists are the people who are responsible for “curating” the talent pool and often have a recruitment and purchasing background. In addition, curators are responsible for communication strategies with candidates – communication is tailored specifically to categories based on where the candidate is in the hiring process. Curators also ensure talent pool hygiene by confirming candidate availability and asking candidates to update skills, experience and contact information.
Ensure success
Lack of understanding of the business case for direct sourcing can be a barrier to launching a program. Managers play an important role in ensuring that the initiative’s goals are aligned with the overall company strategy.
To help secure executive buy-in, ensure stakeholders and managers understand the benefits of implementing a successful direct sourcing program, including better access to talent pools, faster hires, cost savings and more.
To gain additional insight into optimizing direct sourcing for your business, download our exclusive white paper with Staffing Industry Analysts, “Making Direct Sourcing Work in Your Organization: Best Practices From Industry Pioneers.”
