The financial services sector is well on the way to digital transformation. Fintech is hailed as the future of financial services and online banking. Digital payments have reshaped the customer experience.
The financial services industry has the second-highest rate of total employee turnover globally. The industry has a reputation for perpetuating a poor work-life balance and the incentive of bonuses and generous pay raises can fuel an overworked, competitive environment. As financial services firms embrace change through digitalisation, they also should change internal processes to improve the employee experience. By delivering a positive employee experience, banks can increase their profit per employee.
Financial services would benefit from using new technologies and digital software to improve the employee experience. By prioritising individual employee needs and workplace culture, firms should see increases in engagement, productivity and retention.
Challenges for the financial services sector
The financial services sector has several challenges when it comes to improving the employee experience. These challenges are increased with remote work and digital communication taking the place of in-person collaboration, team building and support. Similarly, an increasingly fickle job market and uncertain economic conditions distract workers across all industries. The fear of the unknown and potential for layoff creates additional stress.
A new era of digital transformation requires financial services firms to upskill their existing employees and attract new talent to be competitive. This demands more time and resources from Chief Human Resources Officers to shape and build a workforce that can keep up with the pace of change.
How a positive employee experience can accelerate digital transformation
Successful digital transformation relies on the employee experience. If employees feel empowered and engaged, they will be more likely to cooperate and embrace new technologies and digital processes. Chief Human Resources Officers should lean on HR software to support their employees in the digital environment.
To do so, HR teams should focus on:
- Providing adequate compensation and career progression to motivate employees.
- Creating incentives and opportunities to connect and collaborate digitally.
- Better training and upskilling to retain experienced workers.
HR teams should clearly communicate the relevance of change to help employees draw connections between the digital transformation, business success and an improved work experience.
The future of human resource management in financial services
The pressures of digital transformation and the nature of financial services present challenges for the Chief Human Resources Officers responsible for creating a positive end-to-end employee experience.
A positive employee experience requires more than just payroll and administration services. It must encompass workplace culture, learning and development and a ‘closed loop’ experience where feedback is collected, responded to and acted upon. Data-led solutions and cloud-based platforms are the future of human resource management in financial services.
As digital transformation takes hold of the industry, financial services firms must make employee experience a priority. No digital transformation can be truly successful without engaged and motivated employees.
A modern HR solution such as SAP® SuccessFactors® offers a suite of practical features – such as payroll, performance management and automated scheduling – designed specifically to improve the end-to-end employee experience.
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Rizing has deep human capital experience and provides best-practice HR technology to boost both the employee experience and your bottom line. Rizing supports financial services firms as they learn to better understand and respond to the demands and needs of their employees.
Contact us to learn more about how Rizing’s SAP SuccessFactors solution can help you and your team.