{"id":101408,"date":"2024-04-30T16:17:45","date_gmt":"2024-04-30T16:17:45","guid":{"rendered":"https:\/\/www.frazerjones.com\/?p=101408"},"modified":"2024-12-02T11:18:17","modified_gmt":"2024-12-02T11:18:17","slug":"navigating-hr-trends-in-financial-services-insights-and-strategies","status":"publish","type":"post","link":"https:\/\/www.frazerjones.com\/nl\/market-insight\/navigating-hr-trends-in-financial-services-insights-and-strategies\/","title":{"rendered":"Navigating HR trends in financial services: insights and strategies"},"content":{"rendered":"\n
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In the dynamic landscape of financial services, HR professionals play a pivotal role in shaping organisational success by aligning talent strategies with industry trends. From artificial intelligence (AI) integration to fostering diversity and inclusion (DEI), HR leaders face multifaceted challenges and opportunities.<\/p>\n\n\n\n

Here, Fay Philips-Jones outlines some key insights from a recent roundtable discussion with senior HR professionals working in financial services.<\/p>\n\n\n\n

AI<\/h2>\n\n\n\n

AI\u2019s capability in the workplace: what we do and don\u2019t know<\/h3>\n\n\n\n

There is much debate on the transformative potential of AI in aiding HR leaders across functions such as talent identification, policy formulation, communication and recruitment support.<\/p>\n\n\n\n

At our roundtable, concerns surfaced around the application of AI in volume recruitment, primarily centred on the potential legal ramifications stemming from bias. Despite this, companies are increasingly leveraging AI to streamline processes, expedite hiring timelines and identify top-tier talent. One HR leader underscored the importance of these advancements, highlighting the critical need to tread cautiously:<\/p>\n\n\n\n

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\u201cThis process could be frightening and risky. If a company receives 10,000 applications and AI is leveraged to screen out applicants so that we simply interview the \u2018top 50\u2019, but the process itself has bias in it, then we are opening ourselves up to potential for legal risk, as well as losing out on diverse talent. Until we can be confident that there is no error and bias, we should think very carefully before implementing it.\u201d \u00a0\u00a0<\/p>\n<\/blockquote>\n\n\n\n

AI is only as good as the data it can access. And if that data is inaccurate or has bias, then of course the results will also be biased. Yet, on the other hand, AI could be seen to be less biased than a human judgment call, and it can evolve to reduce bias over time.<\/p>\n\n\n\n

The question remains: are we better off taking a more data driven approach?<\/p>\n\n\n\n

AI on performance and wellness<\/h3>\n\n\n\n

AI can be used to support annual performance and reward processes.<\/p>\n\n\n\n

One of our HR leaders talked about how their team ran a dual AI and manager performance process. They noted that, on the whole, managers fared better than AI, because AI can only use information around ratings and key words, whereas managers know the background behind the ratings.    <\/p>\n\n\n\n

It was also recognised that AI struggled with wellness scores for employee surveys.<\/p>\n\n\n\n

ChatGPT<\/h3>\n\n\n\n

ChatGPT was initially seen as a big risk for businesses. Taking time to learn how best to utilise the tool was seen as critical.  Confidentiality sharing in ChatGPT is a huge concern for businesses as well as further education and training, and awareness raising is needed in this space to avoid major issues.<\/p>\n\n\n\n

All of our HR leaders were in agreement over the ease of using AI in letter drafting, policy drafting, presentations, job descriptions and internal communications. They talked about how this saves time and energy which can now be better directed towards more value-add activities.<\/p>\n\n\n\n

Is cost saving, rather than efficiency, the main driver for the uptake of AI? This could be a shortsighted approach, as some cost saving initiatives are not actually driving value. Perhaps the use of AI needs to be measured more in terms of efficiency rather than saving money to drive better business outcomes.<\/p>\n\n\n\n

Cultural resistance to AI<\/h3>\n\n\n\n

One leader added: <\/p>\n\n\n\n

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\u201cWithin our business, culturally our managers don\u2019t want to engage in AI as it is seen as a potential tool to replace jobs. It is seen as a risk. There is therefore a need to properly engage, educate and excite businesses to embrace the opportunity to leverage AI to remove the 5% of the role that involves menial tasks that would free up time to focus on more of the value- add without causing panic around job safety.\u201d<\/p>\n<\/blockquote>\n\n\n\n

AI in recruitment<\/h3>\n\n\n\n

One HR leader had tested AI to market map a few hires. They found there was often a cross-over (2-3 individuals) in longlists. They added in other predictors to support their process, such as who was more likely to make a move and what interview questions to best ask individuals. They added:<\/p>\n\n\n\n

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\u201cIt was a very interesting process, but was certainly not fool proof and did push out some ludicrous ideas as well as some good ideas.\u201d<\/p>\n<\/blockquote>\n\n\n\n

Employee engagement and wellness<\/h3>\n\n\n\n

AI was leveraged by one team to design a new wellness program. Results showed that wellness was the single biggest driver to deliver high performance.\u00a0 Put simply:<\/p>\n\n\n\n

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\u201cIf people are happy and less stressed and have interesting roles – then wellness will help drive engagement and ultimately give us greater productivity.\u201d<\/p>\n<\/blockquote>\n\n\n\n

Hybrid working<\/h2>\n\n\n\n

Psychological safety: hybrid working<\/h3>\n\n\n\n

There is a concern amongst HR leaders that employee burnout is increasing. Some of this is around the fact that a number of businesses have pushed to have employees back in the office. That is not to say that all employees enjoy working from home, but going into the office for 4-5 days a week poses a significant impact for those individuals who have a long commute, early school drop offs\/ pick-ups, have caring responsibility, global roles with numerous time zones, those who are working on tight deadlines or work that is best completed in an uninterrupted environment.<\/p>\n\n\n\n

Comments around hybrid working practices included:<\/p>\n\n\n\n

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\u201cIt seems we are taking away flexibility and this is impacting psychological safety in the workplace.\u201d<\/p>\n<\/blockquote>\n\n\n\n

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\u201cI am often sat on my own in the office. A number of my global colleagues work in separate locations. Business leaders are often travelling or out of the office.\u201d<\/p>\n<\/blockquote>\n\n\n\n

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\u201cWe have advocated five days in the office and this has been viewed as an extreme case of people monitoring.\u201d<\/p>\n<\/blockquote>\n\n\n\n

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\u201cIt works well for us as we are a very small business so, we sit side by side with the founder and collaboration is one or our strengths and values.\u201d<\/p>\n<\/blockquote>\n\n\n\n

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\u201cReal estate and costs seem to be the main driver \u2013 this is an old-fashioned view. Some leaders are not living in the same reality as others – they are very out of touch.\u201d <\/p>\n<\/blockquote>\n\n\n\n

Hybrid working is still one of the first questions that potential candidates ask about a firm before deciding whether to interview there. Goldman Sachs famously asked employees to return to the office five days a week and have since been losing top female leaders and talent from their business.<\/p>\n\n\n\n

DEI and talent attraction<\/h2>\n\n\n\n

Businesses are still facing real challenges attracting diverse talent through their doors. Even the financial services firms that have female CEOs are still short on female talent entering into apprenticeship and graduate programs. Of course, this is just one aspect of a diverse workforce.<\/p>\n\n\n\n

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\u201cIt doesn\u2019t matter if the business doesn\u2019t buy into the argument around having more diverse workplaces \u2013 we have to do it; it\u2019s the right thing to do, and our investors are demanding it.\u201d<\/p>\n<\/blockquote>\n\n\n\n

DEI competency framework<\/h3>\n\n\n\n

Holding leaders to account by embedding governance into executive pay and reward around DEI targets has been proving useful for many businesses.<\/p>\n\n\n\n

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\u201cHaving a DEI competency framework has worked well for us. In our business, you can only become Partner if you are a great firm builder. DEI, skills and workplace culture are all incorporated and measured.\u201d<\/p>\n<\/blockquote>\n\n\n\n

Paternity and maternity coaching<\/h3>\n\n\n\n

For many of our HR leaders, paternity and maternity coaching has been successful in supporting colleagues and encouraging them to return to the workplace. In one organisation, it was mandatory for all line managers, and they have seen a positive impact on retaining talent and increasing employee wellbeing. \u00a0<\/p>\n\n\n\n

Maternity leave and front office role challenges<\/h3>\n\n\n\n

Some women feel that they can\u2019t take much of their maternity leave as they needed to stay connected to their clients and didn\u2019t want to miss out on deals. It is a challenge for HR to understand how best to support these individual role types.<\/p>\n\n\n\n

Some strategies that were discussed:<\/p>\n\n\n\n