Fintech recruitment is a changeable landscape. Trends ebb and flow, and adaptability is a key trait for success. We’ve taken a deep dive into the events that have shaped the last two decades and laid out our predictions and recommendations for success in the future.
Although the last two decades have, according to the Recruitment & Employment Confederation (REC) and KPMG’s ‘Report on Jobs’, shown 85% growth – with the 15% decline attributed to economic disruption like the 2008 financial crisis and the millennium bug – there’s more to the story than that.
Technology’s role in sustained recruitment growth
From 2008 to mid-2022 the recruitment sector grew aggressively. The technology sector was a significant driver of this growth. A surge in demand for tech talent mirrored the overall industry growth. But in mid-2022 growth rates began to taper. The later part of the year saw a short decline, which slowed and stabilised through the spring of 2023.
There were several reasons for this decline but geopolitical events like the war in Ukraine and fluctuations in interest rates affected the whole global economy, with a knock-on effect on hiring and recruitment.
Divergence between contract and permanent recruitment
During the industry decline, there was a clear divergence between contract and permanent recruitment in the tech sector, with permanent recruitment declining more sharply than contract recruitment.
The overall demand for tech talent remained and while supply increased both European and UK markets struggled with a lack of quality professionals. Despite this, many employers opt for the increased flexibility offered by contract recruitment, especially as the market remains uncertain.
Long term fintech recruitment outlook
Although the last few months have been challenging, taking a broader view suggests a robust and promising future for the fintech recruitment sector. The global shortage of top-tier talent in developed economies hints at the market’s underlying resilience, and the surplus of talent in emerging markets suggests opportunities for global growth.
Evolving recruitment
Technological advances over the past twenty years have revolutionised the efficiency of the recruitment industry, with the most profound change being the shift away from traditional personal networks.
The modern recruitment landscape depends less on individual connections and more on the ability to access the best talent efficiently. Online networks like LinkedIn have accelerated this transformation, leading to clear separation between business development and delivery roles.
Recruitment is thriving
The COVID-19 pandemic created an unprecedented demand for tech skills and helped to trigger a digital transformation. The recruitment industry is recalibrating, but there is still a talent shortage.
This means that recruiters must continue delivering top talent to clients, focusing on aligning cultural fit and behaviour, and on future career prospects. Consultants must return to traditional recruitment values, ensuring precision in candidate/client matches.
Best recruitment practices
As fintech recruiters navigate this changing landscape they must focus on foundational values and behaviours. Recruiters who consistently add value to their clients will continue to thrive.
The key is to return to best practices and apply them to modern recruitment. As the market normalises, the recruiter’s role is to ensure that clients’ and candidates’ needs are met – and exceeded – in finding the perfect match.
The challenging recruitment sector demands adaptability, and this is where the fintech industry’s resilience shines through. We’ve seen both growth and decline but technological and operational advancements have helped create an industry positioned to endure and excel.
Planning for the future, embracing time-tested values and focusing on precision and accuracy will ensure continued success for recruiters in the evolving fintech recruitment landscape.
If you want further advice or to speak to one of our specialists, get in touch. We’d love to chat.
Faqs
Geopolitical events like the conflict in Ukraine can significantly impact the recruitment industry by causing fluctuations in the global economy. These events can create uncertainty among businesses, leading to a cautious approach to hiring and recruitment. Specifically, geopolitical tensions may influence investment decisions in the context of the demand for tech talent, affecting the availability of funding for tech projects and startups. Additionally, geopolitical instability can disrupt supply chains and international collaborations, impacting the movement of talent across borders and leading to talent shortages in certain regions.
Several factors influence the divergence between contract and permanent recruitment within the technology sector. While the demand for tech talent remains high, the supply has increased over time, particularly with the emergence of emerging markets with a surplus of tech professionals. However, despite the increase in supply, developed economies like Europe and the UK still face challenges in sourcing quality tech talent. This imbalance between supply and demand has led employers to prioritise contract positions for their flexibility, especially during times of market uncertainty, contributing to the divergence between contract and permanent recruitment trends.
Technological advancements have fundamentally transformed the recruitment industry by enhancing efficiency and changing traditional practices. Beyond the shift away from personal networks, online tools like LinkedIn and social media have become integral parts of recruitment processes, enabling recruiters to access and engage with talent more effectively. These platforms have streamlined candidate sourcing, allowing recruiters to reach a larger pool of candidates and assess their suitability for roles more efficiently. Additionally, advancements in artificial intelligence and data analytics have enabled recruiters to automate various aspects of the recruitment process, such as resume/CV screening and candidate matching, further improving efficiency and accuracy. Overall, these technological advancements are shaping the future of recruitment by enabling recruiters to adapt to changing market dynamics and deliver value to clients and candidates.
