• Laurent Charpentier, CEO at Yooz


• 29.09.2023 04:00 pm
#finance

London has long been a global financial hub, often competing for the top spot alongside financial giants like New York. However, the sustainability of this status quo is being questioned as a new challenge emerges on the horizon—one that has the potential to reshape the landscape of the UK's financial sector.

Recent independent research has unveiled a pressing concern for UK finance leaders - the rising wage demands of financial talent.

In a world characterised by economic fluctuations, it's no surprise that finance and accountancy professionals are seeking increased compensation. In fact, the official figures in the UK revealed a surge in wages in July 2023 by an annual increase of 7.8% – the highest since comparable records commenced in 2001.

A survey conducted by Yooz, a leading Accounts Payable automation and Purchase-to-Payment provider, has revealed that 41% of UK finance leaders cited wage demands as their top concern when it comes to recruiting finance talent. This concern is closely followed by the difficulty of finding candidates with the necessary qualifications and skills, which was highlighted by 38% of respondents.

Challenges faced by UK finance leaders 

UK finance leaders are confronted with a dual challenge as they navigate the complex landscape of talent acquisition. Beyond the immediate requirement to provide attractive compensation packages, these leaders are tasked with the intricate responsibility of pinpointing candidates who possess the precise qualifications and skills demanded by the industry. 

Complicating matters is the fierce competition within the job market, which is amplifying any existing apprehensions about the sector's capacity to secure the necessary talent needed for its continued advancement. 

Retaining Talent

Amid the recognised demand for higher salaries, UK finance leaders are mindful that financial incentives alone cannot serve as a universal solution to talent retention. While the situation calls for immediate action, there is still room to implement effective strategies that encompass a wider range of factors beyond monetary compensation.

To retain talent, organisations should focus on creating a positive and inclusive work environment that values employees' contributions. This involves offering competitive compensation and benefits, recognising and appreciating their efforts, and providing clear paths for career advancement. Empowering employees through autonomy, flexible work arrangements, and opportunities for professional growth can enhance their job satisfaction and commitment. 

By prioritising work-life balance, investing in leadership development, and maintaining a culture of meaningful work, companies can effectively retain their valuable talent and contribute to long-term success.

How can automation help

Automation can significantly benefit businesses by streamlining processes and increasing efficiency. By automating repetitive and time-consuming tasks, such as data entry, report generation, and routine calculations, companies can free up their workforce to focus on higher-value and strategic activities. This not only reduces the risk of errors but also boosts productivity and innovation. 

Automation can also enhance customer experiences by enabling faster response times and more accurate service. It allows employees to engage in more creative, analytical, and problem-solving tasks that align with their skills and expertise, ultimately leading to improved job satisfaction and overall organisational success.

Going forward

In navigating these complexities, UK finance leaders have the opportunity to shape the future trajectory of their sector by strategically balancing competitive compensation, targeted talent acquisition, and innovative workforce management. The evolving financial landscape demands adaptability, and by adopting a holistic approach, the UK's financial hub can continue to evolve in a rapidly changing landscape.

As these leaders embrace the challenges of attracting, retaining, and empowering a dynamic workforce, they not only secure the sustainability of their organisations but also contribute to the overall resilience and competitiveness of the UK's financial ecosystem.