Demand for talent to be driven by financial technology, governance and ESG in 2024
Inflation has pushed more talent to seek out new jobs, states Charatsanan Holasutsakul, Manager at Robert Walters Thailand’s Banking & Financial Services division. “Candidates will consider moving jobs if they feel their current compensation package does not match the rising costs of living. In response, companies have needed to enhance their compensation packages to attract top talent on the market,” she states.
More digital consumer lending companies and neobanks have also come online in the last year, which has created demand for various roles such as business development, sales, credit risk, compliance and operations. Candidates are already starting to look into specialising in digital lending or fintech so they can snatch up opportunities in these areas.
“Overall, hiring activities in 2023 suggest that companies will need to adjust their compensation and benefits to stay competitive for talent attraction. At the same time, there is now a stronger need for professionals to upskill so they stay relevant as the industry evolves,” Charatsanan shares.
Read on to find out more about Charatsanan’s expectations of the labour market and hiring trends for Thailand’s Banking & Financial Services professionals in 2024.
Companies move towards more diverse, inclusive workforce
In the financial services industry, flexible work models have manifested in the forms of telecommuting, job sharing, flexible hours and compressed work weeks. These work arrangements have increased employee satisfaction, reduced turnover, and upped productivity – so Charatsanan anticipates that the trend is here to stay, noting that, “Companies that fail to offer flexible working arrangements may find themselves at a disadvantage when trying to attract and retain top talent.”
Learning from the tech and start-up scene, traditional financial services companies have begun exploring new, creative fringe benefits, such as flexible work schedules, extended paid parental leave and versatile benefits packages. This is an area that the industry is expected to continue looking into going into 2024, as it helps tremendously with talent attraction and retention, and keeping employee satisfaction high.
As an extension of that, there is also a stronger emphasis on creating a diverse and inclusive workplace. “On top of ethical reasons, companies also recognise the business benefits that arise from it. Diverse teams are proven to be more innovative, productive and profitable,” explains Charatsanan. “Many financial services companies are focusing on diversity and inclusion in hiring, and they’re doing this by implementing blind hiring practices, providing unconscious bias training to hiring teams, and actively seeking out candidates from unrepresented groups.”
This comes under broader efforts to create a more inclusive workplace. Looking ahead, Charatsanan anticipates that companies will start providing mentorship and leadership development opportunities, create employee resource groups, and offer flexible work arrangements, if they haven’t done so already.
Hiring trends in 2024
The rise of non-performing loans (NPL) from financial institutions has led to an increased demand for asset management companies (AMCs). Charatsanan expects this trend to continue, and along with it a bigger hiring appetite for roles across AMCs, including business development, debt restructuring, credit risk, collections and operations professionals.
She also foresees a greater emphasis on governance roles such as internal audit and compliance in 2024. As regulatory requirements get more complex, companies need to stay compliant to avoid potential penalties and reputational damage. As such, professionals with governance and risk management expertise will be highly sought-after.
Demand will also be high for environmental, social and governance (ESG) skills. Companies are placing more weight on sustainability, and Charatsanan points out that ESG skills are especially relevant for investment analysts, fund managers and risk managers.
“These professionals must assess the environmental and social impact of investments, evaluate a company’s governance practices, and identify risk and opportunities related to sustainability,” she shares. “Developing ESG skills can help professionals increase their value as there is a growing demand for sustainable investing.”
Roles that will see the strongest demand are for investment professionals experienced in sustainable investing.
Focus on culture, community and compensation
Although candidate sentiment has become more positive after the pandemic, jobseekers now consider more factors when changing jobs. Specifically, Charatsanan points out that candidates expressed more concerns around job security when thinking about moving to a startup due to the mass layoffs that many companies enacted in the last year. They are also after career challenges that align with their aspirations, and will opt to stay put if a prospective job does not offer the opportunity to pursue their goals.
Moreover, professionals in the financial services industry now value work-life balance and flexibility more than before. Many are willing to consider salary increments at less than the market standard of 20% if the company offers a flexible or remote work models.
Charatsanan states, “My advice to hiring managers in 2024 is to focus on creating a positive workplace culture that values employee well-being and engagement as that will help you create a more resilient and sustainable workforce for the future. Create a sense of community through team-building activities and employee resource groups. Be open and upfront about the company values and mission as many candidates are looking for purpose-driven organisations.”
In addition, she states that companies still need to offer competitive compensation and benefits, as well as career development opportunities to attract and retain top talent.
Salaries set to rise
Salaries are expected to increase by 20 – 30% for top talent as companies compete to attract and retain them amidst a talent shortage, with an additional 5 – 10% increment for companies who cannot offer flexible work arrangements.
Find out more
Request access to our 2024 Salary Survey to benchmark salaries and to find out more about key hiring trends in the Banking & Financial Services industry in Thailand.
