The financial institutions of the sector sell-side they are focusing a lot on technological investments to accelerate business growth, as they experience increasing difficulties in recruit and retain talent.
Sell side, technology allied
This is what emerges from a study by Acuiti in collaboration with ION, entitled Strategic Workforce Development: Talent and Technology, which is based on a survey of senior executives at 78 sell-side companies. The research found that nearly half of respondents, including 76% based in Asia, consider attracting young talent into the derivatives industry to be a significant challenge. Executives primarily reported a talent shortage in clearing operations and margin management. The reasons for this challenge are complex and vary from region to region, but the most common factors cited by respondents are the high-pressure work environment in the financial sector and the greater attractiveness of other sectors. Difficulties in developing the next generation of talent in sell-side derivatives operations are pushing firms to increase salaries, generating significant concerns about succession planning and continuity in the event of the loss of key personnel.
In response to these challenges, the study found that companies sought to improve corporate culture. Additionally, companies are turning to process automation to eliminate manual processes, freeing up time for higher-value activities, improving morale and work-life balance, and reducing employee attrition.
Almost three quarters of companies have invested significantly in post-trade technology over the past three years. 83% of respondents said this improved employee satisfaction, while 66% said work-life balance improved.
“This study highlights that companies across the industry are embracing automation and technology investments to address some of the challenges they face in hiring and retaining talent,” he says Will MittingCEO and founder of Acuiti.
“This challenge has become more significant in the last 12 months, with an improvement in the operating environment in compensation activities, leading to an increase in demand for talent.” Automation and technology investments will go a long way in solving the challenges, but companies must also expand their strategies for hiring and motivating talent and look at non-traditional roads”.
“At ION we simplify the way people work. We do this by automating processes and workflows and providing real-time value-added information to help people make better decisions. Our solutions mission critical fThey provide integrated trading and settlement connectivity to exchanges and clearinghouses around the world, and enable clients to execute, allocate and clear their assets seamlessly with greater operational precision. The result is reduced stress and increased efficiency, freeing up time to focus on higher-value activities and grow the business,” he said Francesco Margini, Chief Product Officer for the Cleared Derivatives area of ION Markets.