Jessica O'ConnorDespite persistent skills gaps, firms are actively addressing them as they embrace technologies like artificial intelligence (AI) and commit to initiatives such as achieving net zero emissions, new findings from the Financial Services Skills Commission (FSSC) Future Skills Report has revealed.
The report highlighted a noticeable shift in prioritizing skills discussions at senior levels, accompanied by increased efforts in reskilling employees.
The report also indicated a decrease in job vacancies, lower attrition rates, and longer tenures for employees in the financial services (FS) sector.
However, as skills gaps persist, the report suggested improving internal mobility and implementing reskilling programs in order to retain talent.
Katharina Ehrhart, policy and research manager at the FSSC, noted that despite a decrease in vacancies from 2022, about three out of 100 roles in financial services remain unfilled.
Roles such as data software, cyber, risk, and product management were particularly challenging to fill, reflecting strong demand for front-office positions.
According to the report, the majority of UK CEOs reported skills shortages within their organizations, with a lack of tech capabilities hindering transformation efforts.
Additionally, the report predicted an exodus of highly skilled workers from the sector by 2035 due to retirement and other factors.
AI is expected to play a significant role in reshaping work dynamics, with CEOs anticipating efficiencies in time management.
While highly skilled roles may be more affected by AI, it doesn’t imply wholesale replacement of manual skilled roles.
Regarding gender balance, there was a positive trend of increased female hires in financial services.
However, women still represent a smaller share of the talent pool. Efforts to address this gap include targeted programs aimed at women, such as those focusing on women in tech.
