Two-tier workforce complicates talent development in financial services sector: Report

New Delhi, Sep 30 (IANS) Generational differences in working patterns and rising concerns about AI, pay and mental health could create talent development challenges in the banking and financial services sector, a report said on Monday.

The report from ACCA (the Association of Chartered Certified Accountants) said that Gen Z workers are far more likely to be in the office full time than older cohorts which create a two-tier workforce, which complicates talent development as freshers lose chance to learn from more experienced colleagues.

Over 900 finance professionals worldwide were surveyed for the report, which found 52 per cent of Gen Z work full time in the office, compared with 33 per cent of Gen X and 14 per cent of Baby Boomers.

“Time spent with older and often more experienced colleagues in the workplace is an important part of gaining useful real-world experience in the workplace for younger employees, and it’s helpful for driving more effective cross-generational collaboration at work,” said Jamie Lyon, Head of Skills, Sector and Technology at ACCA.

This mismatch complicates future skills development and workplace culture assimilation, Lyon said.

Nearly 55 per cent of employees believe time spent in the office has a positive impact on promotion opportunities. The majority of respondents in the sector (61 per cent) agree that organisations should require employees to spend a set number of days in the office.

Around 55 per cent cited concerns about the use of AI algorithms in hiring processes, while 56 per cent of board-level financial service leaders remained sceptical about the growing reliance of AI when selecting talent.

Demand is high for finance jobs that drive social impact with 59 per cent of respondents eyeing finance jobs to assist in the environmental and climate challenge, and 64 per cent seeking roles with social impact.

Cost of living topped concerns as 54 per cent expressed dissatisfaction with their current compensation.

“Fears of AI replacing jobs remain high despite confidence in the ability to develop AI-related skills staying strong among finance professionals at 81 per cent, but 52 per cent of respondents remain worried about the potential impact of AI on their jobs,” the report noted. Nearly 57 per cent respondents said their mental health suffers due to work pressures

—IANS

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