Luxembourg’s financial institutions need to swiftly make significant changes in order to keep up with the changing labour market if they want to continue attracting top talent, Luxembourg for Finance said in a new report on the job market.
Financial services firms will need to shift the way they approach business and align their organisations’ values with themes recognized by the incoming generation of professionals. The report concluded that existing HR models are stretched and that tomorrow’s talents expect a more personalised work experience.
In that context, firms will “increasingly need to jump from a management concept to a leadership concept”, said Luxembourg for Finance in its new “Future Skills and Jobs in Finance” report. Its CEO Nicholas Mackel added that this also is highly important in the wider economic context.
“Financial organisations play a fundamental role in financing economic growth and the transition to net zero. They are on the lookout for talent who can adapt to ongoing evolution,” said Mackel.
Skills mismatch
The financial services sector plays a crucial role in fostering economic growth and creating jobs, the report said. To meet the current and future demands, the sector needs to evolve, as are the roles and the skills, with technology and sustainability leading the drive. The technologies are not only altering how people engage with financial services in their day-to-day lives, but also the talent needs within the sector.
LFF’s jobs report finds “a notable mismatch” between current skills and those required in the next five years. Advanced data analysis and mathematical skills are high on the agenda for employers. Reskilling programs at employers are increasingly focused on building critical thinking and decision making skills, as well as leadership skills.
Among the trends the report addresses are working with technology, particularly automation; social and emotional skills in the financial sector; leadership skills; focus on client engaging activities; and robust financial literacy and solid quantitative skills remain key to analysing, understanding and providing clients with recommendations based on financial data.
‘Growing responsibility’
“Beyond their fiduciary duty to their clients, financial professionals also have a growing responsibility towards society and financing the transition towards net zero,” the report said. “Sustainability skills will therefore be key going forwards, not only to properly assess investments, but also to build internal ESG strategies.”
The financial services landscape is becoming increasingly complex as regulations evolve and impact all areas of the sector. The functioning of legal and compliance teams is changing as well, forcing professionals in this space to become more strategically minded and tech-savvy to meet new demands.
“While professionals will need to be equipped with the right skills to harness new technologies, meeting shifting client demand, adapt to new and complex rules, and contribute to the sustainable development of the economy, the onus is not only on them.” the LFF report said.