what drives talent in the finance and insurance sector.

The finance and insurance sector's economic impact on the talent landscape is substantial, promising lucrative career opportunities and financial stability. For hiring managers, department heads, and talent acquisition leads, it represents a sector where strong financial health and the potential for high earnings attract top talent seeking professional growth and stability in a competitive market.

In the 2024 Randstad’s Employer Brand Research (REBR) survey, the primary drivers influencing respondents in the finance and insurance sector include AI adoption, retention trends, economic conditions, and equity.

This research offers valuable insights for employers on shaping their brands to attract and retain top talent. Globally, REBR surveyed nearly 173,000 people and over 6,000 companies. Several top U.S. firms shared data on their strategies for achieving brand recognition and loyalty. The study reflects the attractiveness of employers within the U.S. largest firms. Specifically, more than 6,000 individuals participated in 14-minute interviews.

in the finance and insurance sector, 155 respondents shared thoughts on the four themes

All four themes, AI adoption, retention trends, economic conditions, and equity are connected in one way or another. These factors influence job security and workforce stability, guiding employer hiring strategies. Understanding the crux of these themes will help companies adapt to employee expectations and market conditions.

AI adoption

Despite the current buzz surrounding AI, many employees are not benefiting from AI and automation advancements. With only about 14 percent of employees using AI every day, a major portion of the workforce is yet to experience AI. With over 75 percent expecting AI to have an impact on their jobs in the next five years, it is crucial for employers to invest in upskilling their workforce. Employers who prioritize upskilling and reskilling through regular training and discussions are preferred by employees. But here’s the catch for employers: striking the right balance is critical. It’s about reaping the benefits of AI while ensuring your team feels not only secure but genuinely valued in their roles.

talent retention trends

Switching jobs often means better pay and new challenges. What do the retention trends look like in the finance and insurance sector? Across all generations, the most common reasons in the finance and insurance sector include the desire to improve work/life balance, receiving offers they could not refuse and dissatisfaction with compensation due to rising cost of living.

A few nuggets:

• In 2023, in the finance and insurance sector and for all age demographics, about 20 percent of respondents changed jobs. The expectation in 2024 to change jobs for this same group was 27 percent.
• In 2024, improving work/life balance is a top reason, with 36.2 percent of millennials and half (50.4 percent) of Baby Boomers planning to leave the workforce. 
• Receiving an offer that couldn’t be refused is a significant reason across generations with Gen X topping the charts.
• Millennials and Gen X consider career progression as an important facet.
• For all age sectors, a consistent top reason for leaving was: seeking better pay and benefits.

What does this intel tell us? Pay continues to be the major factor. Work-life balance has become a priority among older workers as well and plays a key role in decision making.

From where finance and insurance professionals sit, they value career development and the opportunity to reskill. The REBR revealed that about 43 percent of respondents in 2024 feel they are given enough opportunity to develop in their current roles.

In 2024, fewer employees (38.5 percent vs 42.6 percent in 2023) rate reskilling as very important, possibly indicating a shift in focus toward immediate job stability and satisfaction over long-term skill development. This trend could reflect confidence in current skills or a changing job market prioritizing other factors.

impact of economic conditions

The market is unpredictable and inflation, labor costs and the rising cost of living have people carefully looking at how their employers are prepared to brace the violent storm. Finance and insurance sector respondents were asked how in what way is your company financially supporting you to help cope with these rising costs?

• About 21 percent said their salary raise covered part of the rising costs.
• Almost 26 percent said they received nothing to assist with rising costs.
• Just over 28 percent said their salary increase covered the rising costs.
• About 7.5 percent reported receiving a one-time lump sum to assist with rising costs.

the importance of equity

EDI&A (equity, diversity, inclusion and accessibility) is crucial for every company and efforts to be inclusive and embrace differences are vital.

According to the REBR results, the finance and insurance sectors show mixed results in equity perception among employees. A significant portion (60 percent) does not identify as a minority.

Companies should embrace diversity and inclusivity to build a truly inclusive workplace, boosting satisfaction and retention.

In the finance and insurance sector, equity also resonates with respondents.

• About 68 percent feel their organization values their unique attributes, characteristics, skills, experience and background.
• When asked if senior managers are fair when it comes to hiring or career advancement, about 66 percent of the respondents agree.
• 67 percent report equal pay for equal work and 62.3 percent say the best opportunities go to the most deserving, reflecting a positive perception of meritocracy.

What does this data tell us? Employees view their employers positively, especially regarding valuing unique skills, managerial fairness and equitable compensation.

why people leave

Better offers and work-life balance top the list in 2024. Employees crave competitive compensation and the ability to work from anywhere. They seek career growth and flexible work options. To keep employees happy, it’s time for companies to focus on fair pay, development opportunities and supporting hybrid/remote work.