While Fintech’s growth began in earnest in 2010, the market really exploded over the last three years. COVID-19 then fueled the industry, especially as the need for things like touchless payment moved from a “nice-to-have” to a necessity. Ultimately, that need rapidly increased the demand for Fintech talent.
Trying to find and hire the right talent is one of the most important tasks for any company, but it is especially difficult given that Fintech is growing at a staggering rate. Fintech is everywhere and redefining every major industry. The need for qualified talent keeps outpacing the available pool - and not only for startups.
4 KEY CONSIDERATIONS WHEN GROWING YOUR FINTECH TEAM
The need for talent in this industry continues to boom. Still, as the candidate pool shrinks and the job pool grows, companies are challenged with attracting talent to fit their needs and ensure long-term success. That's where my team comes in - bringing you the latest trends, tips, and tricks in today’s Fintech hiring market. Below are four valuable considerations we share with our clients for hiring your next superstar!
1. HAVE YOUR ROLES WELL-DEFINED
As the Fintech market continues to expand, the industry is going through a myriad of changes. This includes expansion in some sectors, contraction in others, increased M&A activity, and a slowdown in funding quarter-over-quarter. All of this is happening while the base of the available talent pool is shrinking. Even with all the movement, Fintech keeps expanding, and the pressure to attract qualified people is ever-increasing.
To combat this, you need to make sure that your roles are well-defined. As simple as that sounds, the truth is many young Fintechs (and some established Fintech firms) don’t! Why is this important? Because if today’s candidates don’t understand the role, your challenges, and why your firm is well-suited for them, they won’t even give you a chance. Firms that string candidates through a lengthy interview process before deciding at the last minute that the role really needs additional technology are setting themselves up for failure. Ultimately, it creates a bad scenario for the candidate and potentially a bad reputation in the market.
Spend time. Think through what you need and how it fits within your organization. It will pay great dividends in the long run.
2. STREAMLINE YOUR HIRING PROCESS
All Fintech companies (startup or established) need to have a very well-defined hiring process. The most important factor of a successful process is speed. While it’s often true that you want to and need to be thorough in your vetting and interviewing process, it’s crucial to move quickly if you find someone you like. Otherwise, your competition will swipe them up!
Here are some suggestions that can help speed up the process and increase your chances of getting that perfect candidate:
- If you have an initial test, take 20 minutes and have a quick screening call with the candidate first. If they are not a cultural fit, then pass on them upfront before making them start the process.
- Clearly define the candidate's process from the beginning and set expectations surrounding the number of interviews and timeframe for hiring.
- Keep your timeframes as short as possible. Two weeks or longer puts that candidate at risk for another recruiter to reach out and present another opportunity.
- While all Fintech hiring managers are very busy building and deploying products, they need to set aside time blocks to complete interviews rather than leaving the candidate hanging and open to other potential opportunities.
- Combine interviews to shorten the cycle. If a candidate needs to speak to four people, try implementing two-person panel interviews instead of four separate interviews.
- Cut down on the total number of interviews. Every stakeholder within your organization does not have to interview every candidate.
- Communicate, communicate, communicate!
3. COMPETITIVE SALARIES
It’s clear that every growing Fintech’s hiring need is not only scarce but also expensive. As more and more new companies emerge, your reliance on top engineering and product talent to provide breakthrough products in ever more crowded markets is growing geometrically. While you may provide the candidate an opportunity to create something extraordinary, most industry professionals agree that a competitive compensation package is a tipping point in their ultimate decision process.
So, what’s helping Fintechs seal the deal with candidates today? Base salary, stock options, bonuses, benefits, and deferred comp all play into this package. In addition, today’s modern workforce is also drawn in by factors such as location, remote work, hybrid work, and not penalizing someone for working remotely in a non-premium market.
Working with the candidate to provide a package that suits their needs will help you secure the best people for your firm. Being flexible when possible with how you build the package can also help.
4. TAP INTO A PROVEN FINTECH FOCUSED TALENT PARTNER
It can be challenging to source, screen and prioritize great Fintech talent. It is virtually impossible to determine if a candidate will be a fit for your company, do the job well, and bring the potential to grow with you - all based on their resume. Working with a talent partner that solely focuses on Fintech and knows where the talent is is key to finding the high-quality tech and product resources you need to succeed.
Remember, a majority of the best talent is not looking for a new role. That’s why it’s critical to work with someone that knows the market and can work the process to bring candidates your way!
Hiring great Fintech talent shouldn’t be daunting but rather an exciting opportunity to expand your team and product! The more you optimize your hiring process using the above tips and techniques, the better your chances of snagging those great Fintech candidates before your competition. With the right team in place, your possibility to expand in today’s crowded market could be exponential.