Human Resources Industry Benchmark Report: Financial and Insurance Services

The latest ELMO Human Resources Industry Benchmark report unveiled a number of critical insights specifically for finance services, highlighting the trends and challenges shaping the industry.

Cost control measures

Navigating economic headwinds requires a focus on cost optimisation and workforce flexibility. The report reveals that 35% of Finance & Insurance Services organisations plan to utilise alternative employment arrangements, such as contractors, to cope with economic uncertainty this year. This strategic move allows companies to:

• Enhance efficiency: By leveraging specialised skills on a project basis.
• Increase adaptability: Quickly adjust workforce size and composition in response to market fluctuations.
• Potentially reduce costs: Compared to traditional full-time employment, particularly in benefits and overhead.

This trend reflects a broader shift towards a more agile and adaptable workforce model within the financial services sector.

The top priority – Productivity

In line with cost control measures and maximising workforce potential, productivity ranked as a high priority for industry respondents this year. 31% of respondents identified it as their number one priority for 2024. This emphasis on productivity may be driven by several factors:

• Economic pressures: The need to achieve more with fewer resources in a potentially challenging economic climate.
• Technological advancements: Leveraging technology and automation to streamline processes and improve efficiency.
• Employee engagement: Recognising the link between employee satisfaction, motivation, and productivity.

To achieve productivity goals, organisations may need to invest in employee training and development, optimise workflows, and foster a positive and supportive work environment.

Talent management challenges

The report also highlights significant challenges in talent management:

• Upskilling/Reskilling: 30% of respondents find upskilling and reskilling employees a top challenge, indicating a need for continuous learning and development initiatives to address evolving skill requirements.
• High turnover: The average annual turnover rate of 13% suggests a competitive talent market and potential difficulties in retaining skilled employees. This may require a focus on competitive compensation and benefits packages, career development opportunities, and employee engagement initiatives.
• Time to productivity: New hires take 38 days to reach full productivity, exceeding the Australian average. This highlights the importance of effective onboarding programs to accelerate employee integration and performance.

Looking ahead

The 2024 ELMO HR Industry Benchmark Report provides valuable insights for Finance & Insurance Services organisations navigating a dynamic and uncertain landscape. By understanding the key trends and challenges, companies can proactively adapt their HR strategies to optimise workforce management, enhance productivity, and achieve business objectives.

See the infographic below for more key HR stats from the Finance & Insurance Services industry identified in the 2024 Human Resources Industry Benchmark report.