Sustainable talent management in finance: technology as a driver and a solution

“Jobs-for-life has made way for career perspective,” said Jan Laurijssen. “It is now a matter of knowing how to sustainably shape someone’s career path. The emphasis is on developing competencies, employability, and work-life balance.”

Jan Laurijssen says the context leaves little doubt that businesses can no longer do without carefully considered sustainable talent management strategies. “The employment rate is at an all-time high, which is likely to continue until 2040 or 2050, demographically speaking. Indeed, every profession is now a bottleneck profession, so to speak.” For example, in 2022, the number of vacancies in finance was about 60% higher than the previous year.

“Furthermore, as finance has been subject to digitization and automation for several decades, today’s jobs cannot be compared to those of 5 years ago,” said Laurijssen. “Also, with artificial intelligence taking hold, various functions will change dramatically or even disappear. We know that the data scientist role will soon become critical in finance, but in the medium term, we have no idea which kinds of jobs will or can be created.” In any case, many people will have to take on new roles before too long. “It is up to businesses to support their employees in this and have regular dialogues with them about their careers.”

The competitive element will vanish into the background to some extent by adopting a career perspective and committing to in-house guidance. “A battle in which businesses prey on each other’s scarce labor resources will not help anyone structurally. The time has come to call a truce and think about more sustainable ways of attracting and retaining talent.” One element that should not be underestimated is preventing people from dropping out. “In Belgium, there are currently 500,000 people suffering from long-term illness. This statistic directly opposes sustainability principles and must definitely be factored into developing an adequate talent policy.”

Organizations used to look primarily to the job market to fill their finance vacancies. However, now that the supply-demand balance has been radically different for quite some time, the ‘buy’ portion of the talent strategy has decreased significantly. “Training – both upskilling and reskilling – is the new recruiting. Only businesses that are successful in creating smooth internal mobility are future-proof. Since it’s not everyone’s intention to constantly change jobs, it is crucial that you manage that mobility.”

Whereas sustainable talent management involves streamlined internal mobility, engaging temporary external help is also valuable. “In particular, it is interesting to know exactly when organizations turn to external talent. Studies show that capacity, cost, and competence are the three main motivators. The competence factor is especially gaining importance as finance jobs are professionalizing to the extent that businesses cannot just build up the required in-house expertise. Hiring external talent – temporary or otherwise – provides opportunities to retain sufficient expertise.”

There is not only a new balance between build, buy, and borrow. The list of relevant Bs has increased from three to five. “When discussing the organization of work, it is also interesting to consider ‘bots’ as employees. Particularly in finance, this will become a key consideration and a driver for flexibility and lifelong learning.” Another concept worthy of attention is ‘bounce’, which involves the sustainable retention of people but also the ability to bid them farewell when necessary and, above all, to do so in a healthy way.

“If you only find out why someone is leaving during the exit interview, you have failed in your role as an employer. Another reason to talk to people regularly about their careers. Additionally, it is best to leave out the typical loss perspective. In a perfect world, organizations and talent engage in transparent relationships, with collaborations lasting as long as they are attractive to both parties. And when someone decides to go elsewhere, you could also say: we support you in this step, and if you ever want to return, you are welcome.”

When brand-new roles emerge, and other jobs change or disappear altogether due to automation, it is up to employees, consultants, and freelancers to improve or expand their skill range. “When it comes to lifelong learning, we are not doing very well in Belgium,” said Laurijssen.

The HR specialist still sees plenty of room for growth in two other areas: developing digital skills, for example learning to work with AI tools; and developing career skills. Again, these are essential skills in the context of sustainable talent management. “People need to realize that their jobs will not exist forever and a day, at least not in their current form. They must prepare for this and learn the skills for future jobs. That requires a growth mindset, an attitude that allows them not to lose their added value in the finance department.”

Internal and external labor market mobility is still low in Belgium, indicating that much work remains to be done. “Many people have yet to grasp the idea of a career for life. Some enjoy constantly evolving positions, while others need more security or are only dabbling in a career change. One of the major challenges we encounter today is that people who do not train their learning muscles for many years will lose some of their learning capacity. Their adaptability will also come under pressure.”

“People cannot just learn career skills in formal one-day courses. Employers need to provide their people with the necessary coaching and an environment where they can develop that mindset.” Although large companies have the resources to create in-house academies to engage in talent building, that is certainly not the only method. “Businesses are increasingly letting their employees participate part-time in other projects or training programs to prepare for their next roles. Ensuring that people never find themselves without a job because they’re always preparing for the next one: that’s the sustainability perspective and the long-term view we’re seeking.”

Working based on roles rather than with defined job descriptions also seems to be a generally valuable strategy. “When businesses think of 100% vacancy and 100% talent, they make it unnecessarily difficult for themselves in a tight labor market. Conversely, if you can engage someone in different roles or projects simultaneously, you give your business a strong boost in terms of performance.” In other words, you get a clear win-win in the fact that that talents get a chance to progress gradually in the organization, which looks ahead carefully and always fills all roles.

While Jan Laurijssen is aware that this fueled flexibility does not make talent management any more straightforward, he emphasizes that digitization can bring some relief in that regard.

Apart from the fact that technological advances bring about added complexity to the practice of talent management, technology is just as much a code word in working out an appropriate response. For example, consider maintaining a talent inventory providing an overview of all (internal and external) profiles and their skills. “The challenge lies in constantly maintaining that so-called skills-based organization so that you can immediately link new certifications or micro-credentials to emerging jobs or roles.” If necessary, with the help of AI. “I feel very confident that technological developments will facilitate much better matching and superior talent supply chain management, in which the future staffing will be considered from a supply and demand perspective.”

In this narrative, the value of an individual approach must not be underestimated. After all, everyone has different personal characteristics, desires, and needs. Besides the specific job content, there are also various framework conditions that play a role, such as the work regime and the need for flexibility, the work environment, and the working relationship. “These factors should ideally be included in the career interviews that HR regularly initiates with all finance staff. And again, technological tools can provide a helping hand, for example, by signaling that another review would be appropriate.”

“The future belongs to organizations that turn their talent management into large, sustainable entities and always match the evolving needs of their finance departments with those of individual employees,” said Laurijssen. “Treat it as a joint task of the HR people, the manager – the first line of HR – and, of course, the employee to approach the dialogue with a long-term view inspired by technology. This makes it possible to create a dynamic model and sustainably shape everyone’s career.”