In Silicon Valley, there is a myriad of opportunities, infectious energy, and dreamers who become leaders. The same isn't as true of finance, but tech titans are moving to finance in record numbers.
Based on the Bureau of Labor Statistics data, financial analysis just makes the top three jobs for millennials. Projections indicate that this trend will continue into 2020 and beyond. Tech, no longer the top of the heap in terms of salary and benefits, may no longer have the first pick of the brightest college grads. There is a tipping point coming that will clear the smoke and mirrors that have accumulated in Silicon Valley. Let's take a look at the factors that point to this conclusion.
There's a Bug in the Program of Tech Dominance
As recruiters are finding out, the glass ceiling in the finance industry has seen a major shakeup. This is nowhere truer than in the C-suite. It will be interesting to watch how this plays out in the coming years. There has been a real effort to improve the environment in financial institutions. This is necessary because the industry has been known as a bastion of white male executives in the past. Fortunately, that optic has changed considerably. Employers have made considerable effort to make the office or workplace more diverse for employees of different sex, race and religious beliefs.
This effort is a top priority for leaders who aim to create a truly diverse place of work. This new zeal to prioritize diversity can be seen in EY’s 2018 Growth Barometer results. The report indicates that 40 percent of executives consider diversity the biggest issue of 2019. This follows a year in which tech companies faced a reckoning surrounding allegations of complicity.
Data breaches and privacy concerns, sexual harassment and other scandals have given the tech industry a black eye. Millennials and Generation Z are closely watching this behavior and determining the impact they will leave. Then, there's the complex issue of how mobile devices impact the landscape for tech and finance companies trying to secure the data and privacy of their customers.
What's the Atmosphere in Finance Recruiting?
In finance, the culture has adapted to the need to attract and keep a diverse workplace, which in turn generates innovative ideas and practices. Banking leaders at JPMorgan Chase have transformed their environments to shadow the casual environment of the tech field. Another financial giant that is onboard with an emphasis on diversity is Goldman Sachs, which last year adapted their dress code based on the preferences of the tech department. Flexible working hours, relaxed dress codes, and higher compensation rates are attracting candidates who want a challenging job with a casual dress code. One of the major draws for those who move from tech to finance is the job security that comes with financial positions - which is quite a perk for those in tech used to migrating every few years due to changes in priority and technology.
Technology constantly changes the world we live and work in today. Although finance jobs are historically more stable than tech, the industry isn't immune to constant changes related to advances in technology. Consumer banking is focusing recruitment on millennials. For instance, if you walk into a Capital One building, you inevitably find a cafe opened to provide food and snacks to employees throughout the workday. Deloitte has stated that wealth management is largely carried out by robo-advisors, which means fewer jobs for people. The majority of trading is also automatic, and major banks have large fintech hubs that act as incubators to develop leads and popular trends.
Smart companies aren't losing the chance to ride at the front of the latest tech waves washing over the industry. These disruptions are now occurring in the largest industry in the world.
Brighter Days in Finance
Post-crisis rules like the Dodd-Frank Act have restored some of the public’s opinion regarding the industry. The industry may always be tainted by the events of 2008, but the crisis is truly over, and the recovery is nearly complete by many accounts. Restrictions being discussed in Congress have already loosened. Bureau of Labor Statistics data shows a stable economy and market analysts are feeling good about the future.
Confidence is slowly returning to corner offices and the trading floor - and firms are pouring money into transforming proprietary technology to make customer and employee interfaces user-friendly. As a matter of fact, MarketWatch reported that Citibank is developing a platform to whet consumer appetite for finance and banking again. Citibank's website lets users create their own content to suit their own lifestyle. They're even doing this for their business accounts.
Emerging sectors of finance that are more tech-based should continue to appeal to technologists. Candidates that are attracted to the merit-based success trajectories of Silicon Valley startups may enjoy the meritocratic atmosphere of the finance industry, where effort and innovation are rewarded. In the war for talent, the financial services sector can expect to gain more candidates with technical talents. Similar to draft first-picks, those who can leverage skills in multiple areas may find they have their pick of top-tier tech and finance "teams." More and more of them are following the money to finance.
Make the Move
If you find yourself looking for a change, consider making the move to finance. Click below to check out our open roles and see which ones fit your needs. We'd be happy to help you enter the finance sector and add value to a company that needs talent just like you. When you find a job that resonates with you, don't hesitate to apply. It could be the first step you need to take to create a career you love.