Singapore Technology Talent Report 2024

Navigating a New Talent Landscape in Singapore’s Financial Services Industry

Market Optimism and Revenue Growth

• Revenue Expectations: 57% of Financial Institutions (FIs) expect sector growth to accelerate in the next 1-2 years, with FinTechs leading at 68%.
• Workforce Stabilization: The workforce is gradually stabilizing towards 2022 levels, with a 5% increase in the Financial Services workforce from Q1 to Q2 2024, but an estimated 4% decline by year-end.

Disruptive Factors

• FinTech Funding Decline: FinTech funding has continued to decline in the first half of 2024.
• Technological Advancements: Technologies like generative AI (GenAI) are projected to boost productivity by 22–30%, but raise concerns around governance and societal impacts.
• Regulatory Changes: Increased focus on risk management, with FWA guidelines boosting work-life balance but adding compliance challenges.
• Social and Economic Shifts: Geopolitical and trade conflicts, along with differing career expectations across generational groups, continue to challenge the workforce.

Transforming Talent Profile

• Industry Maturity: The FinTech workforce composition is shifting, with a stagnation of 'Technology Wizards' and an increase in 'Operations Champions' and 'Corporate Drivers,' indicating a shift towards operational roles rather than idea generation.
• New Talent Profile: A 'Techno-Functional Collaborator' is emerging, blending technical expertise, business acumen, and strong interpersonal abilities, emphasizing 'Human Fluency.'

Employee Value Proposition (EVP)

• Rewards Paradox: Rewards emerge as a new paradox, with a disconnect between employer and employee views on key factors for joining and leaving organizations.
• Work-Life Balance: High demand for work-life balance policies, but compensation and career advancement are more critical for job satisfaction.
• Tailored Strategies: Customized EVP strategies are needed to meet the differing needs of generational groups, reflecting their distinct priorities and values.

Talent Priorities Mismatch

• Alignment Needed: There is a misalignment between employees' top priorities (rewards and opportunities) and the HR initiatives prioritized by FIs, highlighting the need for realignment.

Impacts and Implications

• Job and Skill Transformation: GenAI adoption is rapidly expanding, reshaping job functions and requiring new skills.
• Enhanced Internal Development: Establishing a skills taxonomy and focusing on upskilling beyond technical skills, such as AI literacy, creativity, and critical thinking.
• Risk Culture: Building enterprise risk literacy and enhancing risk and compliance teams to address AI-related threats.
• Talent Ecosystem Expansion: Partnering with educational institutions and government initiatives to grow technology talent in Singapore.

Actionable Steps

• Rethink Employee Value Proposition: Use real-time data to track employee sentiment and focus on "Signature Moments" like exceptional onboarding, health and well-being, and career growth.
• Develop Skills Passport: Create a skills passport for employees to take ownership of their career development.
• Collaborate for Talent Growth: Expand the talent pipeline through partnerships with educational institutions and industry exchange programs.

Conclusion

The financial services industry in Singapore is undergoing rapid transformation due to various disruptors. To futureproof the workforce, FIs must adapt by redefining job roles and skills, addressing employee needs, and fostering a collaborative risk culture. Collaboration with educational institutions and government initiatives is crucial to develop a future-ready talent ecosystem.