Within the UK market, the number of job vacancies currently exceeds the number of job seekers and companies, now more than ever, are in a talent war to attract new talent to a company and retain new recruits. Ylva Oertengren, Chief Operating Officer at Simply Asset Finance agrees: “there is a war for talent and it is really an employee's market at the moment”.

To create a healthy future for the asset finance industry, time and investment is needed to attract and retain a pool of talented people who can pass on their culture and values to companies and the industry in these changing times. Without the proper tools, such as a good purposeful company culture, career advancement and providing a sense of community, the industry will be unable to recruit a team of diverse individuals who can relate to an increasingly diverse industry and client base.

The Gen Z and Millennial talent of today expect their jobs to bring a significant sense of purpose to their lives. Employers need to help meet this need or be prepared to lose talent to companies that will, according to recent McKinsey research.

But not everything has changed, a good competitive financial package lies at the heart of winning the battle to get the most talented team, particularly now when the cost of living is high. But for many employees and consequently employers this is not enough. And the asset finance industry cannot always compete on remuneration alone compared to some other areas of the financial services industry.

Ricky McNeil, Director of Operations at MAF Finance Group feels that salary and bonuses have only ever been a short-term retention plan: “If a company is using financial incentives as a key retention strategy, then they are going to struggle to create any long-term relationship or loyalty with employees.”

The asset finance industry therefore needs to up its game, and a changing mindset and culture is needed within the industry to help attract the next generation of talented young professionals.

Work is already being done with initiatives within the UK asset finance market, focusing on networking, innovation, and diversity and inclusion, to help foster, develop and retain the young talent that is the future of the industry.

Since the Covid pandemic, people priorities such as employee well-being, resilience, and purpose, have become of particular importance to employees and employers in the job-seeking market.

Three key areas highlighted in McKinsey’s 2021 research entitled, ‘Great Attrition’ or ‘Great Attraction’? The choice is yours’ must be provided by industry organisations to help attract and retain new talent: avoiding transactional relationships; career development and progression; and providing a sense of community.

According to McKinsey, if companies make a concerted effort to better understand why employees are leaving and take meaningful action to retain them, the Great Attrition could become the Great Attraction: “By seizing this unique moment, companies could gain an edge in the race to attract, develop, and retain the talent they need to create a thriving post-pandemic organisation.”

Career development and progression

Career opportunities that signpost stages on the career path clearly are a must for the next generation of talent. Carlo Van Kemenade, CEO of DLL, believes that it is important as an organisation to understand, in your people strategy, the direction of the company in terms of leadership and market development: “Healthy growth combined with healthy opportunities combined with a very thought through people strategy where there is sufficient money available to invest in talent.”

Avoid transactional relationships

Recent research by McKinsey suggests that employers need to build strong supportive relationships and communities, rather than just transacting with financial boosts which employees can interpret as a plaster.

McKinsey’s Partner, Aaron De Smet, commented that, “Rather than take the time to investigate the true causes of attrition, many companies are jumping to well-intentioned quick fixes that fall flat: for example, they’re bumping up pay or financial perks, like offering “thank you” bonuses without making any effort to strengthen the relational ties people have with their colleagues and their employers. The result? Rather than sensing appreciation, employees sense a transaction. This transactional relationship reminds them that their real needs aren’t being met.”

Building and growing the right relationships between employers and employees is of paramount importance to the industry. “It's about having an open dialogue and creating a space where employers listen to what it is that employees want,” remarked Alex McWilliams, Communications Manager, Simply.

McWilliams believes that while work is always going to be transactional, a transactional relationship can only take an employer so far with their employees. People want to be valued and credited for their experience in ways other than remuneration.

As stated in the 2021 McKinsey article, “employees want meaningful—though not necessarily in-person—interactions, not just transactions.”

Inclusion and diversity

The asset finance industry needs to focus on the importance of inclusion and diversity and the benefits it can bring to your business and the industry, as a whole, by building inclusive leadership, management, organisations and teams, as well as embedding inclusion and diversity into hiring, performance and succession management, leadership development and learning.

Shire Leasing’s CFO and Leasing Foundation Board Member, Helen Lumb, notes that, “Most businesses understand the importance of diversity and that diverse teams, different skills, different perspectives and different experiences outperform non-diverse teams. However, what is really important and what employees are looking for is fairness and inclusion, creating a sense of belonging that helps individuals bring their whole selves to work, enabling them to thrive and be supported. This drives positive employee wellbeing and stems directly from the leadership and culture of the organisation.”

A purposeful company

Corporate purpose, company culture, and employee experience are seen as essential attractors for millennial and Gen Z staff – all things that an organisation can control directly.

Businesses need to consider corporate responsibility in the context of diversity as social exclusion and low economic activity rates can limit business markets and their growth. Corporate responsibility was previously centred on environmental issues, but an increasing number of employers now take a wider view, seeing the overall image of an organisation as important in attracting and retaining both customers and employees.

People want to work for employers with good employment practices and they also want to feel valued at work. It is important to create open and inclusive workplace cultures in which everyone feels valued, respects colleagues, and where their contribution is recognised.

Simply’s Oertengren highlights that many new young employees have a passion to work for a purposeful company in a purposeful industry: “unless you can explain why the company’s values are important, then you won't get the best out of people”.

FCA Bank’s Marcella Merli observes that you need to share the strategy of the company in the short, medium and long term when recruiting new talent, as young people want to be challenged, motivated and successful, all while having fun!

As Nathan Mollett, Head of Asset Finance at United Trust Bank points out, “The next generation of talent put greater emphasis and importance on working for an organisation that has common values and common purpose.”

Striving to become a purposeful company is a topic that will be addressed at the Asset Finance Connect Spring Conference on June 13th, with BCorp certified Triple Point speaking to the asset finance industry’s next generation of talent in a special session for the industry’s young talent. The BCorp certification is a representation of Triple Point’s commitment to people, purpose and profit in all activities. The next-generation session will also include CEO roundtables offering an opportunity for the attendees to ask questions and discuss career issues with CEOs from the auto and asset finance sectors.

New financial models and tech for a new generation

Marcella Merli sees “people as the real asset of the company,” and strongly believes that you must attract new talent from outside the sector with ‘out of the box’ thinking who can bring an innovative valuation of the company and its products.

The rising younger talent of today are digital natives and are keen to work with new innovative digital solutions. It’s something they’re comfortable with and they expect it to be part of their lives.

The attractiveness of new industry technology, such as AI and machine learning, along with the next generation financial models, such as pay-per-use and subscription, is appealing to the millennial and Gen Z generations of talent, leading to innovation and news ideas. For example, technical and financial advances in mobility focusing on circularity and sustainability embrace all the innovative and purposeful qualities that new industry talent is striving for.

AFC Best Organisation to Work for Award

The 2023 AFC Best Organisation to Work for Award, sponsored by CBC Resourcing Solutions, is designed to recognise the best asset, auto or equipment finance organisation to work for in the industry.

Many companies pride themselves on their culture, values or for being an overall great company to work for. However, these claims are often unsubstantiated, which is why the Best Organisation to Work for Award is always so hotly contested.

Unlike our other awards, this category is not judged by our panel of industry experts and is instead judged anonymously by the company’s own employees. Meaning the accolade of “best company to work for” really is a true endorsement of how your employees feel. Those making the shortlist truly deserve to be there and have been backed by their own personnel, showcasing to the industry how much their employees appreciate them.

This category provides the opportunity for companies to showcase to the industry just how valued their staff feel and the special environment that they are creating. As many companies fight to attract new talent to their organisation, accolades such as this really do play a vital role in substantiating why someone should be looking to join your company.

“Nominate an outstanding asset finance organisation today for their chance to win this prestigious honour at the AFC Summer Awards.” - Graham Chisholm, Director of CBC Resourcing Solutions.

So, don’t delay, submit your entry today before the 21st April closing date or nominate one of the outstanding organisations that you work with.

To see a full list of the categories and start your entry, visit: https://afcawardsuk.com/summerawards2023/en/page/categories. Closing date for entries is 21st April.