European FinTech Edition
Investment into the FinTech industry has excelled in comparison to 2020. Europe has raised €10.4 billion so far this year, beating the €8.4 billion raised for the whole of 2020. After investment is raised, many FinTechs look to expand their team. But are they using the right processes?
In this article, we are going to cover the processes and procedures European FinTechs should adopt to attract and secure the best talent.
The war on talent in Europe
The war on tech talent in Europe is due to the inability to attract talented people to Europe and retain experienced staff. Although Europe does not lack graduates with technical abilities, there is a need for people with the skills and experience to scale up a business. These issues are caused by various factors, the first being stock options.
Stock options are a great incentive to retain and attract employees as it rewards them for their efforts to grow the company. However, it is difficult for start-ups in Europe to offer this due to uneven regulations and tax rules.
Another hurdle Europe faces is immigration law. Many governments are strict about hiring talent outside of the country. The visa process is usually expensive, time-consuming, and difficult to navigate, affecting a start-up’s ability to get experienced talent to build the business quickly.
Job van der Voort, CEO & co-founder of Remote says, “It’s an unnecessarily high threshold to hire people from other countries. It’s incredibly hard,” he said. “If you are unlucky in the sense of where you were born or what the rules are where your prospective employer is based, then you may not be able to get a good job. Making visas simpler would be an amazing change.”
But what steps can FinTechs take to make the best out of the situation?
Steps FinTechs can take to win the best talent
1. Have a rough idea of your financial offerings before interviewing candidates, i.e., base salary, bonus, and equity. Having this in place will help you stand out from competitors and save time from interviewing the wrong candidate.
2. Make sure that all people representing the company are clear on the company’s USPs and end goal. In addition, they must be enthusiastic and have a realistic idea of how the job will be at a company scaling up.
3. Many candidates have multiple job offers, so making sure there is a swift application process in place will reduce the chances of missing out on a candidate because a competitor has moved them through the process faster.
4. Cut down the stages in the interview process as it will reduce the loss of interest from candidates and put the company in the running with competitors.
5. Make the connection personal through gestures such as a celebratory welcome call, explaining what will happen between the offer and onboarding stages. Encourage an open dialogue so that they will feel comfortable coming to you with any questions before starting.
Following these steps will make sure they attract and secure the experienced talent needed to scale their business.
The core issues affecting the war on talent in FinTech start at the educational level. European FinTechs will have to play the long game, investing in STEM subjects and partnering with schools to offer apprenticeships and work experience so that talent is caught young. Investing in the training of entry-level employees will also ensure that your business has the right talent for years to come.
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