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 has been prominent in the last couple of years due to both the inability to attract talented people to Europe and the retention of experienced staff. Although Europe does not lack in volume of technical graduates, there is a need for people with the skills and experience to scale up a business. These issues are caused by a variety of factors, the first being stock options.
Stock options are a great incentive to retain and attract employees as it rewards them for the efforts they put into growing the company. However, it is difficult for start-ups in Europe to offer this due to uneven regulations and tax rules across the continent.
Another hurdle Europe faces is immigration law. Many governments are strict when it comes to hiring talent outside of the country. The visa process is usually expensive, time-consuming, and difficult to navigate which influences a start-up’s ability to quickly get experienced talent in and build the business.
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 what your financial offerings will be before you start interviewing candidates. This includes the base salary, bonus, and equity. Having this in place will help you to 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 companies USPs and end goal. It is vital that they are enthusiastic while also painting a realistic picture of what the reality of the job will be on the journey to scaling up.
3. Many candidates have multiple job offers at a time 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. It is important to question whether there are interview stages in place that can be merged to make the process quicker.
5. Make the connection personal through gestures such as, a celebratory welcome call, explaining what will happen between the offer and onboarding stages, and ensuring an open dialogue so that they feel comfortable coming to you with any questions they may have before they start.
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 education 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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