The Financial Services Industry relies on IT departments so much, it is willing to change dress codes for them.
Goldman Sachs led this trend when the firm announced that the business dress code will become relaxed for IT employees.
“The move, one of the first by Goldman’s new chief information officer Elisha Wiesel, comes as the bank makes a push to recruit and keep hold of top tech talent in the face of intensifying competition.” According to Business Insider.
This move suggests that the firm is willing to change its structure to stay ahead of the competitors.
So, are financial services having trouble recruiting IT employees?
Let’s look at the relationship between IT departments and financial services.
Financial Services Shift Digitally
The reason for this relationship may seem simple.
The need for IT engineers and software developers emerged when financial services embraced digital disruptions:
- Fintech – A term that describes disruptive technologies changing the way money is managed.
- Blockchain – Technology that changes economic transactions.
- Cloud Computing – Stores big data through internet servers
- Robotic Process Automation – Preforms tasks business processes.
- Artifical Intelligence – Uses algorithms to execute tasks.
“With the onslaught of big data, cyber security concerns, and other technological innovations, the finance department is increasingly taking on more IT responsibilities.” Forbes reported.
Time to Recruit
Creating an IT department may come as a huge shift for financial firms, and it can take an effort to recruit these people.
In order to recruit IT professionals, financial services, like Goldman Sachs, have found these key elements should be met.
- Flexible hours
- Workplace perks
- Relaxed dress code
“Goldman and other Wall Street banks have been struggling for years to compete for the best employees with Silicon Valley firms and hedge funds, which often have better hours and workplace perks for top software developers and engineers.” Business Insider continues.
In order to compete with these firms, it is crucial for financial businesses to shift away from traditional office environments.
Financial service firms should follow these trends to stay above the competition.
Create a Trusting Environment
According to research done by Dan Pink, tech professionals prefer to have trust from management to complete their job.
“While the companies considered for the recently announced Best Workplaces in Technology tend to pay well, the best pulled ahead of their peers by giving their people the level of autonomy and professional engagement they need to innovate” Fortune reports.
Innovation is key for tech professionals, and this comes with freedom and trust from the company.
Collaboration is an important factor that tech employees look for.
Being involved in decisions from higher management is something that affects the department’s overall performance.
Gaining knowledge from the IT department puts the company in a position to have a beneficial work culture.
“The result is a culture where people feel comfortable taking risks and communicate easily with those in different departments or positions of authority” Fortune reports.
While following this strategy, a positive work environment is an overall goal for everyone.
When financial service firms integrate IT departments into its workplace, the environment is forced to shift.
This is done so everyone can use unique skills to meet desired goals.
Prioritizing these skills and being open to new ideas is crucial to the success of the company.
“This means an engineer at a workplace like xMatters can focus all her energy on solving customers’ problems or getting a product to market quickly, rather than competing for the attention of her boss to ensure her efforts are recognized.” Fortune Continues.
The Future of IT Departments in Finance
Since the financial industry is leading toward digital transformation, IT departments play an important role that companies depend on.
“About a quarter of Goldman’s 33,000 employees are engineers who have helped transform the firm since the 2007-2009 financial crisis by making trading more efficient and building new businesses such as its consumer lending platform called Marcus.” Business Insider reports.
With the implementation of digital tools, financial service firms must be prepared for any digital disruptions that come their way.
Financial firms must be properly equipped with technology for IT departments to increase performance.
These technologies may even threaten IT departments in general because computers are starting to outperform humans.
“Those technologies automatically flag control exceptions, provide real-time dashboards for reporting and forecasting, offer mobile, on-the-go access, and speed up collaboration and workflow through modern social tools.” Forbes reports.
Although IT departments are not yet at a major risk for elimination, it is important to keep in mind that technology is growing rapidly.
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With financial service firms making big moves in order to recruit IT professionals, it is clear that we are at a time where digital transformation plays a large role in decision making. The need for IT departments is increasing, shifting the priorities of financial business leaders.
C-level IT leaders are crucial when the convergence of the cloud, Artificial Intelligence, Blockchain, Fintech, Machine Learning, and robotics appeared in this industry.
With the digital enhancement, comes different work environments in order to effectively carry out technical duties to enhance work performance. Companies are learning that they must adapt in order to stay ahead.
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