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Article | Beyond Data

How Fintech’s attraction and retention issues are changing rewards

By James Walsh | June 2022

WTW’s Fintech Club members share how they’re adjusting Total Rewards in an increasingly competitive talent marketplace.
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Beyond Data

Like other industries around the world, the Fintech sector has not been immune to challenges in attracting and retaining key talent – particularly given the recent rise in digital consumerism. To gather insights on the issues Fintech professionals are experiencing around attraction and retention, WTW recently sent a pulse survey to members of its Fintech Club.

Designed as a venue for working closely with key Fintech organizations in every region around the world, members of the WTW Fintech Club regularly meet to share insights and best practices. Based on the May 2022 pulse survey WTW sent to Club members, we found four rewards and HR themes for Fintech organizations to keep top of mind.

  1. 01

    Rewards are changing – and not only because of inflation!

    More than 80% of participants said they are enhancing their Total Rewards mainly due to concerns over a tighter labor market, while only 21% cited inflation as a driving factor. Around eight in 10 organizations reported being greatly challenged with attracting and retaining digital talent, particularly among roles related to data, engineering and product development.

    Most Fintech organizations are enhancing their rewards by reinvigorating the employee value proposition, increasing workplace flexibility and offering more competitive compensation, such as spot bonuses and equity awards.

    Infographic showing more than 8 out of 10 of organizations saying they are enhancing their Total Rewards due to concerns over a tight labor market, and 2 out of 10 due to concerns related to cost management (inflation, rising cost of supplies).
    Figure 1. Factors influencing changes in rewards
  2. 02

    Hybrid working has become popular in Fintech

    Most Fintech organizations offer hybrid working arrangements. According to Club members, some organizations provide guidance on the minimum number of days for in-office work, but teams and individuals are entrusted to decide what works best for them. This considers personal needs, including employees’ locations.

    Infographic showing 71% of their workforce has a hybrid work setup (mix of remote and office working) and 40% have no minimum requirement for in-office time per week.
    Figure 2. Flexible working model in most fintech organizations
  3. 03

    Better data is needed to support skills-based pay policy

    Organizations recognize the need to rethink the role of skills in their job architecture, but only 12% said they have started looking into implementing a skills-based pay policy. Almost two-thirds of participants said the main roadblocks are the lack of standardized skills taxonomies and insufficient visibility of the skills in their existing talent pools.

    Also, some participants are concerned about how rewarding for skills will affect their fair pay agenda. This has become increasingly important as organizations’ digital transformation journeys have been accelerated, calling for more focus on paying for digital skills.

    Infographic showing 53% of participants face challenges on lack of visibility of skills in the workforce, 47% are missing pay insights at the skill level, and 40% have concerns about pay equity/pay fairness.
    Figure 3. Biggest challenges with skills-based pay policy.
  4. 04

    All employees are eligible to receive equity awards

    Almost all Fintech organizations award equity as part of their pay program, with 50% saying this is offered to all employees rather than only to key groups or employees with key competencies.

    Seventy-one percent of participants said they award equity in addition to annual base salary and annual incentives (performance bonus or sales incentive), while 24% said they award equity in addition to the annual base salary only. 63% of respondents said they award equity as restricted shares, and the rest use stock options.

    Infographic showing 50% of participants said they award equity to all employees, while 71% said they award equity in addition to annual base salary and annual incentives.
    Figure 4. Prevalent practices with equity awards in fintech organizations.
  5. The WTW Fintech Club holds a bi-annual forum every May and November for human resources and rewards professionals to work together and discuss pressing issues, share ideas and best practices in the Fintech space. Club members comprise organizations from every region that play a relevant role in the industry, from large financial institutions to small but fast-growing technology companies. Contact me to join the WTW Fintech Club.

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Global Lead, AI and Digital Talent Survey, Data Services
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