Fintech is emerging as a key companion for assisting high-tech firms in addressing their talent gap problems by automating HR workflows, expanding access to global talent pools, and utilising AI solutions to upskill existing employees efficiently.
Global talent gaps in the high-tech sector are hampering the growth of otherwise ambitious businesses. In the United States alone, Bureau of Labor Statistics data suggests that there will be a deficit of more than 1.2 million software and IT professionals by 2026. Different high-tech niches surrounding AI adoption and services are likely to suffer from greater gulfs looking further ahead.
The adoption of fintech in the high-tech sector has been steady, with fintech solutions maturing from simple payment tools into fully-fledged financial operating systems for employees that integrate payroll, recruitment, and compliance seamlessly into a firm’s operations.
Finance technology offers a complex range of innovative solutions to support the onboarding of international talent at scale for ambitious firms. However, raw figures show that adoption rates are slow, with just 36% of freelancers and consultants reportedly receiving money via instant payment methods despite it being favoured by 72% of consumers.
For ambitious high-tech firms, fintech innovations may open the door to a competitive edge in reaching talented industry players before their rivals, while also offering them the pay flexibility that they crave.
With this in mind, let’s explore the ways in which fintech will hold the key to bridging long-standing talent gaps in high-tech sectors:
Accessing Global Talent Pools
Arguably, the biggest strength of fintech is that it removes geographical barriers when it comes to onboarding talent, helping US tech firms to hire the best possible prospects from anywhere in the world without the need for local legal entities.
Emerging fintech services can also handle global payroll automation, with unified dashboards capable of managing earnings, deductions, and reimbursements across different currencies in a way that significantly reduces administrative burdens on HR departments.
Crucially, these services manage compliance on behalf of employers, keeping track of hundreds of different local jurisdictions to ensure that no costly mistakes are being made.
AI Talent Acquisition
High-tech firms are also capable of broadening their search for talent by using fintech-enabled AI to access strong international candidates that may not have been visible to traditional recruitment teams.
With the help of predictive hiring analytics, AI systems can align historical employee performance data with talent pools to identify the candidates who are most likely to succeed in specific high-tech roles, reducing the risk associated with hires.
These analytical tools can also work directly alongside fintech services to deploy case-specific benefits packages to boost the appeal of employers to top talent and to improve engagement on the job.
For instance, some modern fintechs allow employees to gain interest-free access to earned wages before payday, helping to support their financial management and reduce stress.
Upskilling Staff
Fintech will also play a hands-on role in facilitating the transition from traditional roles to high-tech positions through the deployment of targeted training programs.
One of the most powerful ways that fintech can support the development of essential skills to fill high-tech talent gaps is through incentivised learning experiences.
By using platforms that leverage analytics, generative AI, and partnerships with learning providers, it’s possible to implement an element of gamification to motivate employees to achieve new competencies in advanced tech sectors.
Because learning high-tech competencies can be highly challenging, businesses can incentivise staff by distributing workplace benefits or monetary rewards upon achieving measurable success.
While modern employee management systems (EMS) can help businesses to acknowledge successful upskilling journeys for employees, smart contracts and blockchain technology can automate rewards, automatically paying staff once they pass a specific competency test.
Because smart contracts can instantly distribute rewards to employees, they can create a far more engaging upskilling journey with tangible recognition for their efforts over time. Meanwhile, high-tech businesses also win because they get to benefit from ready-made in-house talent.
Closing Talent Gaps
For ambitious businesses in the high-tech sector, success will largely depend on your access to industry talent and the ability of your employees to grow in line with industry developments.
Fintech can play a key supporting role in equipping more employers with the tools needed to nurture a skilled and agile workforce that can help to support lofty scaling ambitions.
With the ability to seamlessly recruit from overseas with an EOR and the capabilities to appropriately reward internal upskilling initiatives, more firms can prioritise R&D, safe in the knowledge that they’ll have a workforce that’s ready for the future.
Read more on Finextra Research
