As Singapore’s economy gains momentum, the labor market is seeing a gradual growth in activity. However, geopolitical tensions, trade conflicts, and job changes driven by new technologies create talent challenges that must be managed to sustain growth in the sector, a new report reveals.
The Singapore Fintech Association (SFA), in collaboration with Accenture has launched the 6th edition of the Singapore Tech Talent Report 2024.
This year’s edition highlights how fintechs and financial institutions (FIs) are navigating a new talent landscape amid a volatile macroeconomic environment and a dampened market outlook for the tech sector.
Key Findings of the Report
It also addresses the emergence of GenAI and the evolving roles as it integrates into operations. The report emphasizes the need to reevaluate the employee value proposition, identifying gaps in perceptions between employees and employers and how to adapt to the varying needs of different generational groups. Key findings include:
1. Navigating a New Talent Landscape
Overall, the market is optimistic about positive revenue growth, with 57 percent of FIs surveyed anticipating the sector to accelerate with more opportunities, while 32 percent of FIs expect that growth will continue but at a slower pace.
The study finds that FIs are taking a cautious approach to hiring, with 57 percent citing a hiring freeze or forecasting a decrease in headcount given the current economic climate. Fintechs and FIs are adopting flexible workforce models, continuing to outsource non-essential capabilities, and investing in internal capability development to retain long-term strategic roles. 81 percent of FIs and FinTechs also cited a change in the level of funding as a highly applicable sectoral shift to hiring forecasts for the next 1-2 years.
2. Redefining Job Roles and Skills with the Rise of GenAI
GenAI drives changes in jobs and skills within FIs, impacting all tech roles to varying extents. According to the survey findings, 89 percent of FIs are exploring or have already implemented GenAI in 2024.
Additionally, 65 percent of FIs are already implementing GenAI in their operations, a 27 percent increase from 2023. Notably, a higher number of FIs compared to fintechs have integrated GenAI into their operations.
GenAI has the potential to transform traditional workflows by simplifying processes and enhancing operational efficiency. The study found that 84 percent of FIs and fintechs surveyed cited code generation and summarization as the top tasks that will be automated and augmented.
As AI continues to automate routine tasks, the demand for distinctly human skills, such as critical thinking, creativity and leadership, is rising significantly, highlighting a growing need to cultivate cognitive abilities that complement AI systems.
3. The Employer x Employee Disconnect
The study revealed a divide between employers and employees regarding key factors influencing employee decisions to leave or join an organization, particularly, concerning rewards.
A key finding is that individuals join and leave companies for similar reasons – rewards and opportunities. To effectively attract and retain tech talent, FIs and FinTechs must tailor their benefit packages, redefining ‘rewards’ to include learning and development budgets, health benefits, flexible leave policies, and lifestyle discounts. This approach addresses the diverse needs and expectations across different generational groups.
