Max Wassenberg on the impact of the tight labour market: 'Job title inflation is becoming increasingly prominent'
This interview was originally written in Dutch. This is an English translation.
Although the labour squeeze eased slightly in the second half of last year, unemployment in the Netherlands remains at historically low levels. According to recent figures from CBS, there are over 106 open vacancies for every 100 unemployed people, which means the labour market is still considered ‘strained’. But what does this mean for the asset management and pensions sector? How difficult is it for employers to attract and retain young talent? And how do young employees, who have only recently joined the sector, experience this labour shortage? Financial Investigator spoke to Max Wassenberg, Quantitative Risk Consultant at Probability & Partners.
What is the impact of the tight labour market on the financial sector?
'The tight labour market is a permanent point of attention in the Netherlands and is leaving its mark on almost all sectors, including financial services. Companies are finding it increasingly difficult to recruit and retain qualified personnel. Employees are now often approached by recruiters with more appealing job titles, making the phenomenon of job title inflation increasingly prominent. The tight labour market leads to higher wage costs, increasing workloads and challenges in realising growth ambitions. At the same time, the demand for financial expertise is growing due to the complexity of regulations and technological innovations.
To better respond to these shortages, the financial sector can invest more in automation and digital solutions. Technology can take over repetitive tasks and speed up other tasks, shifting the focus of employees to valuable and strategic activities. Think of advanced analysis tools or AI-based customer interactions. This also offers opportunities to reduce the workload and make the work more appealing.
Companies in the sector can also intensify their training programmes and partnerships with educational institutions. By attracting and training talent at an early stage, they can ensure a continuous influx of qualified professionals. Flexible working conditions, such as hybrid working and targeted career development, are also essential to attract and retain talent.
The financial sector has the potential to act as a forerunner by cleverly combining technology, talent development and flexibility. This will not only address the shortage, but also lay the foundation for sustainable growth in a changing economy.'
