Why it’s time to look at closing the skills gap in Scotland’s financial services sector

29 July, 2022

Fraser Wilson

Partner, PwC United Kingdom

+44 (0)7739 874087

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There’s no escaping that there’s a skills gap in the financial services (FS) sector, in Scotland and across the UK. Recent research published by PwC and the Financial Services Skills Commission (FSSC) laid that fact bare. It also opened discussions into the benefits for businesses and employees, of reskilling which is going to prove vital to the sector’s future success.

Getting around the table

I recently had the opportunity to host a FSSC and Scottish Financial Enterprise (SFE) roundtable at our Edinburgh office alongside key figures in the industry, politics and higher education. We teased out various, sometimes unexpected, themes from allaying the ‘fear’ of reskilling, to rethinking recruitment strategies and collectively engaging in more creative ways to foster a reskilling environment.

It became clear that reskilling isn’t just about commercial benefits – there’s also a social imperative, in terms of providing access to skills-building opportunities to existing and prospective FS employees.

Discussing the ‘business case’

Reskilling: A business case for financial services organisations’, has been used as a catalyst by FSSC for conversations around the burning need to address the skills gap. For me, that’s true in Scotland, with 45% of FS employers attributing vacancies to skills shortages. While this is a challenge which, if left unconquered, could hold back economic growth, it also presents an opportunity for the sector in Scotland to lead by example.

The broader picture painted by PwC’s Hopes & Fears Survey of the UK workforce backs this up. While 73% of CEOs want to increase their workforces next year, 70% say that a lack of skills is their biggest challenge. That same research identified that one in five employees is looking to change jobs in the next 12 months.

So why not give them the opportunity to change without moving?

Not only does addressing the existing skills gap stand to boost output from the Financial Business Professional Services (FBPS) sector by over £1bn by 2028 – doubling to over £2bn by the following decade – but there are cost savings to be made. It’s estimated that, per employee, reskilling can save approximately £49,100 compared with ‘redundancy and rehire’. These figures are compelling for most in the sector.

A solid foundation

In Scotland, we’re building from a solid foundation. With the UK’s largest financial centre outside of London, the sector is the second largest contributor to the Scottish economy, employing people at every stage of their career.

We compare favourably with other UK regions, being among the top three in terms of the proportion of FS workers holding higher level finance qualifications – around 68%. The country is also home to some of the sector’s largest financial institutions, led by some of the industry’s most innovative and experienced individuals.

Most importantly, there’s a real willingness to not only discuss the importance of reskilling to the future of the sector in Scotland – but a real hunger to come up with practical solutions to face the challenge head on.

There’s still work to be done, but the need is great. I hope that, in years to come, reskilling in the sector isn’t discussed as a standalone – but something that becomes ‘business as usual’ to cope with the constant evolution of the sector, and to capitalise on and nurture the incredible talent at our disposal. That’s why we’ll continue to convene key stakeholders – to work together on creative solutions in order to build and secure the skills the industry needs in future.

Fraser Wilson

Partner, PwC United Kingdom

+44 (0)7739 874087

Email

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