Financial technology sector sees signs of recovery: insights from Harrington Starr

London remains the premier location for fintech jobs, facing strong competition from Amsterdam, Paris and Geneva. The fintech market is highly candidate-driven, with top talent typically receiving two to four job offers.

So according to Harrington Starr, a recruitment company specializing in financial technologies that analyzes trends in the current labor market.

The Harrington Starr Salary Survey 2024/25 provides an analysis of the current labor market, highlighting both challenges and opportunities. The London, Belfast and New York based recruitment firm offers in-depth analysis of pay trends, recruitment practices and market dynamics as the economy recovers.

In the survey Toby Babb, CEO and co-founder sees “green shoots of recovery” visible in mid-2024 as investment returns to tech and fintech sectors

It emphasizes that strong candidates can expect to receive multiple offers, reminiscent of the competitive job market in 2022, and advises companies to offer fair market rates and comprehensive packages to attract top talent, warning against unsustainable bidding wars.

“The message to employers is: pay the fair market rate,” Babb writes. “To present strong, comprehensive packages and create an interview and onboarding process that makes it easier to say yes to your business. I have never agreed with bidding wars and I strongly believe that companies should not risk long-term profitability but overpay for mediocre talent.”

Reflections

Ian Bailey, A vice president at Harrington Starr reflects on the turmoil of the past year, marked by economic challenges that led to reduced job growth and fewer job openings. Despite this, the demand for individual suppliers with established networks remains high. Bailey predicts a more robust labor market in the second half of 2024, driven by growing investor confidence and strategic recruitment of older workers.

“The availability of talent has often meant that companies have been less willing to hire based on potential, opting instead for the ‘finished article’ and someone who will ‘hit the ground running’,” he said. “While this always seems like the logical solution, I believe it will lead to retention issues when the market turns (as it always does) and new candidates either feel they are stagnating because they are not learning new skills or are not earning as much as they could elsewhere

Rob Grant, The chief operating officer of a staffing firm discusses the significant layoffs and economic instability over the past 18 months. He notes that 2024, despite a slow start, is showing signs of market stabilization.

“2024, despite a relatively slow start, is showing some incredibly encouraging signs as we enter the second half of the year,” he said. “As things begin to stabilise, it will be interesting to see how compensation reflects the friction between clients looking to promote a return to office culture and candidates who have quickly embraced the ‘brave new world’ of hybrid and remote work. There is a general feeling that candidates believe that where flexibility is restricted, a premium should be added.”

Diversity matters

Nadia Edwards-Dashti, CCO and co-founder of Harrington Starr, emphasizes the importance of advancing gender pay equity. It outlines five strategies to promote fair pay for women, highlighting the need to ensure an inclusive working environment and fair pay practices.

“Companies need to be willing to be open and transparent about these issues to attract and retain the best talent. Those who understand this are paving the way to closing the gender pay gap,” she says.

This Harrington Starr Financial Technology Salary Survey 2024/25 offers an interesting overview of the fintech job market as the economy recovers. The findings from this study are crucial for employers and job seekers who want to succeed in a competitive and evolving industry.