Banking Sector Layoffs May Drive Need for Contingent Labor

The boom of the job market may finally be going bust. As inflation, ongoing supply chain issues and a volatile overall economy have put the squeeze on industries everywhere, more businesses have been forced to trim their workforce – almost 30,000 jobs in September (an increase of 46 percent from August), according to one analysisAmong the sectors hit hardest has been banking, as a period of growth, salary increases and generous bonuses has recently been followed by banks tightening their belts including strategically trimming executive salaries. As such we could see banking sector layoffs in 2023.

Now, firms like Goldman Sachs are reportedly laying off mid-level bankers in high-profile divisions, which some see as a barometer for the flagging health of the job economy in the industry.

Yet even as banks dial back in response, they must also react to new opportunities and the changing landscapes of their existing ones in order to properly position themselves to move forward. That could mean bringing specialized teams and talent on board to handle short-term projects, or creating entirely new groups that can’t be fully staffed by moving around current employees. Even during lean times and amid rounds of layoffs, many banks will be driven to tap into the contingent labor market.

Why Banks Need Contingent Labor Even Now

One survey comparing priority issues in the banking sector found that cybersecurity was the top concern (26 percent) among respondents, followed by regulatory change (14 percent) and digital transformation (13 percent) as third- and fourth-highest. What do these elements have in common? They are tied to regulatory changes that are soon due to take effect – changes that will be difficult, if not impossible, to accomplish with banks’ existing staff alone.

Issues such as compliance related to data privacy are make-or-break for banks of all sizes and growth expectations, and many of those organizations lack the in-house expertise, specialized skill sets, or sheer manpower needed to efficiently and effectively respond to these orders. Regardless of the current economic challenges facing the industry, especially with potential banking sector layoffs on the horizon, a significant number of banks will need to lean on outside help – including consultants and contingent labor – to meet their priority goals and compliance requirements.

Optimizing a Contingent Workforce

Every bank has an individualized set of circumstances that requires a different deployment of labor than another – a strategy may need to be adjusted quickly to accommodate new regulatory changes, economic shifts, or business priorities. That’s where contingent labor – and the inherent flexibility it provides banks and other organizations – truly shines.

By building a strategy that includes a balance of staff and contingent labor – which may differ within each line of business or support function – a bank has the ability to fluidly react to specific situations with qualified specialists on short-term or open-ended contracts. PeopleCaddie has the network and platform to help your bank or organization find quality, vetted contractors who don’t require the riskier and more expensive commitment of hiring full-time staff. Reach out to let us help you start building your contingent labor workforce and strategy right away.

Looking to employ a contingent labor strategy? Here is how PeopleCaddie’s talent cloud can help.

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