7/27/2019 Islamic Finance in Critical Need of Talent

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Islamic finance in critical need of talent

Written by Charles Fernandez

Friday, 05 July 2013 10:13 -

While staff-pinching is the blight for any employer in any industry, the lack of experienced staff

and the recent explosive demand for Shariah-compliant products makes the practice especially

hard on the Islamic finance industry.

Islamic finance has been making inroads into mainstream finance and as a result, a huge

demand has been created for experts in the field.

The global phenomenon is that an estimated one million professionals are required to fill various

positions in the Islamic finance institutions worldwide by 2020.

There is a shortage of talent in the institution and this has encouraged poaching as the

poachers are willing to pay premium wages and therefore the rivals are caught in a game of

catch up to fill the talent scarcity.

Managers face the challenge of staff being poached on a regular basis. Companies should

consider a much more open approach to talent management by facilitating long-term career

development by facilitating internal mobility and moves between suppliers, customers and even

the competitors.

Dearth of Talent

When you cannot get someone naturally, it is quite normal to poach for talents.

According to Asian Institute of Finance (AIF) CEO Dr Raymond Madden, the industry requires

more professionals and skilled talents who not only have dual knowledge of both Shariah and

finance, but also possess soft skills such as leadership and effective communication.

The current shortage of qualified Islamic finance professionals is a challenge that poses a

serious threat to the growth and development of the industry. If this issue is not addressed

immediately, talent shortage may be an impediment to growth, Dr Madden said.

Dr Madden who was addressing participants at an AIF conference on Islamic finance held

recently, made reference to the Financial Sector Blueprint 2011-2020, where it stated that thereis a need for an additional 56,000 finance professionals of which 40% is needed to serve in the

Islamic finance sector for the total domestic market.

And although the industry growth is 20%, employment in the financial sector is only 9% per

annum. This is serious as far as talent is concerned, added Dr Madden.

Dr Madden coined the phrase the talent game to recognise that a career is about a series of

moves just like chess and companies need to play the game to attract, develop and retain

talent.

He pointed out that the current shortage of trained and qualified manpower in the Islamic

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7/27/2019 Islamic Finance in Critical Need of Talent

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Islamic finance in critical need of talent

Written by Charles Fernandez

Friday, 05 July 2013 10:13 -

finance sector has led to an eventual spiralling of wages, which in the long term does not benefit

the industry.

Talent pinching among the banks have resulted in higher wages but little improvement in

productivity and efficiency. Most banks prefer to hire experienced staff who can hit the groundimmediately. This has exacerbated the pinching issue.

Career Expectations by Gen Y

He explained that Gen Y makes up 40% of the workforce in Malaysia. The competence to

understand what motivates and inspires Gen Y employees is important to attract and retain

them.

Gen Y has much higher career expectations for promotions than other generations, for

example, Gen X and the former need to see a progressive development and career path or theywill move on to the next employer.

The talent market has changed significantly and now demands new approaches and focus, and

growth means good talent becomes increasingly hard to find. Hence, getting the right people in

the right roles is central, so pinching has become common place to meet those ends.

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