PEOPLE DEVELOPMENTIN FINTECHWe take you through what you need to consider when it comes to the people side of your business’s growth. We discuss the areas you should focus on now, and in the near future.

It is not a brilliant strategy which succeeds in business, but a well-executed one.

General contact :yinka@okahr.cowww.okahr.co

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WHAT IS PEOPLE DEVELOPMENT?

WHY ALL FIRMS NEED PEOPLE DEVELOPMENT?

WHY FinTech FIRMS NEED PEOPLE DEVELOPMENT?

MANAGING YOUR OWN PEOPLE DEVELOPMENT

RECRUITMENT AND SELECTIONEMPLOYEES AND COTRACTORSCULTURE AND TEAM DEVELOPMENT

SHORT AND LONG-TERM GOAL SETTING

FUTURE ISSUES

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WHO THIS BROCHURE IS AIMED AT?FinTech is the use of technological advances to improve any aspect within the monetary services. There are two definitive categories to FinTech: Traditional and more recently, Disruptive.

> Traditional FinTech

Represents those larger, well-known firms providing supportive data or services for ‘brick and mortar’ financial services firms. This might be in the form of organisa-tional data, financial statistics, and research reports.

> Disruptive FinTech

Represents (currently) smaller busi-nesses and start-ups – often provid-ing niche services. Their growth has been the result of faster internet speeds, better use of big data, more accessible APIs and increased smart phone usage.

Your employees are what define your business: how it acts, how it’s perceived and ultimately whether it succeeds. If you want to develop your business, then you need to learn to develop your people too. This is where People Development is needed.

We support the FinTech sector, specifically Disruptive Fin-Tech firms. You might think: “that’s a bit restrictive”, we disagree. We understand it is currently a niche industry, but we know this is not always going to be the case. This document is geared towards Disruptive FinTech firms.

DISRUPTIVE FinTech

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WHAT IS PEOPLE DEVELOPMENT?

Human Resources deals with the management of people employed within an organisation. It is mainly a one-way process: from the organisation to the employee. Its primary aim is to safeguard the organisation, and serve its best interest.

People Development is different. Its focus is to create a mu-tually beneficial relationship for both employees and the organisation. Under People Development, both employees and the organisation should gain, but not at the expense of each other.

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1. Reducing the employee risk covers:

a. Pre-empting litigious claims by employees or ex-employees;

b. Protecting your name as a good employer;

c. And safeguarding your valuable innovations.

2. Creating long-term value

a. Hiring the best people able to achieve your future business goals;

b. Maintaining a happy and productive employee group;

c. Celebrating diversity, but maintaining a unique ‘employer’ identity;

d. And ensuring your organisation is adaptable to change.

WHY ALL FIRMS NEED PEOPLE DEVELOPMENT?

The two main reasons for People Development are: to reduce the employee risk and to create long-term value. It is your employees who define how your firm is perceived and that is what People Development manages. Most people are familiar with the first reason. However, it is the second which creates the real gains differentiating ‘aver-age’ from ‘exceptional’ organisations.

It makes sense for all business to consider their employees as they are the ones who make the organisation what it is. The question remains, why FinTech specifically?

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2. Creating long-term value

a. Hiring the best people able to achieve your future business goals;

b. Maintaining a happy and productive employee group;

c. Celebrating diversity, but maintaining a unique ‘employer’ identity;

d. And ensuring your organisation is adaptable to change.

WHY FinTech FIRMS NEED PEOPLE DEVELOPMENT?

FinTech needs People Development for all the reasons mentioned above, but it also has its unique sector specific needs. Good People Development creates organisationswhich attract the best people, who want to work with you.

It also inspires public trust and ensures your organisation is compliant with legislation. Finally, a good People Devel-opment function helps differentiate your business from your competitors.

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New Regulations:

As the new regulations come out reacting to changes in the FinTech sector, your organisation will need to adopt these quickly and effec-tively. Your organisation needs to ensure your team is given appropri-ate training and reviews, and has the proof needed to demonstrate your organisation’s compliance.

Maintaining Public Trust:

Learning from the mistakes of the financial services sector, you need to embed trust in your organisational culture. You will also need to consider how you interact externally with poten-tial clients, employees, and contrac-tors. These all need to be considered in your efforts to build and maintain the public’s trust in your organisation.

There are several aspects which you will need to take into account when it comes to your team. Below is a sum-mary of those FinTech specific People Development issues:

Global People Management:

FinTech firms have internationalised more quickly than previous busi-nesses. As a result it is important you control your growth, monitor your international activities, and put mecha-nisms in place to safeguard your repu-tation globally.

Structural Changes:

Due to constant changes in technol-ogy, your FinTech firm needs to be ready for change. Protocols on com-munication, data security, innova-tion, and cultural sensitivity will need to be robust and flexible enough to manage these constant changes.

Diversity/MarketRepresentation:

Both the Technology and Financial sectors have not been known for their diverse workforces or products. With the current ease of market entry and consumers demanding more from their service providers, FinTech firms have no choice but to address this issue to attract and keep their client base.

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MANAGING YOUR OWN PEOPLE DEVELOPMENT FUNCTION

All firms need to consider their People Development func-tion though you don’t need to have a specific function. Whether you’re entering new markets or simply pivoting – you need to think about the people you want to help you succeed. Here are some useful insights to get you started.

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RECRUITMENT

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SELECTION

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EMPLOYEES

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COTRACTORS

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CULTURE

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DEVELOPMENT

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RECRUITMENT

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SELECTION

Before hiring for a new role be aware it may take a considerable amount of time. To get the most from you efforts:

Create a Job Description:

What will be their main duties? Which skills and what level of experience will they need? Who will they report to and who might report into them? It doesn’t have to be complicated but it helps in team structuring.

Practical Assessment:

Where possible have a meaningful practical exercise and a telephone screening stage. These are both far more time effective than having a face-to-face interview – the pre-interviews stages are more accu-rate than your gut instinct.

Second Best:

Maintain contact with those excel-lent but unsuccessful candidates, just in case you decide to hire them later. It will save you time and remember candidates, through social media, report on their inter-view experiences. Give them a reason to say positive things about you to their friends and family.

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EMPLOYEES

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COTRACTORS

Wording:

The phrases you use in the con-tracts you draft will help determine which category people fall under. Have your contracts, at least the early templates, properly drafted, ideally by a lawyer. It gives you that peace of mind.

Interns:

A very cheap alternative, but don’t be exploitative. Limit the length of time to no more than three-months, and be honest on the prospects of a paid job. Where possible have a structured supervision and evalua-tion process too.

Leading Others:

When faced with a lot of questions, decision-makers become more task-focussed often at the expense of the people side. This is natural. Be aware of this fact and make genu-ine efforts to focus on the people in your organisation.

These two groups are managed differently under the law. You have far more legal obligations with employees than you do with contractors. Things to take into account:

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It’s only as these people aspects begin to take up more time than you can give, that you should consider getting external advice.

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Celebrations:

Consider which types of achieve-ments you celebrate – financial gains, new hires, new products...? How do you celebrate (e.g. pub, fast food, or sporting activity) and are these inclusive activities? All these say and reinforce what is viewed as important by your organisation.

Think About It:

If you would like your firm to be ‘crea-tive’ what will you do to encourage that? Create a list (it doesn’t have to be extensive) of specific actions which people at different levels in your organisation can follow. Your actions must create unity but not at the expense of diversity or other business goals.

Culture Fit:

When hiring employees or getting contractors it is important they fit your organisational culture. This does not mean “hiring in your image”. Try to strike a balance between those who will quietly fit and those who might challenge the organisation too.

This is the ‘character’ or ‘personal-ity’ of your business. It is never too early to start thinking about shap-ing your organisational culture.

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* Daily Aspects:

These are vital in reducing the employee risk, and regulatory compliance. Activities in this area include: recruitment and selection and people support (advisory and data manage-ment, and training).

* Strategic Plans:

Provided to create sustainable value, these plans cover developing a trusted culture, organisational readiness to change, and safeguarding your firm against any reputa-tional damages which might arise.

SHORT AND LONG- TERM GOAL SETTING

It is best to always consider both the short- and long-term goals of whichever activity you are implementing. Ideally your short- and long- term plans will be conducted together. This simple action encourages more measurable and achievable goals.

Those activities performed regularly over the short term are the daily aspects. Those implemented over longer time-scales – over a year – form the strategic plans. The daily activities should reflect and contribute to the strategic plans.

When you do decide to look for some People Development support, ensure that your advisor understands your com-pany culture and provides solutions which reflect the business goals. Though they should challenge you, you should still see the links between your People Development strategy and the strategy of your organisation as a whole.

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