Canadian banks are fighting hard labor market

Canadian Banks Are Fighting Hard Labor Market

Their expansion amid swelling inflation could threaten profit margins, mainly as higher interest rates weigh on loan volumes.

But they are not adding staff when clients desire more advice and personalized solutions; moreover, better digital offerings would harm longer-term growth.

As stated by Reuters ‘ analysis, the top five banks had improved their Canadian full-time equivalent positions to a record 171,730 in the first quarter of fiscal 2022, up 4.3% from a year ago for the most rapid pace in at least three years of the banks’ statements.

The unemployment rate in the finance, insurance, and real estate industries was at a record low of 1% in March, the most inferior of any sector in Canada.

Carolyn Hamer, the partner at Deloitte, concentrated on workforce-related issues. The banks are attempting to plug the digital gaps they recognized during the pandemic; they are trying to become more aggressive as they compete with large technology firms.

Banks can turn to contractors and gig workers even in a tight labor market, especially with employees seeking more flexibility.

Improving Technology Infrastructure

Bank of Montreal, whose Canadian workforce increased by 7.5%, the quickest of the major lenders, has extended its technology operations and personal and commercial banking; spoke Karen Collins, head of people.

Digital channels now account for more than a third of sales; 90% of self-serve transactions happen outside branches, predominantly online. Hence, Collins stated that BMO wants to improve technology infrastructure and substitute routine branch services with more advisory offerings.

BMO is delivering remote working flexibility, especially to technology workers, if their roles permit, she added.

Royal Bank of Canada’s employee growth peaked in the third quarter of 2021. Nevertheless, it is still expanding its technology workforce after counting 2,000 technology jobs last year, about half of those external hires, stated Helena Gottschling, chief human resources officer.

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