Over the past decade, the federal government including the SEC, FBI, CFPB and Treasury Department have all cracked down on the financial industry. While the financial crisis did invite extra scrutiny, the government is citing many more violations and consumer protections than ever before. This has caused a change in the financial services industry business model as well as staff makeup. There is much lower retention and higher turnover than before. Staffing and recruiting services are needed to provide the best people quickly and conveniently. Oakwood Search is a leader in identifying these candidates through their thorough identification process and large network.
For example, months ago, Wells Fargo was hit with a $185 million fine from the government after it was discovered that the company fraudulently opened 1.5 million bank accounts and 565,000 credit card accounts. After the issue was exposed, 5,300 people lost their jobs. CEO John Stumpf was also forced to resign as well as the heads of large business units. This created an unprecedented upheaval for the bank as it struggled to bring on new leadership and new staff at the same time. The firm required much help from recruiting and staffing agencies similar to Oakwood Search.
In addition to these obvious needs for recruitment, every bank is adding many more compliance professionals. They monitor capital levels, marketing, and sales practices as well as documentation. Staffing up for these positions has been a constant theme of financial firms for the last few years.
With more scrutiny and more onerous conditions, turnover is naturally higher in financial services. Staff leaves for other industries like technology if they have the skill set. For those in highly paid roles, they likely stay in financial services jobs but look for firms that provide more support for compliance and regulations. This also presents a big opportunity for recruiting firms.