Toronto’s financial services industry is not yet facing a “talent crisis,” but there are clear warning signs that a lack of critical talent will continue to grow, according to a year-long study of the industry.
If not addressed, the talent shortage could undermine revenue growth and productivity in Toronto’s main industry.
In a report released today by the Toronto Financial Service Alliance (TFSA), the study’s authors, Deloitte, report that the industry expects there will be major gaps in “critical talent” for Toronto’s banks, insurance companies, investment firms and other companies in the sector.
“If there is no collective will to create a vibrant, compelling financial services industry in Toronto that stands as a magnet for talent other centres across the country and across the globe will take the lead,” cautioned TFSA President Janet Ecke, in a news release.
Demographic changes are a major contributing factor to the challenges financial services companies face.
“The exodus of the Baby Boomers from the labour market will create experience gaps,” the report said. “The influx of new immigrants to Canada, almost half of whom are destined for Toronto, will provide a strong pool of talent, but will also pose unique challenges to integrating these new entrants into the workforce.”
The study reported, however, that there are concerns among industry stakeholders that “the Toronto market’s financial rewards are not substantial enough to attract some international talent. Compensation and taxation levels make it difficult to entice U.S. talent across the border. European talent frequently sees Canada as a stepping stone and moves to the U.S. at the first opportunity.”
The study drew on interviews and surveys with human resources leaders in the financial services industry, as well as educators, government officials and Deloitte’s own international network of human resources experts.
The study recommended that Toronto’s financial services industry would benefit from increased industry-wide collaboration on three fronts:
- Eliminating barriers to hiring and integrating new immigrants;
- Strengthening financial services education and its alignment to industry needs; and
- Improving the Toronto financial services “brand” both as a business location and as a career.
A full copy of the report can be found on TFSA’s Web site at www.tfsa.ca.