Addressing Talent Relocation Challenges in the U.S. Financial Services Industry
As competition for top talent in financial services grows fiercer, companies face an urgent crossroads. With tech and AI expertise in high demand, firms must double down on investing in both their workforce and infrastructure—fail to act, and they risk being left behind in an industry primed for major consolidation.
In this high-stakes environment, innovative relocation strategies aren’t just a perk—they’re a strategic necessity for attracting and retaining the talent that will drive future success.
Rethinking Financial Priorities
“In an environment characterized by rapid change, customer-centricity and agility are key to not just surviving but thriving in the evolving world of finance and technology.” ~ Forbes
The finance and insurance services industry accounts for nearly $2 trillion, or 7.78% of the total U.S. GDP, and employs about 6.5 million Americans.2
While these are impressive statistics, companies across insurance, banking and investing/asset management are facing fundamental shifts in their business models.
For many financial services companies “their short-term attention has focused on navigating economic uncertainties and implementing strategies to preserve capital and to drive long-term value creation,” reports consulting firm EY.3
- After a multi-year hiring boom, U.S. asset management firms and banks resorted to cutting costs where they could because of economic uncertainty. Global banks saw a significant reduction in their workforce in 2023, shedding over 60,000 jobs,4 but some banks anticipating a resurgence in dealmaking, held off on deeper staff cuts.
- Though a return on equity of above 10 percent is forecast into 2025 for property and casualty companies, the insurance industry as a whole has serious challenges going forward, including cost pressures, technology disruptions and changing consumer expectations. Another glaring issue for the insurance industry, which provides approximately 2.9 million jobs 5, is an aging workforce with an anticipated loss of 400,000 workers by 2026.6
- The banking and financial services sector has been drastically altered by the advent of AI and is starting to fully exploit what is possible. By 2022, 54 percent of financial companies implemented widescale adoption of AI or considered it a critical asset for the future.7 “While its use is growing. Generative AI is still in its infancy in banking and hasn’t changed everything”, per The Financial Brand.7 With future technology and AI opportunities in high demand, financial services companies “will have to make investing in infrastructure and talent a top priority or risk getting left behind,” reports EY
Embracing M&A Disruption
Strategic growth and a push for product and services diversification in the Financial Services sector is expected to drive increased Mergers & Acquisitions (M&A) activity in the years ahead.
Proof of this can be seen in EY’s recent CEO Outlook Pulse Survey in which 90 percent of financial services CEOs are planning to engage in M&A over the coming year and 72 percent intend to increase their investments in acquisitions.8
M&A deals also enable companies to acquire highly sought after talent pools where critical skills are needed. Other reasons behind financial service M&A activity, as reported by Deloitte, include:
- A focus on diversification, greater regulatory oversight, and the desire to shed low-yielding assets In the banking industry will likely drive further consolidation and more M&A activity.9
- In the insurance industry, access to more information sources, products, and services are key drivers. Insurance technology companies (“InsurTechs”) remain the core center of M&A activity.10
- Deals in the investment management and wealth management industry will likely be driven by M&A of smaller investment firms that find it difficult to compete with larger investment managers in this challenging, highly volatile, and low-margin environment.11
Relocation, Talent Management and HR teams at Financial Services companies comprise an important segment of an M&A implementation strategy and play critical roles on the transition team, as do Payroll and Accounting.
Key Findings from NEI’s Global Relocation’s U.S. Domestic All Benefits Study
To thrive in the years ahead, HR, Talent Management, and Global Mobility teams in the Financial Services industry must creatively and progressively strive on a daily basis to remain competitive in today's labor market yet cater to each company’s unique goals and budgets.
Nevertheless, demand for innovative, flexible relocation benefits is no longer an optional feature—it's become an essential necessity. Adjustment of one’s approach starts with examining the benefits employed to confirm they actually support one’s business drivers.
Consider the notable findings below of Financial Services companies participating in NEI’s Global Relocation’s U.S. Domestic All Benefits Survey:
- Program Flexibility - Financial Services companies are increasingly adopting core-flex policies, providing tailored support to meet diverse employee needs. However, non-standard policies, such as commuter benefits, are utilized less often than in other industries.
- Lump Sum Benefits - Partial lump sums are gaining traction, offering greater flexibility over traditional managed benefits. Interestingly, the amounts allocated for higher-tier employees significantly exceed those of the general industry.
- Origin Home Programs - Financial Services firms rely more heavily on BVO programs for mid-to-high-tier relocations compared to the broader industry. However, GBO programs remain less common in this sector relative to others.
- Tax Gross-Up Policies - Tax assistance is a priority, with Financial Services companies offering tax gross-ups on a broader array of benefits than the general industry.
By leveraging these data-driven insights, organizations can craft relocation policies that not only attract top talent but also align with their operational objectives, paving the way for sustained success.
“The Bottom Line”: Embrace Disruption and Maximize Relocation’s Role
“Those [financial services companies] who choose to invest in that future now—to catalyze the creation of new products and services that can enable positive outcomes—could set the stage for competitive advantage for some time to come.” ~ Deloitte12
A final key industry takeaway from the post-pandemic era is the value of integrating resilience into daily operations to meet the need for transforming operations, per a Deloitte survey.13 This has prompted investment management firms to consider shifting their in-house operational processes to front, middle and back-office processes to expert service providers.
With three decades of experience serving clients in the industry and a deep understanding of its key details, NEI Global Relocation works in complete alignment with companies to achieve their relocation priorities, objectives, and talent management goals. A true partnership, to us, means blurring the lines between supplier and corporate client to become a strategic resource.
The bottom line – NEI is a partner that will deliver the best return on your investment. We proactively advise you on current and future trends, and fully support you as you recruit, retain, and relocate talented candidates.
For more information, please contact your NEI representative.
About NEI Global Relocation
NEI is a certified Women’s Business Enterprise headquartered in the U.S. with in-region offices and teams in Switzerland and Singapore. We are a full service, global relocation and assignment management company that partners with clients across the globe to provide consultative guidance and solutions. NEI has over 200 clients including many Fortune 500 and Fortune 1000 corporations and we support client Tier 1 and Tier 2 supplier diversity goals each year. For more information and other articles, see www.neirelo.com.
The above article is provided for informational purposes only. Please consult your tax, legal, or accounting advisors before making any decisions or transactions.
2. https://datausa.io/profile/naics/finance-insurance
3. https://www.ey.com/en_us/strategy-transactions/the-navigator-perspectives-on-financial-services-m-a
4. https://www.ft.com/content/cbc6e15d-3c63-49af-9f98-ef8f478431bd
5. Statista - Number of employees in the insurance industry in the United States from 1960 to 2022
8. https://www.ey.com/en_us/strategy-transactions/the-navigator-perspectives-on-financial-services-m-a
13. https://www2.deloitte.com/content/dam/Deloitte/ca/Documents/risk/ca-resilience-by-design-en.pdf
Addressing Talent Relocation Challenges in the U.S. Financial Services Industry
As competition for top talent in financial services grows fiercer, companies face an urgent crossroads. With tech and AI expertise in high demand, firms must double down on investing in both their workforce and infrastructure—fail to act, and they risk being left behind in an industry primed for major consolidation.
In this high-stakes environment, innovative relocation strategies aren’t just a perk—they’re a strategic necessity for attracting and retaining the talent that will drive future success.
Rethinking Financial Priorities
“In an environment characterized by rapid change, customer-centricity and agility are key to not just surviving but thriving in the evolving world of finance and technology.” ~ Forbes
The finance and insurance services industry accounts for nearly $2 trillion, or 7.78% of the total U.S. GDP, and employs about 6.5 million Americans.2
While these are impressive statistics, companies across insurance, banking and investing/asset management are facing fundamental shifts in their business models.
For many financial services companies “their short-term attention has focused on navigating economic uncertainties and implementing strategies to preserve capital and to drive long-term value creation,” reports consulting firm EY.3
- After a multi-year hiring boom, U.S. asset management firms and banks resorted to cutting costs where they could because of economic uncertainty. Global banks saw a significant reduction in their workforce in 2023, shedding over 60,000 jobs,4 but some banks anticipating a resurgence in dealmaking, held off on deeper staff cuts.
- Though a return on equity of above 10 percent is forecast into 2025 for property and casualty companies, the insurance industry as a whole has serious challenges going forward, including cost pressures, technology disruptions and changing consumer expectations. Another glaring issue for the insurance industry, which provides approximately 2.9 million jobs 5, is an aging workforce with an anticipated loss of 400,000 workers by 2026.6
- The banking and financial services sector has been drastically altered by the advent of AI and is starting to fully exploit what is possible. By 2022, 54 percent of financial companies implemented widescale adoption of AI or considered it a critical asset for the future.7 “While its use is growing. Generative AI is still in its infancy in banking and hasn’t changed everything”, per The Financial Brand.7 With future technology and AI opportunities in high demand, financial services companies “will have to make investing in infrastructure and talent a top priority or risk getting left behind,” reports EY
Embracing M&A Disruption
Strategic growth and a push for product and services diversification in the Financial Services sector is expected to drive increased Mergers & Acquisitions (M&A) activity in the years ahead.
Proof of this can be seen in EY’s recent CEO Outlook Pulse Survey in which 90 percent of financial services CEOs are planning to engage in M&A over the coming year and 72 percent intend to increase their investments in acquisitions.8
M&A deals also enable companies to acquire highly sought after talent pools where critical skills are needed. Other reasons behind financial service M&A activity, as reported by Deloitte, include:
- A focus on diversification, greater regulatory oversight, and the desire to shed low-yielding assets In the banking industry will likely drive further consolidation and more M&A activity.9
- In the insurance industry, access to more information sources, products, and services are key drivers. Insurance technology companies (“InsurTechs”) remain the core center of M&A activity.10
- Deals in the investment management and wealth management industry will likely be driven by M&A of smaller investment firms that find it difficult to compete with larger investment managers in this challenging, highly volatile, and low-margin environment.11
Relocation, Talent Management and HR teams at Financial Services companies comprise an important segment of an M&A implementation strategy and play critical roles on the transition team, as do Payroll and Accounting.
Key Findings from NEI’s Global Relocation’s U.S. Domestic All Benefits Study
To thrive in the years ahead, HR, Talent Management, and Global Mobility teams in the Financial Services industry must creatively and progressively strive on a daily basis to remain competitive in today's labor market yet cater to each company’s unique goals and budgets.
Nevertheless, demand for innovative, flexible relocation benefits is no longer an optional feature—it's become an essential necessity. Adjustment of one’s approach starts with examining the benefits employed to confirm they actually support one’s business drivers.
Consider the notable findings below of Financial Services companies participating in NEI’s Global Relocation’s U.S. Domestic All Benefits Survey:
- Program Flexibility - Financial Services companies are increasingly adopting core-flex policies, providing tailored support to meet diverse employee needs. However, non-standard policies, such as commuter benefits, are utilized less often than in other industries.
- Lump Sum Benefits - Partial lump sums are gaining traction, offering greater flexibility over traditional managed benefits. Interestingly, the amounts allocated for higher-tier employees significantly exceed those of the general industry.
- Origin Home Programs - Financial Services firms rely more heavily on BVO programs for mid-to-high-tier relocations compared to the broader industry. However, GBO programs remain less common in this sector relative to others.
- Tax Gross-Up Policies - Tax assistance is a priority, with Financial Services companies offering tax gross-ups on a broader array of benefits than the general industry.
By leveraging these data-driven insights, organizations can craft relocation policies that not only attract top talent but also align with their operational objectives, paving the way for sustained success.
“The Bottom Line”: Embrace Disruption and Maximize Relocation’s Role
“Those [financial services companies] who choose to invest in that future now—to catalyze the creation of new products and services that can enable positive outcomes—could set the stage for competitive advantage for some time to come.” ~ Deloitte12
A final key industry takeaway from the post-pandemic era is the value of integrating resilience into daily operations to meet the need for transforming operations, per a Deloitte survey.13 This has prompted investment management firms to consider shifting their in-house operational processes to front, middle and back-office processes to expert service providers.
With three decades of experience serving clients in the industry and a deep understanding of its key details, NEI Global Relocation works in complete alignment with companies to achieve their relocation priorities, objectives, and talent management goals. A true partnership, to us, means blurring the lines between supplier and corporate client to become a strategic resource.
The bottom line – NEI is a partner that will deliver the best return on your investment. We proactively advise you on current and future trends, and fully support you as you recruit, retain, and relocate talented candidates.
For more information, please contact your NEI representative.
About NEI Global Relocation
NEI is a certified Women’s Business Enterprise headquartered in the U.S. with in-region offices and teams in Switzerland and Singapore. We are a full service, global relocation and assignment management company that partners with clients across the globe to provide consultative guidance and solutions. NEI has over 200 clients including many Fortune 500 and Fortune 1000 corporations and we support client Tier 1 and Tier 2 supplier diversity goals each year. For more information and other articles, see www.neirelo.com.
The above article is provided for informational purposes only. Please consult your tax, legal, or accounting advisors before making any decisions or transactions.
2. https://datausa.io/profile/naics/finance-insurance
3. https://www.ey.com/en_us/strategy-transactions/the-navigator-perspectives-on-financial-services-m-a
4. https://www.ft.com/content/cbc6e15d-3c63-49af-9f98-ef8f478431bd
5. Statista - Number of employees in the insurance industry in the United States from 1960 to 2022
8. https://www.ey.com/en_us/strategy-transactions/the-navigator-perspectives-on-financial-services-m-a
13. https://www2.deloitte.com/content/dam/Deloitte/ca/Documents/risk/ca-resilience-by-design-en.pdf
