The Important Role of HR in the Success of Every Fintech Company
By Arleem Atienza
Image Source: Pexels
August 3 2022 - In a rapidly growing fintech industry, the importance of brand equity cannot be overstated. As you build your brand and generate success, the role of the human resources team becomes more and more prominent. They not only bring in the talent but also ensure everyone is on the right page.
Managing human resources takes considerable time, effort, and effective prioritization. Regardless, its ability to reward you with consistent, long-term success through talent acquisition and onboarding makes it worthwhile. Here’s why HR is crucial to every fintech company's success.
1. HR Nurtures And Engages Talent
When a company is small, it is easy to manage all functions, including the employee and manager relationship. There is no bureaucracy, and cultural fit is more evident. But as the company grows - through increased headcount, offices, and investment in technology - things become increasingly complex.
The HR department must do more than hire and fire to achieve the total value of the company’s collective knowledge. They must also proactively cultivate relationships through internal communications, recognition programs, collaboration, and company culture.
In general, employees engaged with HR tend to be more productive. The relationship between employee engagement and customer satisfaction is well-documented. When your team is motivated, your customers will notice.
The performance of your talent pool also affects your bottom line. As FinTech helps employees do more value-adding work, HR helps employees grow under the company’s guidance. They become a more crucial element in the entire system, allowing businesses to innovate and grow as a company.
2. HR Uses Onboarding To Get It Right Early
From the hiring process to ongoing engagement, the decisions you make in the first few months of a new employee’s life are critical to their success. A poor first impression could lead to low productivity, failure to adapt to the culture, or even turnover.
The importance of onboarding at work can’t be understated. The sooner a new team member learns how to work within the company, the sooner he can contribute to its success. The faster an employee achieves results, the faster he will feel fulfilled by his contribution.
HR improves your onboarding processes for everyone, from FinTech developers to your average maintenance worker. Human resources teams control the quality of new hires, ensuring that you have a roster of quality candidates. Perhaps the most important thing you can do to strengthen your whole company is to grow your own.
3. HR Reshapes Culture In The Company
Positive corporate culture can make or break your startup. Your organizational culture determines how people interact, work together, communicate, and define teamwork. A company with high morale, which fosters solidarity and collaboration, generates more excellent value for its customers. That, in turn, leads to more profit.
Developing positive workplace culture is a lengthy process, and every HR team must ensure the company stays positive. It must be effectively cultivated with empathy, behavior, and positivity. It takes deep thinking, planning, and execution.
The culture of your people, both inside and outside the office, communicates what you stand for. It tells others what to expect - and what you’re capable of
4. Human Resources Leverage Data
The world of human resource management has never been so exciting. The potential risks and benefits are enormous with an explosion in innovative uses of data and technology, especially in the financial technology industry.
Technology is changing how we work and interact with each other - and with our customers. Artificial intelligence, machine learning, big data analytics, and augmented reality transform how we see and engage with the world.
Many HR professionals are behind these changes. They are actively working to seize the opportunities afforded by technological advancements. Human resources departments can use the power of new tech to make training more immersive, recruitment more efficient, and hiring more tailored to your company.
This allows them to attract and retain the best potential hires, customize workforce development, increase retention, and ramp up innovation. The possibilities give you more ways to maximize a smaller team, allowing startups to compete with established brands.
5. HR Prioritizes Improvement And Scalability
As startups scale in Fintech, their workers must be flexible and willing to change. These changes are often uncomfortable but necessary to advance. Your workforce will change as your personnel flexes with the business's demands.
As the structure within your organization changes, you must likewise adapt to those changes. The financial services you provide are not the only resources you have. The most valuable resource for the organization is the people who work there. This benefit is that it can change and evolve with the organization's changing requirements.
You need to constantly innovate to ensure your people are equipped to deliver the desired results. The HRD can do this. They must create pathways and projects to upskill and educate the workforce. Innovation and improvement are no longer optional.
6. HR Follows Laws That Mitigate Security Risk
The financial sector is highly regulated. Some industries even require annual compliance audits. As your operations expand, you’ll be exposed to even more regulations. That’s why information security is such a hot topic.
The very nature of your success depends on the security of customer information. With so many data breaches among large, high-profile companies, it is more important than ever to ensure that your payments are secure. Compliance isn't enough.
Your customers need to know that their information is secure. When their data is breached, it creates a massive problem for your reputation. If the breach was due to your negligence, it could even be grounds for litigation.
HR handles these issues by hiring competent cybersecurity teams. They screen them according to the company’s needs and the compliance necessary to secure the business's digital assets.
In the fintech industry, the growth of your team is essential. This is where your management team, recruitment specialists, and HR professionals have the most impact. A great group of talented individuals can make the difference between success and struggle.
A good workforce is a productive one. Invest in your human capital, starting with your hiring process. Hire for the long term. Find team members who will stay with you through different phases of growth.
As a firm, work on creating an excellent environment for your employees that will help them deliver the best results for you.
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