The talent shortage in the financial industry is creating new employment opportunities for individuals over 50. Andreas Krischke, co-founder and managing director of Frankfurt-based firm Indigo Headhunters, has observed bankers from the 50-plus generation moving to fintech firms for several years. Additionally, over the past year, he has noticed an increased trend of experienced professionals in this age group transitioning to smaller banks.

Krischke notes that larger financial institutions tend to face challenges when hiring employees from this age group, while smaller, more entrepreneurial banks are more willing to do so. He has had positive experiences in this regard, claims the consultant. "The more entrepreneurial banks are, the more willing they are to take people 50-plus onboard," Krischke says of financial institutions.

He finds it hard to comprehend, given the demographic shift and the competitive job market, that major banks are letting go of older employees to cut costs. He believes that individuals in this age group are capable and willing to contribute effectively for another 15 years. "Everyone wants diversity, and that includes a balanced age structure," Krischke asserts. "We cannot simply discard older employees, especially when we cannot afford to do so."

Krischke expresses concern that banks persist in laying off employees of a specific age, despite the circumstances having evolved significantly. He emphasizes the need for a shift in perspective, as failing to do so will result in labor shortages for banks.

The financial industry, like other sectors, is increasingly struggling to find an adequate number of young talents as well as experienced leaders and specialists. Managers from cooperative banks, for example, now consider the labor shortage to be one of the most pressing issues, according to a recent survey conducted by the 'Genossenschaftsverbands - Verband der Regionen', which includes the heads of the Volks- and Raiffeisenbanks that belong to the association.

Reservations about hiring older employees are widespread, belives Krischke. It's difficult to justify why a person in their mid-fifties should be hired when the same institution is offering severance packages to people of that age. Older employees are also often seen as less adaptable. "If someone is 30, I can still shape them. A person over 50 is less malleable. They have a clear opinion about how things work," explains Krischke.

Hence, the hiring of representatives over 50 is by no means straightforward. The employer must weigh whether they are willing to make any compromises with candidates who fit the profile and accept that certain skills or the willingness to take on particular tasks may not be present. "There are many who don't fit into fintech companies, but there are also those for whom it works," describes Krischke.

"The wonderful thing about individuals aged 50 plus is that you know exactly what you're getting", analyzes the HR expert. "Many clients say – and this is understandable – that they are not easy to manage. But as a leader, you can also see it as a challenge." Krischke also highlights the advantages of older colleagues, such as their experience and networks, their integrative role in the team, and their ability to represent the company credibly to the outside world. Many of them work out of conviction, wanting to do something meaningful without needing to earn as much as before. What matters to them most is appreciation and recognition.

Similarly to the group of individuals over 50, Generation Z, consisting of those in their mid-twenties, also don't form a homogeneous group, Kirschhke observes. It is crucial and challenging to cater to the needs of employees, whether they prioritize a healthy work-life balance and family life, being willing to earn less, or are focused on advancing their careers. "Banks need to be able to retain both types," illustrates Krischke. "Because both are important for the company's culture." Employers must align themselves to be attractive to a diverse range of employees.

However, more often than not, the opposite is the case. "In a job market where it hurts so much to lose employees, a company must prevent people from leaving," Krischke states. He misses innovation and enthusiasm in this regard. Banks all too often remain stuck in old patterns of behavior instead. "Losing people really hurts nowadays," emphasizes the Indigo CEO.

Furthermore, it's not just difficult to find new employees; terminations also incur high subsequent costs, including those associated with personnel search, onboarding, and potentially a higher salary for the successor to make the job appealing. These costs are often not taken into account because "nobody wants to see them."