Staff Turnover / Promotions of 18 Brokers (Apr. to May, 2022) - What is the Reason Behind?

In the last few months, Fazzaco has been closely monitoring the staff turnover of dozens of key brokers in the financial industry. All data are gathered from public-accessible platforms. In this article, a general summary of staff turnover of 30 brokers is provided, which mainly includes those who left for another employer, were promoted and entered the company. A total of 18 brokers showed such records during the said period.

More people are starting a new job elsewhere

Fig.1 (Source: Fazzaco)

As can be seen from the above bar graph, out of all 18 brokers where there were job changes from April to May, most cases were people leaving for a new employer. A total of 61 people changed jobs, and 44 of them left the current position to work at a new place, while 16 were promoted, and only 1 was newly hired.

During the period, IG Group showed the most frequent turnover rate. A total of 7 people left and 1 got promoted. FxPro, GKFX, Swissquote and Hantec Markets are tied for brokers with the least turnover, with only one person leaving each.

Rarely, Exness, Pepperstone and XTB went against the current with less people leaving and more getting promotions. XTB, in particular, all three cases are promotions.

Europe-based brokers had the highest turnover rate

Fig.2 (Source: Fazzaco)

As the region with the most developed economies, Europe-based brokers had the highest turnover rate. Among them, the UK topped the list, with 10 job changes happened there, followed by Bulgaria (6), Denmark (5), Israel (5), Australia (5), Poland (4), Germany (3), Cyprus (3 people), and Estonia (3 people).

Areas with a highly developed finance industry often are home to numerous firms, hence frequent move of people. The UK, in particular, where the financial services as an industry serves as one of the pillar industries, accounting for 6% of the GDP, with about 1 million people working in the sector, accounting for 5% of the employment. The financial services sector in UK covers a wide range, including banking, investment services, insurance, futures trading, commodity and financial derivatives trading, shipping business, legal, accounting consulting services, etc.

Tech-related staff changed jobs more frequently than the rest

Fig.3 (Source: Fazzaco)

​Fig.4 (Source: Fazzaco)

Since April and May, product & tech-support positions have topped the list of all job types with the largest number of departures, with 11 people leaving, and 4 people getting promoted. Followed by positions of business development (10 left/0 promoted), risk analysis (7 left/2 promoted), customer service (6 left/3 promoted), human resources (3 left/2 promoted), compliance (3 left/2 promoted), executives (2 left/5 promoted), and others (2 left/4 promoted).

It can be seen that tech-support positions in financial services are seeing shorter tenure and more frequent job-hopping. For instance, one Oracle developer working at IG Group India left the job in this April, only 9 months after his entry. What’s more, a software engineer left Hantec in May, just three months away from the time he joined the company.

Final thoughts

Financial institutions are now focusing on retaining their staff in order to expand and retain their customers. Current technological advancements, such as the introduction of bots, have caused tremendous upheaval, not to mention the pandemic that troubled the world for the last two years and the resulting economic recession, the employment rate in many countries and regions is not looking good. Nevertheless, it is not a wise idea for a company trying to please everyone.

As a result, financial institutions need to make sure which positions and whom they need to keep the most, and that is the only way to grow assets and values. Companies differ in terms of their human resources structure, some may find out that they need to improve their diversity and inclusion processes, while others may find that a change in bonus packages or career advancement chances will have the most impact.