islamic finance in critical need of talent
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7/27/2019 Islamic Finance in Critical Need of Talent
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Islamic finance in critical need of talent
Written by Charles Fernandez
Friday, 05 July 2013 10:13 -
While staff-pinching is the blight for any employer in any industry, the lack of experienced staff
and the recent explosive demand for Shariah-compliant products makes the practice especially
hard on the Islamic finance industry.
Islamic finance has been making inroads into mainstream finance and as a result, a huge
demand has been created for experts in the field.
The global phenomenon is that an estimated one million professionals are required to fill various
positions in the Islamic finance institutions worldwide by 2020.
There is a shortage of talent in the institution and this has encouraged poaching as the
poachers are willing to pay premium wages and therefore the rivals are caught in a game of
catch up to fill the talent scarcity.
Managers face the challenge of staff being poached on a regular basis. Companies should
consider a much more open approach to talent management by facilitating long-term career
development by facilitating internal mobility and moves between suppliers, customers and even
the competitors.
Dearth of Talent
When you cannot get someone naturally, it is quite normal to poach for talents.
According to Asian Institute of Finance (AIF) CEO Dr Raymond Madden, the industry requires
more professionals and skilled talents who not only have dual knowledge of both Shariah and
finance, but also possess soft skills such as leadership and effective communication.
The current shortage of qualified Islamic finance professionals is a challenge that poses a
serious threat to the growth and development of the industry. If this issue is not addressed
immediately, talent shortage may be an impediment to growth, Dr Madden said.
Dr Madden who was addressing participants at an AIF conference on Islamic finance held
recently, made reference to the Financial Sector Blueprint 2011-2020, where it stated that thereis a need for an additional 56,000 finance professionals of which 40% is needed to serve in the
Islamic finance sector for the total domestic market.
And although the industry growth is 20%, employment in the financial sector is only 9% per
annum. This is serious as far as talent is concerned, added Dr Madden.
Dr Madden coined the phrase the talent game to recognise that a career is about a series of
moves just like chess and companies need to play the game to attract, develop and retain
talent.
He pointed out that the current shortage of trained and qualified manpower in the Islamic
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7/27/2019 Islamic Finance in Critical Need of Talent
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Islamic finance in critical need of talent
Written by Charles Fernandez
Friday, 05 July 2013 10:13 -
finance sector has led to an eventual spiralling of wages, which in the long term does not benefit
the industry.
Talent pinching among the banks have resulted in higher wages but little improvement in
productivity and efficiency. Most banks prefer to hire experienced staff who can hit the groundimmediately. This has exacerbated the pinching issue.
Career Expectations by Gen Y
He explained that Gen Y makes up 40% of the workforce in Malaysia. The competence to
understand what motivates and inspires Gen Y employees is important to attract and retain
them.
Gen Y has much higher career expectations for promotions than other generations, for
example, Gen X and the former need to see a progressive development and career path or theywill move on to the next employer.
The talent market has changed significantly and now demands new approaches and focus, and
growth means good talent becomes increasingly hard to find. Hence, getting the right people in
the right roles is central, so pinching has become common place to meet those ends.
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