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How a modern 27 percent of the workforce by 2025. These workers grew
up with devices, applications and connectivity, expecting
back-office improves ease and convenience. They lack patience for clunky work
processes or out of date technologies.
employee retention "The lack of new technology will always hurt attracting
the best talent," said Marc Badalucco, managing partner of
Impact Payments Recruiting. "Simply put, payment pro-
fessionals always gravitate to companies that offer inno-
vative services and processes that provide value to their
clients."

Even as companies provide fancy office buildings, ad-
vanced user applications and competitive compensation,
some remain hampered by outdated back-office systems.
In addition to compensation and training, motivating em-
ployees requires the right technology to help them do their
jobs and serve their customers more effectively. For exam-
ple, a payment processor specialist fielding thousands of
customer requests with old technology and manual pro-
cesses is bound to become frustrated. This degrades em-
ployee morale and loyalty, increases the risk of error, and
creates a poor user experience.

"Employees using legacy systems take longer to complete
their work and have a higher chance of errors," said Kim-
berly Tibbetts, Principal Industry Consultant at Endava.
By Lynne Baldwin "Legacy systems are typically slow to respond which can
BHMI lead to employee frustration and impact performance
since things take longer."
s unemployment rates remain low, banks, pay-
ment processors and financial services com- Aberdeen Strategy and Research found one in three com-
panies face challenges with recruitment and panies said they spend too much time tracking and inter-
A retention. Many are increasing compensation preting data rather than engaging employees. Addition-
and benefits to attract employees as they compete with ally, nearly a quarter said the employee experience with
each other and fintech companies. analytics systems is not intuitive and that delayed deci-
sions cause employees to become flight risks from unre-
Yet keeping employees takes more than pay. As antiquated solved problems.
legacy systems can hamper productivity and efficiency, An updated back-office makes
financial services companies must also ensure they give employees' jobs easier
employees the requisite tools and technology. Investing
in back-office upgrades not only improves efficiency and Payments have undergone tremendous transformation as
reduces long-term costs; it also enhances the organization's providers have rolled out new apps, cloud-based solutions
profile for young talent seeking opportunities. and technologies. Despite their front-end innovation,
Employee recruitment and retention challenges some financial services companies have not upgraded
their back-office applications.
With unemployment near historical lows and job hopping
rising, employers across sectors are working hard to find
and retain high-quality talent. The financial services sector Even as companies provide fancy
has often faced high turnover because of low engagement,
lack of flexible work schedules/locations, and limited office buildings, advanced user
work-life balance. In 2022, banks experienced a spike in applications and competitive
turnover for non-officer employees, reaching the highest
level since 2019, according to the Crowe consultancy. compensation, some remain
hampered by outdated back-office
Financial services and payments organizations also face
challenges in recruiting younger people vital to opera- systems.
tions and innovation. EY noted that Gen Z workers could
"make or break" the future of banking and will make up
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