After a three-year stint marked by job cuts and uncertainty, Fintech has started hiring again. Sadly, it’s messy. Roles are advertised, then cancelled. Firms hold multiple interview stages then decide they don’t need the role. Today, when they decide to hire, most businesses are choosing to recruit without external support. Many have matured to the point where they now have dedicated internal talent teams running great processes. Others are leaning heavily on hiring managers to carry the weight with ‘direct hiring.’ Direct hiring means that a company advertises the role and selects the candidates. They conduct interviews and ultimately make a hiring decision. They do this without the support of an external recruiter, headhunter, or search firm. The use of AI in recruitment has tripled since 2022, with 30% of UK employers implementing AI in their recruitment processes. This change in direction has left many businesses unprepared for the complex and time-consuming nature of hiring. Mistakes are being made, and the hiring experience overlooked.
Here are the key actions to consider when hiring:
When Hiring Expect a Flood of Applications
Nothing prepares a hiring manager who hasn’t recruited in a few years for the sheer volume of applicants they will receive. In today’s market, a fintech job advert posted in the morning can have 300 responses by the afternoon. When a company chooses not to use an external recruiter, it also chooses to manually review hundreds of applications. In most cases, the majority of these applicants will receive no acknowledgement. Many are filtered out by automated keyword-matching tools designed to reduce the candidate pool. Often they have little regard for context or quality. These tools might save time, but they often exclude strong candidates, damage brands, and degrade the wider hiring ecosystem.
Consider this: Set up an automated response acknowledging applications. Let candidates know how many applications were received and confirm that their application is under review. Share updates transparently on platforms like LinkedIn, such as how many people applied. You could follow up with how many were selected for interviews, and when new roles will be posted. A thoughtful applicant experience strengthens your brand reputation.
Do Not Skip Proactive Hiring
With so many applicants, it is easy to focus on reactive hiring. High volumes should not replace strategic thinking in recruitment. Proactive hiring involves dedicating time to headhunting candidates who are not actively looking. It also means building ‘talent pools,’ which are networks of people who could be a good fit for future roles. This long-term approach fosters better hiring outcomes and a stronger focus on value fits over skills matching. Without it, businesses often end up with fragmented teams and miss out on great people who don’t neatly match one vacancy.
Consider this: Hold regular strategic hiring sessions. Think beyond your current vacancy. Map out networks and consider brand perception. Create referral pipelines to support your reactive hiring efforts. Have a bigger picture lens and consider interviewed candidates for other roles in the business.
Have a Hiring Plan and Communicate the Interview Process
With such a wide applicant pool, the standards of a good interview process are often the first thing to slip. One of the most overlooked elements is managing candidate expectations. Many candidates go into processes with no idea how many stages there are, who they will meet next, or what to prepare. Disjointed communication between interviewers often leads to repetition and confusion. Candidates end up answering the same questions and providing different examples. They are left feeling as though they are not being taken seriously. Key details such as working patterns, benefits, and onboarding plans are often missed until late in the process. By which point, fatigue may have already set in.
Consider this: Set a clear process for each hire. Agree who will cover what topics and share feedback across hiring managers to prevent duplication. Use checklists to ensure key topics are covered early and clearly. Address the ‘small’ issues early so they don’t grow into blockers later on.
Avoid the ‘Perfect Resume’ Hiring Trap
When overwhelmed, managers often default to searching for a resume that matches the job they used to have, rather than the role they are building towards. This reactive approach overlooks strong candidates who bring growth potential. I refer to the ‘Talent Triangle’ as a north star for hiring. It centres on three points: invest in people, grow careers, and develop skills. Understanding how this triangle applies to each applicant results in better long-term matches, more engaged employees, and less turnover. Without this human-centred approach, hiring becomes transactional. When the market shifts again, staff may become transactional in return.
Consider this: Break down what kind of person and skill set you actually need. Think about cultural gaps, untapped perspectives, and long-term needs. Create space in the process for human connection, not just checklist matching. Remember, you are hiring a person. Don’t commoditize your approach by moving onto the next resume too transactionally.
Beware the Hiring ‘Qualification Bias’
Without an external party in the mix, internal hiring processes are more susceptible to ‘qualification bias.’ Applicants tend to mirror their answers to what they think the employer wants to hear. Issues get brushed aside with surface-level assurances that later turn into major challenges. Without regular contact and context that an experienced recruiter provides, many firms are surprised when decisions unravel later in the process. You also risk becoming isolated from the broader market. You could be missing insight into competing offers, salary expectations, and candidate motivations. Even after an offer is accepted, there is a critical window of risk during the resignation and notice period. Counter-offers are common and happen when a person tends their resignation only to receive a higher salary offer from their boss. Candidates often choose to stay at their current firm, especially if the new employer has not built a strong connection throughout the process.
Consider this: Step back from the vacancy and focus on understanding the candidate. What do they want to learn? What is motivating their move? Are they emotionally ready to leave their current firm? Have an open and honest conversation. This approach builds trust and leads to better outcomes.
In the evolving landscape of fintech recruitment, the shift towards direct hiring presents both opportunities and challenges for any firm. While it allows for potential cost savings, it also demands a more strategic and empathetic approach. Hiring is not just about filling a vacancy. It is about building relationships, strengthening culture, and investing in the future of your business. Every step of the process sends a message about who you are. Embracing these practices ensures that as the market continues to change, your organisation remains resilient, reputable, and ready to thrive.
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