Big Tech lost employees to startups because of its remote working policy
According to data from employment firm Revelio Labs, bankers, engineers, data scientists and salespeople from Wall Street, London, and Silicon Valley flocked to jobs during the pandemic. The destination of bankers is fintech companies, such as Coinbase, Revolut. The rate has increased by 75% since the beginning of the epidemic season. A large number of technology workers like Amazon , Microsoft also switch jobs.
This situation occurs in the context of a tense labor market, allowing experienced candidates to change companies, seeking higher salaries and more flexible working policies.
“People have stopped and reassessed what’s important to them,” says Lisa Simon, economist at Revelio. She cites factors such as public-private balance, better income and bright career prospects as key drivers.
From January 2020 to April 2022, 37 Goldman Sachs employees transferred to Coinbase, the largest cryptocurrency exchange in the US. About 21 other employees joined the corporate credit card startup Brex, 18 at the fintech startup SoFi Technologies led by former Twitter head Anthony Noto.
About 28 Morgan Stanley employees went to Coinbase, 12 to Wise. 38 HSBC employees went to Revolut, 21 went to Monzo Bank. Monzo also recruited 32 former Lloyds Banking employees and 27 former Barclays employees.
Of course, the number of job-hopping employees is still a small percentage of the total number of employees recruited by Big Tech or a bank. Goldman employs 45,100 people worldwide, and the technology workforce at Barclays has grown by more than 10% over the past two years.
According to Christian Faes, co-founder of LendInvest and President of Fintech Founders, a talent war is underway. His company attracts quality people from Facebook, Amazon, high-tech engineers who do not want to work at banks that are using programming systems from the 80s.
Coinbase alone has “stolen” 197 employees from Amazon, 97 from Alphabet, 73 from Microsoft and 72 from Meta. Coinbase said it was “satisfied that many employees from leading banks and major tech firms want to reinvent the future of the crypto economy.”
However, there are also those who choose to stay when inflation accelerates, casting a shadow over the global economic outlook and future funding rounds are also at risk. The speed of “job hopping” from banks to fintech has actually slowed down. They choose stability over volatility. Coinbase’s market value has plummeted over the past six months, with the stock losing more than 60% of its value from its April 2021 IPO price.
According to Bloomberg
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