In financial services (FS), having a flexible strategy means an organization is able to create options by effectively acquiring, utilizing, and reallocating resources to meet evolving market demands. The dynamic nature of the FS industry, driven by technological advancements, regulatory changes, and shifting customer preferences, makes strategic flexibility critical for maintaining competitiveness.

Managing resources and teams of resources in financial services is inherently complex. Teams consist of a wide range of roles—ranging from financial analysts, risk managers, and IT professionals to regulatory compliance officers and digital transformation leaders. Complicating this further are external factors such as regulatory shifts, economic volatility, talent shortages, and the rapid pace of technological innovation.

All of these elements make it imperative for FS organizations to strategically manage their workforce, ensuring they can adapt quickly to changing business environments. This adaptability is essential for firms aiming to seize new opportunities and respond to unforeseen challenges in an increasingly competitive market.

According to a report from the Financial Stability Board, resilience in the financial services sector will largely depend on the people driving innovation and compliance. In this post, we will explore three major challenges facing financial services organizations in managing resources, and how effective resource management strategies paired with Tempus Resource can help firms maintain their capacity for strategic flexibility amid ongoing changes in technology, regulation, and market dynamics.

Resource Management Amid Industry Volatility

The financial services industry is one of the largest global employers, with millions of professionals working across sectors such as banking, insurance, asset management, and fintech. Before the COVID-19 pandemic, financial services experienced robust growth in employment, driven by digital transformation initiatives, regulatory demands, and increased focus on cybersecurity and data analytics.

However, the industry saw significant disruptions during the pandemic, with large-scale workforce shifts, layoffs, and the adoption of remote work. Even as markets recover, workforce volatility in financial services is far from over, driven by factors such as:

• Talent shortages in key areas such as data science, cyber security, and AI
• Retirement of senior executives and industry veterans
• Consolidation due to M&A
• Regulatory changes requiring new roles and expertise

Demand Planning and Forecasting

Given the rapid changes in workforce requirements, financial services firms need a resource management platform like Tempus Resource to ensure resource forecasting and capacity planning across their portfolios. Leaders must avoid overallocation, burnout, and potential loss of institutional knowledge, especially in highly regulated areas such as risk management, internal audit and compliance, and those organizational groups that support the cyber and AI footprint of the organization – namely, the IT organization.

Up-to-date, accurate data on workforce availability is crucial for reallocating resources efficiently. Early-stage forecasting using generic, unnamed resources can also allow organizations to plan projects in detail, ensuring that once key talent is secured, they can be deployed effectively.

Scenario Planning and Modeling

Scenario planning allows FS organizations to simulate the impact of workforce changes across portfolios. By modeling different staffing scenarios—whether due to mergers, regulatory changes, or workforce shortages – FS firms can make informed decisions on where to allocate resources and mitigate risks. Advanced scenario planning and modeling tools – like those provided by Tempus Resource – provide real-time insights into how these changes affect both individual projects and broader business objectives, enabling more strategic decision-making during periods of uncertainty.

Managing a Diverse Skill Set

In financial services, skills and technology requirements evolve rapidly. Roles are no longer limited to traditional financial positions; today, firms must manage a workforce with expertise in emerging areas such as artificial intelligence, machine learning, cybersecurity, and blockchain/crypto.

As new roles emerge, such as data scientists, digital transformation officers, and cloud engineers, firms must also keep pace with technological changes. The rise of fintech and digital banking has accelerated demand for skills in areas like mobile app development and cybersecurity.

At the same time, firms must not overlook the critical roles and skills required to maintain and support legacy systems. While these skills may appear outdated, they often become increasingly vital as legacy systems continue to underpin essential operations, from treasury functions to ATM networks. These systems remain a core component of organizational infrastructure, and that’s why expertise needed to manage them is indispensable. Additionally, newer entrants to the workforce are unlikely to possess knowledge or specialization in these legacy technologies, making it difficult to fill these roles. In some cases, sourcing talent for legacy systems may exceed the cost of hiring top-tier cybersecurity specialists and prove substantially more challenging.

Skills and Competencies Matrix

Tracking employee skills is essential in financial services, where regulatory compliance and security requirements are constantly evolving. An enterprise skills and competencies matrix helps organizations identify the capabilities of their resources, enabling better placement in critical roles. This ensures that employees are utilized to their full potential and that gaps in skills—such as those needed for AI-driven initiatives—are addressed through targeted recruitment or reskilling programs.

Combining a skills matrix with demand planning enables FS organizations to build teams with the right capabilities for maximum productivity, while also future-proofing their workforce to adapt to emerging technologies.

Regulatory Shifts and Workforce Impacts

The FS industry is deeply affected by regulatory changes at both national and international levels. New regulations, such as those related to data privacy (GDPR) and cybersecurity (NYDFS Cybersecurity Regulation), have forced firms to create new roles and hire specialized talent to ensure compliance.

In addition, legislation like Basel III, Dodd-Frank, and the EU’s MiFID II have increased the complexity of financial oversight, requiring more risk management professionals and compliance officers. These regulatory shifts create significant workforce demands, further complicating resource management and planning.

Optimized Resource Forecasts

Complex projects in financial services, such as regulatory compliance initiatives or digital transformation efforts, require detailed resource forecasting and planning. The comprehensive planning capabilities provided by Tempus Resource can help firms forecast workforce needs, manage interdependencies, and ensure timely delivery. Given the anticipated increase in regulatory requirements, FS organizations will need a platform like Tempus Resource to gain visibility across teams, departments, and geographies to effectively manage resources.

Innovation and Strategic Flexibility in Financial Services

As the financial services industry continues to evolve, firms must prioritize resource management to remain competitive. Market volatility, regulatory changes, and technological advancements will continue to affect the availability of talent. To meet customer demands, comply with regulatory mandates, and drive innovation, FS firms must optimize their workforce, anticipate shifts, and continuously track the changing skills of their employees.

The ability to remain agile, innovative, and resilient depends on strategic resource management, ensuring financial services firms can adapt to whatever challenges lie ahead.

Forecasting, Planning, and Tracking Resources in a Hybrid Methodology Environment for Financial Services

As financial services organizations invest heavily in Agile transformations, the ability to accurately forecast, plan, and track resources – including named resources, skills, roles, and team-based resources – becomes a cornerstone of successful operational and strategic outcomes. Resource management plays a critical role in enabling FS firms to thrive in complex, multi-methodology environments. It’s important to integrate resource planning into near, mid, and long-term strategies.

Forecasting Resources for Near, Mid, and Long-Term Success

Financial services organizations are often large and complex, with portfolios encompassing both Agile and traditional project management methodologies. In such an environment, strategic resource forecasting is essential for maintaining operational flexibility while ensuring that critical projects are staffed with the right talent at the right time.

• Near-Term Planning: In the near term, accurate forecasting helps ensure that immediate project needs are met without overextending key resources or causing bottlenecks. As organizations increasingly adopt Agile methodologies, short-term sprints and rapid releases demand precise, timely allocation of both named resources and teams with the right skills. Being able to predict and allocate resources effectively helps prevent overallocation, burnout, and project delays.
• Mid-Term Planning: Mid-term planning, typically spanning several quarters, requires firms to assess evolving business needs, emerging skills gaps, and upcoming projects. FS organizations often face a mix of regulatory deadlines, technological upgrades, and customer-driven product launches. Robust resource forecasting allows organizations to anticipate the required skills and roles, helping to build flexible, cross-functional teams that can handle diverse projects across various methodologies.
• Long-Term Planning: Long-term forecasting is vital for aligning resource capabilities with the firm’s strategic vision. Agile transformations, for example, represent significant long-term investments requiring dedicated teams, leadership buy-in, and alignment with corporate strategy. Tracking named resources, team composition, and evolving skills over the long term allows organizations to make informed decisions about hiring, reskilling, and team composition, ensuring that resource planning aligns with growth and transformation objectives.

Role of Resource Management in Agile Transformation

As FS firms invest millions in Agile transformations, resource management becomes pivotal to ensure that Agile teams are effectively structured and supported. Agile methodologies depend on iterative development, rapid decision-making, and the ability to pivot in response to changes. Without robust resource planning, organizations risk inefficient team deployment, skill shortages, and missed strategic opportunities.

• Named Resources and Team Resources: In a multi-methodology environment, it’s essential to manage both individual (named) resources and team-based resources. While Agile focuses heavily on cross-functional teams, traditional project management may rely more on individual accountability and specialized roles. A well-integrated resource management system ensures that named resources with specific skills can be dynamically allocated to Agile teams or traditional projects as needed, while maintaining balance and avoiding resource conflicts across different project types.
• Skills and Roles: In Agile environments, skill sets must be continuously tracked and updated. Financial services organizations require teams with expertise in data analysis, cybersecurity, regulatory compliance, and AI, among others. Tracking individual and team-level competencies helps firms ensure that Agile teams are well-rounded, capable, and able to adapt to changing project needs.

Having visibility into the skills matrix also enables organizations to identify gaps and invest in targeted reskilling programs, ensuring that the workforce is future-ready. This is particularly important in financial services, where skillsets may evolve quickly in response to regulatory shifts or technological advancements.

Tracking and Planning Team Resources in a Multi-Methodology Environment

As FS organizations operate with a blend of Agile, waterfall, and hybrid methodologies, the ability to track and plan team resources becomes critical. Teams must not only be flexible but also well-suited to the specific demands of each project or initiative, whether it’s a fast-moving Agile sprint or a long-term regulatory project using traditional methods.

• Team Composition and Dynamics: In an Agile environment, the focus on cross-functional teams makes it essential to plan for team dynamics and structure. Tracking the roles, skills, and performance of individual team members enables leaders to create optimal team compositions that foster collaboration and innovation. Furthermore, the ability to quickly shift resources between teams allows organizations to maintain agility and responsiveness, even when facing tight deadlines or resource constraints.
• Scenario Planning for Multi-Methodology Workflows: The scenario planning and modeling capabilities in Tempus Resource offer FS firms the ability to visualize the impact of resource allocation decisions across different project types and timelines. By simulating different workforce scenarios, such as adding or losing team members, changes in project timelines, or shifting regulatory requirements, means that firms can adjust resources dynamically. This capability is especially valuable in a multi-methodology environment, where resource demands fluctuate depending on the nature of the project, regulatory deadlines, or market opportunities.

The Business Value of Strategic Resource Management

Effective resource management provides tangible business value in the financial services industry, enabling firms to:

• Optimize Workforce Utilization: By forecasting resource needs and tracking skills, organizations can ensure that their workforce is deployed efficiently across multiple methodologies, reducing waste and improving productivity.
• Enhance Agility and Flexibility: With detailed insights into both individual and team-based resources, financial services firms can pivot more quickly in response to changing business demands, regulatory shifts, or market opportunities.
• Improve Strategic Alignment: Resource management ensures that the right talent is allocated to the right projects at the right time, supporting the firm’s long-term goals and driving successful Agile transformation initiatives.
• Mitigate Risk: In an industry governed by strict regulations and compliance requirements, effective resource planning helps firms avoid costly mistakes and ensures that regulatory projects are adequately staffed and completed on time.

Tempus Resource has been recognized as one of the leading resource management platforms to help businesses execute strategy. In 2024, Tempus was included in the Gartner® Magic Quadrant™ for Adaptive Project Management and Reporting for the third year in a row. With a 5.0 rating (out of a possible 5.0) on Gartner Peer Insights, Tempus ranks high in all categories including Capacity and Resource Management, Scalability and Usability. To learn how Tempus Resource can help execute your Resource Management strategy and assist with efforts, arrange a demo with the Tempus team here.