The financial services sector is witnessing a makeover.
With Gen Z set to account for 27% of the workforce by 2025, enticing the best and brightest is a key recruitment priority, all-the-while retaining existing employees and recruiting senior people with in-demand skills. But as Stefanie Coleman, a Principal at EY, says: “You can’t put tomorrow’s talent in yesterday’s jobs.”
Over the last two decades, the rise of big tech firms means young talent have more choice than ever before, as tech firms battle with traditional banks to secure the brightest graduates. In a 2021 survey, 72% of financial services executives acknowledged they were facing a talent gap. And yet, financial services organisations are global powerhouses with real intellectual skill and talent, quick paced, and offering competitive salaries and benefits. The ‘war for talent’ has driven financial services to work hard to work out what motivates Gen Z. With the right insight, companies in this sector can use their Employer Brand and recruitment communications to underline that they are fun, fulfilling and inclusive places to work, offering unparalleled opportunities.
Gen Z want fun and balance
Studies show that Gen Z prioritises workplaces that are values-driven, giving them – among other things – adequate leisure time to pursue fulfilment outside of work. This is a critical recruitment challenge for banks that have been seen by some to have a culture of overwork, with a 2021 survey of analysts at Goldman Sachs revealing that 95 hour weeks are not uncommon. On the flipside, post-pandemic studies show that Gen Z are more likely to take a job that offers plenty of paid leave and flexible working hours over higher salaries, according to LinkedIn’s 2023 Workplace Learning Report.
Mental health is also front-and-centre for Gen Z, with 1-in-3 stating they have a mental health disorder. The financial services sector is making huge strides to support mental health, for instance Lloyds partnering with Mental Health UK to tackle mental health challenges among young people. Barclays has also long prioritised its employees’ mental health. Their This Is Me campaign was designed to build an employee community and exist as a platform for people to share their mental health struggles. Senior leaders and juniors shared their challenges and their solutions: as a result, disclosure rates for mental health issues have increased, as has retention across the company.
Employer brand communications can celebrate employees’ pursuits outside of work. Senior leaders could be encouraged to share posts about their leisure activities and family time, to show potential hires that taking time to grow outside of work is also a business priority. And, of course, any mental health support provided to employees should also be a key focus.
Fulfilment is more important than longevity
Fulfilment at work is crucial and, for intellectually stimulated Gen Zers, the financial services industry can offer this. Employee value propositions can communicate how employees are given opportunities to feel heard and fulfilled within the workplace, for example with volunteering opportunities, employee resource groups or innovation initiatives.
Related to this need for fulfilment, episodic jobs are becoming the norm, as workers seek interesting opportunities across a variety of sectors. The median length someone over 50 spends in their job is 9.8 years. Under 30, it’s 1.2 years, according to an EY insight report on banking and capital markets.
Employer brand communications can adapt to this shift by showing candidates how they can enjoy episodic career experience within the company. Employers across the financial services sector are big enough to do just that, allowing people to retrain and skill up without leaving the company. Case studies can be a powerful tool to demonstrate the transferability of skills gained by employees, as well as the variety of opportunities for progression within the organisation.
Walk the walk when it comes to diversity, equality and inclusion
Gen Z say they value diverse workplaces and want to feel included, while being paid equally.
Although the financial services sector is implementing frameworks and goals to increase diversity when it comes to hiring, the perception of the banking world is that it remains male-dominated, typically white and dominated by the privately educated.
A 2020 report from McKinsey highlights the disparity: “the proportion of white men in the C-suite is 112% higher than at entry level, but this proportion is 30% lower for white women, 60% lower for men of colour, and 90% lower for women of colour”. In banking, women occupy only 30% of top management seats at major US banks, and this figure is even lower at top European banks (25%), while the wider banking sector has been encouraged to improve diversity at all levels, according to a report by the House of Lords.
And yet, change is underway. Banks understand that diversity is crucial, and financial services companies are taking extra care to consider diversity in their hiring processes. Efforts are being made to introduce blind recruitment to reduce bias which means names may remain hidden until late in the hiring process. It’s common to see diversity statements in job listings, proactively encouraging candidates from under-represented backgrounds to apply.
Once hired, some banks, like the Bank of Scotland, are making diversity training mandatory for colleagues as part of their onboarding (called the Race Education Programme). The Bank of Scotland has also committed to LGBTQ+ diversity too, by providing training for LGBTQ mental health advocates and building a colleague network called Rainbow. These are often supported by internal communication channels and may be sponsored by partners or senior leaders across the organisation, who can be encouraged to promote blogs and ideas using their influence.
In addition, employee branding teams are encouraged to reflect a diverse workforce in their employer brand imagery and case studies. Progress Together, an organisation that Rationale is a proud official supporter of, works across the financial services sector with members to provide guidance, data collection and practical support on improving socio-economic diversity in the industry.
While this emphasis on diversity is a welcome move, companies must make sure that an inclusive recruitment process is matched by an inclusive employee experience. From supporting employee resource groups, to training and working with mental health first aiders, Setting expectations that you can match (or even exceed) will help to fuel employee loyalty, word of mouth recommendations and referrals.
Ready to evolve your employer brand and engage a new generation? Team Rationale is here to help you develop an Employer Brand fit for tomorrow’s talent. Get in touch at rowan@wearerationale.com.
