inside the heads of job seekers - manpowergroup.us€¦ · stephanie janowick – director,...

This is a supplement to a series of reports by ManpowerGroup Solutions analyzing the results of a proprietary Global Candidate Preferences Survey.

INSIDE THE HEADS OF JOB SEEKERS: U.S. Financial Services Candidates

Introduction

1 PricewaterhouseCoopers 15th Annual Global CEO Survey, as reported in the PricewaterhouseCoopers Millennials At Work: Reshaping the Workplace in Financial Services, 2011, 4.

https://www.pwc.com/gx/en/financial-services/publications/assets/pwc-millenials-at-work.pdf

Beyond compensation, candidate motivations in the workforce differ based on personal values. For U.S. financial services candidates, however, the motivations are especially distinctive, if not altogether surprising. They follow the beat of their own drum and employers would be wise to understand what makes them tick on a deeper level if they want to attract and retain top talent.

For decades, U.S. financial services candidates followed the best brand names in the business to help build their careers and climb the corporate ladder. Mergers, acquisitions and the Great Recession have changed that playing field. Technology and automation have forever altered the nature of the industry. Turnover has become the major pain point. But the long-term forecast for financial services candidates suggests a talent squeeze; Gen Xers (ages 35 to 49) will start retiring with an insufficient number of millennials (ages 25 to 34) to replace them. One in four CEOs in financial services sector reports that they cancelled or delayed a key strategic initiative within the past 12 months because the right people were not available.1

To better understand how employers can leverage global candidate preferences and perceptions, ManpowerGroup Solutions, the world’s largest Recruitment Process Outsourcing (RPO) provider, went directly to the source: candidates. In the Global Candidate Preferences Survey, nearly 14,000 individuals currently in the workforce between the ages of 18 and 65 shared what matters to them in the job search process. The survey was fielded in 19 influential countries around the world during the fourth quarter of 2016. In the United States, ManpowerGroup Solutions surveyed 1,384 candidates and special emphasis was given to the fastest growing industries: financial services, healthcare, information technology (IT) and retail.

The fourth in a series exploring U.S. candidate preferences by industry, this report provides new insight into the successful recruitment and hiring of financial services candidates. The results reveal what is important to financial services candidates, how they are different from much sought-after IT candidates and why thoughtful strategies for recruitment and retention can help avoid a potential talent shortage in the industry.

The industry is facing a shrinking number of firms and a finite group of candidates. Mergers and acquisitions will continue to be the norm. Firms need to differentiate

themselves on a variety of different levels to attract the best talent. They also need to show their talent that they value their contribution in order to retain them.

John Stagliano – Program Delivery Lead ManpowerGroup Solutions

1 INSIDE THE HEADS OF JOB SEEKERS: U.S. Financial Services Candidates

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38+62F45+55F44+56F21+79F

38%

45%

44%

21%

Money talks — loudlyFor financial services candidates, compensation far exceeds other motivators when making career decisions. Yet, motivators beyond money are very different from other types of candidates.

For all U.S. candidates, type of work is the second most important factor behind compensation in making career decisions. However, for financial services candidates, type of work ranks a distant fifth behind benefits, schedule flexibility and geography. The data shows that the type of work is secondary to the financial and other rewards associated with the position. Opportunity for advancement is also significantly less of a motivator. These candidates equate career success with personal financial success.

The PricewaterhouseCoopers PwC Millennials At Work research confirms that millennials in the financial services sector are more money-oriented than those in other industries. Findings include:

Thirty-eight percent of those working in banking and capital markets said the starting salary was a key factor in their decision to accept their current job.2

Forty-five percent of millennials working in insurance said that salary was important.3

Forty-four percent of millennials working in the financial services sector overall rated cash bonuses as an important benefit.4

Twenty-one percent of those working in insurance said they would choose to receive extra salary over benefits — compared with 12 percent across all sectors.5

ManpowerGroup Solutions found that the power of money as a motivator only heightens when financial services candidates consider what would motivate them to switch jobs. Nearly half (47 percent) would switch based on compensation (versus 35 percent average). This is triple the number who would do so for the opportunity to advance, more schedule flexibility, benefits or a new type of work.

2 PricewaterhouseCoopers, PwC Millennials At Work: Reshaping the Workplace in Financial Services, 2011, 7. https://www.pwc.com/gx/en/financial-services/publications/assets/pwc-millenials-at-work.pdf


4 PricewaterhouseCoopers, PwC Millennials At Work: Reshaping the Workplace in Financial Services, 2011,11. https://www.pwc.com/gx/en/financial-services/publications/assets/pwc-millenials-at-work.pdf



Top Three Motivators for Career Decisions

U.S. Average

Financial Services Candidates

Compensation

Benefits

Schedule Flexibility

Geography

Type of Work

Opportunity for Advancement

Brand/Reputation

Industry

0 10% 20% 30% 40% 50% 60% 70% 80% 90%

55%

70%

51%

56%

45%

45%

36%

33%

51%

33%

32%

35%

14%

18%

14%

9%

When comparing motivations of financial services candidates with those from other candidates, it becomes clear how unique financial services candidates really are. They are significantly more likely than IT, healthcare or retail candidates to be driven by compensation. Candidates from other industries are also more likely to take a more balanced approach between motivators — such as the tradeoff between compensation and the type of work they will be doing.

For the financial services industry, this means that workforce loyalty may be one of the biggest challenges to overcome.PricewaterhouseCoopers found that only 10 percent of the millennials working in the financial services sector say they plan to stay in their current role for the long term, compared with 18 percent across all sectors.6 More than 40 percent are open to offers.7 Turnover, experience levels and lost institutional memory are high prices to pay both literally and figuratively. Employers must find ways to engage and retain their best and brightest before they are lured away by the competition in the escalating war for talent.



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No one is switching jobs based on brand. No one.Though financial services candidates are slightly more likely than average to consider a company’s brand or reputation when making career decisions (18 percent versus 14 percent), the power of brand as a motivator for immediate job change is virtually nonexistent. In the survey, not a single respondent from the financial services industry selected a company’s brand or reputation as a motivating factor for switching jobs.

Financial services candidates do admit that company brand is more important than it was five years ago. Approximately two-thirds (67 percent) agree that has risen in importance in the last several years since the Great Recession. However, it is clear that brand is not the carrot that will lure candidates from one company to another.

Top Three Motivators to Change Jobs Now

U.S. Average


Compensation

Opportunity for Advancement

Schedule Flexibility

Benefits

Type of Work

Geography

Industry

Brand/Reputation

0 10% 20% 30% 40% 50% 60% 70% 80% 90%

12%

13%

12%

12%

11%

14%

11%

7%

3%

3%

9%

6%

2%

0%

47%

35%

No one is switching jobs based on brand. No one.Though financial services candidates are slightly more likely than average to consider a company’s brand or reputation when making career decisions (18 percent versus 14 percent), the power of brand as a motivator for immediate job change is virtually nonexistent. In the survey, not a single respondent from the financial services industry selected a company’s brand or reputation as a motivating factor for switching jobs.

Financial services candidates do admit that company brand is more important than it was five years ago. Approximately two-thirds (67 percent) agree that has risen in importance in the last several years since the Great Recession. However, it is clear that brand is not the carrot that will lure candidates from one company to another.

Retail Candidates

Type of Work

45% 59% 55% 51% 50% 46% 70% 33%

Compensation

Healthcare Candidates IT Candidates Financial Services Candidates

Compensation and Types of Work as Motivators by Industry

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5 INSIDE THE HEADS OF JOB SEEKERS: U.S. Financial Services Candidates 5 INSIDE THE HEADS OF JOB SEEKERS: U.S. Financial Services Candidates

Mobility by Selected Industries

IT Candidates


Wouldn’t Move

New Country

New State

New City

0 10% 20% 30% 40% 50% 60% 70% 80% 90%

15%

8%

15%

21%

40%

28%

37%

36%

Location, location, locationThe geographic location of positions is also relatively more important to financial services candidates than average (36 percent versus 33 percent on average). This may be associated with the prestige of Wall Street or regional financial services hubs, such as San Francisco and Charlotte. Yet, financial services candidates are less likely than average to move to a new city or state for a job. Thirty-six percent of them would not even consider moving for a job opportunity.

Contrast this with IT candidates, who are highly mobile. The lure of Silicon Valley looms large as 40 percent of IT candidates would be willing to move to a new state or region. Comparatively, only 15 percent of IT candidates would not consider moving at all. Financial services candidates are more than twice as likely to be stationary.

One explanation for this is that financial advisors, in particular, often have locally or regionally based clienteles in high-net worth metropolitan areas. Advisors who want to succeed and grow the business often look to cities such as New York, Boston, Chicago, San Francisco, Los Angeles, Seattle and Miami.

Geography is important because many financial services roles are commission-based. Advisors need to be around big

metropolitan areas where high-net-worth individuals reside.

Stephanie Janowick – Director, Business Development, Financial Services ManpowerGroup Solutions

6 6

Financial Services Candidates by Age versus U.S. Average

U.S. Average


Age 50 – 65

Age 35 – 49

Age 25 – 34

Age 18 – 24

0 10% 20% 30% 40% 50% 60% 70% 80% 90%

20%

26%

33%

32%

31%

17%

24%

18%

In financial services, employers are getting in the game earlier. Many companies have extended their outreach efforts into high schools and even junior high schools in starting to recruit talent.

Stephanie Janowick – Director, Business Development, Financial ServicesManpowerGroup Solutions

Signs of millennial flight from the industryFinancial services candidates are significantly less likely than average to be younger millennials (ages 18 to 24). Far fewer of them are inclined to be financial services candidates than other professions, such as healthcare or IT. For the part of this generation who grew up during the Great Recession, the industry-wide layoffs and reputational damage of that economic crisis may have discouraged them from pursuing careers in financial services. PricewaterhouseCoopers found that 21 percent of millennials surveyed specifically said they would rather not work in the financial services industry.8 In contrast, Gen X represents a higher percentage of financial services candidates than average. This may be related to the consolidation of positions and ensuing layoffs of a decade ago.

As a result, the financial services industry faces a potential generation gap in its future workforce. As Gen X employees age and retire during the coming decades, there may not be enough younger talent to replace them. HR managers must plan now for the coming talent squeeze.

8 PricewaterhouseCoopers, PwC Millennials At Work: Reshaping the Workplace in Financial Services, 2011,13. https://www.pwc.com/gx/en/financial-servic-es/publications/assets/pwc-millenials-at-work.pdf

Millennials do not want to be associated with firms they consider to be bad corporate actors. As a result, many

financial services companies are expanding and marketing their corporate social responsibility (CSR) efforts.

John Stagliano – Program Delivery Lead ManpowerGroup Solutions


Reliance on professional job search sites and employer review sitesFinancial services candidates rely on the job search websites that they believe contain the most professional positions, such as Indeed.com and LinkedIn. These candidates are nearly twice as likely to use Indeed.com and LinkedIn as they are Jobs.com or CareerBuilder.com.

Candidates in the financial services industry also rely more on employer review sites than the average job seeker (17 percent versus 14 percent for Glassdoor.com). This may be due to the fact that when these candidates are seeking information about a company’s brand or reputation, over half (51 percent) rely on current employees of the company for the information. Employer review sites may be viewed as an extension of peer evaluation. Only IT candidates rely more on employer review websites. Clearly, the days when financial services companies could ignore these resources are officially over.

Job Sites Visited In the Last Two Weeks

U.S. Average


Indeed

LinkedIn

Monster.com

CareerBuilder

Jobs.com

Glassdoor

Craigslist

Snagajob

SimplyHired

0 10% 20% 30% 40% 50% 60% 70%

30%

32%

23%

14%

28%

15%

11%

23%

22%

40%

37%

24%

20%

18%

17%

15%

5%

8%

8

Diversity of Candidate by Industry

White

African American

Latino

All Other

U.S. Average

Retail Candidates

Healthcare Candidates

IT Candidates

Financial Services

Candidates0 10% 20% 30% 40% 50% 60%

58%

49%

60%

58%

49%

14%

15%

14%

14%

11%

17%

24%

14%

18%

28%

11%

12%

12%

10%

12%

Less self-reliant for ongoing trainingWhen compared with IT candidates, financial services candidates are significantly more likely to rely on their employers for training. Sixty-five percent of IT candidates say they bear the primary responsibility for ongoing training and education, whereas only 51 percent of financial services candidates feel that way. In fact, financial services candidates were the least self-reliant of any industry group.

In past decades, individuals in the financial services industry completed their educations and seldom looked back. Today, with technology and automation usurping many old roles, ongoing education and credentialing is important. Moreover, leadership and soft skills are increasingly important as technology fills the mechanical functions. Savvy employers can use these trends to create a culture of learning within their organizations.

Diversity is increasingAlthough diversity in the financial services industry was widely reported to have worsened after the Great Recession, the data shows financial services candidates are now quite diverse. Financial services candidates skew significantly female; 62 percent of them are women. This is second only to healthcare, in which 75 percent of candidates are women. Comparatively, only 27 percent of IT candidates are female.

With respect to race, candidates in the financial services industry are more diverse than any other industry. Fifty-one percent are non-white. Latinos dominate among the ethnic groups (28 percent versus the U.S. average of 17 percent).

Some financial services companies have robust diversity initiatives, yet others do not. Many millennials believe that companies are not doing enough. According to PricewaterhouseCoopers, 68 percent of millennials in the sector say that although companies talk about diversity, they feel that opportunities are not equal for all.9 For those who have lagged behind, outreach to women, communities of color and veterans pose an opportunity to expand their talent pools.

Comparing and contrasting candidates by industry Financial services candidates are a breed apart from candidates in other industries. Specifically, they are distinctive from in-demand IT candidates with their more nuanced motivational factors. And while the financial services industry appears to be making inroads on diversity, it remains potentially challenged by a shrinking pipeline of younger workers to fill the skills gap as others age and retire.

Agree They Bear Primary Responsibility for

Training and Education

65%IT Candidates

51%Financial Services

Candidates



7 STRATEGIES FOR ENGAGING FINANCIAL SERVICES CANDIDATESThe Global Candidate Preferences Study shows that a unique approach to recruitment is warranted when recruiting in financial services. Here are seven recommendations that can help:

1. Engage and retain Savvy human resources professionals should expect that without proactive intervention, turnover rates will rise in the future. Because financial services candidates are motivated by compensation, competitors will naturally seek out experienced and employed talent with higher salaries, bonuses and benefits. Unless employees have a compelling reason to stay, they will likely follow the money out the door.

Companies are experimenting with a variety of methods to improve employee engagement. For example, one retail banking firm recently implemented periodic surveys to track manager effectiveness. In this instance, the survey revealed employee concerns about the quantity and quality of coaching and feedback they received from their managers. As a result, the organization undertook an enterprise-wide effort to standardize the frequency and quality of coaching provided. Another approach might be to appeal to the ego and entrepreneurial spirit of advisors via recognition and appreciation for their ongoing value to the organization. Still, other companies try to engage millennials with periodic opportunities to have their voices heard by residents of the C-suite.

2. Screen for cultural fit Compensation may attract the best and brightest talent, however, it will not close a cultural gap between a new hire and their employer. Whether a company’s culture is modern or traditional, identifying and managing a candidate’s expectations for work environment, reward and advancement are key to lowering turnover.

Some financial services companies are making strides at transforming workplace culture. Quicken Loans, for example, allows employees to take four hours of “bullet time” weekly to work on personal projects outside their normal responsibilities. It also hold regular, company-wide “pitch days” to gather ideas and foster innovation.10 In the area of schedule flexibility, Fidelity National Financial has found a way to allow 25 percent of their employees to work remotely.11 The United Services Automobile Association offers on-site fitness and a wellness clinic at its San Antonio headquarters. Taking a page from the tech companies, these strategies are meant to appeal to millennials’ lifestyle choices.

3. Develop your talent Many financial services companies are devoting significant resources to ongoing education and training. Not only is it a way to upskill employees in areas such as technology or programming, but it is also being used to cultivate talent from outside the industry. With a shrinking talent pipeline, employers are looking outside the industry for new recruits then supporting them with the education, training and credentialing they need to succeed. The ManpowerGroup report, Millennial Careers: 2020 Vision, concluded that 93 percent of millennials want lifelong learning opportunities.12

Many companies are now providing tuition reimbursement or large bonuses for the completion of milestones, such as completing an MBA or becoming a CPA. However, to ensure that their investment in talent earns the proper return for the company, many firms also require that employees stay at the company for two years or more. Less formal opportunities for learning and growth are popular as well. There is a thirst for knowledge beyond the core business, and many companies bring in leaders from outside the financial services industry to speak and educate.

4. Expand diversity outreach Financial services firms can expand their talent pool and build new talent communities by reaching out to more women, veterans, African Americans, Latinos and other ethnic communities.

The big four accounting firms and some of the larger banks have full-fledged and dedicated staff to diversity initiatives. New York Life Insurance started “The Women’s Initiative” — which fosters career development for the company’s female employees, who comprise 57 percent of the company.13 TIAA sponsors several employee-resource groups to help everyone find their place and provide networking opportunities, community outreach and multicultural awareness. Groups exist for groups of different ethnic backgrounds as well as women, young professionals and the LGBT community.14

10 “How these Companies Are Changing the Financial Industry,” Fortune, July 19, 2017. http://fortune.com/2016/07/19/companies-changing-financial-industry/

11 “The Nine Best Finance Companies to Work for In America,” Business Insider, May 5, 2016. http://www.businessinsider.com/best-finance-companies-to-work-for-in-america-2016-5/#9-capital-one-financial-1

12 ManpowerGroup , Millennial Careers: 2020 Vision, 10.

13 “The Nine Best Finance Companies to Work for In America,” Business Insider, May 5, 2016. http://www.businessinsider.com/best-finance-companies-to-work-for-in-america-2016-5/#9-capital-one-financial-1

14 The Nine Best Finance Companies to Work for In America,” Business Insider, May 5, 2016. http://www.businessinsider.com/best-finance-companies-to-work-for-in-america-2016-5/#9-capital-one-financial-1

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5. Promote authentic CSR efforts It is well-documented that millennials believe that their professional lives are also an opportunity to do good in the world. This generational cultural shift need not be at odds with financial services candidates who are motivated by personal compensation. Doing well and doing good can coexist in the millennial mindset. And while community relations efforts have long been a strategy for banks at the local and national level, this new generation of candidates values authenticity and has the means, motive and technology to expose any CSR efforts that are merely lip service.

CSR activities span the gamut from paid volunteer days for employees to financial literacy programs to international microfinance programs. BMO Harris Bank was recently honored by the Financial Services Roundtable for their day-long training sessions for women- and minority- owned businesses in Milwaukee and Chicago.15 Iberiabank was similarly lauded for their financial literacy and education efforts reaching 6,000 students.16 Whatever forms it takes, CSR is most authentic for candidates when it is acknowledged as a core business value.

6. Keep Gen X engaged Traditionally, positions in financial services firms were intense, 60 hour per week jobs with little opportunity for work-life balance. As Gen Xers mature, many will look to retirement as a way to regain their lives with more quality and family time. And with fewer millennials in the talent pipeline, HR executives from the financial services industry need to find ways to keep Gen Xers engaged. According to a report from ManpowerGroup, #GigResponsibly: The Rise of Next-Gen Work, found 80 percent of workers over 50 years of age would be open to part-time, contingent, contract, temporary, and other non-permanent work types.17 Flexible workplace practices provide the opportunity to meet the needs of Baby Boomer and Gen X employees and the expectations of millennials.

PNC Financial is an example of a company that embraces older workers. Their IGen program focuses on ways that mentoring and other programs can be used to transfer knowledge from older employees to younger ones.18 It also focuses on retention of its older workforce. Ernst & Young takes the idea a step further by creating a portal on its career site called Gig Now, which features images of millennials and older workers and encourages users to search through hundreds of contract opportunities with a variety of flexible work options.19

7. Stay focused Over the last several years, social media has changed the way candidates and employees form opinions of organizations. A good or bad experience can now quickly go viral to tens of thousands of people. The temptation is to get caught up in the story of the day. However, the employers who stay focused and true to their message are the ones who will ultimately win the race.

American Express has elected to focus its career message on problem solving and innovation. Its career website features a section on “Life at American Express.”20 Here the company features a series of diverse employees speaking in their own words about the intrinsic rewards associated with cultivating innovative solutions to company problems. KPMG also posts “Life at KPMG” videos to its career site in which real employees discuss the challenges and opportunities offered by the company.

ConclusionCandidates gravitate toward particular industries for many reasons. Financial services candidates are often considered more ego-driven and motivated by personal gain. Research indicates that these candidates are less loyal than they have ever been. The mismatch between these characteristics and the millennial mindset may be resulting in fewer candidates in the pipeline.

In order to compete effectively for top talent, financial services companies must work harder to engage and retain their current talent while also creatively engaging more diverse audiences and more peripheral candidates. Matching potential hires with an evolving company culture is essential in easing these transitions. Creating a culture of learning and developing authentic CSR strategies are opportunities for employers to meld the unique preferences of financial services candidates and millennials and create competitive advantage in the war on talent.

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15 http://www.fsroundtable.org/fsr-announces-winners-corporate-social-responsibility-leadership-awards/ 16 Financial Services Roundtable, June 5, 2017, http://www.fsroundtable.org/iberiabank-reaches-6000-students-financial-literacy-effort/ 17 ManpowerGroup, #GigResponsibly: The Rise of Next-Gen Work, 2017, 8.18 PricewaterhouseCoopers, https://www.pnc.com/content/dam/pnc-com/pdf/aboutpnc/Diversity/DiversityInclusion-2016_Report.pdf 19 Ernst & Young, https://www.gignow.com/ 20 American Express, https://careers.americanexpress.com/Life

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More About the RespondentsOverall, the survey respondents were between 18 and 65 years old and currently in the workforce (not retired or homemakers). In total, there were 1,384 U.S. respondents from the South (39 percent), Midwest/Great Lakes (22 percent), Northeast (21 percent) and West (18 percent). They represented a cross-section of age, income, employment status (i.e., full-time, part-time, contract), career level and industry. With respect to career level, experienced non-managers accounted for the largest group at 28 percent, followed by managers (22 percent), entry-level employees (16 percent), students (15 percent), executives (4 percent) and senior-level executives (6 percent).

About ManpowerGroup SolutionsManpowerGroup Solutions provides clients with outsourcing services related to human resources functions, primarily in the areas of large-scale recruiting and workforce-intensive initiatives that are outcome-based, thereby sharing in the risk and reward with our clients. Our solutions offerings include TAPFIN-Managed Service Provider, Strategic Workforce Consulting, Borderless Talent Solutions, Talent Based Outsourcing and Recruitment Process Outsourcing, where we are one of the largest providers of permanent recruitment and contingent management in the world. ManpowerGroup Solutions is part of the ManpowerGroup family of companies, which also includes Manpower, Experis and Right Management.

©2017 ManpowerGroup Solutions. All rights reserved.

inside the heads of job seekers - manpowergroup.us€¦ · stephanie janowick – director,...

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