“The prestige of financial services has been eroded” as graduates' values differ from those traditionally touted by the industry, according to Investigo director of financial services, Kelly Fordham.
Fordham said previously the appeal of a job in financial services, banking in particular, was the generous salary and the opportunity of a bonus.
However, she said that this is not as big of a draw for younger people.
Instead, she argued, graduates and members of Generation Z now desire a work life balance more and a large salary on its own is “not as appealing anymore”.
“Back in the day, money and bonuses were sexy but that’s not sexy for Generation Z,” she said.
Fordham said another appeal of financial services was getting a “job for life”, but this was not as important to younger generations.
“The jobs of today almost don’t suit the people of tomorrow,” Fordham added.
As a result of these divergent mindsets and values, Fordham warned that the banking sector is facing a “huge talent drain” as staff move into private equity.
She described this as an “epidemic” of staff moving into roles perceived to be more glamorous, leaving important backroom roles vacant and widening the gap between junior and management roles.
Action
“We need to change the narrative around financial services,” said Fordham.
She said this could be done by appealing to what younger people value the most, including showing action on social justice issues and a good environmental record.
“Businesses have to change narrative and align with the new demographic,” Fordham added.
She stressed addressing the issue is particularly pertinent due to the talent gap that was created as a result of the Covid-19 pandemic.
tom.dunstan@ft.com
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