Why banks need to hire more millennials

Since 2008, banks have been focusing on transforming their core businesses to draw in customers and boost profits, says Andre de Haan, EY’s financial services leader.

As part of that shift, financial institutions also need to figure out how to attract and retain the next generation of bankers, according to a new EY report. That’s because millennials (those born between 1981 and 2000) will make up 72% of the global workforce by 2025, and banks have little brand appeal for young employees.

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Globally, among information technology and engineering graduates, banks are absent from the list of top companies they to work for, the report says. So financial institutions need to better understand these graduates and their expectations. For example, such employees value mentorship, entrepreneurial environments, workplace flexibility and technology (check out EY’s infographic).

“In the coming decade, [technology] will revolutionize the banking workforce,” says de Haan, and “there will be fewer bankers in traditional roles.” But, in implementing digital solutions, he adds, institutions will have to assess where automation is possible and where it might add risk.

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In choosing a place to work, millennials also consider whether a company’s values align with theirs. So, “Banks need to transform their HR approach[es], starting from recruitment all the way to performance reviews. Salary alone isn’t an enticing enough offer.”

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.