We recently wrote a blog about how millennials are influencing the financial advice industry. But millennials aren’t just having an impact as clients; they are also essential for future-proofing financial advice firms as employees, too. Millennials will soon make up the majority of the workforce – in fact, by 2025, it is estimated that millennials will make up 75% of the workplace, so it’s no wonder that financial advising recruitment agencies are seeing a rise in companies looking to recruit younger advisers. If you want to ensure the success of your financial advice firm tomorrow, it’s important you know how to attract and retain millennials today.
Why the financial advice industry needs millennials
The financial advice industry is on the brink of a major disruption. As advisers age out of the industry, the next generation isn’t entering the field fast enough to fill the gap. The average age of a financial adviser today is 51, and 38% of advisers are expected to retire in the next 10 years, making millennials essential to succession planning.
But that’s not all; millennials will also play a key role in attracting a new generation of affluent millennial clients, too. For starters, they understand the digital habits of their peers and can help their firms navigate an ever-changing digital landscape as well as implementing robo-advice to digital-native clients – especially those without high levels of money.
Millennials also speak the language of younger clients and share core values such as social presence and corporate social responsibility – which is essential for attracting affluent millennials as clients. In fact, in a survey of young advisers by Citywire, nearly half of those surveyed advise clients under the age of 40 – and on the whole, most think that younger clients prefer advisers of a similar age because they can relate to their circumstances.
To ensure continual growth and evolution for their clients, the best financial advising recruitment agencies will look to the talents of millennials, and that’s a strategy that we prioritise.
Let’s take a look at the facts
When it comes to recruitment and job satisfaction, millennials are very different from the generations before. In a recent survey, millennials prioritised meaningful work over high pay, whilst 65% would opt for a job with a lower salary if the work was interesting and it aligned with their career goals. Another 65% said personal development was the most influential factor in their job, and 78% of millennials are attracted to offers where although the salary is lower, the path for growth is clear. So what does this mean when it comes to attracting millennials to your financial advice firm?
How to attract them
Millennials aren’t driven by the same motivations as previous generations. They are less concerned about making their millions and more focused on making a change for the better. They prioritise purpose over profit, and are drawn to organisations who have the same values as them and will invest in their development – all of which means the way you recruit millennials will most likely be very different from that of previous generations.
And when it comes to recruiting the financial advisers of the future, the time to get ahead of the competition is now. Citywire’s survey also found that 43% of financial advice firms have no plans for a young adviser scheme. But it’s not just about recruiting millennials; with 44% of millennials planning to quit their organisation within two years, it’s essential that you understand how to retain younger advisers, too. As one of the UK’s leading financial advising recruitment agencies, read on for our top tips on how to attract and retain the advisers of tomorrow.
Help them progress with training and development
Pay is not as important for millennials as opportunities for personal development. The majority of millennials are focused on driving their careers forward and expanding their knowledge, which means that when they are deciding which financial advice company is right for them, they will be more drawn to companies that will provide them with the tools and training they need for the future. So if you want to attract millennials to your firm, you need to let them know that you value them and that their development, growth and career progression is important to you.
Make sure you highlight any training opportunities and map out their route up the career ladder. Financial advice qualifications are expensive, so if your firm is willing to fund exams, that would be another big benefit. It’s worth investing in your employees: after all, the more that millennial advisers see that you care about their careers, the more likely they are to stick around.
Allow flexibility where possible
Work/life balance is another thing that is really important to millennials. In fact, a recent study by PWC found that 66% of millennials would like a flexible schedule, whilst 64% wanted the ability to occasionally work from home. Millennials see work as output and results, not hours punched into a clock, so if you can offer flexibility to your workforce, that will be a huge driver for attracting and retaining millennials.
Don’t be worried about what this means for productivity, though; commitment actually tends to increase whilst staff turnover decreases when a flexible working environment is available, so it’s a win-win for everyone! Finally, trust is essential when it comes to hiring millennials – because they view their jobs as extensions of themselves, give them the flexibility they crave and they will go the extra mile for you.
Make sure you’re social
Millennials are the most active users of social media – which means when they are looking for a job, they are likely to turn to social networks. As such, it’s really important that they can find and follow your firm online. Social hiring is a great way to reach them as you can meet your future employees where they always are: online.
From directly engaging with passive candidates via LinkedIn to targeting the ideal applicant with Facebook ads, there a lot of ways to reach candidates online. It also lets you know what kind of person you are recruiting: their online footprint showcases their skills and experience, whilst a sneak peek at their social media profiles will tell you a lot about who you are hiring – make sure you check out their LinkedIn endorsements, too!
Shout out about your culture
Company culture is a big deal for millennials. According to the Deloitte Millennial Survey 2016, millennials want to work for a company that shares their values, and as many as 56% have ruled out working for an organisation because of its values or standard of conduct. In addition, 50% would take a pay cut to find work that matches their values – so you need to show them what makes your company unique and sets you apart from the rest.
This is especially important for financial advice and wealth management firms, which often have the image of being stuffy and dated. Shake off the stereotype and showcase the spirit of your company online. A sense of team and belonging as well as mentorship is really important to millennials, so from charitable initiatives to fundraising, your company perks will really appeal. Basically, when they research your company online, you want them to be thinking ‘I want to be part of that’.
In conclusion, when it comes to future-proofing your advice firm, it’s really important that you understand how to attract and retain a millennial audience. At Recruit UK, we are one of the UK’s leading financial advising recruitment agencies and can provide expert advice on how to attract the very best fresh financial talent to your firms.
So, if you are looking to recruit the next generation of advisers to your firm, contact Recruit UK today.