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History shows that as each new generation enters the workforce, they often come bearing new priorities, values, and expectations for their employers. Gen Z brings their own perspective, pushing the boundaries of what makes an employer a great place to work further than ever before.
Despite economic uncertainty, new career entrants demonstrate a great amount of optimism as it relates to their career prospects—which bodes well for the investment industry if we’re prepared to respond to their unique views.
Finance as an industry does not have a great track record when it comes to evolving the workplace. However, new data from the CFA Institute shows that finance remains an industry of choice for graduates and young professionals looking to kick off their careers. This position of privilege for our industry should not be taken for granted. We must listen to the desires and priorities of new career entrants and make necessary adjustments to attract and retain top talent. Simply put: We must continue to challenge the old way of doing things.
Beyond the paycheck
When thinking about career paths, 77% of U.S. graduates said that they value salary the most, over benefits, progression, and working location. The old take-it-or-leave-it attitude no longer works for Gen Z employees. This generation will avoid careers with those employers who take this stance.
Another factor stands out as a critical consideration for the next generation: purpose. A staggering number of new graduates say they prioritize making positive societal contributions through their work. In fact, 88% of U.S. graduates in our survey said that they seek to make a positive social or environmental contribution through their careers, and they have similar expectations of their employers. Furthermore, there’s one nuance: Corporate purpose needs to resonate with Gen Z’s individual values and the employer must make a tangible impact on the issues of their choice.
For Gen Z, the notion of making a positive impact on society through their work begins at the very start of their job search process. In fact, 35% of graduates say that a company’s commitment to sustainability would influence their decision to apply for a job. So, if an organization is not clearly communicating its goals, impact, and influence, top talent won’t even make it to their recruitment desk.
Finance has done a particularly poor job of communicating just how integral our work can be to make a widespread impact on the world. Having spent nearly three decades in this industry, I’ve seen the way capital can be leveraged to make an impact on individuals and society at large: funding pension plans, capital for growth, infrastructure investments, and so much more. These real-world examples need to be communicated clearly and often, internally and externally.
AI and automation are inevitable
The finance industry has employed leading-edge technology applications for decades, but with the advent of more sophisticated technologies such as generative AI, we see the potential for AI to have a lasting, positive impact on the industry.
Gen Z career entrants understand this and, given that they grew up as technology natives, they see the opportunities that AI can have on their careers—and they are prepared to embrace it. More than half of graduates believe that knowledge of AI and automation are important to career success, and nearly all of them (92%) believe that knowing how to use these tools will benefit their career prospects. Given their awareness of the importance of these innovations, they are eager to train with these tools and seek employers who can enable them to do so successfully. Top talent will expect employers to establish robust environments to not only embrace this technology but also train their staff on its application proactively.
Embracing individuality
While all of us can agree that finding fulfillment through work is important, we have not always walked the walk as it relates to creating work-life balance. As the next generation joins the workforce, they are challenging what it means to be fulfilled at work.
Strong, people-driven cultures where individuals can bring their authentic selves to work will win the day as it relates to attracting and retaining the top talent of tomorrow. As Gen Z prioritizes unique mindsets and individuality, the importance of diversity, equity, and inclusion programs becomes even more critical, during a time when some organizations are rethinking how to shape DEI.
While it’s difficult to predict what will come next for our economy, one thing is certain: Human capital continues to be the greatest asset of any great organization, regardless of industry.
With talent shortages potentially on the horizon in many global markets, now is the time to act. Gen Zers have challenged many norms within the workplace and are demanding better from their employers. I, for one, can say with certainty that this gives me great optimism for the future, as we evolve to adapt to this generation’s priorities, we are creating better work environments for all.
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