Pershing, a BNY Mellon company, has released its research report on college students’ career priorities and their potential to become tomorrow’s financial advisors.
The study entitled, ‘ReGENeration: How Gen Y Could Revitalize the Industry and Bring New Life to Your Firm,’ was commissioned in response to the industry’s talent crisis in the hopes of improving recruitment efforts. It is designed to help firms better understand college students’ priorities when choosing a career, to identify students’ trusted sources for information, and to gauge prospective graduates’ familiarity with the financial advisor profession.
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Kim Dellarocca, head of practice management and director of segment marketing at Pershing, said: "The talent shortage in the advisory business becomes increasingly dire every year. Gen Y has much more to offer than simply refilling the pipeline.
"They bring fresh perspectives, new ideas and modern skill sets that can help businesses prosper now and in the future. Given their contribution potential, it is critically important for the industry to better educate students about the benefits of pursuing a career in the advisory business," Dellarocca added.
Pershing’s study, which was based on the data from a survey, conducted by Harris Interactive in May 2013, of 500 undergraduate students enrolled in full-time or part-time at four-year US colleges, revealed that students career interests and goals are closely aligned to that of the growth path of an advisor.
The Pershing survey found that students want the following:
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By GlobalData- 88% agree they want to work in a career where a job cannot be outsourced
- 90% agree that they want to work in a career that is in a growing field
- 97% agree that they are willing to work hard to earn more money
- 82% say that it’s important or very important to choose a career that has a positive impact on other people’s lives
Despite matching attitudes and desires, few graduates are actually entering the profession. One potential reason is that students are not learning much about the profession while in college. In fact, while almost all (96%) of the students surveyed said they have heard of financial advisors, only one quarter are familiar or very familiar with the profession, and just 7% are actually interested in pursuing it as a career.
To broaden the pool of recruits, both firms and the industry must engage with students and determine ways to develop a stronger presence in their lives early on, such as:
- Regular attendance at career fairs – be ready to engage students and be armed with tools that promote the benefits of being an advisor
- Deeper involvement with the children of clients and various centers of influence – extend social invitations to the whole family and encourage career discussions
- Internships – offer internships after freshman and sophomore years when students are ripe looking for career ideas to pursue. Graduate internships are crucial in providing a trial period for both the business and the graduate
- Outreach to professors and career counselors – offer networking opportunities and informational resources
