Pershing Study Finds That Financial Advisor Firms Must Transform Recruiting Models to Appeal to Generation Y
Sep 18, 2013
Survey of 500 college students reveals alignment between students' career desires and what the profession offers
JERSEY CITY, N.J., September 18, 2013 — Pershing LLC, a BNY Mellon company, today released its first-ever 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.
"The talent shortage in the advisory business becomes increasingly dire every year," said Kim Dellarocca, head of practice management and director of segment marketing at Pershing. "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."
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 U.S. 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:
- 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
To obtain a copy of "ReGENeration: How Gen Y Could Revitalize the Industry and Bring New Life to Your Firm," or to learn more tips on how to better recruit Gen Y financial advisors, please visit pershing.com/regen.
Pershing and its affiliates provide global financial business solutions to approximately 1,600 financial organizations, broker-dealers, registered investment advisory firms, advisors, fund managers and asset managers who represent over 5.6 million active accounts. Located in 23 offices worldwide, Pershing delivers dependable operational support, robust trading services, flexible technology, an expansive array of investment solutions, practice management support and service excellence. Pershing is a member of every major U.S. securities exchange, and its international affiliates are members of the Deutsche Borse, Australian Stock Exchange, Irish Stock Exchange, London Stock Exchange and Toronto Stock Exchange. Pershing LLC (member FINRA/NYSE/SIPC) is a BNY Mellon company. Additional information is available on pershing.com, or follow us on Twitter @Pershing.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of June 30, 2013, BNY Mellon had $26.2 trillion in assets under custody and/or administration, and $1.4 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com, or follow us on Twitter @BNYMellon.