f&i professionals: how job expectations vary by generation.

A cultural shift is underway in the finance and insurance industries. The latest Randstad Employer Brand Research (REBR 2024) reveals a significant gap in workplace motivations between younger and older employees in the sector. In this blog, we’ll take a look at how job expectations vary by generation.

Not only do the priorities of Gen Z and Baby Boomers differ when it comes to work (and play), but they have also changed significantly since 2023. It’s crucial employers understand and adapt to each generation’s unique needs. Failing to do so can lead to:

• difficulty in attracting top talent
• a struggle to retain existing employees

the purpose of the REBR study

REBR 2024 is an independent survey of 173,000 participants globally, with more than 5,000 respondents in the U.S. It includes the opinions of 155 Americans working in finance, of different genders, occupations and generations. It looks at what makes an employer attractive, based on 10 criteria such as financial health, job security, career progression and work-life balance.

One important goal of the study is to provide employers with key insights into employee expectations and how to adjust a company's brand and hiring strategies to the diverse needs of different generations.

rising compensation demands among Gen Z

Let's start with money. Simply put, people born between 1997 and 2012 (Gen Z) want to be properly compensated for their time or they'll find another job. According to the REBR 2024 survey, 42 percent of Gen Z workers in finance and insurance would leave their jobs if the pay was too low for the cost of living.

This is a big leap from 27 percent in 2023, which shows Gen Z is now more interested in salary than they are in work-life balance — only 21 percent said they would leave their job for this reason today, versus 50 percent in 2023.

home-life balance for the baby boomers

In contrast to Gen Z, Baby Boomers (born between 1946 and 1964) are more interested in work-life balance than they are compensation. Only 17 percent of those working in finance and insurance would leave due to low pay (down from 51 percent a year ago).

They are older. They are approaching retirement. Boomers may have worked hard to reach a certain level in their careers and now want to enjoy life outside of the office. The REBR 2024 survey affirms this, revealing more than half of Baby Boomer financial professionals would leave their job to improve their work-life balance, up from 37 percent just one year ago.

strategies for employers to adopt for Gen Z

To effectively address these evolving priorities of different generations, employers should adopt specific approaches for each generation. So to attract a Gen Z employee, for example, you may need to first research what salaries similar businesses are offering new talent in finance and insurance. You could then create a compensation package that not only outmatches your competitors, but meets or exceeds the demands of the potential Gen Z employee and aligns with the cost of living.

retaining young employees

A full 32 percent of Gen Z employees said they planned to leave their jobs in the first half of 2024, while 27 percent changed employers in the second half of 2023. Aside from pay, top reasons for leaving a job include receiving an offer they could not refuse (33 percent) and a lack of career growth opportunities (29 percent).

It's clear the younger generation wants more. They want a job with good compensation and a path to professional improvement or they will go elsewhere to find it. So, just as you would make sure your compensation package is competitive for new recruits, you also want to ensure your current Gen Z team receives:

• regular pay raises, bonuses and other financial incentives
• ongoing training and upskilling opportunities
• meaningful mentorships for growth within the company

strategies for employers to adopt for baby boomers

Here again, you need a tailored approach to recruitment and retention. Since Boomers are looking for a good work-life balance, you may want to offer flexible work arrangements. You may also consider promoting personalized career development opportunities like ongoing training in AI.

Perhaps provide a regular mechanism for two-way feedback so your older employees know they will be heard and receive direction and encouragement. Above all else, show a commitment to giving employees more control over their own tasks, a key factor in keeping people happy and loyal at work.

retaining baby boomer employees

Only 25 percent of Boomers said they planned to leave their post in the first half of 2024. Additionally, only 50 percent said they would leave for an offer they couldn't refuse, down from an incredible 75 percent in 2023.

The research indicates if you offer Boomers a good work-life balance, they may be less attracted by a better offer and more loyal to your company. For example, consider offering:

• hybrid or remote work arrangements
• part-time or flex-time hours
• a compressed workweek
• phased retirement
• paid personal days
• competitive health benefits

technology and all generations

According to the REBR survey, three-fifths of respondents working in finance and insurance use artificial intelligence (AI) at work either every day, regularly or every now and then. The overwhelming majority (four-fifths) believe AI will have some impact on their work.

AI can quickly review massive amounts of data, help in risk management, predict trends and is undeniably important in business today. Employers need to hire AI-savvy talent and provide ongoing training, ensuring employees and the company benefit from the technology — and reassuring your team AI is a powerful tool to enhance jobs, not replace them.

conclusion

Employers should continuously monitor trends and be prepared to adjust their hiring and retention strategies accordingly. This tailored approach to each generation will increase your chances of finding and retaining the best talent.