From Recruitment to Retention: Why dealing with Gen Y is just different Simon Mortlock APAC Editor
Introduction From recruitment to retention: why dealing with Gen Y is just different Generation Y financial professionals in Asia Pacific are approaching the recruitment process in a different way to their predecessors. As the first generation to start their careers in the age of social media, job boards and online applications, they have more search tools at their disposal. In addition, they are generally looking for positions which will quickly propel them up the corporate ladder, while not sacrificing work/life balance. It often seems as if Gen Y want it all. This is particularly the case in Asia Pacific, which has recovered from the financial crisis faster than most other parts of the world. Gen Y in this region have more job options on the table. “They can afford to be choosy. They haven’t been squeezed as much,” says Matthew Hill, managing director, Ambition Hong Kong. This white paper will help recruiters, HR teams and hiring managers better understand the needs of Gen Y, so they can attract more talented young people to their ranks and just as importantly, retain them.
Sections: □
Understanding Gen Y’s motivations
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Your employer brand matters
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A new kind of job hunt
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Interviews with Gen Y
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Gen Y at the negotiation table
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A lack of loyalty?
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Understanding Gen Y’s motivations Before you can develop policies to attract Gen Y candidates, you must first understand what makes them change jobs. As a general rule, career progression is their number one motivation, according to recruiters. “It’s a stark change from 2007 when candidates’ primary objective, or the one first mentioned at interviews, was a salary increase,” says Ben Batten, general manager, professional & technical, Kelly Services. Career progression can include moving to a higher-tier financial institution. “To Gen Y, an organisation’s reputation or brand, and a belief in what the company stands for are important elements in their decision,” says Jane McNeill, senior regional director, Hays Banking. It’s also important to offer them something of immediate value. Matthew Hill, managing director, Ambition Hong Kong, comments: “Their attitude is ‘what’s in it for me’. I wouldn’t say they’re selfish but they do look for positions that will get them to the top quickly – fast track jobs.” But of course money still matters. Stella Tang, division director, Robert Half Financial Services Group, says many Gen Y candidates have huge expectations when it comes to salaries. “Monetary benefits are particularly important to this generation as many of them are moving into the next phase of their lives, be it marriage, or purchasing their first car or home.” Hill believes that Gen Y’s high expectations also extend to training and development opportunities. Employers need to outline these from the outset. “Gen Y don’t like sitting alone in roles where they can’t work with others. They want to drain others of knowledge.” But not all of Gen Y’s demands relate to the technicalities of the job itself. Work/life balance is also important to a generation which values its leisure and family time. Hill also points out that younger candidates place increased importance on corporate social responsibility. “It’s a big plus for an employer if you can demonstrate contributing to wider society.” Back to top
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Your employer brand matters One of the first steps in attracting Gen Y candidates into your ranks is employer branding. “Technology is part of their life, rather than just a tool. I cannot emphasise enough how important it is to consider the impression potential candidates might get of your company, even when you are not talking directly to them. Gen Y have access to more information than any other generation at the start of their careers,” says McNeill. Gen Y will research your firm and form their own opinions of your brand, so make sure the messages going out to the general market are positive and in line with your culture. “Branding, promoting what your organisation can offer and demonstrating honesty and respect are all part of the recruiting equation,” adds McNeill. Back to top
A new kind of job hunt Gen Y have strong IT skills and many leverage social media during their job search, not only to seek out openings but also to network with industry professionals, says Tang. “Often these networking opportunities provide Gen Y candidates access to knowledge about potential employers and the sectors they operate within, hence strengthening their chances of securing their desired jobs,” she adds. Batten says when Gen Y interact with recruiters they are often not interested in developing a relationship. “They treat it as purely transactional and deal with different recruitment firms based on what they can immediately offer rather than what recruiters can do proactively to assist.” As a tech-savvy generation, today’s twenty somethings tend to apply online for jobs, while older candidates are more likely to pick up the phone, says Hill. Gen Y are forcing recruiters to spend more on web-based advertising and to invest in resources to handle an increased number of applications from outside of Asia Pacific. Today’s young candidates are comfortable applying online for international jobs and in the current market Asia Pacific is their destination of choice. Back to top
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Interviews with Gen Y Corey Benterman, manager, banking & financial Services, Robert Walters, thinks most Gen Y candidates are well presented at interviews but “social norms and behaviours don’t always seem to exist.” They might not call to apologise when late, or switch off mobile phones during interviews. “They don’t feel like they have to impress, however they’re not afraid to sell themselves and talk things up. Their attitude is more: ‘take me as I am’,” he adds. Gen Y are not shy in expressing their concerns and their key strengths. “Having worked in both the junior and senior ends of the recruitment market, I definitely found some of the Gen Y candidates to be more demanding than senior candidates,” says Benterman. During interviews Gen Y job seekers expect the employer to sell itself to them, while with older candidates it’s vice versa, adds Batten. Back to top
Gen Y at the negotiation table Gen Y are conscious of the detail of employment contracts and will study noncompete clauses. “They will ask ‘what happens when I leave’ even before they start the job because they see most positions as stepping stones. But while they are more likely to question the status quo, this doesn’t mean they’re able to change it,” says Hill. Batten says Gen Y candidates often don’t bother to negotiate. “Many times it becomes a case of meeting demands or else moving on to look at another opportunity, in the knowledge that most financial organisations will have similar positions in the near term, if not immediately.” McNeill agrees: “These candidates have seen the skills shortage develop - they've read about it on the internet and are very aware that it exists. The economy is recovering postGFC and they know they have more options in the job market, giving them increased leverage in terms of benefits and work environment.” Back to top
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A lack of loyalty? So you’ve managed to secure the Gen Y professional of your dreams but how do you retain him or her? It’s not easy, say recruiters. “In general, Gen Y banking candidates are more aggressive in climbing the corporate ladder compared with older candidates, who tend to focus more on job stability and security,” says Tang. She adds that Gen Y are still seen as job hoppers. “While the general perception is that Gen Y don’t have a deep sense of loyalty to their employers, their frequent changes can be attributed largely to their ambitious nature and desire for wanting more than what their current jobs offer.” Gen Y are very career driven but they expect a lot in return. If an employer does not provide it, they will go elsewhere. “With an average length of tenure between two to four years, employers need to add value to a Gen Y employee to counter this trend. Effective management and career development advice will assist in progressing their career to where they want it to be,” says McNeill. The challenge ahead for HR is to retain Gen Y by keeping them interested. Boredom, and not feeling respected or challenged at work will drive away a generation who are less afraid than their predecessors to simply move onto the next bank. Gen Y must be given great internal opportunities, not only in terms of pay, but also in the form of promotion, networking, training and development.
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About Us eFinancialCareers, a Dice Holdings, Inc. company, is the leading global career site network for professionals working in the investment banking, asset management and securities industries. The website provides financial services professionals with job opportunities, job market news and analysis, salary surveys and career advice. Recruiters and employers can post jobs targeting specific sectors within the financial services industry, both buy-side and sell-side, and can search the resume database for highly qualified and specialized professionals. eFinancialCareers has a network of co-branded career sites with industry-leading trade publications and offers local websites in 18 markets and five languages primarily across North America, Europe, the Middle East and Asia-Pacific. www.eFinancialCareers.com
Find out how eFinancialCareers.com can help you recruit the high calibre talent you need
email: sales@eFinancialCareers.com web: www.eFinancialCareers.com