Courting the Gen Y Advisor

Scott McKenzie, B.Comm (Hons.)

Director, National MarketingInvestors Group

June 7, 2012

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Gen Y

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Gen Y

Gen Y Defined Millenials ME Generation Generation Next (some say this is X and Y) Net Generation Echo Boomers

Definitions vary between late 70s and early 2000sStatsCan definition is a little restrictive - 1981-1990

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Gen Y You know this…right?

Feel they’re entitled Disrespectful of authority Operate on their “own time” Lazy! Gotta make some money When do I get your job Work is a social experience (pack / herd) Multi-tasking (with difficulty priorizing and focusing, easily distracted)

Tech savvy Meaningful work No shootout – a tie? Time, money, friends, Jag Bomb

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Gen Y The Legacy

Baby Boomers:

1. Work Ethic

2. Level of Respect for Individuals

3. Values and Morals

Gen Next (X,Y):

1. Technology

2. Music and Pop Culture

3. Liberal and Tolerant

4. Self Confident

Pew Research, The Millenials, 2009. http://pewresearch.org/pubs/1437/millenials-profile

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Gen Y Why should you care

Our traditional target recruit 45-year-old career changer The Gen X candidate today 50+, women, business owners, professionals…Gen Y?

Gen Y / Millenial Generation 15-19 2.2-m 20-24 2.4-m 25-29 2.4-m With the exception of Boomers 45-49 / 50-54, every 5-yr age

bracket in front and behind is smaller For those 20-49, 25-29 is the fastest growing age group

StatsCan http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/demo10a-eng.htm

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Gen Y Is there a disconnect?

What they want

Connection – Networking 2.0“I don’t go online. I am online.”

Influence“I am making a difference.”

Stability“I feel supported.”

Variety“I hate monotony.”

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What industry offers

Networking 1.0“You can build a network.”

Money“You have the potential to make a lot

of money.”

Entrepreneurship“You can be your own boss.”

Risk and Reward“You can be a part of a high-risk, high

reward proposition.”Source: LIMRA, Choosing Careers they Love

Gen Y Back off traditional themes

Independence

Unlimited income potential

Gen Y Bridging the gap

Connection More ways than ever to leverage and build a network Company leaders who become models for innovation will

inevitably attract top talent, paving the way for the next generation.

Influence Gen Y need continuous two way feedback. Need to know they are having an impact on the office, team,

clients Expect to be the central figure in their growing network Need company support systems to help them toward self-

improvement Mutual interaction with others

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Gen Y Bridging the gap

Stability Long and stable financial services company histories Stable training, mentoring path to higher levels of comp and self-

discovery Team – wrap your arms around them

Variety Gen Y value work/life balance over high income Companies need to allow flexibility Multicultural appealing Underscore the variety of the financial advisor career – its not

cubical life

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Gen Y and the Opportunity

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The Financial Services Colleges and Investors Group’s Experience

There is no silver bullet!

Hire from most major colleges since we have offices and recruiters where the colleges are

Grads go to: Banks Call centres rookie hiring financial services firms

“Its another channel. No more or less successful.” – Regional Director, Toronto

The Financial Services Colleges and Investors Group’s Experience

Do the schools prepare the students

Knowledge wise they are ahead of the average rookie…they are more well rounded…shorter learning curve

They come knowing more about the industry structure and make-up than the average rookie…they are already convinced a financial services career is a good thing

Licensed!

“They come licensed.” – Regional Director, Markham

“Some are about a month away from their CFP” – Regional Director, Cambridge, ON

The Financial Services Colleges and Investors Group’s Experience

Key differences in programs across the country

Admission requirements

Focus of opportunities Insurance Call centre Bank Financial advisor role

Demographics of their students

Length of programs – 1 to 3 years

“The colleges are getting better at recruiting.” – Regional Director, London

The Financial Services Colleges and Investors Group’s Experience

Gaps in the programs

Sales skills, sales skills, sales skills Are they confident Are they undershooting their potential – thinking beyond call centres,

banks, industry needs to influence the student career goal Financial knowledge is broad but shallow How is the financial knowledge geared - Insurance, financial planning, bank

Co-op / Work Experience:“If there is one thing that needs to improve, it’s the co-op program. I was an

admin person and did not get any real experience” – Program Grad & Investors Group Associate Consultant, Markham

“We’ve spent some time working with the college so they understand there are many career choices beyond call centres.” – Regional Director, London

The Financial Services Colleges and Investors Group’s Experience

How does industry fill the gaps

Students to some extent actually choose their employer of choice based on their assessment of the firms ability to fill gaps:

Fear of commission Team environment Training, mentoring, coaching Stability - We’ve been at this since 1926

At Investors Group, this is what we do best…training, mentoring, coaching, support, give them the tools…mold them…they want to be coached

But be honest with them…selection is key

“I worked at an MGA…and I could not see myself at 22 tackling this with no support. The way to go for a young person is through teams and support.” – Program Co-op student & Consultant, Markham, ON

The Financial Services Colleges and Investors Group’s Experience

Some Challenges Multi-cultural – Can your firm match the demo of the candidate Immigrant candidates – tend to prefer salary & mobility Candidate mobility – are you national, candidate might be Maturity of grad Can they sell Lower retention of the candidates can result in a sour taste, negative industry and

firm connotation Generally, professor taught, not industry taught…

“I thought the sales training in the college was adequate, until I got out there with prospects” – Program grad & Investors Group Consultant

“Potential down the road. Path to the role goes through banks then financial advisor role. Maturity is key.” – Regional Director, Calgary

“We are re-evaluating our involvement due to poor retention.” – Regional Director, Hamilton

The Financial Services Colleges and Investors Group’s Experience

…More Challenges Colleges overstate value they bring to table on knowledge Limited tax planning components for example Colleges differ in their channel neutrality

Focus on banks Focus on financial advisor role The gatekeeper at the college and the commission role

Students are influenced by program as a lot of students don’t have a clear vision on career path

“Don’t want to step on anyones toes, so its hard to get into the program…gatekeeper neutrality” – Regional Director, Cambridge

“ ‘Great career, just gosh that commission thing’ “ – paraphrasing college administrators paradigm

The Financial Services Colleges and Investors Group’s Experience

Maximize your experience Are you recruiting from the college or are you involved with the

college Teach, Scholarships, Awards, Partnerships, Give more to get more, Advisory

Councils, Engage both the institution and the student body, Career fairs, presentations, fireside chats, your client events, Mock interviews, Be involved throughout the year, get beyond putting up a job posting in February

Know the matrix of success: Candidate Maturity, Candidate knowledge and sales skills Firm fit and ability to convey the match

“You can do a lot to create a partnership by just having a presence. Student groups for example are always looking for speakers…even instructors like a day off once in a while.” – Regional Director, London

“Get in on a consistent basis and fight the commission question. Don’t squash the dream.” – Regional Director, London

How do colleges get better?

Emphasize partnerships with broad cross-sections of the industry

Student recruiting and maturity - require post secondary diploma / degree for admittance (ie, Seneca)

Integrate sales, marketing into curriculum

Work experience program – standards and structure

How do we get better?

Better position what industry offers to match what Gen Y wants

Continue to partner with the colleges

Look within – can you honestly say you offer what they want – do you have the stuff they need once hired Study, performance groups Pairs, marketing teams, support, wrap your arms Social activities, engaging, fun Not your Boomer / Gen X work week…blurring of the work week

“In the last 3 years, five hires, 100% retention so far.” – Regional Director, Cambridge, ON

Gen Z

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Thank You!

Boomers can Write or Call me at:

Scott.McKenzie@investorsgroup.com

204-956-8646 | Fax 204-943-1835

Gen X can Read or connect with me:

www.investorsgroup.com

http://ca.linkedin.com/in/rscottmckenzie

Gen Y Follow / Like us at:

www.twitter.com/valueoftheplan

www.facebook.com/InvestorsGroup