Professional Services - Insights for Talent Attraction

TALENT ATTRACTION IN THE PROFESSIONAL SERVICES INDUSTRY 1

Talent attraction in the professional services industryWHAT UNIVERSITY STUDENTS LOOK FOR IN FUTURE EMPLOYERS AND THE IMPLICATIONS FOR COMPANIES THAT SEEK TO HIRE THEM.

TALENT INSIGHTS SERIES


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UNDERSTANDING AND SUPPORTING MILLENNIAL CAREER GOALS

QUALITIES OF AN ATTRACTIVE EMPLOYER

THE MOST INFLUENTIAL CHANNELS FOR YOUNG WORKERS IN PROFESSIONAL SERVICES

IMPLICATIONS FOR EMPLOYERS

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The professional services industry has long been a magnet for top-tier students seeking jobs in the

KNOWLEDGEECONOMY.


Those winning spots in premier management consulting firms, for example, are all but assured high starting pay and a steady pace of promotions… in exchange for long work hours and often grueling travel schedules. Jobs in fields like consulting, accounting and finance draw students seeking an intellectually demanding and financially rewarding career.

While the elite firms may not have problems attracting top candidates, most professional service firms (PSFs) are in a heated race to attract the very best. The US unemployment rate for April 2015 in professional services was just 3 percent (compared to the overall US unemployment rate of 5.4 percent). And the Financial Times reports hiring in the professional services field in the UK is booming; firms report double digit growth in hiring, signaling an impressive amount of new job creation in the industry. Due to high demand for skilled talent, poaching mid- to senior-level talent from competing firms is common. A survey by Bloomsbury Professional – a research and media company in professional services – shows the number of accounting firms considering poaching executives from competitors rose from 8 percent to 22 percent in the 12 months ending in mid-2014.

A tight job market, however, isn’t the only talent challenge the industry faces. Recent research shows an insularity among top rungs of the industry. A widely read study by Lauren Rivera, an associate professor of management and organizations at the Kellogg School of Management in the US, says top-tier PSFs consistently recruit and hire individuals with the most affluent backgrounds rather than those who may be most qualified. The reasons for this are complex; in part it’s driven by the simple fact that those attending Russell Group and Ivy League schools are more likely to hail from privileged backgrounds. But also in play are more subtle biases. Rivera says hiring is often subject to “looking glass merit” – or the desire on the part of hiring managers to recruit individuals who are most like themselves (i.e. those more likely to be from privileged backgrounds). Rivera makes the case that current

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http://www.bls.gov/iag/tgs/iag54.htm

http://www.bls.gov/cps/

http://insight.kellogg.northwestern.edu/article/a-tilted-playing-field

http://insight.kellogg.northwestern.edu/article/a-tilted-playing-field


For some younger workers, free agency (i.e. working as a contract or freelance worker) allows greater flexibility than traditional employment. In the UK, for example, the number of those working in professional services grew by more than 700,000 in the year ending June 2014, and of those, more than half were self-employed. A 2014 survey by Deloitte also highlighted this trend for highly skilled workers to choose virtual, freelance or contract work rather than traditional employment. “This is creating larger open talent networks on a global scale that can supplement the work of traditional employees,” says Kent Kirch, Global Director of Talent Acquisition and Mobility, Deloitte Touche Tohmatsu. “Knowledge workers have the flexibility they want, and employers have access to a pool of talent available on a contingent or project basis.”

This represents a massive shift in how organizations operate. Attracting and retaining this generation will require substantially different skills and employment ‘offers’ than professional service firms are currently organized to do.

Each year, Universum surveys the professional expectations of one million career-seekers from 55 countries, and publishes dozens of reports on the top issues affecting global talent and the companies that hire talent. We aim to help employers understand the attitudes and career goals of young professionals, and how these insights affect strategic business decisions. In this report, part of our Talent Insights Series, we uncover what university students look for in future professional service employers – and how companies can translate these findings into actionable steps for HR, recruiting and C-level leadership.

hiring practices cost professional service firms because they do not always identify and attract the best individuals.

Finally, companies inside the industry are still wrestling with the rise of worker mobility and free agency. Younger knowledge workers don’t feel they need to be in the office to do their jobs; they don’t associate a physical location with their work. Explains Jody Thompson, co-founder of Culture Rx, a consulting firm that helps companies adapt to more flexible work styles: “We bring them into the work environment and we say, ‘Here’s this 6x6 square you’re going to work in, with a desktop computer… And here’s your phone with your cord. You come in at eight and you leave at five, and between ten and noon, that’s when we’re creative’.” For Millennials this makes little sense.

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http://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html

http://www.npr.org/templates/story/story.php?storyId=124611210

http://www.npr.org/templates/story/story.php?storyId=124611210


Understanding and supporting Millennial career goals

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THE IMPORTANCE OF WORK-LIFE BALANCE VARIES BY COUNTRY. STUDENTS IN SINGAPORE, HONG KONG AND THE US CHOOSE IT MOST

OFTEN (MORE THAN 60 PERCENT CHOOSE IT IN THOSE COUNTRIES).

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Work-life balance still a top consideration

As in every other industry, students’ top career goal is work-life balance and it’s been this way for each of the last six years Universum has conducted this survey. We find it an amazing data point – and it’s supported by dozens of research studies that show Millennials are deeply committed to living with meaning and purpose beyond the paycheck. Those aiming for careers in professional services are slightly less likely to emphasize it (52 percent versus 56 percent of those in other fields), but the majority still value it highly.

The importance of work-life balance varies by country. In those countries with stronger family-oriented leave entitlements such as France and the Netherlands, work-life balance is chosen slightly less frequently

TO HAVE WORK-LIFE BALANCE52%

WHICH CAREER GOALS ARE MOST IMPORTANT?

(46 percent versus 52 percent). Students in Singapore, Hong Kong and the US choose it most often (more than 60 percent choose it in those countries). One surprise: only 43 percent of Russian students pick work-life balance – 9 percentage points below the global average.

The desire for work-life balance is often associated with working mothers or even the so-called sandwich generation – those caring for children and aging parents at the same time. Why do Millennials care so deeply about work-life balance when a large portion of them have not yet started their own families? (Keep in mind, Millennials are usually defined as those born between the early 1980s and early 2000s.)

Millennials have witnessed the toll work has taken on parents. Seasoned professionals working inside companies with big layoffs

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during the last recession are still doing the work of multiple employees and working longer hours, says a survey from Ernst & Young’s Global Generations Research. Seeing their parents’ struggles, Millennials do not want to wait to enjoy recreation, hobbies and family. Or as Lisa Horn of the Society for Human Resource Management explains, “They no longer believe in the myth that working in rigid ways for long hours necessarily pays off”.

What Millennials consider ‘work-life balance’ is also significantly different than what previous generations have meant by the term. To this group it’s also about working in an environment where they will be respected much more so than where they will work long hours. In fact, being able to bring their personality, working style and opinions to the office every day is even more important than how long they will need to stay at work.

What should companies do with these findings? Is the onus on employees to find balance, or do employers also play a role?

With Millennials expected to make up 50 percent of the workforce by the year 2020, employers must be decisive about this issue, a topic we explore in greater detail in the

recommendations section at the back of this report.

The value of challenging work

One of the biggest points of difference between those aiming to work in professional services compared to their peers in other

industries is the desire to be intellectually challenged at work. Forty-two percent of students hoping for careers with PSFs are seeking out intellectually stimulating work, 20 percent more than those students in other fields. The feeling was strongest in Finland and the Netherlands, where 52 to 53 percent choose it.

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http://www.washingtonpost.com/local/millennials-want-a-work-life-balance-their-bosses-just-dont-get-why/2015/05/05/1859369e-f376-11e4-84a6-6d7c67c50db0_story.html


This is good news for professional service firms, which rely on critical thinkers to power their organizations and solve clients’ most pressing problems. Even so, employers must think about whether younger workers actually find entry-level positions to be intellectually challenging. For any organization, providing enriching entry-level responsibilities is a challenge, but for professional service firms, the need for doing so is even more critical.

Lower levels of interest in entrepreneurial activity or creativity/innovation

Young workers aiming for professional services were significantly less interested in pursuing entrepreneurial, creative

or innovative career goals – just 20 percent choose it as a goal, compared to 35 percent hoping to find work in the tech industry, for example.

While not on the surface troubling, the services industry, just like every other, relies on a steady pipeline of technology talent to improve tech infrastructure and online experiences. What may be an attractive employer branding program for those seeking work as consultants or accountants may not attract subspecialties like developers, digital media experts or UX designers. It’s a reminder to employers that talent attraction programs that fit the needs of the majority may have to be customized for certain high-value specialties. FIGURE 1

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FIGURE 1

WHICH OF THESE CAREER GOALS ARE MOST IMPORTANT TO YOU?

Professional services industry versus others

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0% 10% 20% 30% 40% 50% 60%

To have work/lifebalance

To have aninternational career

To be secure orstable in my job

To be entrepreneurial orcreative/innovative

To be dedicated to a cause or to feelthat I am serving a greater good

To be competitively orintellectually challenged

To be autonomousor independent

To be a technical orfunctional expert

To be a leader ormanager of people

OthersProfessional services industry

41%34%

12%10%

20%21%

25%29%

30%34%

36%36%

52%56%

39%42%

42%35%

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Qualities of an attractive employer

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What do students hoping for a career in professional services look for in future employers and future roles?

GE LEARNS HOW TO ENGAGE MILLENNIALS AT WORK

GE formed a study group composed only of Millennials to study how the organization’s younger professionals prefer to learn, and how to ensure these workers stay engaged at work. The program became known as Global New Directions. The study group made three major recommendations based on their research:

1 Use gaming technology to explain the company’s culture and values in a more engaging way to younger workers.

2 Don’t offer a single development path for young employees. Offer flexible choices so that young workers from around the globe can pick and choose the right set of programs to meet their own needs.

3 Develop performance management systems that give young workers a way to (a) understand the paths available to them at GE and (b) offer ‘just in time’ feedback.

PROFESSIONAL TRAINING & DEVELOPMENT OPPORTUNITIES

51%WHAT MAKES AN EMPLOYER ATTRACTIVE?

LEADERS WHO SUPPORT MY DEVELOPMENT

53%WHAT MAKES AN EMPLOYER ATTRACTIVE?

Not surprisingly, they are much more interested in professional development than peers in other industries. They seek out leaders who support their development, and look for employers that offer professional training and development.

The top employers in the industry understand this, and are strongly associated with professional training and development – indeed, it’s very often their core value proposition. PwC, for example, offers a range of different graduate programs tailored to local markets. Applicants know that if they can land a job with PwC or another of the Big Four, they’ll get a good reference for their future career.

Employers should place a strong emphasis on learning opportunities within their organizations but even more, they must also set out to discover how younger generations prefer to work. [SEE SIDEBAR]

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https://hbr.org/2012/02/how-ge-is-attracting-and-devel


The most influential channels for young workers in professional services

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IN THE UNITED STATES THERE MAY BE NO MORE IMPORTANT CHANNEL FOR YOUNGER MILLENNIALS THAN YOUTUBE –

WHICH THEY WATCH MORE OFTEN THAN TELEVISION.

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http://variety.com/2015/digital/news/millennials-find-youtube-content-more-entertaining-relatable-than-tv-study-1201445092/


Students use social media more often in the Netherlands (where 70 percent depend on it) and much less often in France (45 percent) and Switzerland (46 percent).

Websites still rank well above other channels for those seeking out information about potential employers. Despite all the interest in social channels, your own website or careers microsite is still the best place to deliver a media-rich experience. Whether you’re explaining a typical day at your organization, career paths for different specialties or the values your organization stands for, websites offer the greatest flexibility of all the channels available.

The Universum study also asked students what channels they use most to seek out information about potential employers. The top answers, not surprisingly, are employer websites (65 percent), social media (57 percent) and career fairs (52 percent).

Of course social media also ranks highly at 57 percent – a number we expect to grow over the coming years. The biggest obstacle here isn’t a lack of interest from job candidates, but rather a lack of useful, educational and interesting content delivered by employers. Too often companies use social channels to promote their own agenda rather than to help potential applicants navigate their careers.

Also, employers must think carefully about how future Millennials will use social, which is quite different from the way older generations use social media for their careers. While many big brands view LinkedIn

or Facebook as top employment channels, Millennials tend to favor other channels. In the US, for example, there may be no more important channel for younger Millennials than YouTube – which they watch more often than television. And more than half of Millennials use Instagram, which is significantly lower than Facebook but almost on par with LinkedIn. This doesn’t mean LinkedIn or Facebook won’t continue to be important in the years ahead, but professional service firms must look beyond these foundation channels and think about how else to deliver a differentiated, engaging message. FIGURE 2

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FIGURE 2

TOP FOUR CHANNELS TO LEARN ABOUT POTENTIAL EMPLOYERS

Professional services industry versus others

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Others: 63%Professional services




Career fairs Career guidance websites

52% 43%

Employer presentations on campus

Employer websites

46% 65%




Job boards Social media

46% 57%

University press & student organization publications

40%

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Implications for employers

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“IN THE NEW WAY OF WORKING, WORK ISN’T A PLACE YOU GO, IT’S A THING YOU DO. IT IS YOU.”

– STOWE BOYD, ANALYST

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Think holistically about hiring

Currently, most organizations hire workers much like they did a decade ago: long-term positions are filled with full-time employed workers, and short-term positions are filled with contingent labor. Hiring in these two areas is handled by two different organizations – the first by HR and the second by procurement.

In the future, organizations will need to think about hiring more holistically, and Millennials are leading organizations in this new direction. Millennials are more likely to prefer free agency than older generations (a 2014 Millennial survey from Deloitte found up to 70 percent of graduates would reject traditional businesses to work independently). And Millennials are more comfortable completing their work virtually.

This generation is forcing employers to seriously consider psychographics not just in hiring decisions, but in workforce planning decisions. For example, a company may ask, “How do young engineers in the UK prefer to work?” Rather than assuming they will hire engineers as full-time, salaried employees in a particular city, they may find engineers prefer virtual work, flexible work schedules and free agency. To recruit the very best engineers, a company may decide they will only employ 50 percent of their engineers, and use contingent labor for the balance.

Making these types of decisions requires (a) a new organizational structure that breaks down silos between the different types of hiring, (b) investment in technologies that offer visibility into all the different types of work within an organization, and (c) a

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new breed of talent leaders that blend quantitative forecasting and decision-making with strategic thinking.

These are complex issues, but the sooner professional service firms begin to study the implications of holistic talent management – and hire talent leaders who can execute on the vision – the more competitive they will be in attracting top talent.

Lead with content

Professional service firms were early leaders in thought leadership marketing – what is now called content marketing. Management consulting firms like McKinsey & Company and Roland Berger published magazines, large-scale research studies and whitepapers on a variety of strategic business topics – and they were considered intellectual heavyweights in the business world. Today these types

of content tactics are so pervasive that even industry heavyweights are crowded out by influencers from smaller, agile firms.

How do professional service firms continue to stand out in a market with so much noise?

First, talent executives – and in particular employer branding professionals – must collaborate more closely with marketing, which often has a high degree of sophistication in content marketing. It simply isn’t acceptable for the employer brand and customer brand functions to exist within different areas of the organization. Marketing has advanced skills in digital media, user experience, automation, social media and analytics – all skills employer branding professionals require.

Second, professional service firms must study how other industries use

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content to recruit in innovative ways. Tech firms in particular have become highly adept at using content to educate potential employees about issues they care deeply about.

Work-life balance

Finally, the industry must come to grips with Millennials’ desire for work-life balance. If 52 percent of those seeking careers in professional services say a top career goal is work-life balance, organizations must find ways to support that goal.

Keep in mind that for Millennials, work-life balance is much more than flexible work hours or telecommuting – it is also the

degree to which work and personal life blend seamlessly.

Technology companies have already taken account of this trend and many offer generous non-compensation benefits that help Millennials recreate at work, work at home and generally balance the two intertwining spaces. For example, Asana gives employees a few thousand dollars to personalize their computers and workspaces upon hire, and Google famously provides haute cuisine in its company cafeterias across the globe. Technology companies have a long history of blending work life and social life, with the idea that happier employees who feel part of a community will produce better results.

Many professional service firms, on the other hand, have reputations for working their employees to the extreme, emphasizing long workdays, arduous travel and often a focus on billable hours. This type of arrangement simply won’t inspire and retain Millennials, who think differently about work life than their older colleagues. As analyst Stowe Boyd explains, “In the new way of working, work isn’t a place you go, it’s a thing you do. It is you”.

Rather than emulate what tech companies do to retain employees, however, professional service firms must do the research to understand what inspires and brings satisfaction to those attracted to that industry.

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http://www.fastcompany.com/3026566/leadership-now/how-the-knowledge-economy-is-redefining-work

http://www.fastcompany.com/3026566/leadership-now/how-the-knowledge-economy-is-redefining-work


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The Talent Insights Series is only a small selection of questions from the larger Universum Talent Survey. We explore in depth the career expectations of talent by asking them to evaluate their chosen employers based on four drivers of employer attractiveness: employer reputation and image, people and culture, job characteristics, remuneration and advancement opportunities. To get insights on your employer brand and understand how you compete with other employers, contact us.

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METHODOLOGY ABOUT THIS REPORT

The PSF report is based on all students studying business who’ve chosen Auditing and Accounting or Management and Strategy Consulting within their preferred industries. Global averages were calculated by taking the simple average of the percentage of students in each country who selected each option on the survey.

Although Universum conducts research in 55 markets, this report covers only 12 countries. If you would like to learn more about talent within your market, please contact us.

Countries PSF Others

Finland 833 1486

France 4395 7034

Germany 2977 3696

Hong Kong 632 467

Mexico 2351 3895

Netherlands 1251 1062

Russia 2038 2593

Singapore 1288 1097

Sweden 1765 1541

Switzerland 1212 1421

UK 1411 1325

USA 5827 6520

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2,200 educational institutions

Field period: Sept 2014 to March 2015

Total number of respondents in the 2015 survey: 1,000,000

ABOUT THE UNIVERSUM TALENT SURVEYBased on an exclusive survey, distributed via university and alumni contacts, the Universum Panel and local partners; Universum ensures the quality and validity of the end result by continuously maintaining a close dialogue with leading academics in the field. Our vast experience in the field and cooperation with leading professors from top universities enable us to stay at the front line of the development of employer branding. Our findings are also used all over the world as material for new research.

THE QUESTIONNAIRE

Created based on more than 25 years of experience, extensive research within HR, focus groups and communication with both our clients and talent. Global perspective – local insight.

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Professional Services - Insights for Talent Attraction