Ronald Goseco l February 23, 2024 l The Manila Times
THERE was a recent study by Ernst & Young (EY) on the future of work in banking that identified the next generation of workers and attempted to answer the question — Do my kids want to work at a bank? They were referring specifically to Generation Z or Zoomers. The answer was not clear-cut as it depends on a lot of things.
Zoomers are the demographic cohort that comes after millennials and proceeds Generation Alpha. Members of Gen Z were those born between 1997 and 2012. As of 2024, the Gen Z age range is between 12 and 27. They are commonly referred to as the first fully “digitally native” generation. They grew up with social media and smartphones. They are used to living in a digitally first world. This group will comprise more than 25 percent of the workforce by 2025 are making their early stage career decisions now. They have the potential to either contribute or deplete the banking talent pipeline.
Research from the US National Library of Medicine shares that this diverse generation is highly motivated and more risk-averse than previous generations. The EY research indicated that Zoomers are accustomed to instant gratification, having grown up with online services, real time information and radical transparency. Most of their social interactions are digitally enabled.
As a group, they have an amplified focus on social justice, which is compounded by social media. They have a collective mindset and a deep social consciousness. They prioritize health and well-being. They expect flexible and remote work because of their exposure to a job market in a period of mass mobility. Digital platforms also enabled access to job applications and professional networks. Zoomers like previous generations, also aspire to change the world and create the next big thing. As a group, they revere the entrepreneurial culture and desire for self-employment and autonomy.
So going back to the question — Do my kids want to work at a bank? It all depends on the banking proposition that would boost its appeal to Gen Z. This new generation of workers demand a diverse and inclusive environment. This is challenging at the moment. Current research believes that we are 80 years from achieving gender parity in the global workplace.
Fortunately, we are ahead in Asia where the proportion of women in senior management is 42 percent compared to 30 percent in the United States and 25 percent at top European banks. There is a shifting focus from product to customer experience (CX) and user experience (UX) so banks will have to diversify their recruitment from nontraditional pools or industries. In order to attract Gen Z talent, banks should generate excitement about new age jobs and episodic careers that would provide different experiences and levels of fulfillment.
Attitudes toward careers are changing with research predicting the Gen Z will on the average, hold 18 jobs across six careers in their lifetime. There are also global shifts in today’s job market. It is estimated that due to automation, 1.3 million US bank workers will lose or be reassigned from their current jobs in the next 10 years. Finance leaders predict that 50 percent of middle and back office roles could be eliminated by technology. Technology skills have a half life of 2.5 years so more than 49 percent of professions feel anxious about their skills.
These shifts contribute to the lack of stability in the job market and creates both uncertainty and apprehension about the future. This restlessness leads workers to continuously search for the right jobs. In order to attract and engage Gen Z workers, banks have to revise operating models to include new age jobs dealing with improving CX and UX. Career ladders have to be both progressive as well as expansive.
The educational experiences of the Gen Z are also different from previous generations, so a modern learning model is required that is digitalized, on-demand and leverages micro-learning principles. Learning innovations including badging and academy constructs, smart app-enabled programs and 360-degree coaching programs. On top of these, Zoomers need affirmation that they are contributing to a just and equitable society.
It’s certainly starting to feel that banks would have to go through a lot of hurdles to convince Gen Z that banking is the right career choice. It could be achieved though with the right mindset and the will to implement the changes that are crucial to ensuring the future.
*** Ronald Goseco is a trustee of the Finex Foundation. His opinions are his own.