An increasing number of financial planning students are shifting away from strictly crunching the numbers and moving toward developing softer skills — building more human connections and seeking a higher purpose on the job.
According to a survey released by FinServ Foundation and FP Transitions, 96% of students in advisor programs want to help people reach their life goals, up from 72% just a year ago.
"They want to work for a business that they can align with [their] values," said Elise Rogers of FP Transitions, in an interview with FP.
Planning students want human interaction
Rogers has worked for the consultancy FP Transitions for 17 years and watched it grow to a subscriber list of 57,000. To conduct the survey, 100 students weighed in about their expectations around work in the field. Results tilted toward more human interaction across the board.
Work-life balance ranked highly on respondents' lists, but face time was equally important to them, according to Rogers.
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"A lot of people have this perception that the younger generation wants to work from home, wants to work by themselves, get their job done or whatever," she said. "The students are saying the opposite. They want to be in the office, they want mentorship, and they want to work with people."
Company culture comes to the forefront
The
In a news release, the FinServ Foundation said the students are prepared to do the work, "but they also want employers to show them how an entry-level opportunity can become a meaningful, long-term career."
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"We build these [surveys] based on the generational norm [being] x, y, or z, but the data is telling us something different," said Rogers. Students are saying, "I will show up, I'm going to do my job. I'm going to work with people, I'm going to put in the hours."
In addition, Rogers has found that students want incentives that go beyond a salary and a bonus. They are actively seeking places that show the culture. "Our ethos is to protect our people," she said.
They express interest in working at firms with initiatives that include setting up 529 accounts for employees who become parents, or that make it a mission-statement item not to invest in things that don't align with their values.
Salary transparency and room for growth
Students also want more predictable compensation and benefits at the start of their careers, according to the survey, which found that over 80% selected a base salary as the preferred compensation component compared to 14% who identified equity compensation as a top priority.
"Firms that are interested in
Nearly 39% anticipate taking their early-career skills to the next level and becoming a partner or owner within the coming five to 10 years, and 17% anticipated starting their own shop one day.
"What does an entry-level position look like for the advisory industry is a challenge to the students," said Rogers. "But a challenge to the firms is: are you providing pathways into the industry for young advisors? Both have to meet in the middle."
Firms that can meet these challenges will be better positioned to recruit the new crop of sharp, prepared advisors.
"The best financial advisors I know are really, truly passionate about their clients," Rogers said. "We're seeing the same mentality in the next generation that wants to come into this industry."
