Other parts of this series:
- Reinventing the financial services workplace to attract digital natives
- Rebranding the financial services workplace to attract millennials
- Beyond the one-size-fits-all EVP
- Creating digital workplace experiences that resonate with employees
- Agile new ways of working for connected employees
- Giving employees ownership over learning and development
- Reinventing performance management by making it personalized
- The role of wellness programs in creating a healthy workplace
In my previous posts in this series, I have focused on how financial services companies need to relook their employer brands and value propositions to appeal to millennials. However, this does not mean that there’s a one-size-fits-all proposition that will work for every employee.
Indeed, we need to bear in mind that the workplace today is more diverse than ever. Millennials themselves are a diverse group of people, even though employers and market researchers sometimes make glib generalizations about their aspirations and behavior.
On top of that, we still need Generation-X and boomer employees, and also need to start preparing for Generation-Y to enter the workforce. What’s more, rising longevity means that many organizations may soon be employing people older than today’s usual retirement age of 60-65 years.
As such, leading banks and insurers are starting to carefully segment their workforces in the same way that they segment their customer bases. The goal is to create more customized employee value propositions that speak to the personal aspirations and professional goals of different employees.
In much the same way as targeting customers and prospects with personalized marketing helps to improve conversion and satisfaction, segmenting the workforce can help banks and insurers to more successfully recruit, engage, develop and retain the best mix of talent for their needs.
The first step towards segmenting the workforce is to know your internal customer. Financial services firms can conduct internal surveys as well as use human resources analytics tools to analyze the makeup of the workforce. Once equipped with a better idea of who their employees are and what sort of employees they’d like to add to the skills mix, companies can segment them in multiple ways:
- Demographics: Separating the workforce by age or generation
- Performance: Targeting ambitious high-performers in different ways to the rest
- Employee lifecycle: New hires versus established employees
- Skills and experience
- Job function
- Special talent needs: Digital or non-digital
- Hierarchy: Leaders and managers compared to collaborators
Nurturing a diverse base of talent can help to spur innovation, but it could also fragment the workforce, so companies need great collaboration tools and processes to align their teams. As such, financial services companies need to accommodate the needs of a diverse range of employees with different attitudes to technology, lifestyle and work itself.
By segmenting their workforces, they can create differentiated value propositions for employees with different needs as well as recruit people with desired skills and personal attributes in a more targeted manner. This can help create an engaged, motivated workforce that is the company’s strongest competitive advantage.
In my next blog post, I’ll explore the role of technology in supporting the employer value proposition.