Other parts of this series:
- The adaptive financial services workforce of tomorrow
- Unlocking workforce potential in the financial services industry
- Ringing in the social changes in the financial services workforce
- Mapping new skills and roles for the financial services workforce
- The journey towards the automated and augmented FS workforce
Changing demographics and technology will reshape business models, workforces, jobs and roles over the next five to 10 years.
In my previous blog post, I discussed how technology could reshape the financial services (FS) workforce through augmentation and automation. But it’s also important to look at how technology is changing the behaviors, expectations and abilities of the people that comprise the workforce.
The web, mobile technology, social media, the cloud and other technologies have dramatically altered how we live and work since the late 1990s. The first generations of FS employees to grow up with these technologies rather than adopt them later in life are now entering the workforce, bringing with them new values, new attitudes and new ways of collaborating and working.
Often, these digitally native employees arrive at a workplace to find it does not have the tools to support how they prefer to work. According to the Accenture Technology Vision survey for 2019, three out of four insurance and banking executives agreed: “Our employees are more digitally mature than our organization, resulting in a workforce ‘waiting’ for their organization to catch up.”
BY 2025, 75% OF THE WORKFORCE WILL BE MILLENNIALS.
At the same time as the next generation moves into the workplace, growing numbers of Baby Boomers are retiring. Baby Boomers by 2015 ceased to comprise the majority of the workforce; by 2025, 75 percent will be Millennials. As Baby Boomers leave the workforce and Generations Y and Z start to comprise a larger part of the talent pool, FS companies need to manage a diverse and multi-generational workforce with differing expectations and preferences.
Millennials (Generation Y) and Digital Natives (Generation Z) enter the workforce expecting technology to be an integral, yet invisible part of their lives. Having grown up in a globalized world with consumer technologies as a constant presence in their lives, they seek a different work experience than older employees.
For them, the boundaries between work and personal life are more blurred, and work and personal time are increasingly integrated. They choose to work in different ways and seek more flexibility in deciding which employers to work for, how to work, and the times when they work.
Young talent prefers consumer-style tools that enable rapid collaboration and dissemination of ideas. With the right engagement strategy, FS organizations can leverage this excitement about technology, teamwork, and digital acumen to push forward on their digital and automation initiatives.
In the next post, I’ll look at how jobs and roles are evolving in the digital age. To read more before then, look at Workforce 2025: The Financial Services Skills & Roles of The Future, our new report about how automation and augmentation will affect jobs and skills in FS organizations.