Courting the Gen Y Advisor

Courting the Gen Y Advisor Scott McKenzie, B.Comm (Hons.) Director, National Marketing Investors Group June 7, 2012 Share the tools

Gen Y • Play video http://youtu.be/49pWxrOhepM

Gen Y • Gen Y Defined • Millenials • ME Generation • Generation Next (some say this is X and Y) • Net Generation • Echo Boomers Definitions vary between late 70s and early 2000s StatsCan definition is a little restrictive - 1981-1990 Share the tools

Gen Y You know this…right? • Feel they’re entitled • Disrespectful of authority • Operate on their “own time” • Lazy! • Gotta make some money • When do I get your job • Work is a social experience (pack / herd) • Multi-tasking (with difficulty priorizing and focusing, easily distracted) • Tech savvy • Meaningful work • No shootout – a tie? Time, money, friends, Jag Bomb Share the tools

Gen Y The Legacy Baby Boomers: 1. Work Ethic 2. Level of Respect for Individuals 3. Values and Morals Gen Next (X,Y): 1. Technology 2. Music and Pop Culture 3. Liberal and Tolerant 4. Self Confident Pew Research, The Millenials, 2009. http://pewresearch.org/pubs/1437/millenials-profile Share the tools

Gen Y Why should you care • Our traditional target recruit • 45-year-old career changer • The Gen X candidate today • 50+, women, business owners, professionals…Gen Y? • Gen Y / Millenial Generation • 15-19 2.2-m • 20-24 2.4-m • 25-29 2.4-m • With the exception of Boomers 45-49 / 50-54, every 5-yr age bracket in front and behind is smaller • For those 20-49, 25-29 is the fastest growing age group StatsCan http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/demo10a-eng.htm Share the tools

Gen Y Is there a disconnect? What industry offers • Networking 1.0 “You can build a network.” • Money “You have the potential to make a lot of money.” • Entrepreneurship “You can be your own boss.” • Risk and Reward “You can be a part of a high-risk, high reward proposition.” What they want • Connection – Networking 2.0 “I don’t go online. I am online.” • Influence “I am making a difference.” • Stability “I feel supported.” • Variety “I hate monotony.” Source: LIMRA, Choosing Careers they Love Share the tools

Gen Y Back off traditional themes • Independence • Unlimited income potential

Gen Y Bridging the gap • Connection • More ways than ever to leverage and build a network • Company leaders who become models for innovation will inevitably attract top talent, paving the way for the next generation. • Influence • Gen Y need continuous two way feedback. • Need to know they are having an impact on the office, team, clients • Expect to be the central figure in their growing network • Need company support systems to help them toward self-improvement • Mutual interaction with others Share the tools

Gen Y Bridging the gap • Stability • Long and stable financial services company histories • Stable training, mentoring path to higher levels of comp and self-discovery • Team – wrap your arms around them • Variety • Gen Y value work/life balance over high income • Companies need to allow flexibility • Multicultural appealing • Underscore the variety of the financial advisor career – its not cubical life Share the tools

Gen Y and the Opportunity • Play video (1:52 – 2:31) http://youtu.be/DcGbP4CpPxM?t=1m52s

The Financial Services Colleges and Investors Group’s Experience • There is no silver bullet! • Hire from most major colleges since we have offices and recruiters where the colleges are • Grads go to: • Banks • Call centres • rookie hiring financial services firms “Its another channel. No more or less successful.” – Regional Director, Toronto

The Financial Services Colleges and Investors Group’s Experience Do the schools prepare the students • Knowledge wise they are ahead of the average rookie…they are more well rounded…shorter learning curve • They come knowing more about the industry structure and make-up than the average rookie…they are already convinced a financial services career is a good thing • Licensed! “They come licensed.” – Regional Director, Markham “Some are about a month away from their CFP” – Regional Director, Cambridge, ON

The Financial Services Colleges and Investors Group’s Experience Key differences in programs across the country • Admission requirements • Focus of opportunities • Insurance • Call centre • Bank • Financial advisor role • Demographics of their students • Length of programs – 1 to 3 years “The colleges are getting better at recruiting.” – Regional Director, London

The Financial Services Colleges and Investors Group’s Experience Gaps in the programs • Sales skills, sales skills, sales skills • Are they confident • Are they undershooting their potential – thinking beyond call centres, banks, industry needs to influence the student career goal • Financial knowledge is broad but shallow • How is the financial knowledge geared - Insurance, financial planning, bank • Co-op / Work Experience: “If there is one thing that needs to improve, it’s the co-op program. I was an admin person and did not get any real experience” – Program Grad & Investors Group Associate Consultant, Markham “We’ve spent some time working with the college so they understand there are many career choices beyond call centres.” – Regional Director, London

The Financial Services Colleges and Investors Group’s Experience How does industry fill the gaps • Students to some extent actually choose their employer of choice based on their assessment of the firms ability to fill gaps: • Fear of commission • Team environment • Training, mentoring, coaching • Stability - We’ve been at this since 1926 • At Investors Group, this is what we do best…training, mentoring, coaching, support, give them the tools…mold them…they want to be coached • But be honest with them…selection is key “I worked at an MGA…and I could not see myself at 22 tackling this with no support. The way to go for a young person is through teams and support.” – Program Co-op student & Consultant, Markham, ON

The Financial Services Colleges and Investors Group’s Experience Some Challenges • Multi-cultural – Can your firm match the demo of the candidate • Immigrant candidates – tend to prefer salary & mobility • Candidate mobility – are you national, candidate might be • Maturity of grad • Can they sell • Lower retention of the candidates can result in a sour taste, negative industry and firm connotation • Generally, professor taught, not industry taught… “I thought the sales training in the college was adequate, until I got out there with prospects” – Program grad & Investors Group Consultant “Potential down the road. Path to the role goes through banks then financial advisor role. Maturity is key.” – Regional Director, Calgary “We are re-evaluating our involvement due to poor retention.” – Regional Director, Hamilton

The Financial Services Colleges and Investors Group’s Experience • …More Challenges • Colleges overstate value they bring to table on knowledge • Limited tax planning components for example • Colleges differ in their channel neutrality • Focus on banks • Focus on financial advisor role • The gatekeeper at the college and the commission role • Students are influenced by program as a lot of students don’t have a clear vision on career path “Don’t want to step on anyones toes, so its hard to get into the program…gatekeeper neutrality” – Regional Director, Cambridge “ ‘Great career, just gosh that commission thing’ “ – paraphrasing college administrators paradigm

The Financial Services Colleges and Investors Group’s Experience Maximize your experience • Are you recruiting from the college or are you involved with the college • Teach, Scholarships, Awards, Partnerships, Give more to get more, Advisory Councils, Engage both the institution and the student body, Career fairs, presentations, fireside chats, your client events, Mock interviews, Be involved throughout the year, get beyond putting up a job posting in February • Know the matrix of success: • Candidate Maturity, • Candidate knowledge and sales skills • Firm fit and ability to convey the match “You can do a lot to create a partnership by just having a presence. Student groups for example are always looking for speakers…even instructors like a day off once in a while.” – Regional Director, London “Get in on a consistent basis and fight the commission question. Don’t squash the dream.” – Regional Director, London

How do colleges get better? • Emphasize partnerships with broad cross-sections of the industry • Student recruiting and maturity - require post secondary diploma / degree for admittance (ie, Seneca) • Integrate sales, marketing into curriculum • Work experience program – standards and structure

How do we get better? • Better position what industry offers to match what Gen Y wants • Continue to partner with the colleges • Look within – can you honestly say you offer what they want – do you have the stuff they need once hired • Study, performance groups • Pairs, marketing teams, support, wrap your arms • Social activities, engaging, fun • Not your Boomer / Gen X work week…blurring of the work week “In the last 3 years, five hires, 100% retention so far.” – Regional Director, Cambridge, ON

Gen Z • Play video http://youtu.be/x0fB2abhtYo

Thank You! Boomers can Write or Call me at: Scott.McKenzie@investorsgroup.com 204-956-8646 | Fax 204-943-1835 Gen X can Read or connect with me: www.investorsgroup.com http://ca.linkedin.com/in/rscottmckenzie Gen Y Follow / Like us at: www.twitter.com/valueoftheplan www.facebook.com/InvestorsGroup

Courting the Gen Y Advisor