Investment banks have long used lucrative compensation and industry prestige to lure talent. But with structural/regulatory changes in the industry, as well as changing workforce expectations, these levers are not as powerful as they once were.
Investment banks must introduce new roles, embrace more flexible ways of working, and create work practices and workspaces that encourage collaboration and creativity. Those that adopt bold new talent strategies will win the competition for the future workforce. More importantly, they will build the organizational capabilities needed to drive competitiveness and profitability for years to come.
Investment banking is losing its appeal. Only 7 percent of US college grads consider Banking & Capital Markets a top industry in which to work. In 2013, 12 percent felt that way.
Traditional employment arrangements are out. Seventy-six percent of Millennials want to work for themselves. GenXers (64 percent) and Baby Boomers (53 percent) also dream of the freelance life.
Long-term employment is a thing of the past. The numbers of workers planning to leave their employers within five years are high: Baby Boomers (52 percent); GenXers (48 percent) and Millennials (64 percent).
To build the highly skilled, agile future workforce that investment banks need, they must adopt a completely different approach:
Reinvent the talent strategy. Business leaders and HR must co-create a talent strategy that fuels a culture of learning and uses digital to reach and develop new talent.
Rethink the work. Investment banks must understand how technologies, managed services and resource models can create and augment the future workforce.
Recharge the workforce. Investment banks should emphasize continual learning and development. Digital will play an increasingly important role.