Gen Z, the latest cohort to enter the workforce, promises a unique blend of technological savvy and fresh perspectives that could revolutionize agencies, if leaders can add them to their ranks.
But despite an aging workforce in financial services, many leaders have struggled to consistently attract and work with young talent.
Hasan Ibrahim, a territory vice president from Newark, New Jersey, USA, believes that increased focus on diversity, equity and inclusion (DEI) initiatives can be key to finding Gen Z workers, among other select groups.
In fact, for many Gen Z candidates, mere diversity may no longer be enough to impress. Rather, Gen Z candidates value commitment to intersectionality – the interconnected nature of varying background traits in every individual.
“I actually think intersectionality was built for Gen Z,” Ibrahim said. “We’ve seen through recent generations more social awareness, more understanding of news and media, but this generation has literally grown up with instant social awareness. As we look to bring them into the industry and hire Gen Z, we’re going to have to focus on intersectionality because that’s what they care about.”
Showcase space for Gen Z candidates during recruiting
When asked how to attract Gen Z to organizations filled with mature advisors and leaders, Ibrahim stresses the importance of empowerment and recognition.
"It's by encouraging them to be vibrant and encouraging them as the future of the organization, which is what they are," he said. "Getting in and being authentic and being able to make change through an organization is exactly how to appeal to Gen Z."
By emphasizing a culture of inclusivity and making diversity goals equal to hiring goals, agencies can align their values with the values many Gen Z candidates personally hold, Ibrahim said.
"From the studies that I've read, what Gen Z values most is authenticity,” Ibrahim said. "I think you can attract Gen Zers by telling them they can bring all that to the table. They'll be a special part of the team, and they'll learn a ton as well."
Harness the power of diverse teams
Building teams with advisors from different generations and backgrounds is a winning strategy, and DEI offers a way to do so, Ibrahim said.
"I think a Baby Boomer-Gen Z combination is terrific," he said. "The Gen Z recruit could help the Baby Boomer with technology advances and learning how to market on social media, TikTok, Instagram. At the same time, the Baby Boomer could really show Gen Z the fundamentals of this industry and what has worked in the past."
Ibrahim admits challenges can arise from such pairings – actual personalities aren’t as easy as abstract personas – but he said differences are often overcome by a focus on the bottom line. A boost in production numbers is the glue that holds teams together.
"The older advisor or the more experienced advisor actually gets a boost because they get to do more,” Ibrahim said. “They have more capacity to either work deeper with clients or get new clients while that newer generation is learning the industry by supporting that advisor."
Reach new markets
Like finding success in intergenerational advisor teaming, Ibrahim touts DEI initiatives as a key strategy to achieve better business outcomes. In simple terms, clients often look for advisors who know them, meaning advisors who share characteristics of their identity.
Earlier this year, his company created two certification programs designed to gain a deeper understanding of the cultural and market nuances specific to the Black and Hispanic communities, respectively.
“This is more than a typical training. It integrates cultural awareness with targeted marketing strategies designed to resonate with Black and Hispanic consumers,” Ibrahim said. “We’re supporting advisor business growth by enabling them to better engage these underrepresented and underserved communities. As we expand access and build deeper relationships in these communities, we will connect with more potential diverse candidates to attract and recruit to the industry.”
Though Gen Z consumers might not seek financial services help as frequently as older generations, a great Gen Z addition can be a game changer for an agency when it comes to marketing.
"You see folks that are really being influenced by Gen Z in terms of marketing and outreach, and you see those advisors being really successful," Ibrahim said. "There's an invaluable thought process, vibrancy and technology support.” Leaders can attract Gen Zers by encouraging and empowering them to unleash their personal strengths.
Getting by with DEI
Ibrahim is also ramping up recruitment efforts aimed at career changers and recent graduates, with the goal of making them essential team members as quickly as possible. His agency is using DEI to accomplish these goals. The payoff extends to the entire organization.
"When we add them to our roles, add them to our teams, there's a vibrancy, there's a change and there's a willingness to learn the industry," Ibrahim said.
Those differences will become more important as Gen Z matures and establishes itself as a principal, if not dominant, voice in the marketplace. Firms that authentically embrace diversity, build multigenerational teams, engage new markets and invest in developing Gen Z talent will be best positioned for sustainable success.
"We're really looking toward the future here in terms of succession planning and what's next and how do we support our clients best," Ibrahim said. "By definition, that has to be by getting advisors who are going to be in this industry for the next 20, 30, 40 years."
Hasan Ibrahim shared this advice during the MDRT Center Webcast, “Intersectionality and inclusion: Strategies for success in financial services.”
