This white paper, published in November 2010, examines the culture clash between Generation Y investment bankers and older generations. The white paper, titled “Generation Y: How Investment Banks Can Bridge the Generational Divide”, is written by Geoff Robinson, Head of 7city’s Investment Banking Division. It explores the effects of Generation Y on the industry and how banking institutions can best adjust and manage this change.
“Generation Y as a whole has been classified as being a group of young people who have an undeserved sense of entitlement, strong opinions, lack of loyalty, among other negative traits,” comments Robinson. “Combine these rather undesirable characteristics with the legions of investment banking analysts now entering the field and we find a cultural divide between the ‘old boy’ culture of hierarchal investment banks and the ‘Facebook’ lifestyle of new generations. What investment banks have to realize is that change can be positive and what is most important is effectively managing these new generations who will be the investment banking executives of tomorrow.”
The white paper focuses on the influx of Gen Y investment bankers born between the early 1980s and late 1990s who have grown up with close familiarity with the internet and digital technologies. The generational gap created by the sharply contrasting worldviews of Gen Y and older generations can be best managed through understanding of what drives Gen Y professionals and how to best manage these drivers.
The paper suggests that generational divides can best be managed through:
- Improved training – stimulating, value-add training can lead to employee appreciation and helping them transition into the existing culture of a bank
- Better management and delegation of projects – Gen Y analysts must be shown the reasons why their work is bringing value to a project, rather than being assigned to a project without any meaningful context
- Continuous feedback - Gen Y professionals thrive on constructive criticism and positive reinforcement and some level of continued feedback can help motivate and engage these analysts
“Generation Y is beginning to shape the culture of the industry,” commented Robinson. “This cultural evolution presents challenges to firm’s business practices, and it is essential that managers both recognize and adapt to the needs of this new generation. We at 7city Learning partner closely with the world’s largest investment banks to help them manage and train incoming analysts. As a specialist provider of learning and development for the financial services industry, we have unique and proven experience managing these sorts of generational divides.”
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