Gen Z is here. Is your firm recruiting them effectively?

The financial advice, accounting and tax industries have a generational problem: The average age of a financial advisor is 56, with nearly a third planning to retire in the next five years, and the average age of accountants and auditors is 44. On top of that, the Great Wealth Transfer means that more millennials and Gen Z clients will be searching for tax, wealth and investment advisors who understand them and their financial needs. 

What's worse, rookie advisor programs haven't gained much traction in developing new talent: Cerulli reported an industry-wide rookie advisor failure rate of more than 72% in 2023. 

However, there are signs of hope. Recent reports indicate Gen Z college graduates are increasingly interested in jobs in the finance sector. Stable hiring rates, training and development programs, and investments in technology are just a few of the reasons why Gen Z is pursuing careers in industries like banking, accounting, and tax. Additionally, LinkedIn identified the financial services industry as one of the top industries for 2024 college grads, with the role of financial advisor as a top job for entry-level talent. 

So, how can firms create a workplace attractive to younger generations and make finance "cool" again? Let's dive into a few strategies at play here, including takeaways for how accountants and tax advisors can recruit prospective employees — and in turn, recruit the next generation of clients. 

Commit to training, upskilling and onboarding

A new report found that 90% of financial services leaders have prioritized their workforce's digital development and upskilling as AI-powered technologies become interwoven into daily functions. What's more, four out of five employees in client-facing roles said that supportive internal systems and development opportunities are a priority when job searching — and to no one's surprise, Gen Z respondents agreed the most with this sentiment compared to millennials, Gen X and baby boomers.  

Along with a renewed importance on training and upskilling, firms should refresh their onboarding experience. Onboarding has been traditionally conducted in-person, but today's firms must consider offering onboarding in a variety of formats — virtual, self-guided learning, as well as in person — and provide team members with the tools to help them succeed from wherever they are and in their preferred mode of learning. As the industry changes rapidly, onboarding and training programs need to deliver a comprehensive understanding of how to leverage tech tools and other resources to grow their practice.  

Invest in next-gen tech stacks

As the first digitally native generation, Gen Z has used tech for nearly everything in their lives, and their daily workflow shouldn't be any different. Emerging generative AI tools like ChatGPT and Google Gemini have been embraced by the younger generations, with a whopping 93% of them using at least two AI tools every week. They're also more open to new technology than their senior counterparts, leading the way in adopting new technology: only 6% of respondents perceive Gen Z as having difficulty with new tech adoption. 

Firms must stay on top of their tech game to attract younger candidates and consistently invest in the up-and-coming tools and technology that make their workday easier. That's why it's promising to see that most (62%) surveyed financial services firms are already using AI-powered tools in their client-facing processes, compared to just 46% in other industries. 

Adapt to younger generations' expectations

In an industry where client-facing staff only seem to be getting older, there must be more concerted efforts to adapt to younger generations' expectations at work. Whether it's giving rookie accountants and tax advisors more training and professional development, implementing more mentorship opportunities throughout their first few years on the job, or making their daily workflows more seamless with the latest tech at their fingertips, today's accounting and tax firms need to make the first move and meet this generation where they're at. Those afraid to change their ways will certainly fail at attracting and retaining this generation of candidates and clients.

It's exciting to see that college graduates are looking to jumpstart their careers in this industry, but firms need to act quickly to fully take advantage of this shift. The ones committed to training and upskilling, embracing new technology, and making a solid effort to modernize their experience will position themselves well for the next generation of candidates and clients.