Mark Fawcett, The Financial Services Forum

The majority of people are being impacted one way or another by the cost of living crisis, but one demographic that can be overlooked – perhaps because they are not breadwinners or bill payers – is young people. Otherwise known as your customers of tomorrow.

People are notoriously loyal to their bank – relative to other sectors – so those that strike the right note now could win over a huge number of young people very early in their banking journey. But they must engage them in an informed and considered manner.

The experiences of today’s young people are defined by a unique set of circumstances, from global and domestic divisions and economic uncertainty, the social and political implications of Brexit and, of course, the pandemic which caused unfathomable upheaval for so many young people. Their education was disrupted but so too was their ability to socialise which at such a formative age is a critical loss.

The cost of living crisis is now exacerbating all these negative factors.

Unfulfilled, Unhappy, Lonely

Our research shows Gen Z feel unfulfilled: they are too often unhappy, lonely, lack confidence and are unsatisfied with life. They are uncertain about their purpose and place in the world, have anxiety about the future and find life less rewarding.    

Young people are looking for a reassuring voice, a helping hand and a trusted steer. But they are also guided by their principles so relate to institutions and businesses who reflect their passions for fairness, equality and diversity, and respect their fluid approach to interests, views and identities.

We should also not forget that as well as being the customers of tomorrow, they are also future employees. Perhaps as a result of their disillusionment of the past few years, Gen Z place great importance on finding happiness in their careers. Their recent experiences have been far from satisfying, so they see their career as a way to make positive change over which they have some control.

Finding the right way to speak to these people today will be crucial to every bank’s success tomorrow.  

“We’re here for you”

The massive disruption experienced by young people means the ‘we’re here for you’ language can still work but needs to be adapted for the times we’re living in and done with an authentic voice. It needs to mean ‘we understand what’s going on for you’ in terms of their poor university or end-of-school experience, their perhaps unsatisfactory exam experiences after so many missed classroom hours, their concern about job prospects, and around Brexit. Banks need to really think about how they can help during this time and have a real, tangible impact on people’s lives. Lip service will not cut it.

Businesses need to nurture young peoples’ natural optimism and be positive, and banks are in a strong position to do this given they are an essential service and one that can hold the key to a certain amount of life’s experiences. Educating young people around financial issues, helping them feel informed and equipped to deal with their financial future will create a connection.  Emphasise a brilliant future of limitless possibilities and take them on a journey of shared values. Give them hope and demonstrate faith in their potential.

A less personal but equally as important approach, is to use your platform to celebrate life-affirming stories in the world around this audience, and champion the causes they believe in, banging the drum for positive change.         

Make these a natural feature of your culture and communications, while showing authenticity by ensuring that this attitude flows through your business and features in everything you do and say. Young people feel passionately about equality and fairness and will not stand for anything that is not entirely genuine. Show that you are on their side and fighting alongside them and you will earn their loyalty.                                                                         

A great example of a bank engaging with its communities in an authentic way is NatWest’s MoneySense, a free financial education programme for 5-18 year olds. It helps tackle issues of real interest and concern to young people, such as student budgeting and staying financially safe online and within social media. The programme partnered with COP26 to put a spotlight on climate action, and also offers regular volunteer-led workshops in schools around the country. Overall, it listens to parents, teachers and young people and focuses on content where it can provide the greatest benefit.

When less is more, and means more

This all comes down to being authentic. Young people have lost faith in government and politicians to take a stand and make a difference so are looking to businesses to fill that gap, using any power they may have to effect change. So financial institutions should absolutely get involved and comment on major issues, but it is very important they only do so if they are taking real action themselves. Social media and a very savvy generation of youngsters means there is nowhere to hide and they will get called out quickly and hard.

There’s no escaping the fact that for young people banking is largely seen as a stuffy, unexciting subject that has layers of complexity and is not easy to understand. This is because it’s not something they’ve had any interaction with. If banks can change that by defining how they speak to young people in their language, on topics that matter to them, and in a tone that they will respond positively to, they will see a powerful change in how they are perceived.                                            

With so much of life now taking place online, memorable real-life encounters deliver more value and impact than ever, so a business that invests properly in promoting its support of certain issues will resonate far deeper. While authenticity is always the most important factor when deciding where to plant your flag, finding a couple of causes or issues to support as a business and then investing in taking those out to people in a more memorable way is often the best course of action.              

Some of We Are Futures’ most successful and impactful programmes support corporate employees to be in communities and schools engaging with young people to deliver real impact. The value of real-life encounters is especially relevant for young people thinking about future careers. The Gatsby Benchmarks for good career guidance include the importance of memorable encounters with employers and employees, in which school children should have multiple opportunities to learn from businesses about work, employment and the skills that are valued in the workplace.

Don’t be seen to capitalise on the crisis

Finally, just be real and honest. Offer real help and advice, support customers as much as you can and don’t take advantage of the problems everyone is facing. Banks that make financial gain out of the publics’ hardship might appease their shareholders but will make themselves very unpopular with customers. Conversely, being seen to give back in a way that makes a positive difference will put them on the right side of history and, ultimately, earn them the business of a principled generation of potential customers.

OPINION: How to talk to Gen Z during the cost of living crisis

Alex Young, People Management

The news in the last couple of weeks that the current shortage of workers is estimated to cost the UK economy £30bn a year was a sobering one but will have come as little surprise to many. 

The impact of Brexit continues to be felt in many areas but recruitment is perhaps one of the hardest hit, with additional issues – such as the pandemic and the cost of living crisis – only fuelling the crisis. 

Political uncertainty domestically and internationally inevitably rocks things further, with no one entirely confident in how the short-term future will play out for them. And for young people that uncertainty is deeper than ever. 

We may be living a post-pandemic life, but for this summer’s school leavers the effects of those two years are still being felt deeply. It’s no secret that for many in this generation the pandemic will continue to have a catastrophic effect on their lives from which some will never recover.

Disruption to education and the absence of opportunity to socialise is shaping their lives even today, and as they leave school their futures are far from certain. Meanwhile, by struggling to recruit workers across many sectors businesses see their own futures under threat. 

What is needed now – and urgently – is for businesses to rethink the way they engage with young people to ensure they are in a position to attract the very best talent and in doing so shore up their business for the long term.

Last year we conducted a research project into the attitudes and outlook of generation Z and from that created a set of guiding principles designed to help businesses better engage and connect with young people. 

Help them grow

There have been resounding calls for businesses to invest in skills and training to boost recruitment. Bringing in employees early and offering them the chance to learn while they earn will be a hugely attractive prospect for many young people. 

Building essential skills can mean a person is 52 per cent less likely to be out of work or education. It is also associated with increased wellbeing, and can lead to a significant wage premium, yet it remains something that is seriously lacking, with demand for essential skills development opportunities (83 per cent) far outstripping supply (14 per cent). Earning on the job also helps those for whom the cost of living crisis means staying in education is no longer an option. 

Young people are driven to learn and develop and every engagement with them is an opportunity to help them develop a critical skill or attitude that will build shared growth and a more successful future – for them and their employer. 

Celebrate progress

Young people benefit greatly from recognition, with 71 per cent telling us it is important they feel valued at work. Businesses must recognise their achievements, celebrate both their individual and collective successes, and help them track their progress dynamically. Give them the opportunity to be proud of their achievements and see evidence of their progress.

Mentoring should also not be overlooked in the development of young employees. Anyone at the beginning of their career should be offered the chance to join a mentoring programme for access to the guidance, advice and support that is essential for growth.

By offering them the chance to work their way up through the ranks, while giving them the tools for personal growth and development, a business can open up a world of opportunities – and earn a degree of loyalty in return. 

Check your tone and be authentic

Training, development and mentoring can be absolutely pitch perfect on paper, but unless it is communicated well it is wasted. Effective communication should speak the language of the desired audience, tapping into their passions and priorities. 

However, it is crucial that all messaging carries authenticity. Young people are quick to dismiss poorly conceived or inauthentic attempts to connect with them and will call out a business that says one thing and does another. By ensuring that the ideals they support are woven through every aspect of the business, a company can avoid being called out and shown up. 

To truly strike the right note, to stay relevant and to ensure authenticity is at the heart of everything they say, businesses need to focus on co-creation – listening to this audience and asking them to reveal the world from their perspective.

Work with them

Recruiting people is one challenge, retaining them is another. Speaking to their passions, providing support and training, and being authentic will go a long way to winning their loyalty, but understanding how they view their future is also important for any business looking to keep their homegrown talent, well, at home.

We found 44 per cent of people aged 16-24 expect to have changed jobs more than four times by the age of 30 – a true reflection of the different pace at which they live their lives. Businesses must recognise how swiftly they move through jobs, life stages and changes in their early life and be reactive and culturally relevant, making an effort to understand the real-life context of every age group. This will create an agility that will help maintain that connection as their careers progress. 

There is no getting away from the recruitment crisis we are in, and the knock-on effect today’s current shortage of workers will have on our economy. But there are significant measures every business can take to make not only their own futures more certain, but also that of individuals. By following a few well-informed guidelines and adopting an outward-focused, forward-facing attitude, any organisation can defy the projections and set themselves up for greater success.

https://www.peoplemanagement.co.uk/article/1795417/engaging-young-people-will-help-businesses-weather-recruitment-storm

Alex Young, HR Review

The nationwide problem with recruitment – across any sector – was labelled a crisis early on, but if it was a crisis back then, it surely risks being a catastrophe now, highlights Alex Young.

Job vacancies in the UK are at a record high of 1.3m – with more unfilled jobs than unemployed people.

A recent study showed labour shortages could cost the economy £30bn a year if they are not addressed urgently, while manufacturing lobby group Make UK calculated unfilled factory worker vacancies in that sector are costing the UK £7bn in lost output this year alone. Meanwhile we are seeing 40,000 vacant nursing posts in England,122,000 vacancies in adult social care, a shortage of more than 10,000 doctors and 50,000 teachers.

It is now beyond doubt that there is not a single business that can afford to ignore this problem, and with the issue so widespread businesses need to act now if they are to survive the storm.

However, while the recruitment crisis has forced HR departments to rapidly rethink their short term approach to hiring, the truth is the way people look for jobs today is changing for good and requires a long term shift in attitudes from businesses.

What have caused the issues that recruiters are facing?

Young people entering the workforce for the first time outnumber any other specific cohort looking for work, but they are doing so from a very difficult position. Emerging Adults – those people aged between 16 and 24 – have been hugely impacted by the pandemic, with their education interrupted, exams impacted and their ability to socialise hindered greatly.

And now with the knock-on effect of Brexit on the jobs market, plus the cost of living crisis affecting many people’s lifestyles, many will have had to revise their plans for higher education and instead enter the workplace.

There is still an overriding belief that a university degree is a fast-track to a white collar job, but with circumstances as they are – combined with the staggering cost of tuition fees and associated costs – those who can think beyond this rather limiting attitude benefit incrementally now and in the future.

So how can a business ensure it is tapping into this significant pool of potential talent, and in doing so set itself up for a strong, healthy future?

Know they aren’t in it for life

Several studies show young workers aren’t motivated by the same factors as previous generations, such as a job for life. In fact, our research showed 44 percent of young people expect to have changed jobs four times by the time they are 30, with 46 percent saying they expect to have more than one job at a time in the future. Businesses must recognise how swiftly young people move through jobs, life stages and changes in their early life by being reactive, culturally relevant and fully accepting of the context of every age group.

Be a guiding light

It is also important that recruiters acknowledge the mindset of young people today. They are more anxious than ever, with 65 percent saying they worry about the world around them and 61 percent being unsure about where their future is heading. They will welcome a company that has an optimistic outlook and celebrates good news and positivity in the world. By being vocal about a future full of limitless opportunities, young people will feel they are on a journey of shared values and will feel heard, seen and supported by their employer.

This positivity extends to their direct experiences, too. Celebrate young employees’ progress, offer them visual representations of their success, and give them opportunities to shout about their achievements at work. This is a generation who look for external validation, so a business who enables that will be viewed favourably. Duracell’s Big Battery Hunt inspires and promoted positive action, empowering young people to instigate change at home around battery recycling.

Teach them on the job

One of the most tangible ways to support new recruits is by accelerating their skills. Young people are driven to learn – particularly given the upset to their education caused by the pandemic – and a business that can offer them the chance to develop a critical skill will spark their interest. By maximising these opportunities, including offering mentoring and L&D support from existing team members and management, businesses will help build shared growth and a more successful future for all parties. By offering the opportunity to learn on the job you will also, for many, solve the conundrum of needing to be earning money but without the requisite skills and qualifications at the outset.

Heathrow’s World of Work programme was a youth employment movement created to inspire, upskill and empower young people to unlock their career potential.

But learn from them too

While every generation is defined – on the whole – by an attitude or mindset, Gen Z has a particularly unique outlook on life. They are defined by their passion, their principles and their desire for fairness and equality. They want to work for businesses that reflect that attitude, so make a point of championing diversity and equal opportunities across the board. Just as 56 percent of young people we spoke to said they were more likely to buy products from companies that give something back to society, 59 percent said they think brands should share the responsibility for solving society’s problems.

Samsung’s Solve For Tomorrow: Next Gen programme harnessed the power of co-creation in interactive design sprints, seeking innovative technological ideas from young people.

Be authentic

Attempts to attract young people to an employment opportunity have to be built on solid foundations, so being authentic in all communications and messaging is vital. Young people are quick to dismiss poorly conceived or inauthentic attempts to connect with them and will complain loudly if they feel a company is disrespecting their intelligence. The solution for businesses is to listen far more and ask this important generation to reveal the world from their perspective. They want to work for a brand or business who listens to their point of view and helps that inform their product or service.

Moving forward

While the recruitment crisis is undeniably a cross-generational issue, affecting people of all ages and demographics, the benefit of making your business appeal to young people is multi-faceted. Not only do these people represent every company’s future consumers or service users, they are also the workforce of tomorrow. They are the people who will take every single business in this country forward into the future, modernising it, driving it into new areas of growth and, one day relatively soon, running it completely. They may not look like an asset on paper, with their different attitudes, alternative approach to life and unconventional route to business, but they hold unlimited potential and, if nurtured properly, will be the very biggest asset for any business leader.

https://www.hrreview.co.uk/analysis/alex-young-play-the-long-game-in-response-to-the-recruitment-crisis/144774

Alex Young, Global Banking and Finance Review

As the cost of living crisis continues, the headlines are rightly focusing on the people in society who are taking the hit most severely: the lower earners, the elderly and those already in debt.

But it is, bit by bit, affecting everyone. Even those who felt protected from it by a hefty salary and a healthy savings account will be starting to question unnecessary expenditure and extravagant financial forward planning.

Businesses are switching up their marketing to attract shoppers with information on discounts and offers and, with one in six households now reportedly in ‘serious financial difficulties’, some banks are going the extra mile to help their customers.

But one demographic that is being forgotten about is young people. They may not be the biggest breadwinners or bill payers today, but they are growing fast. We define young people as anyone under 24, with those aged 16 and above labelled Emerging Adults. These are not only the mass consumers of tomorrow but the next generation of employees; the people who will define the future success of every business in this country.

And they are listening, watching and noticing. They see which supermarkets are doing what they can to help their family by not putting up prices of basic provisions, and conversely those retailers who diligently mark-up everything to ensure their profit margin is not affected. And they see how their parents’ bank is behaving in these difficult times – perhaps offering support when it comes to mortgage repayments and credit card debt, or ignoring pleas for help and only exacerbating the stress.

Banks must communicate with care

For young people banking is a dry, complex subject that is not easy to understand at face value. It’s not taught as part of the curriculum, on the whole, and is not something with which school leavers have had much interaction. If banks can change that by defining how they speak to young people in their language, on topics that matter to them, and in a tone that they will respond positively to, they will see a powerful change in how they are perceived.

In fact, the language banks use now could play a huge part in their future success. People are notoriously loyal to their bank – relative to other sectors – so those that strike the right note now could win over a huge number of young people very early in their banking journey, but they must engage them in an informed and considered manner.

Our research shows Gen Z feel unfulfilled: they are too often unhappy, lonely, lack confidence and are unsatisfied with life. They are uncertain about their purpose and place in the world, have anxiety about the future and find life less rewarding.

Young people are looking for a reassuring voice and a reliable steer. But they are also guided by their principles so relate to institutions and businesses who reflect their passions for fairness, equality and diversity, and respect their fluid approach to interests, views and identities.

We should also not forget that as well as being the customers of tomorrow, they are also future employees. Perhaps as a result of their disillusionment of the past few years, Gen Z place great importance on finding happiness in their careers. Their recent experiences have been far from satisfying, so they see their career as a way to make positive change over which they have some control.

Build a deeper connection with practical help and advice

The experiences of today’s young people are defined by a unique set of circumstances, from global and domestic divisions and economic uncertainty, the social and political implications of Brexit and, of course, the pandemic which caused upheaval for so many young people. The cost of living crisis is now exacerbating all this negativity.

First and foremost financial institutions need to establish how they can help during this time and what they can do that will have a real, tangible impact on people’s lives. They need to be clear they understand the unique experiences of this demographic, from their poor university or end-of-school experience, their concern about job prospects and the ongoing financial uncertainty.

For example, educating young people around financial issues, helping them feel informed and equipped to deal with their financial future will create a connection. Young people have a natural optimism and banks must speak to that, emphasising a brilliant future of limitless possibilities that await them, taking them on a journey of shared values. Given the strength of their position as an essential service, and one that can hold the key to a certain amount of life’s experiences, they are well placed to do this with authority and credibility.

Another way to indirectly tap into the natural optimism and positivity young people have is for banks to use their platform to celebrate life-affirming stories taking place in the world, while championing the causes young people believe in, promoting and encouraging positive change.

Finding an authentic voice is key

Whatever help and advice they offer, however they tap into the issues that matter to young people, the most important thing to consider is authenticity. This means finding and adopting an authentic voice as well as ensuring the sentiment expressed in any external messaging flows through the business is paramount.

Equality and fairness is something this generation feels passionately about but have lost faith in government and politicians to make a difference. As a result they are looking to businesses to fill that gap, using any power they may have to effect change. Financial institutions have the power and influence to join important debates, but it is imperative they only do so if they are doing their bit to bring about the change for which they are calling.

Young people can spot anything disingenuous a mile away and social media means they will shout about it, resulting in the opposite of the desired effect. A bank who shows they are on their side and fighting alongside them will earn their loyalty – possibly for a lifetime.

Finally, focus on face-to-face

With so much of life now taking place online – particularly over the past couple of years – memorable real-life encounters deliver more value and impact than ever. A bank that gets out into the community, partnering with educational establishments and connecting with young people through programmes and learning-based projects will resonate far deeper with that audience. Alternatively, finding a couple of causes or issues to support as a business and then investing in taking those out to people in a more memorable way will make its mark and avoid the risk of blending into the background of British banking.

https://www.globalbankingandfinance.com/banks-must-find-their-voice-for-young-people-amidst-the-current-crisis/

Michael Feeley, from New Digital Age, interviewed Mark about We Are Futures and the importance of focussing on the mass markets of tomorrow, today.

Mark Fawcett began his career in the Army training soldiers, then moved onto ‘World Challenge’ to run expeditions and, eventually, became its MD. He then founded National Schools Partnership, which in the last few years has expanded and evolved to become We Are Futures. 

A brand and social impact agency, We Are Futures specialises in the youth markets of tomorrow. They analyse how young people think, react, talk and behave on digital platforms to help clients including Natwest, Sky, Dove, Warburtons, Duracell and Samsung connect with youth audiences.

New Digital Age (NDA) spoke to Mark Fawcett recently to find out more…

NDA: Tell us a bit about your background and what led to the start of We Are Futures?

Mark Fawcett: It all started when I was in the army and responsible for training young soldiers. Many had experienced a challenging upbringing or didn’t have a strong academic background and I saw how, with the right approach and support, young people could transform themselves in a short space of time. 

This got me interested in psychology and the process of development, learning and training. After I left the army I worked at World Challenge, the youth expeditions organisation, as training director then managing director. In that time we took it from 10 expeditions a year for well off school children to 350 expeditions annually for a vast range of young people, and launched it in the US before its eventual purchase by TUI.

That led me to set up the National Schools Partnership which was initially about working with businesses to build on existing curriculum content, before moving into digital and home environments and then into the entirety of personal development, covering issues such as nutrition, health and finance. It evolved into this opportunity to help prepare young people for adult life. Educate them about personal, professional and emotional issues they would face, be it in finding work, overcoming social barriers, tackling challenges that they might come up against and generally equipping them for life beyond school.

That concept evolved and was renamed We Are Futures in 2017. Today we have the same ethos at our heart but the way we communicate with young people and their families is through the lens of businesses who want to use their strength and reach for good, whether that’s through CSR, employment opportunities or educating them in skills and knowledge that they won’t necessarily learn in the classroom. 

Can you give us an example of a project you have worked on?

One we’re particularly proud of is the award-winning NatWest MoneySense programme we developed for NatWest. It is a free financial education programme for 5-18 year olds that helps young people understand money, banking and saving through videos, games, competitions and interactive activities aimed at four different age groups.

At the same time it offers help, information and inspiration to parents, learning resources to teachers, and encourages bank workers to share their expertise through a dedicated school volunteering programme.

MoneySense resources have been used by 85% of secondary schools in the UK, and 51% of primary schools and has directly reached already more than 10m young people and their families. It has helped shift the dial in brand value and perception for NatWest.

Why should businesses get involved in these conversations?

We tend to focus on the mass markets of today, but easily overlook trends and directional shifts that are crucial to prepare ourselves for what’s to come. Young people may be the mass market of tomorrow but they are already here today – they are watching and listening to what you say and what you do, and deciding what you stand for. But on the whole, businesses do not understand the importance of young people to their own future success. 

It may be the parents holding the purse strings now, but they are hugely influenced by their children. And then as soon as those young people have disposable income of their own, they will act with their wallets. If you wait until they’re adults before you start speaking to them you will find they’ve already made their minds up about you. 

And it’s not just about spending power. When these young people begin to enter the workforce there needs to be a reason they consider your business as a potential employer. Businesses don’t understand that this generation is already forming opinions thanks to the content and behaviour to which they are exposed. 

Do it right and you win. Do it wrong and this has a real impact on you in the short and long term. 

Where should brands be communicating with young people?

It’s less about where and more how. In the past it’s been the norm to talk to prospective customers through traditional advertising and to potential talent on corporate websites, but digital media has changed all that. 

Today, young people get a perception of a brand from a variety of touchpoints and will form an opinion based on the collective output. They are very principled and are very driven by their values, so will see the work a big brand is doing in the community and chalk it up as a positive. Conversely, they will note a misstep in environmental policy, for example, and that will impact their opinion of the company. As a result it’s important companies ensure their values lie at the heart of all their communications, across every platform and format. 

How can brands understand how they are perceived? 

Social media and online behaviour is one of the key drivers in a business – whether that’s the CMO, brand manager or head of HR – getting a comprehensive overview of the impression they’re making. Our Social Impact Barometer is a tool that analyses, measures and ranks 100 top brands according to how 16-24 year-olds think and feel about them. We look at 22 million data points across social media, job sites, websites and corporate reports and rank brands by their emotional connection to young people, their role as career maker, and the role they play in individual development, learning, community and sustainability. That intelligence is absolutely invaluable in telling brands where they’re falling down and whether their messages are landing or if they need an overhaul.

What can brands be doing to improve their perception? 

Perception change follows action, not the other way around. Market leading brands add value to people’s lives through programmes that are not just looking to shift product. They create experiences people want to be part of and establish proof-points that give them the permission to be part of people’s lives. Whether that’s working with schools or running competitions for young entrepreneurs that offer work experience or mentorship as a prize – all these things will provide a touchpoint that makes a positive impact on a young person. 

They also need to ensure they are in constant conversation with young people and are allowing their opinions to inform the company’s approach and attitude, from communications to purpose. 

What is your key takeaway for brands? 

Be bold. Don’t shy away from exploring new territory and taking an approach to your marketing that you may not previously have thought about. Investment in young people now will pay multiple times tomorrow. 

“Your future customers are already making up their mind about your brand”