Bridging the Generational Divide: Effective Coaching for Younger and Older Employees

Many financial executives are facing the challenge of managing, training and motivating a multi-generational workforce. After all, most organizations are comprised of younger and older, more experienced employees. It is important to find ways to unite people of different ages, reconcile their differences and help them function effectively as a cohesive team – especially for financial organizations responsible for managing clients’ money and ensuring their long-term wellbeing.

We are living at a time when baby boomers delay retirement and Gen Z enters the workforce. It comes as no surprise that many financial leaders are trying to determine whether they should offer different coaching programs for younger versus older employees. One of the best ways to address this challenge is to understand the unique attributes, needs and motivations of each group and tailor your coaching sessions accordingly.

Fortunately, the financial industry employs both mature and less seasoned individuals and reaps the rewards of embracing age diversity.

Below are a few valuable suggestions on how financial leaders can effectively coach employees across generations and help their teams thrive.

Recognizing and accepting generational differences

First of all, every executive should accept the fact that generational divide is inevitable in the workforce. It’s something they have to confront, one way or the other. A business leader can see it as a nuisance, a setback or another big issue to address. Alternatively, they can view it as an opportunity to maximize the potential of every age group, benefit from the unique attributes each group brings to the table, and drive the company towards bigger and better results. After all, both young and older team members bring diverse perspectives to the workplace and may complement each other nicely.

Evidence shows that older employees usually place more value on face-to-face interactions and loyalty. Most of them would rather stay put and continue in their current roles, prioritizing stability over change. Younger employees, on the other hand, welcome flexibility, digital communications and the work that is driven by purpose and social change. In addition, younger people are more open to experimenting with different careers and exploring various job opportunities before committing to a more permanent role.

When it comes to older financial advisors, they tend to be more conservative than younger professionals and usually rely on their deep understanding of market trends and favor long-term investment strategies. Conversely, younger financial advisors are willing to explore innovative investment options and technologies such as robo-advisory services or emerging asset classes that allow them to cater to young and tech-savvy clients. It goes without saying that these contrasting approaches can lead to different perspectives on portfolio management and client relationships. Furthermore, it should definitely be factored into training and coaching sessions.

Coaching young financial advisors

As reported by Kiplinger, younger employees are usually eager to learn, grow and make an impact. They are more likely to thrive in the environment that encourages collaboration, teamwork and flexibility. With that in mind, training younger financial professionals may require a bigger focus on digital tools and emerging technologies. Young individuals are usually more comfortable with various online platforms including financial planning software, robo-advisors or customer relationship management (CRM) systems. As mentioned in Deloitte’s “Leading the Future of Work” Report, financial business leaders should put a lot of effort into fostering a growth mindset among young team members. This means that it is necessary to promote the belief that skills can be developed through effort, learning and hard work as opposed to fully relying on fixed traits.

In addition, research indicates that it is important to keep in mind that younger employees usually need more clarity, direction or specific explanations. They are more likely to deliver if they get help setting achievable goals and getting regular feedback.

Coaching older, more experienced financial advisors

In contrast, training older and more experienced financial professionals should focus more on enhancing their existing skills, capabilities and expertise. It’s undeniable that older employees have wisdom and market knowledge and take pride in well-established client relationships that may have taken years to develop. That said, they should learn how to incorporate new technologies, tools and strategies into their workflow. Without newly developed technical skills, they may start falling behind and missing out on opportunities. From cybersecurity solutions to data analytics and robo-advisors, they should embrace the importance of continuous learning and upskilling – no matter how experienced, savvy or knowledgeable they are. Ongoing education is particularly crucial in finance which is one of the most competitive, fast-paced and rapidly evolving industries. What’s more, experienced team members may not respond well to a top-down approach, as suggested by Pearson’s Research. That’s another detail to keep in mind when it comes to putting together coaching sessions.

Capitalizing on generational divide

According to Wharton Executive Education, developing a cohesive team comprised of different age groups, requires more than individual coaching. It is important to figure out how to bridge generational gaps and emphasize mutual respect. It is a great idea to pair younger and older employees and encourage them to learn from each other. In fact, they could educate, inspire and bring out the best in each other. For example, older employees can share industry insights and relationship-building tips, while younger individuals can explain how to leverage new technologies or overcome the fear of new technological devices.

Pearson Research highlights the importance of human skills such as leadership, collaboration and communication which are indispensable across ALL age groups. In addition, it would be ideal to create a mix of traditional meetings and digital tools when training, coaching or communicating with both younger and older employees.

Final thoughts:

As stated by Wharton Executive Education, older financial professionals often outperform their younger counterparts when it comes to problem-solving and adaptability. At the same time, younger financial advisors can bring a fresh perspective, innovative ideas and technical acumen. To maximize the potential of both groups, financial organizations should take several different factors into consideration and carefully tailor coaching approaches. In other words, by tapping into the strengths of each age group, financial organizations can create a culture of collaboration, learning and long-term success.

FREQUENTLY ASKED QUESTIONS

1. Why is it so important to tailor coaching sessions for younger and older financial advisors?

Designing effective coaching sessions can help financial executives tap into the unique attributes, strengths, skill sets and motivations of each age group. In a nutshell, younger advisors tend to be more tech- savvy and are better prepared to embrace the latest technological tools. They would also benefit from developing a growth mindset and an appreciation for hard work and constant learning, rather than fully relying on fixed traits. The older, more established financial professionals may need to enhance their existing knowledge and expertise, and learn how to navigate new technologies. The pointers above should always be factored into each coaching session.

2. How can financial executives bridge the generational divide in their teams?

It would be a smart thing to do to pair younger and older financial professionals and encourage them to learn from each other. This may lead to mutual respect and effective collaboration. Younger people should always learn from older, more established professionals while older employees could benefit immensely from a fresh perspective, new ideas and technological guidance coming from their younger counterparts. These interactions should strengthen and improve the team’s overall performance.

3. What should coaching for younger versus older financial advisors focus on?

Coaching designed for younger advisors should help them build confidence, improve relationship-building skills and develop a deeper appreciation for continuing education. When it comes to older advisors, coaching should enable them to enhance their mentoring capabilities while encouraging them to keep their mind open to new market trends and technical tools. In addition, they should consider and learn about some innovative approaches that resonate with younger clients.