Gen X 1965–1980 39–54 Years Old

IMPLICATIONS of FIVE GENERATIONS on TRUST & WEALTH

. Review of the generational cohorts: 5 generations of employees and clients . Shifts in workforce and client demographics . Implications for trust and wealth management . What companies are doing to address multi-generational teams and clients . Strategies you can immediately use

Traditionalists 1910–1945 74+ years old

Baby Boomers 1946–1964 55–73 years old

Gen X 1965–1980 39–54 years old

Millennials 1981–1996 23–38 years old

Gen Z 1997 + 22 years old and below

Write down 3-5 things that you feel shaped your generation.

Share with the person next to you.

Baby Traditionalists Gen X Millennials Gen Z Boomers

WWII Vietnam Gulf War Desert Storm Social Media Stock Market Assassinations Watergate 9/11 Education Crash Civil Rights Challenger Terrorism Smart Great Movement Technology Depression Layoffs Technology/ Woodstock Internet Multi- FDR Divorce Generational Large Families Diverse Family Households Unit

Pre-depression

4.11 Marriages occurred at Average household younger ages and at Husband, wife, population 19301 greater numbers biological children, and extended family

Depression/Post-depression Divorce was rare Men left to find work Wife’s role – assist Many wives and children worked to supplement husbands in the home family income and raising children Women ran households, worked, and raised children alone

3.33

Average household Television dictated family population 19552 schedules and furniture “Traditional family" arrangements father as breadwinner, mother as homemaker, and three+

Social issues shaped parent/child relationships Impacted First generation of children consumerism and teenagers with significant spending power

2.76

Average First American generation household to do worse financially than Increase in divorce 4 population 1980 their parents Increase in one parent households

Increase Mothers start working

Daycare in early childhood Both parents working and “latchkey kid” in pre/early teen

2.63

Average household “Helicopter” population 19905 parenting Single parent households < half of children lived in a family with two married parents

Decisions made as a Technology part of Boomerang family unit family life One-fifth of Millennials started with gaming aged 25-34 lived in their Delaying marriage and and advanced to parent’s or grandparent’s children until later in life world-wide web home in 2015

2.63 One-in-four U.S. parents Average household Families are more ethnically, are unmarried; 35% of all population 20186 racially, religiously, and unmarried parents stylistically diverse than half cohabitate(6); blended a generation ago families

Roughly three-in-ten, ages 6 to 17, live with a single parent(7) Born to tech savvy Gen X parents or Nearly half (48%) are (6) tech dependent Projected to be most well- racial or ethnic minorities Millennials educated of any generation

(5) Source: U.S. Census Bureau. Web: www.census.gov (6) Source: Pew Research Center analysis of Current Population Survey March Supplement (IPUMS) (7) Source: https://www.pewsocialtrends.org/2018/11/15/early-benchmarks-show-post-millennials-on- © 2019 ALULA. All rights reserved. track-to-be-most-diverse-best-educated-generation-yet/ 10 Core Values and Key Attributes

Baby Traditionalists Gen X Millennials Gen Z Boomers

Sacrifice Team-Orientation Self-Reliance Achievement Privacy Hard Work Relationship Balance Technology Pragmatic Focus Respect for Informality Global Planners Authority Personal Orientation Growth Creativity Entrepreneurial Loyalty Innovation Work Ethic Fun Financially Duty Before Meaning/impact focused Pleasure Dedication

All generations want • To be respected

• To add value and contribute

• To learn and grow

• To progress in their career

• To have work/life integration

Significant Demographic Shifts

Aging Influx of Population Millennials

ALULA | alula.clg.com US Population Is Aging: Median Age 38 In 2019 28 In 1970

ALULA | alula.clg.com By 2025, 75% of workforce will be MILLENNIALS

. Millennial retention: one of the biggest pain points for organizations . 21% of Millennials have changed jobs in past year . 60% of Millennials say they are open to a different job opportunity

Sources: Pew Research Center, Gallup and PricewaterhouseCoopers

2012 2019 Traditionalist Traditionalist <1% Millennials 2% 11%

Gen X Millennials Baby 36% 35% Boomers 49%

Gen X 38%

Baby Boomers 29%

. In 6 years, Millennial population has gone from 11% to 35% . Baby Boomer population from 49% to 29%

Company A Company B

Baby Traditionalist Gen Z 2% Boomers 4% 12% Baby Boomers 14%

Millennial 36%

Gen X 16%

Millennial 66%

Gen X 50% . 66% Millennial workforce . 50% Gen X workforce . 90% of the workforce has less . 36% Millennial workforce than 4 years of experience

Engagement Retention IMPACT

Knowledge Culture Transfer

Financial Services Company Generational Termination Data 14

0 Traditionalist Baby Boomers Gen X Millennials

Turnover rate = 16% Estimated Yearly Cost: $600,000

Cross-generational Structuring Using technology to Leveraging internship dialogue forums plan/process for gain efficiencies and programs transfer of knowledge work differently Comprehensive Increasing communication plans Introducing clients to Engagement survey transparency around using various channels younger employees results by generation compensation process early on Creating and LT roundtable Engaging employees communicating Engaging millennials to discussions in defining career decision-making matrix build customer paths & development relationships Creating opportunities opportunities for upward feedback Reverse mentoring on new technology

. Leverage various channels and mechanisms Communicate . Know what’s important to your team & clients

3 . Get to know people on a personal level Connect . Understand individual differences and C preferences . Flex your style and approach Change . Be open to new ideas and approaches . Embrace diversity and practice inclusion

SOURCE: EY Study

$ $ $

Relationship Retention Management IMPACT

Product & Processes Service & Tech Options

Traditionalists Baby Boomers

. Formality and respect . Respect for their experience . Experience and competence . Personal connection and courtesy . Understanding data and how to . Individualized and customized use in making decisions attention . Quality of products and services . Recognition of their . Relying on what worked in the accomplishments past . Time to ask questions and voice . Company/function reputation and opinions brand . Rules and consistency

Generation X Millennials

. Respect for their time . Respect for their knowledge . Competence . Influence on decisions . Honest and direct communication . Understanding and following . Information and data to back it up trends . Openness to new ideas/ . Leveraging technology approaches . Time spent on innovation . Use of technology . Options that are fast, easy, convenient

Gen Z

. Money and job security . Accumulating rewarding experiences versus “things” . Independent – make own financial decisions early on . Multiple vehicles to communicate

© 2019 ALULA. All rights reserved. 28 Things You Can Do to Address Clients Generational Shifts and Preferences . Review and understand your client demographic data . Create a client retention strategy • Conduct client “stay” interviews • Make it part of your strategic messaging . Educate client teams on generation differences and preferences . Equip client teams with tools and technology to help them manage across all generations . Conduct regular reviews of client relationships and ownership . Refresh product portfolios as Boomers transition from investing to spending . Assess pricing models and unbundling portfolios for value-conscious Millennials

TRADITIONALIST

GEN-X

MILLENIAL KIM HUGGINS 267-664-1837 [email protected]