The Deloitte Talent in Banking Survey 2013 in focus

Switzerland has witnessed an intense public debate Figure 1. Business students’ ranking of as employers, by country, 2013 about the role of banking since the financial crisis. Many people were angry at the support measures 23 required by one of the country’s biggest banks. South Africa This anger seems to have filtered through to student China 23 preferences in two ways. First, banking is relatively less popular among business students in Switzerland Netherlands 24 than worldwide. Second, banking-oriented students Canada 24 Median ranking: 33 in Switzerland have a lower estimation of banks’ “Reputation and Image” than their international 28 counterparts. UK 30

We have seen that banking has declined in popularity Italy 32 globally since the financial crisis. Banking in Switzerland ranks ninth in terms of popularity of the 15 countries 33 surveyed (Figure 1). Without the pre-crisis country Switzerland 34 ranking, it is impossible to say if this relatively-low ranking is a direct result of the turmoil in the sector. 38 However, it certainly seems plausible that the crisis, and 38 associated government support measures, have dented the popularity of what has been the iconic industry in US 42 the Alpine state. 49 Swiss banking-oriented students are significantly less Japan 50 motivated by overall “Employer Reputation and Image” than their global peers. They also associate these 64 factors with banks less than banking-oriented students in other markets. Source: Universum data; Deloitte analysis Swiss banking-oriented students tend to care more about intrinsic factors (“People and Culture” and “Job Characteristics”) than their international counterparts. This is especially true for attributes related to “Job Characteristics”.

Swiss aspirations for “Remuneration and Advancement” are broadly in line with those of their global counterparts, with some attributes ranked lower and some higher. However, Swiss students link these attributes to banks more than their international peers.

Figure 2. Aspirations around “Employer Reputation and Image” attributes, banking-oriented Figures 2-9 show Swiss students’ aspirations and students, Swiss versus total average, 2013 associations for the following categories of attributes; “Reputation and Image”, “Job Characteristics”, “People Financial strength (-5pts) and Culture”, and “Remuneration and Advancement

Market success (-7pts) Opportunities”.

Prestige (2pts) Employer Reputation and Image Banking-oriented students in Switzerland are Inspiring management (-5pts) significantly less motivated by “Employer Reputation Innovation (-3pts) and Image” than are their global counterparts. This Attractive/exciting products may be just as well: they are also less likely than their and services (9pts) international peers to associate those attributes with Fast-growing/ banks (Figure 3). entrepreneurial (-8pts) Corporate Social Responsibility (-4pts) Banking-oriented students in Switzerland are less attracted to eight out of ten “Employer Reputation Ethical standards (-7pts) and Image” attributes than their international peers. Environmental Sustainability The most striking variations are: “fast-growing/ (-2pts) entrepreneurial” (eight points less important in 0% 5% 10% 15% 20% 25% 30% 35% 40% Switzerland) and “ethical standards” (seven points less Switzerland Total average attractive to banking-oriented students in Switzerland). Source: Universum data; Deloitte analysis The one “Employer Reputation and Image” attribute to which banking-oriented students in Switzerland are markedly more attracted than international peers is Figure 3. Association with “Employer Reputation and Image” attributes, banking-oriented students, Swiss versus total average, 2013 “attractive/exciting products and services”, and they rate it nine points higher. This may reflect the country’s Financial strength (1pt) dominance of the industry and Switzerland’s ability to offer clients a comprehensive Prestige (2pts) range of wealth management structures, for companies

Market success (0pts) and individuals. Attractive/exciting products Fortuitously, “attractive products and services” is and services (10pts) Corporate Social also a characteristic that banking-oriented students Responsibility (-11pts) in Switzerland associate with banks. Indeed, they Inspiring management (-5pts) associate banks with this to a much greater (ten point) degree than their international peers. Ethical standards (-5pts) Fast-growing/ Banking-oriented students in Switzerland associate entrepreneurial (-2pts) banks much less with: “corporate social responsibility”, Innovation (-5pts) “ethical standards”, “environmental sustainability” and Environmental sustainability “inspiring management and innovation” than their (-5pts) international peers. The good news for banks recruiting 0% 10% 20% 30% 40% 50% 60% 70% 80% in this market is that these are attributes on which

Switzerland Total average banking-oriented students place little weight.

Source: Universum data; Deloitte analysis Figure 4. Aspirations around “Job Characteristics”, banking-oriented students, Swiss versus Job Characteristics total average, 2013 Swiss interviewees are slightly less attracted than global peers to “having control over my working hours”. This is Professional training and development (2pts) fortuitous, since this is not high on the list of attributes that banking-oriented students in Switzerland associate Challenging work (8pts) with the industry (Figure 5). International travel/relocation (6pts) Fortunately, they associate “challenging work” and Secure employment (0pts) “professional training and development”, the two High level of responsibility most attractive “Job Characteristics”, very strongly (2pts) with banks, and by more than their international Variety of assignments (9pts) counterparts. Flexible working conditions (0pts) However, they have markedly less confidence that Team-oriented work (0pts) banks can offer “secure employment” – possibly a reflection of the huge restructuring programmes Client interaction (3pts) undertaken by Swiss banks in the wake of the crisis. Control over working hours (-3pts) 0% 10% 20% 30% 40% 50% 60%

Switzerland Total average

Source: Universum data; Deloitte analysis

Figure 5. Association with “Job Characteristics”, banking-oriented students, Swiss versus total average, 2013

Challenging work (7pts)

Professional training and development (4pts) High level of responsibility (4pts)

Client interaction (10pts)

International travel/relocation (4pts)

Team-oriented work (-1pt)

Secure employment (-9pts)

Variety of assignments (1pt)

Control over working hours (-5pts) Flexible working conditions (-3pts) 0% 10% 20% 30% 40% 50% 60% 70%

Switzerland Total average

Source: Universum data; Deloitte analysis

Figure 6. Aspirations around “People and Culture” attributes, banking-oriented students, People and Culture Swiss versus total average, 2013 The aspirations of banking-oriented students in Switzerland around “People and Culture” focus on Leaders supporting my development (6pts) career progression: “leaders who will support my Recognising performance development”, “meritocracy” and “a creative and (meritocracy) (3pts) dynamic work environment” come top. These are all A creative/dynamic work environment (6pts) areas that the Swiss consider to be more important A friendly work environment than their global peers. (0pts)

Respect for its people (-3pts) Fortunately for banks recruiting in Switzerland, two

International clients and of these appear in the top three attributes associated colleagues (5pts) with the industry and are more associated with the Enabling personal interests in industry by banking-oriented students in Switzerland schedule (3pts) than elsewhere. Recruiting only the best talent (-7pts) Support for gender equality By contrast, banking-oriented students in Switzerland (-2pts) do not consider “support for gender equality” or Acceptance towards minorities (-4pts) “acceptance towards minorities” to be particularly important. They are considered less attractive in 0% 10% 20% 30% 40% 50% 60% Switzerland even than the lowly ratings they garnered Switzerland Total average globally. Source: Universum data; Deloitte analysis Neither of these attributes is particularly associated with the banking industry, and both are slightly less associated with the industry by banking-oriented Figure 7. Associations with “People and Culture” attributes, banking-oriented students, Swiss versus total average, 2013 students in Switzerland than they are globally.

Recognising performance (meritocracy) (6pts) International clients and colleagues (4pts) Leaders who will support my development (7pts) Recruiting only the best talent (-1pt)

Respect for its people (-4pts)

A creative and dynamic work environment (2pts) A friendly work environment (0pts) Support for gender equality (-3pts) Acceptance towards minorities (-1pt) Enabling personal interests in schedule (-1pt) 0% 10% 20% 30% 40% 50% 60%

Switzerland Total average

Source: Universum data; Deloitte analysis

 Figure 8. Aspirations around “Remuneration and Advancement” attributes, banking-oriented Remuneration and Advancement students, Swiss versus total average, 2013 Earning a good reference for their future career is the top “Remuneration and Advancement” aspiration High future earnings (3pts) for banking-oriented students in Switzerland, and is Good reference for future notably more important for them than for global peers career (11pts) (11 points difference, (Figure 8)). Competitive base salary (7pts) It is also the “Remuneration and Advancement” Leadership opportunities (0pts) attribute that they most associate with banks, and Clear path for advancement which they associate with banks by much more than (-12pts) Sponsorship of future international peers (Figure 9). education (5pts) Performance-related bonuses While Switzerland has led the way among developed (-5pts) economies in curbing pay, high future earnings Rapid promotion (-3pts) remain a key attraction for the country’s - oriented students, and is more important for them Competitive benefits (-5pts) than for international peers. Strikingly, and somewhat Overtime pay/compensation (-3pts) paradoxically, they care less about bonuses and 0% 10% 20% 30% 40% 50% 60% benefits than equivalent students in other markets.

Switzerland Total average Swiss banking-oriented students are notably

Source: Universum data; Deloitte analysis less concerned about having a “clear path for advancement” than are international peers. That is just as well, since they have notably lower expectations that banks will offer this than their global counterparts. Figure 9. Association with “Remuneration and Advancement” attributes, banking-oriented students, Swiss versus total average, 2013 Banking-oriented students in Switzerland associate the Good reference for future industry much more with bonuses than their global career (8pts) peers. This may be a wasted effort by banks – it ranks High future earnings (7pts) low on their list of student priorities, and lower than it does for banking-oriented students worldwide. Competitive base salary (7pts)

Performance-related bonuses (10pts)

Competitive benefits (-3pts)

Leadership opportunities (5pts)

Clear path for advancement (-10pts) Sponsorship of future education (0pts) Overtime pay/compensation (-1pt)

Rapid promotion (-1pt)

0% 10% 20% 30% 40% 50% 60% 70%

Switzerland Total average

Source: Universum data; Deloitte analysis Contacts Juerg Frick Senior Partner & Vice Chairman, Deloitte Switzerland Banking Leader +41 58 279 6820 [email protected]

Damien Leurent Partner, Deloitte France Financial Services Leader EMEA Banking and Capital Markets Co-Leader +33 1 40 88 29 69 [email protected]

Kevin O’Reilly Partner, Deloitte UK EMEA Banking and Capital Markets Co-Leader +44 20 7303 5340 [email protected]

Margaret Doyle Head of Financial Services Research Deloitte UK +44 20 7007 6311 [email protected]

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