Attract Millennials And Gen Z, Banking Industry Must Prepare A Prestigious Offer

Illustration. (Photo: Unsplash)

JAKARTA - Competition to achieve quality young talents in order to continue to improve banking business and services to customers is very dependent on career development programs, especially for young talents as valuable assets. The majority of millennials and Gen Z who are the focus of Indonesian human resources in the future are very concerned about the seriousness of the company where they work in appreciating career development, achievement, and interest.

Segara Research Institute Executive Director Piter Abdullah said Indonesia's demographic bonus places millennials and Gen Z as the majority workforce in the future. In addition to the force, it will become the largest fund holder in the future, millennials and Gen Z are also familiar with the digital world according to current trends. Banking must adapt to the trends and habits inherent in this generation to open up job opportunities.

"The current young generation will hold all assets, both capital assets and HR assets. So, banks should not hesitate to select the younger generation, especially regarding technological and digital literate capabilities. However, they must also pay attention to their self-development and career in the future," he said, Friday, November 3.

Piter added that banks must adapt to the needs and lifestyles of today's society. Thus, banks are required to direct their innovation and services towards digitalization. Banking must actively recruit young people who are already digitally literate, develop digital programs, including preparing the current generation and the following to remain relevant to the needs and lifestyle of the community.

"Every generation has the technology. In ten to twenty years they will become leaders, as well as dominate banks. Banks will definitely accept the younger generation, open vacancies, but also manage special career development programs in the future. That's a must," he said.

Based on the Central Statistics Agency (BPS), the number of Indonesia's workforce is approximately 143.72 million, with a millennial generation composition of 25.87 percent and Gen Z around 27.94 percent. Meanwhile, business fields with financial services and insurance categories absorb around 1.15 percent or about 1.60 million workers.

Blessing White's research states that 60 percent of employees want opportunities to develop their abilities and interests so they can feel satisfied with their work. Meanwhile, 75 percent of workers currently tend to look for jobs in companies that have a strong Employee Value Proposition (EVP) program.

According to Ulrich and Brockbank (2005), EVP is most in demand by employees, namely EVP where the company has a clear vision, opportunities for self-development, incentives as rewards, impacts or consequences of the work done, communities with high concern, open communication, and experiments to manage flexible corporate policies for employees.

Evi Damayanti, Chief Human Capital of PT Bank Danamon Indonesia Tbk (Danamon) said, EVP is a matter of reciprocity and added value that the company can provide for the dedication, loyalty and performance of employees. EVP has various forms, such as benefits or appreciation, tiered career opportunities, and prestigious values when it becomes an integral part of a company. Set in a global capacity with MUFG, Danamon offers EVP in the form of a GROW, namely Global Expose, Rise to Excellence, Own your Future, and Wellness & Well-being.

To achieve this vision, Danamon has a Corporate Wide Learning Programs, which can be followed by all employees and Danamon Corporate University as a learning center for the banking industry. A number of other development programs include Danamon Bankers Trainee (DBT) which will educate young talents to become a generalist, Danamon Banking Officer (DBO) and Danamon Small Medium Enterprise (SME) Trainee for sales/business functions, as well as Danamon Technology Trainee (DTT) for IT functions are the target of young talents who want to develop a sustainable career in Danamon.

"Our commitment is to produce young talents who have global capabilities, excel in terms of skills and understanding in the banking industry, and achieve financial well-being for a better future. This is where fresh graduates become future leaders in the banking industry," said Evi.