Millennials may forever change treasury

Millennials are gradually and subtly changing the whole finance organizations and treasury. With different behaviors, expectations, profiles and ways of thinking they will not easily integrate treasury teams, as former gen’s did. A radical change is coming and will impact recruitment and search of talents. At the same time, we need new skills, new talents, but with the risk of not being able to attract them and to retain them into treasury jobs. Lots of senior treasurers have not yet noticed these profound changes that need to be considered when recruiting new young treasurers.

“Forever Young” (Alphaville)

What is up with those weird millennials, is a question many middle-aged managers might have muttered in the workplace when they were confronted with these young employees born between 1981 and 1996. However, within the Y gen, I guess the second half born in the 1990’ are the ones we want to talk about. They have different attitudes to careers and hierarchy. Their centers of interest may differ from those of their parents and predecessors. Part of their irritation and incomprehension may come from the economic and environmental situation and mess created and left by the older gen’s, i.e., the “X” and the “Boomers” (who aren’t anymore “babies”). But among the finger pointing, people have maybe underestimated the impacts on economy, and how they will change finance, because of generational differences. Finance, as we already wrote in former articles, has changed these last months more because of Millennials than because of COVID lockdowns. But Treasury will not escape. Senior Treasurers will have to consider how to recruit new future talents and how to make sure the Millennials hired remain committed to the company values, to the culture and ways of working. They seem to have subtly different attitudes towards money from their elders. It is a first hurdle for treasurers, who per definition manage “money”.

Is treasury attractive for “Ys” and “Zs”?

Are they still interested in joining Treasury departments? Maybe less than in the past, which will complexify recruitment in future. Systems and key roles remain in the hands of “Xs” and “Boomers” … but for how long? The older “Y” gen, born in the 80’ will come to management functions soon. Therefore, change is there, change is now and time to contemplate the new ways of recruiting and working must be addressed. It is also linked to home working, which will also certainly deeply impact the recruiting. They have a philanthropic bias and attitude vis-à-vis work, slightly different from elders. Consumption, careers, ESG culture, work-balance, tech’s, etc… are different. This is potentially a revolution chock of cultures. I keep thinking the young “Y” and obviously the “Z” are more different from previous generations than the current acting other generations between themselves. It will be a radical change some people have not yet felt and seen. But it is a coming revolution, which will also impact treasury management.

“Where is the revolution?” – Depeche Mode

They prefer smaller companies to big ones, big “names” are less attractive than in the past. Who dream today to work for GE, EXXON or BofA? They prefer companies where they will be able to make things change and to be influential in their work and contribution to the company. They have high level ESG values and expectations. These values will modify investing (retail investments) and social media have proved how investing has changed and the Robinhood-Game stop story is a fantastic example of these deep changes. The current insecurity with economy after health crisis does not help. Anxiety should increase and they should work harder, would have thought Boomers. But it will not be the case. They search for a better life-work balance. They value-base invest, and they value-base apply for jobs and companies reflecting their own values and essentials. The branding is not anymore, a key recruiting factor. They want to be part of the game, to participate, to contribute but not at any price. Their sense of sacrifice and work alcoholism is far below ours. They also have not tunnel vision often noticed with elders. We do not apply decision, thinking acting based on secular principles and economic theories. They are ready to revamp principles and to make things differently. As they found current state of economies and the whole environment bad and disastrous, they want to change things and make the world better. Yes, they are also more idealist than we are, what seems normal for younger generations, but true. They want and will change the world and Treasury will be impacted too. For better, let’s hope… In any case, heads of treasury must consider how to best recruit new employees given these obvious gen changes, to be efficient and performant. The major issue will be to retain these millennials talents, once recruited. Believe me, it will not be easy at all, especially if the Heads of are not changing their attitude, management, and organizations. The young “Y” and “Z” will revolutionize forever the finance landscape and treasury. Let’s be prepared for this revolution! The sooner the better….

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Fran?ois Masquelier, Chair of ATEL – Luxembourg August 2021